India Stock Market: current P/E Ratio

24.25
Last update: 18 July 2024

The estimated P/E Ratio for India Stock Market is 24.25, calculated on 18 July 2024.

Considering the last 5 years, an average P/E interval is [20.23 , 23.30]. 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.

18 July 2024 · P/E Ratio: 24.25
18 July 2024 · P/E Ratio: 24.25 · 1Y Average: 23.82 · 1 Std Dev range: [23.13 , 24.51] · 2 Std Dev range: [22.44 , 25.20]
18 July 2024 · P/E Ratio: 24.25 · 5Y Average: 21.77 · 1 Std Dev range: [20.23 , 23.30] · 2 Std Dev range: [18.70 , 24.83]
18 July 2024 · P/E Ratio: 24.25 · 10Y Average: 19.34 · 1 Std Dev range: [17.19 , 21.49] · 2 Std Dev range: [15.05 , 23.63]
18 July 2024 · P/E Ratio: 24.25 · 20Y Average: 17.07 · 1 Std Dev range: [14.58 , 19.56] · 2 Std Dev range: [12.08 , 22.05]
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".
18 July 2024 · P/E Ratio: 24.25 · 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
( 24.25 )
Deviation
vs μ
Valuation
Last 1Y 23.82 0.69 [22.44 · 23.13 , 24.51 · 25.20]
+0.61 σ
Fair
Last 2Y 22.72 1.23 [20.26 · 21.49 , 23.95 · 25.18]
+1.24 σ
Overvalued
Last 3Y 22.27 1.24 [19.80 · 21.03 , 23.51 · 24.75]
+1.60 σ
Overvalued
Last 4Y 22.33 1.06 [20.21 · 21.27 , 23.39 · 24.45]
+1.81 σ
Overvalued
Last 5Y 21.77 1.53 [18.70 · 20.23 , 23.30 · 24.83]
+1.62 σ
Overvalued
Last 6Y 20.97 1.96 [17.05 · 19.01 , 22.93 · 24.89]
+1.67 σ
Overvalued
Last 7Y 20.48 2.04 [16.41 · 18.44 , 22.52 · 24.55]
+1.85 σ
Overvalued
Last 8Y 19.99 2.07 [15.84 · 17.92 , 22.06 · 24.13]
+2.06 σ
Expensive
Last 9Y 19.59 2.12 [15.36 · 17.47 , 21.71 · 23.83]
+2.20 σ
Expensive
Last 10Y 19.34 2.15 [15.05 · 17.19 , 21.49 · 23.63]
+2.29 σ
Expensive
Last 11Y 18.92 2.21 [14.49 · 16.70 , 21.13 · 23.34]
+2.41 σ
Expensive
Last 12Y 18.46 2.44 [13.57 · 16.01 , 20.90 · 23.34]
+2.37 σ
Expensive
Last 13Y 17.97 2.62 [12.72 · 15.35 , 20.59 · 23.21]
+2.40 σ
Expensive
Last 14Y 17.73 2.58 [12.56 · 15.15 , 20.31 · 22.90]
+2.52 σ
Expensive
Last 15Y 17.66 2.49 [12.67 · 15.17 , 20.16 · 22.65]
+2.64 σ
Expensive
Last 16Y 17.33 2.54 [12.26 · 14.80 , 19.87 · 22.41]
+2.73 σ
Expensive
Last 17Y 17.46 2.56 [12.34 · 14.90 , 20.03 · 22.59]
+2.65 σ
Expensive
Last 18Y 17.41 2.43 [12.55 · 14.98 , 19.83 · 22.26]
+2.82 σ
Expensive
Last 19Y 17.28 2.38 [12.52 · 14.90 , 19.66 · 22.04]
+2.92 σ
Expensive
Last 20Y 17.07 2.49 [12.08 · 14.58 , 19.56 · 22.05]
+2.88 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 24.25
+0.61 σ +1.62 σ +2.29 σ +2.88 σ
All World 20.63
+2.80 σ +2.32 σ +3.65 σ +4.33 σ
Emerging Markets 14.17
+2.35 σ +0.51 σ +1.15 σ +1.38 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 +14.10% 18 Jul
Short Term Price vs SMA50 +4.89% 18 Jul
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.