Nifty price-to-book ratio hits 6-year low, but market may not be cheap

The Nifty's price-to-book ratio has slid below three for the first time in six years, showcasing the banking sector's struggles alongside rising book values. With banks and financial services playing a crucial role in the Nifty's composition, the recent consolidation of financials has notably influenced valuation metrics. It is now essential for investors to prioritize earnings growth and future profitability projections.

Raccontata daeconomictimes.indiatimes.com