The August reading
The Nifty 50 closed at 24,624.65 on Wednesday, 5 August 2026, at a price-to-earnings ratio of 20.91. Its price-to-book ratio was 3.02 and its dividend yield 1.26%.
The index is 6.5% below its record close of 26,328.55 from 2 January. The daily history is on our Nifty P/E ratio page.
Since early July
In the July post the index was at 24,430.35 and the P/E at 21.06. Since then:
- The index rose 0.8%.
- The P/E fell 0.7%.
- Dividing one by the other, the earnings behind the index rose about 1.5%.
That is the first month in this series where the price rose and the P/E still fell. It is also the largest monthly rise in implied earnings so far, ahead of the 1.0% between May and June. July as a calendar month took the index up 2.2%, from 23,865.75 to 24,383.60.
The P/B keeps setting lows
The bigger move was in the price-to-book ratio. It went from 3.19 on 6 July to 3.02 on 5 August, and on 27 and 28 July it closed at 2.95.
That was the lowest P/B since NSE moved the P/E to consolidated earnings in 2021, and it reaches further back than that. The switch barely touched the P/B (4.21 to 4.20 on the day), so its longer record still compares. The last close at 2.95 or lower was on 30 June 2020.
Eight sessions since 2021 have closed below the 5 August reading of 3.02, all of them between 22 and 31 July.
The cause sits in the arithmetic. Dividing the index by its P/B gives the book value behind it, and that figure jumped in July. On 20 July alone the index slipped 0.4% while the P/B fell from 3.13 to 3.04: book value up about 2.6% in a session. Over the month from 6 July, book value rose about 6.5%.
Over a year the gap is wider. Since 5 August 2025:
| Change | |
|---|---|
| Index | down 0.1% |
| P/E | down 4.2% |
| P/B | down 10.1% |
| Implied earnings | up 4.3% |
| Implied book value | up 11.2% |
Net worth behind the index has grown about two and a half times as fast as profit. A falling P/B with a flat price says the companies' book has grown, not that they are worth less.
Where 20.91 sits
Since 31 March 2021 there have been 1,319 sessions. The March post explains the starting date.
- P/E: 253 sessions closed lower than 20.91, about 19%. The median is 22.22.
- P/B: 8 sessions closed lower, all in late July.
- Dividend yield: 1.26%, a touch below its 1.28% median.
The P/E is in the cheaper fifth of its range and the P/B at the very bottom of it.
What this does not tell you
A low P/B is not a low price. It says price has not kept up with accumulated book value. Book value can include assets whose worth is uncertain, and a low ratio can persist.
The earnings are trailing. The "E" updates as companies report and can step up or down on a quiet day.
It is the index, not your fund. Large-cap funds own their own selection.
Where to go from here
For last month across the market, see the July 2026 market recap. For the third of NSE's valuation measures, see the Nifty's dividend yield in July.
The guide on whether the market is expensive covers how P/E and P/B can disagree.
Frequently asked questions
What is the Nifty 50 P/E ratio in August 2026?
The Nifty 50 closed at a P/E of 20.91 on 5 August 2026, with the index at 24,624.65. Its price-to-book ratio was 3.02 and its dividend yield 1.26%.
What is the lowest Nifty 50 P/B ratio in 2026?
2.95, on 27 and 28 July 2026. That was the lowest close since 30 June 2020. NSE's 2021 switch to consolidated earnings left the P/B essentially unchanged, so the comparison with 2020 holds.
Why is the Nifty 50 P/B falling while the index rises?
Because the book value behind the index grew faster than the price. From 6 July to 5 August 2026 the index rose 0.8% while the P/B fell from 3.19 to 3.02, which implies book value up about 6.5%. Over a year it is up about 11%, against earnings up about 4%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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