Nifty PE crosses 24|A statistically informed entry-exit model!

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Look at consolidated EPS.

Nifty PE after all earnings have been declared

Dear Yogesh, PFA EPS since Dec 2012.xlsx (165.1 KB), Nifty EPS and PE since Dec 2012 (which will have trailing 12 months since Mar 12 quarter). The big summary is that earnings have grown by 20% in close to 5 years, whereas valuations have grown faster at 70%. The summary is as below [image] Notes: Sept 2014 Nifty weights weren’t available in the spreadsheet given by you, so I assumed it to be the same as June 2014. Consolidated statements have been used where-ever available in quarter…

Also, all IT majors did buyback of 4-5% of equity. EPS needs to adjusted for that too as IT forms 11-12% of Nifty.