In following chart we have compared Nifty 50 and Nifty Midcap 50 on PE ratios. We have Divided nifty midcap 50 PE by Nifty 50 PE to get ratio,which indicate when ratio is > 1 midcaps are overvalued compared to nifty and when ratio is <1 means midcaps are undervalued compared Nifty.