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The Nifty trades at a 12-month forward price to earnings multiple of 16.8 times, at a 7 per cent discount to its long-period average of 18.1 times, according to the brokerage
2 min read Last Updated : Mar 08 2020 | 10:50 PM IST
India’s market cap-to-GDP — a ratio used to determine how over, or under-valued a market is — is now at 70 per cent, based on FY20 GDP estimates, and below its long-term average of 76 per cent, a report by Motilal Oswal Financial Services observed.
This is the lowest in the last four years. The ratio was the highest, at 95 per cent, in FY10.
Valuations of Indian equities are now below their long-period averages. The Nifty trades at a 12-month forward price to earnings multiple of 16.8 times, at a 7 per cent discount to its long-period average of
