Indian markets lead in valuation premium but not in earnings growth

South Korea and South Africa are expected to be the top markets in earnings growth for the next two financial years

Indian markets are the most expensive vis-à-vis their historical averages but their earnings growth is no longer the fastest.

According to an analysis by CLSA, India price-to-earnings (P/E) multiple is nearly 30 per cent higher than its historical average, while the two-year compound annual growth rate (CAGR) earnings growth (FY 24-26) estimates at 14 per cent. The top markets in terms of earnings growth expectations for the next two financial years are South Korea and South Africa. Despite leading the charts in terms of earnings growth, both countries are currently trading at a discount to their long-term P/E