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### Growth Rates
The table shows average growth rates over different time horizons:
- **25 Years:** GDP and EPS have grown at around 9.1% and 11.4%, respectively, while Nifty’s growth rate aligns closely with EPS growth.
- **Last Year:** Exceptional EPS growth (around 14.2%) indicates a recent positive momentum in earnings, which likely impacted valuations.
### Expected Growth Projections
- **2024-25:** GDP is expected to grow at 8%, while EPS is projected to grow at 2% which currently after Q2 results is actually (-1%).
- **Long-term Projections:** Over a longer horizon, GDP growth is projected at around 8%, while EPS is expected to grow in the double digits, sustaining a positive outlook for Nifty's earnings growth and, thus, its valuations.
### Fair Value Estimations for Nifty
1. **Current Valuations**: Based on EPS, PE ratios, and other valuation parameters, the table suggests Nifty's fair value and projected levels for current and future years. This year’s Fair Value should be 20775 while the expected range at current earnings should be 23743 to 20775. As earrings may improve the range may improve.
2. **Future Estimates (2024-35):** Nifty's projected fair values and corresponding high/low ranges show expected valuation growth in line with EPS growth, with potential high and low targets provided for upcoming years (2029-30, 2034-35). We expect EPS of 1743 in Fy_2030 which can take the Nifty to an upgraded range of 36613 to 41843. Similarly EPS for Fy_35 is estimated at 3073 taking Nifty in the range of 64525 to 73742.
### Fair PE & Dividend Adjustments
- **PE Ratios (LPE & HPE):** Low and high PE ratios help set a range for expected valuations. The derived fair value aligns closely with the projected earnings and PE ratios, giving investors an understanding of Nifty’s fair trading range.
- **Dividend Impact:** Regular dividends contribute to the overall yield, enhancing long-term returns alongside capital appreciation.
### Summary
The analysis provides a detailed view of Nifty’s historical performance and expected future valuations. Based on the provided growth rates, the fair value of Nifty is derived for upcoming years, offering a forward-looking perspective on market valuations. This aligns with GDP and EPS projections, providing a fair value estimate for 2024-25 and long-term targets for 2030-35.
Disclosure: Do not use this data for Speculation, This is for Investors.
