Sensex valuation hits lowest in 15 months; index underlying EPS up 50%

The index valuation was the highest in March this year when it was trading at a P/E of around 35X.

The valuation of the BSE Sensex, or the price-to-earnings (P/E) multiple relating to the 30 companies comprising the index, has declined to its lowest level in over a year. This is owing to a surge in corporate profitability in the last two quarters, leading to an increase in earnings per share (EPS), and a weakness in the market.

The index is trading at a trailing P/E multiple of 26.8, the lowest since August last year. In comparison, the index underlying EPS reached an all-time high of Rs 2,136 at the end of H1FY22.

With this, the index underlying EPS is up 50