The Five Pillars · each scored as a z-score vs its long-term mean ± σ
Apple-to-apple fix (read this): P/E and P/B are now reported on a consolidated basis, where
earnings run ~17% higher than the old standalone basis — so today's multiples print ~17% lower purely
from the accounting change. To compare like-for-like, the app grosses today's consolidated P/E & P/B up
by the consolidation uplift (default +17%) to a standalone-equivalent, then scores it against the
standalone-basis long-term mean & σ (the old, higher pre-2021 averages). Each P/E & P/B card shows
both your raw consolidated entry and the standalone-equivalent actually used. P/E & P/B are calibrated
separately for Nifty 50 and Nifty 500; macro & sentiment are market-wide. All five factors equal-weight 20%.
Valuation History
No snapshots yet. Each time you press 💾 Save & recompute, the app records that day's
composite score for the index you're editing — over the months this builds your valuation timeline.
Date
Score
Zone
Z
Update / calibrate inputs (saved to this browser, loaded automatically next time)
Edit the current readings or the long-term baselines, then Save. Your numbers persist on this
computer and load instantly every time you open the file. Sources: NSE / Trendlyne / screener.in (PE, PB),
RBI / worldgovernmentbonds.com (10Y G-Sec), Buffett-indicator trackers (MktCap/GDP), NSE (India VIX, breadth), NSDL (FII flows).
Methodology
Each pillar's z-score = (current − long-term mean) ÷ standard deviation, oriented so a higher z = more expensive.
P/E & P/B — higher multiple = more expensive. Today's consolidated reading is grossed up by the consolidation uplift (×1.17) to a standalone-equivalent, then scored against standalone-basis long-term mean/σ (calibrated per index). This neutralises the ~17% optical drop from the standalone→consolidated switch.
ERP · earnings-yield gap — the primary relative-value signal = earnings yield (1/PE) − 10Y G-Sec. A lower/more-negative gap means equities are dear versus bonds (orientation inverted so it scores like the others). The economic headline uses the true consolidated earnings yield; the z-score uses the standalone-equivalent yield (1/(PE×uplift)) against the standalone-basis gap history, keeping it apple-to-apple. The 10Y G-Sec now lives inside this pillar rather than as a standalone factor.
Market Cap / GDP (Buffett indicator) — higher = more expensive.
Sentiment — a composite "greed" score from India VIX (inverted: low VIX = complacency), 1-month net FII flows (₹ crore, scored against FII's own mean/σ), and market breadth (% of the selected index's constituents above their 200-DMA — entered separately for Nifty 50 and Nifty 500). Higher greed = more expensive.
Composite Z = simple average of the five z-scores. Score = 50 + Z × 16.67, clamped 0–100.
Zones: Very Cheap (Z ≤ −1.5) · Cheap (−1.5 to −0.5) · Neutral (−0.5 to +0.5) · Expensive (+0.5 to +1.5) · Very Expensive (Z ≥ +1.5).