 "persistent selloff in Indian equities")
The persistent selloff in Indian equities has driven valuations to their lowest in over eight years.
The BSE Sensex’s trailing price-to-earnings (P/E) ratio dropped to 20.4x on Friday, marking its lowest since May 2020 — excluding during the pandemic-induced sell-off — when it touched 19.5x due to concerns over the economy and corporate earnings.
The current P/E is only marginally higher than the July 2016 levels, when it stood at 20.3x.
The trailing P/E ratio is a valuation metric that compares a company’s current stock price to its earnings over the previous 12 months. It is calculated by dividing the
