The Nifty50's price-earnings (P/E) multiple based on FY21 earnings has hit a 15-year high of 20.6 according to the Bloomberg data. It is 34% higher than the long-term average of 15.2. A major reason for the upbeat valuation is that analysts are now taking into account the FY22 estimated earnings, which may grow in double digits. On FY22 estimates, Nifty's current P/E works out to be around 17, which is 21% higher than the long-term average of 14 for the two-year forward P/E. Based on the two-year forward earnings, Indian equities are the most expensive after the US and Japan.