Nifty Smallcap 50 PE Ratio
Valuation Percentile
Nifty Smallcap 50's PB is more expensive than 73% of the last 5 years.
The Nifty Smallcap 50 PE ratio is 34.73 as of 1 October 2026, about 23% above its 5-year median of 28.18, which places it in moderately overvalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 30.59 | +13.53% |
| 10 Years | 30.35 | +14.43% |
| 7 Years | 28.44 | +22.12% |
| 5 Years | 28.18 | +23.24% |
| 3 Years | 29.77 | +16.66% |
| 1 Year | 30.81 | +12.70% |
Historical PE Ratio
Data gap. P/E is unavailable from 8 Aug 2018 to 19 Nov 2018 because the index’s aggregate earnings were negative, so no ratio could be published. The line bridges those dates, and medians and forward returns skip them.
Series start. P/E is published from 1 Apr 2016. Index values go back to 1 Apr 2005.
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 Smallcap 50 earnings grew +8.50% a year over the last 5 years, while the index moved +12.35% a year and its P/E went from 29.2 to 34.7.
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 Smallcap 50
0 ETFs and 3 index funds track this index. Prices and NAVs as of 1 Oct 2026.
Index funds (3)
| Fund | AMC | NAV | Since |
|---|---|---|---|
| Aditya Birla Sun Life Nifty Smallcap 50 Index Fund | Aditya Birla Sun Life AMC Limited | 23.251 Oct 2026 | 2021 |
| Axis Nifty Smallcap 50 Index Fund | Axis Asset Management Co. Ltd. | 20.221 Oct 2026 | 2022 |
| Kotak Nifty Smallcap 50 Index Fund | Kotak Mahindra Asset Management Company Limited. | 22.161 Oct 2026 | 2023 |
Listed for information only, not a recommendation. Check expense ratio and tracking difference before investing.
Performance and risk
1-year holding windows since 2016 returned a median of +8.81% (best +157.70%, worst -48.55%).
Today's PE of 34.73 sits in band 4 of 5 of this index's history (PE 32.6 to 49.0). From this band, 5-year forward returns had a median of +11.29% a year and were positive in 90% of windows (335 windows since 2016).
View full performance and risk
Returns as of September 2026, from the NSE factsheet for the Nifty Smallcap 50. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty Smallcap 50
The Nifty Smallcap 50 contains 50 constituents. Its largest sectors by weight are Financial Services (29.4%) and Healthcare (17.8%).
Recent changes
4 October 2026: Added Acutaas Chemicals Ltd., Apollo Tyres Ltd., Ather Energy Ltd., Great Eastern Shipping Co. Ltd., HFCL Ltd., KPIT Technologies Ltd., Kirloskar Oil Eng Ltd., MTAR Technologies Ltd., Onesource Specialty Pharma Ltd., TD Power Systems Ltd., Tata Elxsi Ltd.. Removed Aster DM Quality Care Ltd., CESC Ltd., Castrol India Ltd., Cholamandalam Financial Holdings Ltd., Cohance Lifesciences Ltd., Five-Star Business Finance Ltd., Hindustan Copper Ltd., Kec International Ltd., Narayana Hrudayalaya Ltd., Piramal Finance Ltd., Reliance Power 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
- 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 includes top 50 companies selected based on 6 month average free-float market capitalization from the top 150 companies selected based on both average daily full market capitalization and average daily turnover based on previous six months period data from the Nifty Smallcap 250 Index.
- Rebalanced
- Quarterly
Summarised from NSE's official methodology document (PDF) for the Nifty Smallcap 50; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty Smallcap 50 PE ratio?
As of 1 October 2026, the Nifty Smallcap 50 PE ratio is 34.73. That is about 23% above its 5-year median of 28.18 and about 13% above its 1-year median of 30.81.
Is the Nifty Smallcap 50 undervalued right now?
On a historical basis it screens as moderately overvalued. Its current PE of 34.73 sits above every median window: 1-year (30.81), 3-year (29.77), 5-year (28.18), 7-year (28.44), 10-year (30.35) and full-history (30.59).
What is a normal PE ratio for the Nifty Smallcap 50?
Over the past five years its median PE has been 28.18, and over the past three years 29.77. Today's 34.73 is toward the upper end of that historical range.
How many stocks are in the Nifty Smallcap 50?
The Nifty Smallcap 50 contains 50 stocks. By number of companies, its largest sectors are Financial Services (13 stocks), Healthcare (10 stocks) and Capital Goods (6 stocks).
What returns has the Nifty Smallcap 50 delivered?
As of September 2026, the Nifty Smallcap 50 total return (with dividends reinvested) is +15.43% over the past year and +13.40% 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 Smallcap 50?
Over the year to September 2026, the Nifty Smallcap 50 had an annualized volatility (standard deviation of daily returns) of 18.20%. 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 Smallcap 50?
Across every one-year holding window since 2016, the Nifty Smallcap 50 total return has a median of +8.81%, with the best window at +157.70% and the worst at -48.55%. 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 Smallcap 50 currently trades at a PE of 34.73, in band 4 of 5 of its own PE history. Across 335 overlapping 5-year windows since 2016 that began in this band, the median forward return was +11.29% a year, positive in 90% of windows. A past distribution, not a prediction.
How fast have Nifty Smallcap 50 earnings grown?
Nifty Smallcap 50 earnings, measured as the index level divided by its P/E, grew +8.50% a year over the last 5 years, while the index itself moved +12.35% a year and its P/E rose from 29.17 to 34.73. Past growth, not a forecast.
How often is the Nifty Smallcap 50 rebalanced?
The Nifty Smallcap 50 is rebalanced quarterly. Details are in the official NSE methodology document.
Last updated: 1 October 2026.