How do market experts predict future index levels? It is done by estimating EPS (Earnings Per Share) of the index and then multiplying it with what they consider a logical multiple (P/E Ratio). In past 18 years, Sensex’s EPS has… Read More Historical Sensex EPS Growth & PEG Ratio The BSE Sensex and NSE Nifty are at all-time highs. The BSE Sensex closed comfortably above the magic figure of 30,000 for the first time. The midcap and small-cap indices are trading at insane valuations. In euphoric times like these, investors find reasons to buy stocks - growth stories, stock re-ratings, margin expansion, new opportunities, etc. Sensex – An analysis of historical valuations 24Nov12. At present (23/11/2012) the Sensex PE multiple is 16.84 and PB Ratio is 2.86 – The PE valuation has been greater than 16.84 in 65% of the instances (171/261 months) and PB ratio has been greater than 2.86 in 71% of the instances (185/261).