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Charts & Analysis

Chart: Nifty EPS Growth at 2.77% Even as P/E Moves To Dangerous Highs

The Nifty Price to Earnings Ratio is at 22+ now. While at the same time the last one year’s EPS growth has fallen to a low of 2.77%!

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It hasn’t been this low since 2010. And it’s not improved even after replacing DLF and Jindal Steel with Yes Bank and Idea (both of which had awesome results) in the March quarter.

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Okay, forget one year growth. What about 5 year compounded EPS growth? Huh? That will show you, you silly Capital Mind Fellows.

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Not really.

Markets have been pricing very very high EPS growth, relative to reality, we think. That party could continue of course, as markets remain irrational longer than you can be solvent.

 

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