Is the BSE Sensex expensive at these levels (7000)
The 7000 level may be a big psychological level for many a market player. But, the market still appears to be reasonably valued.
The P/E of the sensex at 7000 levels is at 15.4 times.
Previous sensex P/Es during the bull run since April 2003.
At 3000 levels, sensex was valued at 14.7 times;
at 4000 levels, P/E was 15.6 times; at 5000 levels, sensex P/E was 15.11;
and at 6000 levels, P/E for the sensex was as high as 18.15 times. So, comparatively, sensex valuations sound reasonable.
Compare these P/E levels with other emerging markets and the Indian equity market is one of the cheapest across the board.
The 7000 level may be a big psychological level for many a market player. But, the market still appears to be reasonably valued.
The P/E of the sensex at 7000 levels is at 15.4 times.
Previous sensex P/Es during the bull run since April 2003.
At 3000 levels, sensex was valued at 14.7 times;
at 4000 levels, P/E was 15.6 times; at 5000 levels, sensex P/E was 15.11;
and at 6000 levels, P/E for the sensex was as high as 18.15 times. So, comparatively, sensex valuations sound reasonable.
Compare these P/E levels with other emerging markets and the Indian equity market is one of the cheapest across the board.