Nifty Next 50 PE Ratio
Valuation Percentile
Nifty Next 50's PE is cheaper than 88% of the last 5 years.
The Nifty Next 50 PE ratio is 19.61 as of 20 August 2026, about 14% below its 5-year median of 22.93, which places it in moderately undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 19.39 | +1.13% |
| 15 Years | 23.38 | -16.12% |
| 10 Years | 27.02 | -27.44% |
| 7 Years | 25.17 | -22.09% |
| 5 Years | 22.93 | -14.48% |
| 3 Years | 22.09 | -11.23% |
| 1 Year | 19.76 | -0.73% |
Historical PE Ratio
Performance and risk
1-year holding windows since 2002 returned a median of +16.83% (best +199.36%, worst -67.14%).
Today's PE of 19.81 sits in band 3 of 5 of this index's history (PE 18.1 to 21.7). From this band, 5-year forward returns had a median of +10.22% a year and were positive in 100% of windows (779 windows since 2002).
View full performance and risk
Returns as of July 2026, from the NSE factsheet for the Nifty Next 50. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty Next 50
The Nifty Next 50 contains 50 constituents. Its largest sectors by weight are Financial Services (20.5%) and Capital Goods (17.0%).
Constituent list as of 16 August 2026, sourced from NSE Indices. Weights as of 31 July 2026, from the NSE factsheet.
How this index works
- Universe
- The review of broad market indices is undertaken semi-annually based on data for six months ending January and July. To be considered for inclusion in Nifty 500 index, companies must form part of eligible universe.
- Selection
- It represents the balance 50 companies from Nifty 100 after excluding the Nifty 50 companies. Cumulative weight of non F&O stocks in the index is capped at 10% on a quarterly rebalance dates. Further, non F&O stocks in the index are individually capped at 4.5% on quarterly rebalance dates.
- Rebalanced
- Semi-annually
Summarised from NSE's official methodology document (PDF) for the Nifty Next 50; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty Next 50 PE ratio?
As of 20 August 2026, the Nifty Next 50 PE ratio is 19.61. That is about 14% below its 5-year median of 22.93 and about 1% below its 1-year median of 19.76.
Is the Nifty Next 50 undervalued right now?
On a historical basis it screens as moderately undervalued. Its current PE of 19.61 compares with its historical medians: 1-year (19.76), 3-year (22.09), 5-year (22.93), 7-year (25.17), 10-year (27.02), 15-year (23.38) and full-history (19.39).
What is a normal PE ratio for the Nifty Next 50?
Over the past five years its median PE has been 22.93, and over the past three years 22.09. Today's 19.61 is toward the lower end of that historical range.
How many stocks are in the Nifty Next 50?
The Nifty Next 50 contains 50 stocks. By number of companies, its largest sectors are Financial Services (12 stocks), Capital Goods (8 stocks) and Automobile and Auto Components (4 stocks).
What returns has the Nifty Next 50 delivered?
As of July 2026, the Nifty Next 50 total return (with dividends reinvested) is +10.89% over the past year and +14.33% annualized over the past five years. One-year figures are absolute; multi-year figures are annualized (CAGR). Data from the NSE factsheet.
How volatile is the Nifty Next 50?
Over the year to July 2026, the Nifty Next 50 had an annualized volatility (standard deviation of daily returns) of 17.11%. Its beta versus the Nifty 50 is 1.12, meaning it has moved more than the broad market.
What is a typical one-year return for the Nifty Next 50?
Across every one-year holding window since 2002, the Nifty Next 50 total return has a median of +16.83%, with the best window at +199.36% and the worst at -67.14%. Based on NSE Total Returns Index data; a past distribution, not a prediction.
What have 5-year returns been from PE levels like today's?
The Nifty Next 50 currently trades at a PE of 19.81, in band 3 of 5 of its own PE history. Across 779 overlapping 5-year windows since 2002 that began in this band, the median forward return was +10.22% a year, positive in 100% of windows. A past distribution, not a prediction.
How often is the Nifty Next 50 rebalanced?
The Nifty Next 50 is rebalanced semi-annually. Details are in the official NSE methodology document.
Last updated: 20 August 2026.