"Valuation (one-year forward consensus PE) has declined 25 per cent from October 2021 peak, almost matching the 33 per cent price-earnings contraction during the 2011 tightening cycle when repo rates went up by 375 basis points (bps) versus 250 bps this cycle. Consequently, valuations are in line with the 10-year average at 17.2x. Relative valuations are also better. Compared to the emerging market & Asia ex-Japan benchmark, the Nifty PE premium is at the average levels," Nandurkar wrote in a coauthored note with Abhinav Sinha.