NIFTY PE Ratio

Discussion in 'Technical Analysis' started by trade4joisar, Apr 10, 2011.

  1. trade4joisar

    trade4joisar Well-Known Member

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    Staying fully invested in expensive markets is the most dangerous thing to do with your money.
    Since NSE started, every time when Nifty’s Price/Earnings ratio has gone above 22, the average
    returns of Nifty became negative over the next three years.

    Nifty PE 3 year Returns
    <14 - 152%
    14-16 - 112%
    16-18 - 79%
    18-20 - 51%
    20-22 - 21%
    22-24 - 15%
    24-26 - 32%
    26-28 - 36%
    28-30 - 40%

    Current PE Ration - 22.18

    You can see current P/E multiple of Nifty at NSE’s website
    http://www.nseindia.com/content/indices/ind_pepbyield.htm.

    Experts, share your thoughts.
     
  2. trade4joisar

    trade4joisar Well-Known Member

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    Any comments from experts?
     
  3. trade4joisar

    trade4joisar Well-Known Member

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    P/E ratio as on 17th June, 2011 = 19.82
     
  4. trade4joisar

    trade4joisar Well-Known Member

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    P/E ratio as on 22nd July = 20.57
     
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  5. columbus

    columbus Well-Known Member

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    Good thread.P/E upto dec'10 .

    [​IMG]
     
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  6. trade4joisar

    trade4joisar Well-Known Member

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    Sorry, my mistake.
    above 22 always negative returns (i missed negative sign).

    Nifty PE 3 year Returns
    <14 - 152%
    14-16 - 112%
    16-18 - 79%
    18-20 - 51%
    20-22 - 21%
    22-24 - -15%
    24-26 - -32%
    26-28 - -36%
    28-30 - -40%
     
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  7. columbus

    columbus Well-Known Member

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    Charts speak better than words.

    [​IMG]
     
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  8. trade4joisar

    trade4joisar Well-Known Member

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    From where did you get these charts ? NSE website ?
     
  9. columbus

    columbus Well-Known Member

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    hi t4j,

    I used your data only.Just I presented your data in Excel chart.
    Often useful data go un-watched ,if not presented well.
    Certainly it takes time to present in neat fashion, but your hard work
    is always rewarded.
     
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  10. trade4joisar

    trade4joisar Well-Known Member

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