The above chart depicts relationships between fundamental parameters like ROE, Growth, Edelscore on one axis and valuation parameters like PE, PB, EV/EBITDA on the other axis. Markets value sectors on the basis of their fundamentals and often there is a direct correlation between fundamentals and valuations. This means the higher the ROE the higher the PB, similarly the higher the Growth the higher the PE, and EV/EBITDA multiples. On the basis of the above relationships the chart depicts sectors into red or green depending on whether they are overvalued (in red) or undervalued (in green).