Nifty PE, PE, Div Yield, ROE, EPS Growth Rate Charts

Here are the latest Nifty valuations with long-term averages of PE, PB and Div Yield ratios along with ROE, rolling one-year EPS growth rate and dual moving averages obtained with the Nifty Valuation Analyzer.

The analyzer can be used to download Nifty price data automatically. Unfortunately, the NSE server is problematic and therefore the macro to get Nifty PE does not work. One has to manually update.

Note: The following is provided for information purposes. This is not a recommendation to follow these charts. The analyzer was made for those who wish to track market valuations with moving averages and ratios.

The use of average and standard deviation is not exactly justified for data sets which do not follow a bell curve. So please treat them as nothing more than a ‘rough guideline’.

Why do investors time the market with DMAs and PE ratio? Is it to get better returns or better risk adjusted returns? More on this later.

Nifty PE  with 150 and 363-day moving averages


Market Hurricane warning chart after Jim Otar

Jim Otar suggests the following with two DMAs:

1) 5-month DMA (blue line)

2) 12-month DMA (red line)

Bearish trend: If the blue line goes below the red line, when the red line is heading south (red arrows below)

Bullish trend: If the blue line goes above the red line, when the red line is heading north (green arrows below). Read more:  Moving Average Market Level Indicator.

So where are we now?! 🙂

Nifty PE with 10-year moving average and standard deviation bands


Notice how much the average has moved. The definition of what is ‘high valuation’ and ‘low valuation’ is changing with each passing day!

If one says, ‘I will invest only if the PE value hits the 1st standard deviation band’, notice how long he/she may have to stay away from the market: 2-3+ years!!

Nifty PB with 10-year moving average and standard deviation bands


The book value touched the 10Y moving average ~ Mar 2015 and fell and seems to be moving up again.

Nifty Div Yield with 10-year moving average and standard deviation bands


Notice how sharply the bands have moved down. Does this mean, the definition of a good dividend yield has changed sharply?!

Nifty EPS Growth rate (1-year rolling)


Now, what do we have here?! Have earnings finally started increasing?!

Nifty ROE or Book Yield


This is a measure of profitability. Notice that about a year ago, it fell sharply from values which were already low!

Outlook: I would like to believe that on the whole this is a ‘good time’ to invest. But then again, I also believe that any time is a good time to invest! I do not take these charts seriously. I made them because of curiosity and perhaps that it may be of some use to others. Use with ample caution.

Nifty valuation analyzer with rolling standard deviation  Note: Nifty PE ratio has to be manually updated from the NSE site

Old version: Download the Nifty Analyzer 

(This is a heavy file.  Graphs will take a moment to display).

About the Author M Pattabiraman author of freefincal.comM. Pattabiraman is the co-author of two books: You can be rich too with goal based investing and Gamechanger. “Pattu” as he is popularly known, publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis, including a robo advisory template for use by beginners. Contact information: freefincal {at} Gmail {dot} com He conducts free money management sessions for corporates (see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints.

Content Policy

Freefincal has original unbiased, conflict-of-interest-free,  topical reports, reviews, commentary and analysis on all aspects of personal finance like mutual funds, stocks, insurance etc. All guest authors and contributors to the site also do not have any conflict of interest. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. No promotional content We do not accept sponsored posts and link exchange requests from content writers and agencies. This is our privacy policy Our website is non-profit in nature. The revenue from the advertisement will only be used for hosting charges, domain registration charges, specific plugins necessary for traffic growth and analytics services for search engine optimisation.

Create a "from start to finish" financial plan with this unique open-source robo advisory software template

 Don't like ads but want to support the site? Subscribe to the ad-free newsletter! 
You will get the full post-ad-free delivered to your inbox for Rs. 3000 a year. Follow this link to read the terms and sign up! 
Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

Connect with us on social media

Do check out my books

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.  It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.
Updated: April 11, 2016 — 9:49 am


Add a Comment
  1. sir, if i see correctly, nifty price index has gone up from 2009 at the same time earnings are actually gone down in same period ?

Leave a Reply

Your email address will not be published. Required fields are marked *