23.38
Valuation: FAIR
Updated: January 23, 2026 | Benchmark: Nifty 50
Understanding the India Stock Market PE Ratio
The current India Stock Market PE Ratio is approximately 23.38. When analyzing market health, investors look at the Price-to-Earnings (PE) ratio to determine if the market is trading at a premium or a discount relative to its historical averages. A “Fair” status suggests that valuations are currently aligned with the 5-year trend, offering a balanced risk-reward profile for long-term investors.
By comparing the current India Stock Market PE Ratio to different time horizons—ranging from short-term 1-year windows to long-term 20-year cycles—we can gain statistical insight into potential forward returns. Historically, lower PE ratios have correlated with higher 10-year annualized growth.
Historical Valuation Comparison
| Time Horizon | Avg (μ) | Volatility (σ) | Status |
|---|---|---|---|
| Last 1 Year | 24.06 | 0.62 | Undervalued |
| Last 5 Years | 23.07 | 1.24 | Fair Value |
| Last 10 Years | 20.60 | 2.46 | Overvalued |
🔗 External Market Resources
For more detailed technical data on the Indian economy, you can visit the NSE India Official Portal or check global equity trends via the MSCI Emerging Markets Index.