Research preview

Indian stocks have slipped to a forward‑earnings multiple of about 16x, the lowest level since the middle of 2020. That valuation gap invites a quantitative review of risk, return, and timing for a market that has been trading at a discount to its historical earnings power. Valuation Context and Historical Benchmarks The forward‑earnings multiple is a core metric for comparing current prices to expected profitability. A 16x forward P/E sits well below the 20‑25x range that has typified Indian equities over the past decade. When the market trades at such a discount, historical data suggest a higher probability of mean‑reversion, provided macro fundamentals remain intact....