My few cents here… I just normalised NIFTY and NIFTY EPS from 2003. Meaning divided the whole series with 01-01-2003 ( on 1st Jan 2003 NIFTY:1100 EPS: 73.7 ) value. That will give us the fold increase in nifty and its eps. I have plotted the both below.
As you can see the valuations and EPS are still far away… Market has to correct more and NIFY EPS should start growing to find a mean. With this recent slow down, EPS growth looks a bit far away…
Below are the raw data without any normalisation…
NIFTY:
NIFTY EPS:
