How to know if markets are overvalued? 3 metrics every investor must know
The Nifty 50 has experienced an incredible journey, rising from an all-time high of 20,000 just 10 months ago to nearly 25,000 today, reflecting a 25% surge. But this growth isn't limited to large caps alone. The Nifty Midcap 150 has soared by 53.56%, and the Nifty Smallcap 250 has skyrocketed by 57.42%. Amidst the confusion of a global market crash, many investors question whether the market will fall further or continue its upward trend. In this video, we explore whether it's time to book profits or invest more by analysing the large-cap, mid-cap, and small-cap indices using three critical parameters: the Price-to-Earnings (PE) ratio, Shiller PE ratio, and Market Cap to GDP ratio to determine if they are overvalued, fairly valued, or undervalued.
Link to PE Ratio Video : • What is P/E Ratio | Price Earning Rat...
Chapters
00:00 Introduction
01:36 Price to earning ratio of Nifty indices
05:04 NIFTY MIDCAP 150
07:34 NIFTY SMALLCAP 250
09:51 SHILLER PRICE-TO- EARNINGS RATIO
12:08 MARKET CAP TO GDP RATIO
14:24 CONCLUSION
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