Here is the historical PE-Ratio of Bank Nifty. Recently there is a hockey stick growth in PE ratio of Bank Nifty. NIFTY Bank Index comprises of the most liquid and 12 large Indian Banking stocks from the Banking sector. Surprisingly top 3 constituents namely HDFCBANK, ICICIBANK & KOTAK Bank alone contributes to 65% of the weightage.
PE – Ratio a simple metric used to measure the valuation of the market. From the numbers one can understand whether the markets are cheap, expensive or fairly valued. Current PE Ratio Metric at 26.86 is little above the 2 standard deviation.
Before making investments, one has to evaluate it. For valuating stocks, comes the investment valuation ratio which is the P/E ratio. As a value investor fundamental metrics will be the first priority to value a stock. For calculating P/E certain circumstances may be informative & in some cases it is quite difficult.
Here is a simple video tutorial on how to retrieve Historical PE Ratio for Nifty using NSE EOD Charting Feature. Currently we support PE Ratio, PB Ratio, Dividend Yield for Nifty.
Fundamental benchmarking of any stock is about assessment of the Relative cost and benefit before making a trading or specially investment decisions. Fundamentals indicate not only the soundness and sustainability of the company and its business over long term but helps evaluate the relative price you are going to pay and relative value or expected payout