Time spent by Sensex at various P/E levels


4 replies on “Time spent by Sensex at various P/E levels”

Define X axis. Days/Weeks/Months … For how many years was this chart plotted? Last 1 year? 10 years?


You are approaching the chart from a “market timing” perspective. I think you would like to know “how much time till the next correction/crash”. But think of this chart as a measure of time SENSEX spends at a particular PE level. So it only spends 2% of the time at 24x PE levels.

So if you take 100 randomly selected days only 2 days you will find SENSEX at 24x levels.
This should give an indication of how overbought or oversold SENSEX is (it is at overbought levels)

Hope it helps!

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