The analysis by Mihir Vora, CIO of Trust Mutual Fund reveals that valuations of small-cap stocks are largely in line with large-caps. “The large-cap P/E and the small-cap P/E are approximately the same,” he said adding that large-cap P/E is actually slightly higher.
“There’s a bit of a skew because multi-cap and flexi-cap funds are pouring money into the 150 stocks classified as large caps. But when you look at the actual valuations of large caps and small caps, they’re pretty similar,” he said.
