How to calculate Index PE

I know how to get PE of a particular company but dont know how can we calculate PE of an index, fo example how can we calculate Price and Earnings of Nifty.

If I am correct it’s just a simple average of PE of 50 Nifty stocks!!

I rely on PE/PB data as available on NSE’s website for its indices. Any particular reason you want to calculate the same on your own?

Read Krishnarajs post -

Nse website has standalone p/e. You want to calculate consolidated p/e. Every nifty stock has a weight in the index(which is calculated periodically) and nifty p/e is calculated accordingly.


Nifty is a free float market cap weighted index. For calculating PE of the index, we need price / eps of the index. So we need to calculate eps of the index here. You can calculate that by taking free float market capitalization weighted share of eps of all the underlying 50 stocks. Divide index price by this eps and you will get PE of the index.

You can refer to this link ( for more knowledge on this.

Apologies if I am not clear here. Answering this in a hurry