Bull run takes Sensex valuation to 2-yr high; earnings per share decline

The recent record-setting rally on Dalal Street has pushed the valuation of BSE benchmark Sensex to a two-year high.

The leading share index is currently trading at a trailing price-to-earnings (P/E) multiple of 25.2 x, up from 23.7x in December last year and the highest since January 2022, when it was at a trailing P/E of 26.9x. The index’s current price-to-book (P/B) value is 3.7x — the highest since November 2021.

The Sensex valuation has witnessed a significant increase in the past two months, with most of the gains coming in this period. The trailing P/E multiple of the index had dropped