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Equity valuations once again on the rise even as profit moderates

A steady rise in the valuation has been largely due to higher stock prices, and not because of faster growth in corporate earnings

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Photo: Bloomberg

Krishna Kant Mumbai

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Equity valuations are once again on the rise, after they cooled down in the second half of 2021 and the first half of 2022.
 
The BSE Sensex trailing price-to-earnings (P/E) multiple has risen to a 17-month high of nearly 25x, from 23.7x at the end of December 2022 and 21.6x at the end of June 2022. Similarly, the index closed on Friday with a trailing price-to-book (P/B) value ratio of 3.6x, up from 3.4x at the end of December 2022; it is the highest since December 2021.
 
A steady rise in the valuation has been largely due to higher stock

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First Published: Jul 30 2023 | 10:50 PM IST

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