Nifty PE Ratio Charts
Current Nifty PE Ratio :
What is Current Nifty 50 PE Ratio,Nifty 50 PB Ratio,Nifty Dividend Yield Ratio ?
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Nifty 50 PE Ratio Charts and their Importance
What is Nifty 50,Nifty PE Ratio and Nifty PE ratio chart?
NIFTY 50 is a combination of 50 stocks’ diversification across different sectors of the Indian economy. As per the percentage allocation from the different sectors and for the different stocks, Nifty 50 Index is counted. Nifty 50 is managed by NSE Indices Limited. Current Nifty PE ratio chart , Nifty PB ratio chart, Nifty Dividend yield ratio charts are presented here with the historical data since year 1999 till current period.
Nifty P/E ratio is the short form of the Nifty Price to Earnings Ratio and is calculated by the average P/E ratio of the Nifty 50 companies.
As per Current Nifty PE Ratio Chart today on 09-April-2021; Nifty PE Ratio is 33.53 Nifty 50 PB Ratio is 4.24, Nifty Dividend Yield Ratio is 0.97.
Price to Earnings(P/E) Ratio= Price/Earnings
As Earning is the driver of the price,so if earnings go up then P/E ratio will come down. If Earning does not go up for over a longer period then either Price wise correction or Time wise correction might be there until the earnings catch up. If Nifty 50 PE ratio today is 20 then Nifty is 20 times its earnings. As per the charts one can see the overvalued or undervalued levels of the Nifty PE ratio.The data for the Nifty PE ratio is calculated and presented here since year 1999 and up to current period.One can also analyze Nifty Sectoral Indices’ historical PE ratio, PB ratio , Dividend Yield ratio Charts in this website which can help to analyze undervaluation and overvaluations of the different sectors at any point of time.
How Nifty PE Ratio is important ?
In February 2000, January 2008 and August 2018 Nifty PE ratio went at overbought levels as per historical data. While in January 1999, May 2003, October 2008 Nifty PE ratio went below 12 levels,which were highly oversold regions. Though no one can predict the top or bottom of the market perfectly but comparison of the current price, EPS (Earnings per share) ,PE ratio,PB ratio, Dividend yield ratio data with the historical data can be helpful in the analysis process in the investment journey. Those who enter in the stock market at the lower PE levels in the right instruments; can have good return over longer horizon.From Nifty PE ratio historical data charts you can analyze year 2000,2008 and 2020’s crash and you can also track many bull markets’ period from the 20+ years valuation charts.
In overvalued levels smart investors start booking their profits while at undervalued levels smart investors start accumulation process.
Though no one can time the market but given Nifty 50 and Nifty sectoral Indices’ PE ratio, P/B ratio and Dividend yield charts can surely be helpful in throughout investment journey in Indian stock market to get idea about overvaluations or undervaluation of the particular Indices and smart investors can take benefit of it.
What are Nifty P/B ratio charts and Dividend Yield ratio charts and how they affect Indian stock market’s Sentiment?
Nifty P/B ratio is short form of Nifty Price to book ratio. As per historical charts one can see between 2 to 2.5 Nifty P/B ratio is in oversold zone while above 4.5 it is in overbought zone.
In February 2000, Nifty P/B ratio climbed above 5 level, while in January 2008 Nifty P/B climbed above 6 level so they were overbought zones. If we analyze Nifty PB Ratio historical charts then we can get idea that lower the PB ratio number, better the investment opportunities investors can have. So 20+ years PB ratio charts can help to analyze the overvalued and oversold levels so that investor can analyze from the same and can take its help in his/her investment journey.
Nifty Dividend Yield ratio gave the best investment opportunity around Year 2003 when it was above 3 level. As per the historical data shows whenever Nifty dividend yield is above 1.75 (higher the number,better the investment opportunity) it has given good long term investment opportunity.
Thus by analyzing all Nifty PE ratio,PB, ratio,Dividend Yield ratio charts one can analyze the sentiments of the market and different Nifty Indices opportunities by analyzing charts of different sectors given in this website.The data presented in the website are authenticated and fetched from National Stock Exchange. Sincere and Passionate Indian stock market investors always dig deep in the data in Investment journey.Charts presented in this website can help them in their investment journey.
Though no one can time the market but by analyzing the given charts in this website; one can get idea about the market sentiments and related valuations of the different Nifty Indices. One can utilize the historical charts to find the available opportunities in the Indian stock market before applying his/her hard earned money.Analyze the valuation charts of different sectors and utilize them in your investment journey.