After some asset (condo or a stock or a bccy) has experienced an exponential growth, someone would wonder how soon it would slow down. The math is compelling. If its valuation doubles every 3Y, then over 30Y the value of a unit would baloon to 1000 times.

Payout ratios are a good test “Is it overvalued now?” Note bccy and some tech stocks have zero payout and easily become overpriced without anyone noticing.

— P/E is more widely used. If a business generates exponential profit to maintain its P/E, then it’s not overpriced.
— CDY .. more reliable than P/E as the payout is physically paid out. The dividend safety is under scrutiny.
— realized net rental yield .. (for rEstate) is similar to CDY