India Inc`s P/E of 18.42 is racing far ahead of earnings

Source: Business Standard

1,613 firms’ P/E is 16.65 to their trailing 12-mth earnings ended December 2005 against 13.24 for the period ended December 2004.

Indian stock market is currently trading at a price-to-earnings multiple (P/E) of 16.65 times to its trailing twelve-month (TTM) earnings ended December 2005. A year ago, the stock market was valued at 13.24 times of its TTM earnings ended December 2004.

The average P/E is arrived at by dividing the collective market capitalisation of the companies studied by the Business Standard Research Bureau with the total net profit earned by them in the trailing 12 months ended December 2005.

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