In this paper, we evaluate alternative price multiples for equity valuation purposes in the Indian context. Data are taken from 145 large companies that satisfy our screening criteria. The sample companies cover 13 prominent sectors, and the study period covers the years 1990–2007. We generate...

In this paper, we examine the behaviour of price multiples in India from 1990–2007. The distributions of price multiples tend to be normal over our study period, thus making the mean and standard deviation of these multiples relevant parameters for equity analysis in the Indian context....