Prologis‘ CAPE Ratio

The Prologis CAPE Ratio is a valuation metric designed for the logistics real estate sector, which includes warehouses, distribution centers, and fulfillment hubs. This sector has grown significantly due to the rise of e-commerce, global supply chains, and just-in-time inventory management. Traditional valuation metrics can be distorted by short-term market swings, but the Prologis CAPE Ratio smooths earnings over a decade to provide a clearer long-term perspective. This helps investors assess whether logistics properties are fairly priced relative to historical earnings trends.