What is meant by market real valuation? Explain in case of nifty!

Take the last year nifty eps ( fy 15) which is at 380, look i am little bit conservative at the earning estimate , not going by what analysts are shouting on tv, i have estimate of 5 and 7% earing estimate for fy 16 and 17 respectively , as fy 16 earnings are going , market alwats trade at one year forward earning estimate which means of fy 17, know grow 5% on 380 , it should be at 399 and grow 7% on 399, it should be at 428, take 8 rs margin of safety , then eps for fy 17 should be 420 rs , even if you divide 7400 nifty level with 420 , pe is at 18 , though pr is not high but given indian economy is in recession , growth is not there except the thing that number of growth are inflated, globally recession like thing , market is running ahead of its fundamentalls , only point for market saviour is liquidity and recent fall of nifty is fear that fed will hike rate and liquidity will be less and it lead to 1000 point fall on nifty and dogs on tv are saying that fiis does not matter to india, one thing should not be forgot that fiis are father of indian capital market and never forgot your father

My views are only related to investment not to trading , i even trade at when nifty is at 9000, so take your own decisions