The ICICI Prudential Equity Valuation Index is calculated by equally weighting the Price-to-Earnings ratio, Price-to-Book ratio, G-Sec Price-to-Earnings ratio, and the ratio of market capitalization to gross domestic product. As of October 31, 2021, the index highlights that equity valuations are not cheap and recommends only investing in equities with a long-term perspective through a dynamic asset allocation scheme that aims to manage equity exposure based on market valuations.