Is the Sensex currently overvalued?

Market Barometer- April,2024

Price to earnings

If an index’s current P/E is higher than its median P/E, the index might be dangerously overvalued.

Price-to-book value

If an index’s current P/B is more than its median P/B, then it might be overvalued.

Dividend yield

If an index’s current dividend yield is less than its median dividend yield, then the index might be overvalued.

Market cap to GDP

If the market cap of all listed companies is higher than GDP, then the index maybe be overvalued.

10Y G-sec yield vs Sensex’s earnings yield

If the difference between the 10-year government bond yield & the index's earnings yield is more than the median value, the index might be overvalued.

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