Following the sharp run in markets, valuations across the board have become elevated. The National Stock Exchange Nifty50 Index now trades at a 12-month trailing price-to-earnings (P/E) multiple of 24.3 times, 18 per cent higher than this year’s low of 20.5 times.
The valuation expansion in the broader markets has been sharper. The Nifty Midcap 100 currently quotes at 33x 12-month trailing P/E, up 46 per cent from March levels, while the Nifty Smallcap 100 valuation has soared by 80 per cent to 30.1x.
