Nifty's PEG ratio near 10-year low but why don't stocks look cheap yet? Valuation paradox explained

What happened: The Nifty 50's 12-month forward P/E fell from 24.8 times in September 2024 to 17.2 times by September 2026, per Bajaj Asset Management, even as forward EPS estimates rose. Key numbers: Nifty Midcap 150 multiple declined 36% to 22.8 times from 35.6 times. Why it matters: Nuvama Research says valuations relative to rates remain close to 2007 and 2024 levels, so a 17 times forward P/E may not compensate if yields stay high or earnings estimates are cut. Bajaj AMC flags elevated market cap-to-GDP and sees opportunities as selective.

Nifty's PEG ratio near 10-year low signals valuation paradox despite stocks not looking cheap.

Nifty's PEG ratio near 10-year low signals valuation paradox despite stocks not looking cheap. — impact context not separately stored; see What changed.