15/3/2024, 12:37:02 pm

Stock market has rallied to all-time high valuation: Is that true?

At the outset, let’s test the above-mentioned statement with the available data. Nifty is trading at 20.6x one year forward EPS – a premium of 15% over the last 10 years’ average, but 10% cheaper than October’21 highs. Markets are trading at above-average valuations. However, they do not seem to be in a frothy zone, especially if the earnings and capex growth momentum is good.