A strange call came from one of my friend........"Hey Lucky the Market halted today as it hit upper circuit."
Thats really surpurising for a market to hit the upper circuit in recession. Are we really in recession. ????
Well there does not seems to be any correct or I would say good answer. On person front I take the following factors..
1. P/E
2. EPS
3. Cash Flows
4. Prospects of the particular industry in which the company operates
The average P/E ration for last 15years for the Indian market is closer to 14.5. The same is true for Average global P/E across markets which is closer to 16.
But here is the catch. With this sudden sprut in Market from 8k to 14k. Valuation for equities does not seems to be fair enough.
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