It is generally said that one should not pay too much for stocks. While this advice looks prudent, there are exceptions to this stock-market dictum. Stocks of several multinational companies listed in India have outperformed the market in spite of their expensive valuations. The Nifty MNC Index is trading at a P/E of 30.41 and a P/B of 6.35 against the Nifty 50's P/E of 21.37 and P/B of 3.07 (as on November 15, 2016). Historically, the MNC Index has traded at a premium to the market. But a look at the stock returns and five-year revenue and profit growth suggests that the stocks comprising the MNC Index have indeed performed well. This outperformance can be safely attributed to the superior pedigree of these companies.