We often draw references to the Nifty 50 PE in our research reports and articles. You may also want to track the Nifty 50 PE and see where it stands now in relation to earlier levels.
Nifty 50 PE Chart
To give you this information in one place, we have compiled a monthly PE ratio chart/heatmap for the past 20 years and we’ll be keeping this updated.
You can access this chart at the link below
https://www.primeinvestor.in/nifty-pe-ratio/
To follow the chart and know how you can read it, note the following points:
- The PE values in the nifty 50 heat map are standalone and is sourced from the daily PE data directly from NSE. NSE does not have a consolidated PE.
- The historical monthly PE values are averages for that month
- The current month PE is as of the last traded date.
We have colour-coded the nifty 50 heat map PE values so that you get a quick idea of whether the market is getting heated or is attractively valued. Note that this colouring has been done based on historical PE levels. It is not our recommendation on whether to buy or sell in the market.
The PE values are colour-coded as follows:
- Nifty PE value of less than 15 times are in dark green, indicating low PE valuations.
- Nifty PE value of over 15 and less than 18 times are in a lighter shade of green, closer to long-term averages
- Nifty PE of over 18 and less than 21 times are in a neutral off-white colour
- PEs over 21 are in shades of orange, tending to red when the PE is greater than 27 times
Essentially, the colours in the nifty 50 heat map move from green (for attractive valuations) to orange (fair to high valuations) to red (very high valuations).
Do read the content below the PE chart to know a few points on the Nifty 50 that you may not be aware of.
Monthly Nifty returns chart
We also have a monthly Nifty 50 returns chart to help you know historic movement of the Nifty 50 from 2000. We’ll keep this chart updated as well.
You can access it at the link below.
https://www.primeinvestor.in/nifty-50-returns/
This chart too, is colour coded to enable you to know months of negative returns (in shades of pink and red) and months of positive returns (shades of green). It also gives you the calendar year returns to know the years of fall and rise in the Nifty for the last 20 years.
The above pages are will be useful for anyone who wants a market snapshot. And they’re free! So do share these pages with friends on social media!
10 thoughts on “Nifty 50 PE Chart – A heatmap to track market valuations”
There are two types of P/E rations. Can you please help explaining both and which one should we look for? Thanks.
Hello sir,
The Nifty PE chart shows the standalone Nifty PE, which NSE declares. The chart shows the average PE for the month; for the latest ongoing month, it will be the current PE. For more understanding on the PE ratio, you can read this article and this article.
Thanks,
Bhavana
Considering that more and more companies have subsidaries, would have made sense to have PEs on the consolidated earnings. Instead of doin this on Nifty, perhaps you could have rendered the same charts on sensex.
Yes, you are right. We consider only consolidated for our own analysis. However when we make public info available, we have to deped on data sources. There is NO consolidated Nifty PE available with NSE. thanks, Vidya
Yes, I understand that. Which is why the request was to do it on Sensex rather than Nifty.
What I was indicating was that having Nifty PE chart isn’t very valuable, since it is inherently flawed.
A good value add by PrimeInvestor would have been to provide a heatmap on the sensex.
Not useful. Borad market follows Nifty 50. thanks, Vidya
Is it possible to include PE for Nifty Next 50, Midcap, Smallcap. Thanks.
Hello Sir, Thanks. We’ll consider it. Small caps PEs in NSE seem quirky – shows 300, 400 and likes when it is not. We’ll try to see hwo to resolve this. Vidya
I was about to suggest, but then saw these 2 charts being shown under ‘useful links’ at the bottom of the website. Perfect for future reference!
To those who are interested in timing the market based on such tools, please note even March 2020 did not land up in Green 😀
Both the charts are very informative and would be very useful, thanks for publishing
Comments are closed.