WHY MARKET IS NOT OVERVALUED

I M CONTINOUSLY UPDATING NIFTY VIEW SINCE IT WAS 8000
AND THAT TIME MANY EXPERT WERE BEARISH AS OF TODAY EXCEPT ME.
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MY NIFTY TARGET WENT TRUE EACH TIME
FROM 8000 TO 9000
FROM 9000 TO 9500
FROM 9500 TO 10000
FROM 10000 TO 10500
NOW FROM 10500 TO 10800
AND ALL THESE I POSTED OVER SOCIAL MEDIA WITHOUT TAKING CARE OF MY REPUTATION.
ALL CAN BE FOUND ON MY TWITTER AND FACEBOOK PAGE.
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NOW PUTTING SOME DATA AND LOGIC

NIFTY DATA

2014
PRICE TO EARNING :18.69
PRICE TO BOOK:2.99
NIFTY EPS: 337

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2015
PRICE TO EARNING :21.16
PRICE TO BOOK:3.49
NIFTY EPS: 391
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2016
PRICE TO EARNING :21.53
PRICE TO BOOK 3.19
NIFTY EPS: 370
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2017
PRICE TO EARNING :22.08
PRICE TO BOOK :3.10
NIFTY EPS:371
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2018
PRICE TO EARNING 27.18
PRICE TO BOOK 3.64
NIFTY EPS: 397

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CURRENTLY NIFTY PEG RATIO STANDS 1.58 CONSIDERING FROM 2014 TO CURRENT.
NIFTY EPS GROWTH EXPECTED TO BE AROUND 10%
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IN THIS CASE NIFTY EPS COMES AT 440
SO FY 18-19
NIFTY EPS GROWTH COMES AT 30%
AND CURRENT PRICE TO EARNING 27
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IF NIFTY TRADING AT PE OF 30 THEN STILL PEG RATIO WOULD BE 1 WHICH IS NORMAL AND NOT OVER STRETCHED.
SO NIFTY SHOULD BE TRADING AT PRICE TO EARNING OF 30
MEANS 11910 AS PER CURRENT EPS
IN COMING DAYS.
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MEANS STILL NIFTY RISE UPTO 1000 POINTS POSSIBLE AND INVESTORS NEED NOT TO BE IN PANIC.

Author: Atul Singh Stock Market Analyst

Disclaimer: This Blog, its owner, creator / contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

2 thoughts on “WHY MARKET IS NOT OVERVALUED”

  1. Few messages have circulated since last few days showing that everytime the market has reached the PE ratio of 23 approx there has been a moment of panic and acted as the boiling point which has triggered a major correction. Is there any merit in such apprehension or are we going for another upside from hereon?

    Would love to hear from you on this.

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