Wednesday's close
The Nifty Smallcap 250 closed at 17,495.75 on Wednesday, 17 June 2026, at a price-to-earnings ratio of 34.64. Its price-to-book ratio was 3.70 and its dividend yield 0.66%.
The index is 6.1% below its record close of 18,623.15, set on 23 September 2024. The daily series is on the Smallcap 250 valuation page.
From the cheap half to the dear end in three months
In the March post the index was at 14,753.25 and the P/E at 24.29, about the 28th percentile of its five-year range. Since that close on 19 March:
- The index rose 18.6%.
- The P/E rose 42.6%.
- Dividing one by the other, the earnings behind the index fell about 17%.
Prices recovered fast. From the 2026 low of 14,232.85 on 23 March, the index is up 22.9%. The profits behind it went the other way. The Nifty 50 over the same three months rose 4.7%, with its implied earnings up about 1.5%.
Two steps down
As with mid caps, most of the earnings change arrived on two days.
- 30 March: the index fell 2.5% but the P/E jumped from 24.12 to 25.86. The earnings figure fell about 9.1% in a session.
- 25 May: the index rose 1.2% and the P/E jumped from 30.03 to 33.14. The earnings figure fell about 8.3%.
Mid caps had a step on 30 March too, of about 5%. But in May they went the other way: on 19 May the Midcap 150's earnings figure rose about 13%. That difference is why the Midcap 150's P/E is lower than in March while the Smallcap 250's is far higher. On 17 June the Midcap 150 closed at a P/E of 29.16, so small caps are now the dearer of the two. In March it was the other way round.
Against its own record
The comparisons start on 31 March 2021, when NSE moved to consolidated earnings: 1,285 sessions to 17 June 2026.
| P/E | P/B | Dividend yield | |
|---|---|---|---|
| 17 Jun 2026 | 34.64 | 3.70 | 0.66% |
| Lowest since Mar 2021 | 16.90 | 2.52 | 0.59% |
| Median since Mar 2021 | 28.56 | 3.57 | 0.87% |
| Highest since Mar 2021 | 48.15 | 4.66 | 1.38% |
- P/E: 1,191 of 1,285 sessions closed lower, about 93%. In March only 28% did.
- P/B: 862 sessions closed lower, about 67%. Book value moved far less than earnings, so the P/B has risen with the price but nothing like as steeply as the P/E.
- Dividend yield: 1,173 sessions offered more than 0.66%.
Against the Nifty 50
The Nifty 50 closed at a P/E of 20.77 on 17 June, so the Smallcap 250's was 1.67 times it. Since March 2021 that multiple has ranged from 0.83 (23 December 2022) to 1.68 (9 June 2026), with a median of 1.25. Only three sessions had a wider gap, all of them this month: 4, 5 and 9 June.
In March the multiple was 1.21. Small caps have gone from priced about as usual against large caps to nearly the widest gap in five years.
A year ago, on 17 June 2025, the index closed at 17,177.30 at a P/E of 32.67. Since then the price is up 1.9% and the P/E up 6.0%, which implies earnings down about 3.9%.
What this does not tell you
A high P/E is not a sell signal. If the earnings that fell recover, the ratio comes down without the price moving. They may also not recover.
Two sessions did most of the work. Steps of 8–9% in a day can come from a change of members or from results updates; our data shows the size of the step, not its source.
Small-cap earnings are noisy. A few large swings among 250 companies can move the total a long way.
It is not your small-cap fund. Funds pick their own stocks, and many hold mid caps and cash.
Where to go from here
The Smallcap 250 valuation page has the full series. To see how funds in the category have done, the small cap fund rankings are computed from daily NAVs.
The guide on whether the market is expensive covers why valuation is a poor timing tool.
Frequently asked questions
What is the Nifty Smallcap 250 P/E ratio in June 2026?
The Nifty Smallcap 250 closed at a P/E of 34.64 on 17 June 2026, with the index at 17,495.75. Its price-to-book ratio was 3.70 and its dividend yield 0.66%.
Why did the Smallcap 250 P/E rise so much after March 2026?
Both halves of the ratio moved against it. From 19 March to 17 June 2026 the index rose 18.6% while the earnings behind it fell about 17%, so the P/E rose 42.6%, from 24.29 to 34.64. Two single sessions, 30 March and 25 May, each cut the earnings figure by 8–9%.
Are small caps expensive compared with large caps in June 2026?
On trailing earnings, more than at almost any time since 2021. On 17 June 2026 the Smallcap 250's P/E was 1.67 times the Nifty 50's 20.77. The median since 31 March 2021 is 1.25, and only three sessions, all in June 2026, had a wider gap.
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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