Market selloff sparks valuation reset, stocks under 20x P/E surge 60%

Stocks with P/E of less than 20x swell from 214 from 355

The ongoing market selloff has triggered a significant valuation correction, with the number of stocks trading at a price-to-earnings (P/E) multiple of less than 20x surging over 60 per cent.

 

As per an analysis by DSP Mutual Fund, there are now 355 stocks in the BSE AllCap universe with trailing P/E multiple of less than 20x, up from just 214 in September when the markets were at their peak. The BSE AIICap index comprises nearly 1,200 stocks across large-, mid- and small-caps.

 

“Across market capitalisations, price earnings multiples are trending lower. This shift is driven by a combination of slowing