Business Standard ·
Economy, business and finance
Pricey affair! Is NSE's valuation premium to global peers justified?
Analysts said that NSE's rich valuation is justified by its strong leadership position, supported by aliquid marketplace & powerful network effects arising from the country's structural market growth.
NSE IPO valuation: The National Stock Exchange (NSE) has lowered the valuation by around 15 per cent from what it was seeking, though it remains the most richly valued exchange franchise globally. At the upper end of the IPO price band, ₹1,785, NSE is valued at around 42.9x earnings, placing it among the most richly valued exchange franchises globally.
Analysts said that NSE's rich valuation is justified as it enjoys a strong leadership position, supported by its liquid marketplace and powerful network effects arising from the country’s structural market growth.
“NSE’s IPO is priced at a premium, but its dominant market position, structural growth opportunities, and operational strength make the valuation defensible," Rajesh Agarwal, head of research at AUM Capital Market, said. NSE vs global peers
According to Bloomberg data, Coinbase Global trades at a P/E multiple of 40.35x, while Singapore Exchange commands a multiple of 34.56x. Similarly, London Stock Exchange Group and Nasdaq trade at P/E multiples of 29.35x and 25.95x, respectively.
CME Group, Intercontinental Exchange, HKEX, Deutsche Börse, Cboe Global Markets, and Japan Exchange Group trade broadly in the 23–25x P/E range.