Yardeni model - confused


If we get yield as per yardeni model with formula = 6%

Market f/w yield is 7 %

Then market is over or undervalue?

Since, in fed model the value from formula shd be more than treasure to be undervalued

by yield do you mean y(b) - d(LTEG) ?

if so, then the market is undervalued, because equities are offering a higher return than the bond market (adjusted for default risk and growth)…it is a similar rationale to evaluating the fed model

if you mean what i think you mean then the answer is undervalued