New Delhi, March 13 -- A market correction often sparks the same question on Dalal Street: Are stocks finally cheap? The recent sell-off, triggered by rising West Asia tensions, surging crude prices and persistent foreign outflows, has cooled some of the market's froth. But a closer look suggests valuations are only moderating, not exactly bargains yet.

A Mint analysis of more than 3,400 BSE companies shows that the share of stocks trading above 80X earnings has fallen from about 14.6% at the market peak to around 11% now. More companies have slipped into lower valuation brackets, offering some relief to investors.

Large caps appear relatively comfortable, with the BSE LargeCap index trading at about 22.7x earnings, slightly below its f...