As benchmark indices scale fresh peak, Sensex valuation nears 20-yr high

The Sensex is on course to end calendar year (CY) 2019 at a price-earnings (P/E) multiple of 29x

At a time when the benchmark indices are scaling fresh peaks, the gap between underlying corporate earnings and share prices has widened to a multi-year high. 

The Sensex is on course to ending calendar year (CY) 2019 at a price-earnings (P/E) multiple of 29x, the highest in 25 years based on the year-end data. During the peak of the tech boom in 2000, the Sensex P/E had crossed 30x for a brief period. 

Current valuations are, however, lower than those seen in the early 1990s, including those during the Harshad Mehta scam. 

The Sensex has risen close to 14 per