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.
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".
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?
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).
Trend | Indicator | Valuation | Margin | |
---|---|---|---|---|
Long Term | Price vs SMA200 | -2.44% | 20 Dec | |
Short Term | Price vs SMA50 | -2.79% | 20 Dec |