The following is an estimate of India’s key formula
NSE’s move to change the method of calculation and decline
In the market last month. Nifty Earnings (PE)
Rate is a popular valuation measure based on 12-month earnings
It fell nearly 20% to 33.5 from 41060 in March.
The NSE decided to consider consolidated returns to calculate the PE ratio
from March 31st. This results in a Nifty PE ratio based on earnings
estimates fell 26% to 21.35 from a March high of 29calculations have made the
Nifty’s ratings cheaper, but they still are higher than their regional counterparts.
A consolidated report of 50 companies comprising Nifty
Net profit after 12 months 3.4 lakh crore December 2020,
which is almost 55,000 crores more than their absolute
Previously, the NSE did not consider consolidated earnings
Companies like Reliance Industries, L&T, HDFC, and State Bank of India
India with many businesses like telecommunications and retail
Compared to its absolute profit, it has a combined profit of Rs 45,290 crore
level 27,048 crore.
Companies like HDFC, Grasim, and Bajaj are also coping
6,000- ₹ 8,000 crores more than the consolidated profit
The exchange announced in February that the index PE ratio
would be calculated includes income and profit losses each index
member is four parts behind the merged base that comes into effect on March 31st.