PE needs growth beside it
A PE of 20 can be modest for fast growth and steep for slow growth. Implied growth turns the PE into the growth rate the price assumes, so you can set it against trailing and forward EPS growth.
Index valuation: PE, growth and PEG side by side.
What does the market pay for each rupee or dollar of profit, and how fast is that profit growing? Compare market and sector indices in India and the US on the same terms.
What the index table shows
Each row is one index, valued from the companies inside it.
- PE: the price paid for each rupee or dollar of the index’s yearly profit.
- EPS growth, trailing and forward: growth in profit per share over the past year and the year ahead, the forward figure from analyst forecasts.
- PEG, trailing and forward: the PE compared with that growth.
- Implied growth: the yearly profit growth needed to support today’s PE in a 10-year model.
- Growth so far: each quarter’s earnings and revenue growth against a year earlier, for the whole index and for its median company.
Open an index for more detail, or Holdings for the stocks inside it. Groups follow each market: the broad market and sectors, plus themes in India and industries in the US.
How to read it
A PE on its own says little. Set it against growth, then check how widely that growth is shared.
PEG on one scale
PEG puts PE and growth into one number. Compare it across indices, and trailing against forward: a forward PEG well below the trailing one means forecasts expect faster growth ahead.
Total against median
The total weighs companies by their profit; the median is the middle company. A wide gap means a few big earners drive the figure. Early in a results season only some companies have reported, so growth so far can move as the rest report.
Who it helps
- Long-term investors judging whether a market or sector looks stretched against its own growth.
- Investors who rotate between sectors and want them compared on the same terms.
- Anyone following a results season who wants the growth tally without building a spreadsheet. See how to read the results-season tally.
To see how many stocks in the same indices are rising, open market breadth.
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