Nifty valuation at multi-year highs on most counts: All you need to know

Current, price-to-book ratio for the Nifty is 3.2 times, most since 2008

Following the sharp 6 per cent rally over the past month, the valuation of the benchmark Nifty 50 index looks filled to the brim on many counts. On parameters such as forward price-to-earnings (P/E), earnings growth expectations and cyclically adjusted P/E ratio (Cape), the markets are most expensive in 10 years. Meanwhile, valuations are the highest since 2010 when it comes to indicators such as market cap-to-GDP, bond–earnings yield spread and price-to-book value (P/B) valuations, according to an analysis by ICICI Securities. Current Cape for Nifty 50 is around 24 times, a range last seen during 2007-08. To compute Cape,