- Wealth PMS
Nifty EPS Growth drops suddenly to 10% in the last few days. The trailing 12 month P/E (non consolidated) is at 20. This kind of thing happens a lot; but it’s remarkable that for the last seven years, our P/E ratio never went below our EPS growth rate (trailing).
Even the five year compounded growth rate on EPS is still at 11.4%, which is quite low considering these are the top companies in the country.
We’re at all time highs on the index, but EPS growth doesn’t look quite that attractive. One of these days I will do the hard work of getting consolidated EPS numbers and tracking growth over time.