How the valuation landscape has changed on Street in last 1 year

The valuation gap for the benchmark equity indices has narrowed compared with their peak valuations last year. Nifty’s estimated price-to-earnings multiple now stands at 18 times vis-à-vis 19.2 times in 2018.Similarly, the ratios have contracted to 16 times from 25.6 times for the midcap index and 15 times from 18.3 times for the smallcap benchmark. The index comprising smallcap stocks is down 31 per cent from its lifetime high despite recovering 16.5 per cent from its February low point.Last calendar, largecap stocks outperformed smallcaps and midcaps, with the Nifty 50 rising over 3 per cent to trade at 21.7 times one-year forward earnings in December against a five-year average of 23.2 times.The Nifty Midcap Index declined 17 per cent in 2018 with its one-year forward price-to-earnings multiple quoting at 19.9 times against a five-year average of 35.1 times. The Smallcap Index was the worst hit with a 31 per cent cut to trade at 14.7 times its expected one-year forward earnings against the year’s high point of 34.7 times.Three months down the line, while PE multiples for Nifty and the midcap index have shrunken, that of smallcap index has remained steady.Here’s a list of stocks with maximum price-to-earnings expansion/contraction: 68497980

from Economic Times https://ift.tt/2uhglps


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Admin The valuation gap for the benchmark equity indices has narrowed compared with their peak valuations last year. Nifty’s estimated price-to-earnings multiple now stands at 18 times vis-à-vis 19.2 times in 2018.Similarly, the ratios have contracted to 16 times from 25.6 times for the midcap index and 15 times from 18.3 times for the smallcap benchmark. The index comprising smallcap stocks is down 31 per cent from its lifetime high despite recovering 16.5 per cent from its February low point.Last calendar, largecap stocks outperformed smallcaps and midcaps, with the Nifty 50 rising over 3 per cent to trade at 21.7 times one-year forward earnings in December against a five-year average of 23.2 times.The Nifty Midcap Index declined 17 per cent in 2018 with its one-year forward price-to-earnings multiple quoting at 19.9 times against a five-year average of 35.1 times. The Smallcap Index was the worst hit with a 31 per cent cut to trade at 14.7 times its expected one-year forward earnings against the year’s high point of 34.7 times.Three months down the line, while PE multiples for Nifty and the midcap index have shrunken, that of smallcap index has remained steady.Here’s a list of stocks with maximum price-to-earnings expansion/contraction: 68497980

from Economic Times https://ift.tt/2uhglps
https://ift.tt/eA8V8J March 21, 2019 at 12:33PM https://ift.tt/2yfVyVV