SENSEX NIFTY
Jun 12, 2012, 08.07 AM IST | Source: Moneycontrol.com

Are Indian shares cheap or pricey at these levels?

Around 13 times one-year forward price earning (P/E) multiple, the Sensex looks much cheaper than what it was a couple of years back. But it still does not look all that cheap compared to the lows of March 2009 and May 2003.

Ritesh Presswala

Moneycontrol Bureau

Around 13 times one-year forward price earning (P/E) multiple, the Sensex looks much cheaper than what it was a couple of years back. But it still does not look all that cheap compared to the lows of March 2009 and May 2003. There is no telling where the bottom could lie, and share prices could decline further even after appearing to be cheap in absolute terms. But investors could take comfort in the fact that the forward P/E is below the average of the last 12 years. To that extent, the risk-reward ratio looks reasonable, if not downright attractive.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ritesh.presswala@network18online.com

READ MORE ON  Sensex,

ADS BY GOOGLE

video of the day

Tone down expectations; valuation getting richer: ICICI Pru

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.