Indian equities not as expensive as reported, says Valens Research CEO

As-reported financial information cannot be trusted and have blinded investors from seeing the true earning power, valuation, says Joel Litman

The price to earnings multiples of Corporate India as measured by Uniform Earnings is at a 10-year low, signaling markets have room to run, says Joel Litman, president and CEO of Valens Research and Chief Investment Strategist of Altimetry, who was in India earlier this month to speak at the CFA Society India’s 10th India Investment Conference. In an interview with Ashley Coutinho, he says that the as-reported financial information given under current accounting standards cannot be trusted. Edited excerpts: 

Could you tell us more about your "Uniform Accounting" system, and the flaws with the prevalent reporting and accounting standards