India Stock Market: current P/E Ratio

24.12
Last update: 20 December 2024

The estimated P/E Ratio for India Stock Market is 24.12, calculated on 20 December 2024.

Considering the last 5 years, an average P/E interval is [20.99 , 23.73]. For this reason, the current P/E can be considered Overvalued

P/E Ratio is calculated on the INDA Etf, whose benchmark is the India Stock Market.

Historical P/E Ratio

When evaluating the P/E Ratio, it's important to not only look at its absolute value but also compare it to the average of previous periods. This allows for a more comprehensive understanding of the index/market valuation.

The following chart shows how the India Stock Market P/E Ratio has changed over time. Furthermore, for some trailing timeframes, you can view the average P/E and standard deviation.

20 December 2024 · P/E Ratio: 24.12
20 December 2024 · P/E Ratio: 24.12 · 1Y Average: 24.55 · 1 Std Dev range: [23.84 , 25.27] · 2 Std Dev range: [23.13 , 25.98]
20 December 2024 · P/E Ratio: 24.12 · 5Y Average: 22.36 · 1 Std Dev range: [20.99 , 23.73] · 2 Std Dev range: [19.62 , 25.10]
20 December 2024 · P/E Ratio: 24.12 · 10Y Average: 19.71 · 1 Std Dev range: [17.45 , 21.97] · 2 Std Dev range: [15.19 , 24.24]
20 December 2024 · P/E Ratio: 24.12 · 20Y Average: 17.32 · 1 Std Dev range: [14.76 , 19.88] · 2 Std Dev range: [12.21 , 22.43]
Methodology
The Average P/E (μ) and the Standard Deviation (σ) are calculated excluding 20% outliers (i.e. over a range of values excluding 10% of observations from the top and 10% from the bottom of the dataset).
A P/E between (μ - σ) and (μ + σ) is considered "Fair", over a specific timeframe.
A P/E greater than (μ + σ) is defined "Overvalued", greater than (μ + 2σ) is defined "Expensive".
A P/E less than (μ - σ) is defined "Undervalued", less than (μ - 2σ) is defined "Cheap".
20 December 2024 · P/E Ratio: 24.12 · Last Periods metrics
Show all periods
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Range
Analysis
Period Average P/E
(μ)
Std Dev
(σ)
Std Dev Range
[ μ-2σ · μ-σ , μ+σ · μ+2σ ]
vs Current P/E
( 24.12 )
Deviation
vs μ
Valuation
Last 1Y 24.55 0.71 [23.13 · 23.84 , 25.27 · 25.98]
-0.60 σ
Fair
Last 2Y 23.66 1.32 [21.02 · 22.34 , 24.97 · 26.29]
+0.36 σ
Fair
Last 3Y 22.56 1.52 [19.52 · 21.04 , 24.08 · 25.59]
+1.03 σ
Overvalued
Last 4Y 22.59 1.26 [20.08 · 21.33 , 23.84 · 25.10]
+1.22 σ
Overvalued
Last 5Y 22.36 1.37 [19.62 · 20.99 , 23.73 · 25.10]
+1.29 σ
Overvalued
Last 6Y 21.51 1.95 [17.62 · 19.56 , 23.46 · 25.41]
+1.34 σ
Overvalued
Last 7Y 20.93 2.15 [16.63 · 18.78 , 23.08 · 25.22]
+1.49 σ
Overvalued
Last 8Y 20.40 2.19 [16.01 · 18.20 , 22.59 · 24.78]
+1.70 σ
Overvalued
Last 9Y 19.96 2.25 [15.45 · 17.71 , 22.22 · 24.47]
+1.85 σ
Overvalued
Last 10Y 19.71 2.26 [15.19 · 17.45 , 21.97 · 24.24]
+1.95 σ
Overvalued
Last 11Y 19.28 2.31 [14.66 · 16.97 , 21.59 · 23.90]
+2.10 σ
Expensive
Last 12Y 18.86 2.46 [13.94 · 16.40 , 21.32 · 23.78]
+2.14 σ
Expensive
Last 13Y 18.35 2.67 [13.02 · 15.68 , 21.02 · 23.69]
+2.16 σ
Expensive
Last 14Y 17.98 2.76 [12.46 · 15.22 , 20.75 · 23.51]
+2.22 σ
Expensive
Last 15Y 17.89 2.68 [12.53 · 15.21 , 20.57 · 23.24]
+2.33 σ
Expensive
Last 16Y 17.64 2.63 [12.39 · 15.02 , 20.27 · 22.90]
+2.47 σ
Expensive
Last 17Y 17.54 2.67 [12.19 · 14.87 , 20.21 · 22.88]
+2.46 σ
Expensive
Last 18Y 17.57 2.58 [12.41 · 14.99 , 20.16 · 22.74]
+2.54 σ
Expensive
Last 19Y 17.50 2.50 [12.51 · 15.01 , 20.00 · 22.49]
+2.65 σ
Expensive
Last 20Y 17.32 2.56 [12.21 · 14.76 , 19.88 · 22.43]
+2.66 σ
Expensive

P/E Comparison

How is the India Stock Market P/E Ratio, compared to other global ratios?

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Deviation vs μ
Trend P/E 1Y 5Y 10Y 20Y
India 24.12
-0.60 σ +1.29 σ +1.95 σ +2.66 σ
All World 20.46
+0.66 σ +1.89 σ +2.96 σ +3.83 σ
Emerging Markets 13.29
-1.00 σ -0.22 σ +0.02 σ +0.49 σ

India Stock Market Trend

Trend is evaluated considering the price of the INDA Etf and its 200/50-day moving averages (SMA).

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Trend Indicator Valuation Margin
Long Term Price vs SMA200 -2.44% 20 Dec
Short Term Price vs SMA50 -2.79% 20 Dec
The 200-day moving average is a long-term indicator that takes into account the average price of a stock over the past 200 trading days. It is considered a significant level of support or resistance, meaning that when the stock price is above the 200-day moving average (i.e. margin vs moving average is positive), it is generally viewed as bullish, while when it is below, it is viewed as bearish.

The 50-day moving average, on the other hand, is a shorter-term indicator that measures the average price of a stock over the past 50 trading days. It is also viewed as a significant level of support or resistance and can be used to identify shorter-term trends.