The number
The Nifty Smallcap 250 closed at 17,589.05 on 1 October 2026, at a price-to-earnings ratio of 34.05. Its price-to-book ratio was 3.38 and its dividend yield 0.62%.
All three are NSE's published end-of-day figures, charted on the Nifty Smallcap 250 valuation page.
High on earnings, middling on book
The comparisons start on 31 March 2021, when NSE moved its index P/Es to consolidated earnings. That is 1,359 sessions.
| P/E | P/B | Dividend yield | |
|---|---|---|---|
| 1 Oct 2026 | 34.05 | 3.38 | 0.62% |
| Lowest since Mar 2021 | 16.90 | 2.52 | 0.55% |
| Median since Mar 2021 | 28.85 | 3.58 | 0.86% |
| Highest since Mar 2021 | 48.15 | 4.66 | 1.38% |
- P/E: 1,209 of 1,359 sessions closed lower, about the 89th percentile. The low was 16.90 on 28 March 2023, the high 48.15 on 29 April 2021.
- P/B: only 415 sessions closed lower, about the 31st percentile. On book value, small caps are cheaper than their middle.
- Dividend yield: 1,244 sessions offered more than 0.62%. The low of the period, 0.55%, came on 18 September 2026.
Two of the three measures say expensive and one says the opposite. The gap between them is the story.
The price rose, the profits fell
A year earlier, on 1 October 2025, the index closed at 16,869.40 at a P/E of 30.28.
- The index is up 4.3% over the year.
- The P/E is up 12.5%.
- Dividing one by the other, the earnings behind the index are down about 7.3%.
When profits fall and book value does not, the P/E rises while the P/B holds. That is the pattern here.
Much of the move came in one quarter. On 30 March 2026 the index closed at 14,288.45 at a P/E of 25.86. By 30 June it was at 17,720.30, up 24.0%, and the P/E was 35.52, up 37.4%. The price recovered faster than the earnings did.
The sharpest single step came on 25 May 2026. The index rose 1.2%, from 16,775.30 to 16,976.40, but the P/E jumped from 30.03 to 33.14. Overnight, the earnings figure NSE divides by fell by about 8%.
Against the Nifty 50
Small caps usually cost more than large caps on earnings. Since March 2021 the Smallcap 250's P/E has ranged from 0.83 to 1.78 times the Nifty 50's, with a median of 1.26.
On 1 October 2026 it was 1.77 times (34.05 against 19.19). Only one session since 2021 had a wider gap: the day before, 30 September, at 1.78.
The Midcap 150 sits at 1.46 times. So of the two, small caps have moved furthest from large caps.
The 2021 switch hit this index differently
On 31 March 2021, NSE's switch to consolidated earnings cut the Nifty 50's P/E from 40.43 to 33.20 and the Midcap 150's from 73.56 to 40.58. The Smallcap 250's barely moved: 42.54 to 43.30.
Its dividend yield did move, from 1.32% to 0.67% the same day. Older yield readings are a different yardstick too.
The index is still 5.6% below its record close of 18,623.15, set on 23 September 2024. In September 2026 it fell 3.1%, less than the Nifty 50's 6.1%.
What this does not tell you
A high P/E is not a sell signal. Earnings that fell can recover, and a recovery would bring the ratio down without the price moving. Or they may not recover.
The basket changes twice a year. On 30 September 2026, the rebalancing day, the earnings behind the index dropped 4.7% in a session. Part of any year-on-year earnings change is a different set of companies.
Small-cap earnings are noisy. Many of the 250 companies report small or volatile profits, and a few large swings can move the total.
It is not your small-cap fund. Funds choose their own stocks and weights, and many hold mid caps and cash too.
Where to go from here
The Smallcap 250 valuation page has the full daily series. To see how funds in the category have done, the small cap fund rankings are computed from daily NAVs.
For where other indices sit against their own history, see the cheapest and dearest NSE indices. The guide on whether the market is expensive covers what valuation can and cannot do.
For how far small-cap funds fell along the way, see small-cap fund drawdowns in 2026.
Frequently asked questions
What is the Nifty Smallcap 250 P/E ratio now?
The Nifty Smallcap 250 closed at a P/E of 34.05 on 1 October 2026, with the index at 17,589.05. Its price-to-book ratio was 3.38 and its dividend yield 0.62%.
Are small caps expensive right now?
On earnings, yes against their own record: since 31 March 2021, 1,209 of 1,359 sessions closed at a lower P/E. Against the Nifty 50 the gap is near its widest: the Smallcap 250's P/E is 1.77 times the large-cap index's, a multiple exceeded only once since 2021, the day before: 1.78 on 30 September 2026. On book value it is cheaper than usual, with a P/B of 3.38 against a median of 3.58.
Why did the Smallcap 250 P/E rise when the index fell?
Because the earnings behind it fell faster. Over the year to 1 October 2026 the index rose 4.3% and its P/E rose from 30.28 to 34.05, which implies earnings about 7.3% lower. The biggest single step came on 25 May 2026, when the P/E jumped from 30.03 to 33.14 while the index rose 1.2%.
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.
Keep reading
The cheapest and dearest NSE indices on their own P/E
Nifty IT trades 35% below its own median P/E since 2021 and Nifty Pharma 21% above. Where 60 NSE indices stood against their history on 1 October 2026.
Nifty 50 P/E at 19.2: where it stands against history
The Nifty 50's P/E closed at 19.19 on 1 October 2026, lower than on all but four days since NSE changed how it calculates the ratio in 2021. What that means.
Nifty Bank P/B at 1.64, near its lowest since 2020
Nifty Bank closed at a price-to-book of 1.64 on 1 October 2026. Since 2021 only two days were lower, and since 2003 only 5.4% of days. Why P/B matters here.