Categories: Stock Market

Valuation guru Aswath Damodaran says India is most expensive market in the world, can’t justify paying 31x earnings

Indian stock market: “Valuation guru” Aswath Damodaran, professor of finance at New York University (NYU) said the Indian stock market is the most expensive equity market in the world and no amount of handwaving can justify its valuations.

In his latest blog, Damodaran, who is an expert on stock valuations said, “The most expensive market in the world is India, and no amount of handwaving about the India story can justify paying 31 times earnings, 3 times revenue and 20 times EBITDA, in the aggregate, for Indian companies.”

Damodaran added that the US and China also fall into the expensive category, trading at much higher levels than the rest of the world on all three pricing metrics.

His comments come as Indian equity markets are experiencing a selloff amid weak earnings growth by Indian corporates. Despite a 10% decline from their all-time highs, Indian equities are still trading at a premium to the rest of the world.

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