Nifty Pharma PE Ratio
Valuation Percentile
Nifty Pharma's PB is more expensive than 55% of the last 5 years.
The Nifty Pharma PE ratio is 40.70 as of 1 October 2026, about 21% above its 5-year median of 33.50, which places it in moderately overvalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 34.50 | +17.97% |
| 15 Years | 37.13 | +9.61% |
| 10 Years | 35.11 | +15.92% |
| 7 Years | 33.29 | +22.26% |
| 5 Years | 33.50 | +21.49% |
| 3 Years | 34.62 | +17.56% |
| 1 Year | 34.40 | +18.31% |
Historical PE Ratio
Series start. P/E is published from 1 Jul 2005. Index values go back to 1 Jan 2001.
Earnings
Index earnings are the profits behind the index level: the closing value divided by the P/E ratio, in index points. The line moves in steps because it changes only when trailing four-quarter profits are updated or the constituents change. Compare it with price to see whether a move came from earnings or from a change in what investors pay for them.
Nifty Pharma earnings grew +6.76% a year over the last 5 years, while the index moved +12.52% a year and its P/E went from 31.3 to 40.7.
Earnings growth is annualised from the last trading day at or before the start of each window to 1 Oct 2026. Price growth uses the index level over the same two dates, excluding dividends. EPS is undefined on days with no published P/E, so those days are skipped. Past growth, not a forecast.
Ways to invest in Nifty Pharma
1 ETF and 1 index fund track this index. Prices and NAVs as of 1 Oct 2026.
ETFs (1)
| ETF | Symbol | Price | NAV | Premium | 1Y |
|---|---|---|---|---|---|
| Nippon India Nifty Pharma ETF | PHARMABEES | 27.29 | - | - | +21.52% |
Index funds (1)
| Fund | AMC | NAV | Since |
|---|---|---|---|
| ICICI Prudential Nifty Pharma Index Fund | ICICI Prudential Asset Management Company Limited | 20.371 Oct 2026 | 2022 |
Listed for information only, not a recommendation. Check expense ratio and tracking difference before investing.
Performance and risk
1-year holding windows since 2005 returned a median of +12.82% (best +95.15%, worst -33.08%).
Today's PE of 40.70 sits in band 4 of 5 of this index's history (PE 36.9 to 44.3). From this band, 5-year forward returns had a median of +8.86% a year and were positive in 94% of windows (786 windows since 2005).
View full performance and risk
Returns as of September 2026, from the NSE factsheet for the Nifty Pharma. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty Pharma
The Nifty Pharma contains 20 constituents.
Recent changes
23 July 2026: Added Sai Life Sciences Ltd.. Removed J.B. Chemicals & Pharmaceuticals Ltd..
Constituent list as of 4 October 2026, sourced from NSE Indices. Weights as of 30 September 2026, from the NSE factsheet.
How this index works
- Selection
- The Nifty Pharma Index is designed to reflect the behavior and performance of the companies that are engaged into manufacturing of pharmaceuticals and biotechnology companies.
- Rebalanced
- Semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July.
- Weight cap
- For all other sectoral indices, the weight of each stock is capped at 33% and the weight of top 3 stocks is capped at 62%
Summarised from NSE's official methodology document (PDF) for the Nifty Pharma; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty Pharma PE ratio?
As of 1 October 2026, the Nifty Pharma PE ratio is 40.70. That is about 21% above its 5-year median of 33.50 and about 18% above its 1-year median of 34.40.
Is the Nifty Pharma undervalued right now?
On a historical basis it screens as moderately overvalued. Its current PE of 40.70 sits above every median window: 1-year (34.40), 3-year (34.62), 5-year (33.50), 7-year (33.29), 10-year (35.11), 15-year (37.13) and full-history (34.50).
What is a normal PE ratio for the Nifty Pharma?
Over the past five years its median PE has been 33.50, and over the past three years 34.62. Today's 40.70 is toward the upper end of that historical range.
How many stocks are in the Nifty Pharma?
The Nifty Pharma contains 20 stocks. By number of companies, its largest sectors are Healthcare (20 stocks).
What returns has the Nifty Pharma delivered?
As of September 2026, the Nifty Pharma total return (with dividends reinvested) is +23.98% over the past year and +13.64% 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 Pharma?
Over the year to September 2026, the Nifty Pharma had an annualized volatility (standard deviation of daily returns) of 13.63%. Its beta versus the Nifty 50 is 0.53, meaning it has moved less than the broad market.
What is a typical one-year return for the Nifty Pharma?
Across every one-year holding window since 2005, the Nifty Pharma total return has a median of +12.82%, with the best window at +95.15% and the worst at -33.08%. 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 Pharma currently trades at a PE of 40.70, in band 4 of 5 of its own PE history. Across 786 overlapping 5-year windows since 2005 that began in this band, the median forward return was +8.86% a year, positive in 94% of windows. A past distribution, not a prediction.
How fast have Nifty Pharma earnings grown?
Nifty Pharma earnings, measured as the index level divided by its P/E, grew +6.76% a year over the last 5 years, while the index itself moved +12.52% a year and its P/E rose from 31.30 to 40.70. Past growth, not a forecast.
How often is the Nifty Pharma rebalanced?
The Nifty Pharma is rebalanced semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July. Details are in the official NSE methodology document.
Last updated: 1 October 2026.