India’s stock market is the most expensive in the world, giving 31 -fold price of earnings is not right from anywhere: Ashwath Damodaran – Indian Stock Market is Most Expected in the World Paying 31 Times Earnings is not right at all aswath damodaran

Indian stock markets have continued to decline continuously for the last few months. It has been one of the world’s worst performing stock markets so far in 2025. Ashwath Damodaran, who is called the Valuation Guru, believes that despite this decline, the Indian stock markets still remain the most expensive in the world. Interestingly, this year, China’s Shanghai index has done better than India’s Sensex. Damodaran is a professor at the Sterness School of Business at New York University.

He recently wrote in a blog post, “India is the most expensive stock market in the world at the moment. No matter how attractive India’s growth story seems, but for Indian companies average 31 times earrings (P/E) overall. , Can not hold the valuation of 3 times revenue and 20 times Ebitda. “

He said that India may be one of the fastest growing economies in the world, but despite this, its current valuation is much higher than most of other stock markets at the global level.

Where is the expensive and cheap market in the world?

Damodaran compared India to other countries’ stock markets and found that the stock markets of Latin America and Eastern Europe are comparatively cheap, but there are challenges such as political instability and low growth rate. At the same time, Japan is generally considered to be a slow growth market and is currently facing additional challenges like the elderly population.

He said that the benchmark index of Argentina, Brazil and Chile has given better returns than the rest of the world’s stock markets so far this year. According to Damodaran, elevated valuation can be seen in the middle East markets, but the reason is that there is more dominance of financial services companies. These companies often do not clearly show their earnings, which can make valuations look expensive.

Is Japan and South Korea underwellude?

Damodar said that the valuation of these few markets is looking less comparatively. Japan and South Korea are countries where companies look cheap based on enterprise value-to-cells, but these economies also have comprehensive economic challenges.

Will the Indian market improve?

Investors remain concerned about the high valuation of the Indian stock market. Damodaran said that if there is no improvement during the quarters of Indian companies and the quarters of profits, then it may be difficult for investors to correct these high valuation.

Also read- Share Market Crash: Stock market dropped due to these 4 reasons, Sensex breaks 670 points, ₹ 5 lakh crore of investors drowned

Disclaimer: The ideas and investment advice given by experts/brokerage firms on Moneycontrol are their own, not the website and its management. Moneycontrol advises users to consult a certified expert before making any investment decision.