Glossary
- b (price addendum)
- B-shares
- Backwardation
- Balance-sheet analysis
- Bar chart
- Base currency
- Base interest rate
- Basis point
- Basis trade
- Basket certificate
- bB (price addendum)
- Bear Call Spread
- Bear flag
- Bear market
- Bear trap
- Bearer share
- Bears
- Benchmark
- Beta factor
- bG (price addendum)
- Bid
- Bid price
- Bid-ask spread
- Black-Scholes model
- Blue chips
- Bobl Future
- Bodies of the stock exchange
- Bond
- Bond index
- Bonus
- Bonus certificate
- Bonus shares
- Bonus thresholt
- Book-building
- Bookbuilding range
- Börsenordnung (Stock Exchange Rules and Regulations)
- Börsenrat (Exchange Council)
- Break-even point (warrants)
- Breakout gap
- Bridge capital
- Broker
- Brokerage commission
- Buffett indicator
- Bund Future
- Bundesanstalt für Finanzdienstleistungsaufsicht (BAFin)
- Business angel
- Business plan
- Buyback
Buffett indicator
Ratio between a country's total market capitalization and GDP to value the stock market.
The Buffett indicator, named after the investor Warren Buffett, is a key figure for assessing the valuation of a country's entire stock market. It is calculated by dividing the total market capitalization of all listed companies by the country's gross domestic product (GDP). A value above 100 percent indicates a possible overvaluation, while values below 75 percent can indicate a potential undervaluation.
The world-famous investor Warren Buffett himself described this indicator as “probably the best single measure of where valuations are at any given time”. The indicator is used to assess market trends and identify potential over- or undervaluations of the market as a whole.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.
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