NIFTY Valuations…

I was recently looking at NIFTY valuations as defined by PE, PB and Dividend Yields..

         

On a PE basis, 24 seems to be the upper band since late 2009.. from the current levels, that indicates a potential 10% upside before serious valuation based selling pressure emerges.

Since 1999, the PE high preceding both the dot-come and the sub-prime crashes was around 28.. and the PE low in the 10-12 zone..

         

Data from NSE

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