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India’s valuation premium vs Asia hits lowest level since 2018
MSCI India traded at a 19.5x 12-month forward price-to-earnings multiple as the premium over Asia compressed to about 57% after two years of lagging returns.
India’s valuation premium over Asian and emerging-market equities has shrunk to its lowest level since 2018 after nearly two years of underperformance, according to Bloomberg data cited by LiveMint Markets.
As of 27 August, MSCI India traded at a 12-month forward price-to-earnings multiple of 19.53 times, versus 12.42 times for MSCI Asia and 9.31 times for MSCI Emerging Markets. That translated into a valuation premium of about 57% over Asia and nearly 110% over Emerging Markets, down sharply from end-2024 levels of 71.5% and 82.4%, respectively.
LiveMint Markets also points to a reversal in relative returns as the driver. In 2026 through 27 August, MSCI India fell 4%, while MSCI Asia gained 22% and MSCI Emerging Markets rose 23%. The article notes that the divergence began in 2025, when India returned 8.1% compared with 25.3% for Asia and 30.6% for emerging peers.
Despite the valuation reset improving the risk-reward, Vayu Capital founder Shashank Udupa said India is not yet “cheap,” and that sustained outperformance would require stronger earnings and renewed foreign investor confidence, according to LiveMint Markets.