Nifty P/E Ratio Chart & Analysis
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MyCharts
Aug 13, 2010, 12:45:29 AM8/13/10
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Nifty P/E :: As per NSE
site current 12th Aug 2010 Nifty price earning ratio at 22.71..It means that the
Nifty price is 22.71 times the Nifty earnings..
lets calculate it Today's close at 5416 and P/E at 22.71 ..Its mean Nifty earning 5416/22.71= 238.48 Rs
Now we find out the rate of earning for Nifty
239.48/5416*100 = 4.42 % annual return if we invest in Nifty at current level..!!
Is it worth that we buy Nifty at current yield of 4.42% when the inflation is reaching above 10+ ..!!
As per chart just check it out your self..Every time when P/E traded above 22 Sharpe Money always out and we see healthy correction and again they Value buy for long term only near 10 to 15 P/E level...
lets calculate it Today's close at 5416 and P/E at 22.71 ..Its mean Nifty earning 5416/22.71= 238.48 Rs
Now we find out the rate of earning for Nifty
239.48/5416*100 = 4.42 % annual return if we invest in Nifty at current level..!!
Is it worth that we buy Nifty at current yield of 4.42% when the inflation is reaching above 10+ ..!!
As per chart just check it out your self..Every time when P/E traded above 22 Sharpe Money always out and we see healthy correction and again they Value buy for long term only near 10 to 15 P/E level...
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