Don’t let the resting bulls fool you, stock valuations are still elevated

In the BSE 500 sample, 66% stocks currently trade above their five-year average price-earnings (P/E) multiples and 60% have P/Es that are above the three-year average multiples. A P/E multiple is calculated by dividing the share price of a company by its EPS. When compared with the historical data, the P/E multiple offers insights on […]

MFs miss out on small wonders, and highs

A key reason for the underperformance was that the stocks, which appreciated well in the benchmark index, were missing in the portfolio of the majority of the schemes. “In 2023, the markets were driven by liquidity. A large number of stocks went up irrespective of fundamentals. Since mutual funds avoided such momentum stocks, their returns […]