Sensex trailing P/E declines to 22.9x, lowest in the past 12 months

The benchmark index was down 1.18 per cent on Monday and closed at 78,782 compared to Friday's close of 79,724

The latest correction in the Indian markets has led to a sharp decline in equity valuations in the country.

 

The trailing price-to-earnings (P/E) multiple of the benchmark BSE Sensex declined to 22.9x on Monday, the lowest in the past 12 months and down nearly 10 per cent from a high earnings multiple of 25.2x at the end of March this year.

 

This valuation is nearly 5 per cent lower than its 10-year average valuation of 24.1x, which is not common.

 

In the past 10 years or 120 months, Sensex valuation has fallen below the

 

10-year average on only 19 occasions.