Renowned valuation expert Aswath Damodaran, a finance professor at New York University (NYU), has labeled the Indian stock market as the most expensive equity market globally, asserting that its current valuations cannot be justified regardless of the optimism surrounding India’s growth story.
In his recent blog post, Damodaran, a specialist in stock valuations, stated, “India holds the title for the most expensive market in the world. No matter how much one emphasizes the potential of the India narrative, paying 31 times earnings, 3 times revenue, and 20 times EBITDA, on average, for Indian companies is not justifiable.”
Damodaran also noted that the US and Chinese markets are similarly overpriced, trading significantly higher than global averages across these three valuation metrics.
His remarks come at a time when Indian equity markets are facing a downturn, driven by lackluster corporate earnings growth. Despite a 10% drop from their peak levels, Indian stocks continue to trade at a premium compared to other global markets.
