Finding value in the market: Stocks are trading at extreme valuations

It is difficult to find value in a market which is trading at its all-time highs. However, given the lopsided growth, stocks are trading at extreme valuations. There are many Nifty stocks available two standard deviation (SD) above (or below) their financial metrics like price-to-earnings (P/E), price-to-book (P/B) and enterprise value (EV)-to-Ebitda.   Recent winners such as Tata Consultancy Services (TCS) and Hindustan Unilever (HUL) are trading at a P/E two SD above, while state-owned ONGC is available two SD below. Experts say, the market is rewarding companies with strong growth po.....

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