NIFTY 50 Price-to-Book (PB) Ratio: 2.84
Official consolidated Price-to-Book multiple for India's benchmark index. Measures the aggregate equity valuation relative to the total book value of net assets across all 50 constituent companies.
Consolidated official book value multiple.
Historical median over 2,500 trading days.
Historical minimum (trough) to maximum (peak).
Price to earnings multiple for comparison.
Understanding the NIFTY 50 PB Multiple
The Price-to-Book (P/B) ratio compares the current market capitalization of the NIFTY 50 index to the combined net asset value (shareholders' equity) of its constituents. Unlike the PE ratio, which is sensitive to cyclical earnings variations, the PB multiple reflects the capital invested in corporate assets.
In capital-intensive sectors such as banking, metals, and infrastructure, the PB multiple is often considered a more resilient gauge of corporate asset backing than trailing net earnings.
Relationship Between Nifty PE and PB
The relationship between PE and PB is governed by the underlying Return on Equity (ROE):
With current PB at 2.84 and PE at 19.85, the implied aggregate ROE for the NIFTY 50 index is approximately 14.31%.