Quick Answer: Why Is Nifty PE So High?

Nifty hit the PE multiple of 29.48, a 19-year high level on May 20 this year.

Historically, high PE levels above 28 have led to correction in markets.

High PE ratio occurs when an index rises at a faster pace than earnings which does not reflect the true picture of the market.

What is the PE value of Nifty today?

What is Nifty PE Ratio?

Average Nifty PEAverage Nifty PBAverage Nifty Div_Yield
21.523.631.29

Is high p/e good or bad?

A higher P/E ratio means that buyers have to pay a higher price for each $1 the company has earned over the last year. That is not a good or a bad thing per se, but a high P/E does imply buyers are optimistic about the future.

What is a good PE ratio?

A higher P/E ratio shows that investors are willing to pay a higher share price today because of growth expectations in the future. The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings.

What is current P E ratio of Indian stock market?

The ratio is determined by dividing a company’s current share price by its trailing 12-month earnings per share. For example, if a company is currently trading at Rs 25 a share and its earnings over the last 12 months are Rs 1.35 per share, the P/E ratio for the stock would be 18.5 (25/1.35).

What is the PE ratio of Nifty 50?

The current CAPE (Shiller PE) ratio of India’s NIFTY 50 stock index is 27.49 (12/31/2019). The 20 year historical average ratio is 22.71. A ratio higher than the historical average might indicate that India’s stock market is currently overvalued. The price-earnings ratio (TTM) is 28.30.

What is Nifty PE and CE?

CE= call European. PE = put European. Basically its a Contract. Let me give you live example. Now nifty is trading at 9400 and today is the expiry and 9400 CE is trading at 19.

What is an average P E ratio?

The very long run average of the S&P 500 Price to Earnings (PE) ratio (since 1900) is approximately 15.8, and the ratio since 1946 (the post-World War II period) is 17.3, so let’s call a “normal” PE ratio about 16.5.

Is 15 a good PE ratio?

For example, a ratio of 15 means that investors are willing to pay $15 for every dollar of company earnings. If you are comparing same-sector companies, the one with the lower P/E may be undervalued. Or if you’re looking at past data for one company, a higher number could mean it’s no longer a bargain.

What is Tesla’s P E ratio?

Tesla PE Ratio. As of today (2020-03-06), Tesla’s share price is $703.48. Tesla’s Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2019 was $-5.07.

Who has the highest PE ratio?

10 highest stocks with the highest PE trading in Nifty 500

  • Unichem Laboratories Ltd. (PE: 1243.4)
  • Future Consumer Ltd. (PE: 865)
  • Equitas Holdings Ltd. (PE: 404.2)
  • Infibeam Avenues Ltd. (PE: 398.4)
  • Ujjivan Financial Services Ltd. (PE: 344)
  • Future Retail Ltd. (PE: 330.4)
  • Indoco Remedies Ltd.
  • Mahindra CIE Automation Ltd.

What are the 50 companies in Nifty?

Nifty 50 companies as on 14-Mar-2020

Company Name (M.Cap)CMPMarket Cap (Cr)
Bajaj Finance(L)3,9552,24,689
GAIL India(L)84.6036,036
JSW Steel(L)214.849,082
ICICI Bank(L)447.42,75,076

28 more rows

What is PE and PB?

Price-to-earnings (PE) ratio is a measure of the valuation of a company’s stock. The price-to-book (PB) ratio compares the price of the stock with its book (accounting value). The higher the PB ratio, more expensive is the stock and vice-versa.