Index Valuation Analyzer

Track 120+ Indian Indices: Current Valuations & PE Analysis

Identify overvalued and undervalued NSE & BSE indices using 7-year median PE comparison

✓Analyze 120+ NSE & BSE indices with daily updates
✓Compare against 7Y median PE for better buy/sell signals
Today:
22 overvalued
•
26 fairly valued
•
7 undervalued
Updated: Fetching...

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📊Why Median PE?

The median PE ratio is more reliable than the average because it's not affected by extreme outliers during market bubbles or crashes. It represents the true "middle" of historical valuations.

📈Why PB for Asset-Heavy Sectors?

Price-to-Book (PB) ratio is especially valuable for banks, infrastructure, and capital-intensive sectors where assets are the primary value driver. Unlike PE which can be distorted by earnings volatility, PB provides a stable baseline tied to tangible book value.

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Quick Tip: Use 7Y median for stable long-term signals, 1Y for recent trends.

Select Valuation Metric

Compare indices using Price-to-Earnings ratios

Index NameExchangeCategoryCurrent PE7Y Median PE5Y Median PE3Y Median PE1Y Median PEvs 7Y Median (%)Valuation Status

Showing 120 indices

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📊 About Median PE

Why Median is Better Than Average

The median PE is a more reliable valuation metric than the average because it's not affected by extreme outliers. During market bubbles or crashes, average PE can be distorted by extreme values, while the median represents the true "middle" of the historical PE distribution.

📈 About Median PB

When PB Works Better Than PE

The median PB ratio is particularly useful for evaluating asset-heavy sectors like banking, real estate, utilities, and infrastructure. These sectors derive value from tangible assets (buildings, equipment, loan books) rather than future earnings potential.

Why PB matters for these sectors: When a company's assets are its primary value driver, book value provides a more stable and reliable baseline than earnings, which can fluctuate dramatically due to economic cycles, interest rates, or one-time events. A PB ratio below 1.0 suggests the market values the company below its net asset value, potentially signaling undervaluation.

Median advantage: Like median PE, median PB filters out extreme outliers from market bubbles or crisis periods, giving you the true "middle" of historical valuations for a more reliable comparison.

🎯 How to Use

Choosing the Right Comparison Period

Select the appropriate median period based on your investment horizon and market conditions:

1-Year Median

When to use: For short-term traders and in volatile market conditions. Captures recent market sentiment and near-term trends. Useful when markets have undergone significant regime changes or structural shifts in the last year.

3-Year Median

When to use: For medium-term investors with a 1-3 year horizon. Balances recent trends with some historical context. Ideal for tactical asset allocation and swing traders. Smooths out short-term noise while remaining responsive to market changes.

5-Year Median

When to use: For long-term investors seeking stable valuation benchmarks. Captures a full business cycle and filters out most market noise. Recommended for core portfolio positions and retirement accounts. Provides reliable signals while adapting to secular trends.

7-Year Median (Default)

When to use: For conservative long-term investors and value-focused strategies. Provides the most stable historical context by including multiple market cycles. Best for identifying extreme valuations and mean reversion opportunities. Minimizes false signals from temporary market dislocations.

💡 Pro Tip: Compare valuations across multiple periods to get a comprehensive view. If an index appears overvalued across all periods, it suggests stronger conviction in the signal. Divergences between short and long-term medians can indicate changing market regimes.

Choosing Between PE and PB

Different metrics work better for different sectors. Select the right metric based on how the index generates value:

Use PB for:

Banks (Nifty Bank), PSU Banks, Infrastructure, Real Estate, Capital Goods — sectors where assets drive value.

Use PE for:

IT, Pharma, Consumer Goods, Services — sectors where earnings and growth drive value.

Cross-reference both:

For Broad Market indices like Nifty 50, comparing both metrics provides a comprehensive valuation picture.