Indian Market is trading at 31 times of earnings, Says Aswath Damodaran

Valuation expert Aswath Damodaran recently highlighted that the Indian stock market is the world’s most expensive. Despite optimism surrounding India’s growth, he finds the high valuations hard to justify. Indian equities trade at 31 times earnings, much higher than global averages.

Damodaran pointed out that India’s pricing metrics, like trading at 3 times revenue and 20 times EBITDA, are elevated. These high valuations are unsustainable and could pose risks to investors. Comparing India’s market with other regions like Latin America and Eastern Europe, he noted that those markets offer lower multiples despite their risks.

He advised investors to carefully assess market conditions before making decisions. While India’s growth prospects are promising, high valuations make it crucial for investors to be cautious and consider potential risks.