Valuation conundrums

With the year coming to a happy end, action is getting geared up for the next year. And the valuations question raises its head again. “Is the market overvalued?”, the million dollar question once again makes the rounds. There is no doubt the Indian market is expensive. The price to earnings ratio is now around 26 times trailing earnings and the long-term average has been around 15-17 times. The price to book value is now more than 6 times, and clearly the highest ever. But then these ratios should be looked at in perspective, says optimists.

The Financial Express
http://www.financialexpress.com/news/
Valuation-conundrums/251098/