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Oct 25
Australian (ASX) Market Analysis & Valuation
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies1896
- 7D-1.0%
- 3M-7.7%
- 1Y-0.3%
- YTD-2.0%
Over the last 7 days, the market has dropped 1.0%, driven by a decline of 1.4% in the Financials sector. In the last 12 months the market has been flat overall. Looking forward, earnings are forecast to grow by 8.9% annually.
Market Valuation and Performance
Has the Australian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$2.3t | AU$1.2t | AU$119.9b | 17.4x | 19.5x | 2x |
| Thu, 28 Sep 2023 | AU$2.4t | AU$1.2t | AU$120.6b | 17.9x | 19.9x | 2x |
| Sat, 26 Aug 2023 | AU$2.4t | AU$1.2t | AU$125.4b | 17.1x | 19.4x | 2x |
| Mon, 24 Jul 2023 | AU$2.5t | AU$1.2t | AU$144.9b | 16.6x | 17.1x | 2.1x |
| Wed, 21 Jun 2023 | AU$2.5t | AU$1.2t | AU$144.3b | 16.2x | 17.2x | 2.1x |
| Fri, 19 May 2023 | AU$2.4t | AU$1.2t | AU$145.7b | 16.3x | 16.8x | 2.1x |
| Sun, 16 Apr 2023 | AU$2.5t | AU$1.2t | AU$144.1b | 16.2x | 17.3x | 2.1x |
| Tue, 14 Mar 2023 | AU$2.4t | AU$1.2t | AU$144.4b | 15.9x | 16.7x | 2.1x |
| Thu, 09 Feb 2023 | AU$2.5t | AU$1.1t | AU$146.6b | 16.2x | 17.3x | 2.3x |
| Sat, 07 Jan 2023 | AU$2.4t | AU$1.1t | AU$147.5b | 15.3x | 16.3x | 2.2x |
| Mon, 05 Dec 2022 | AU$2.5t | AU$1.1t | AU$148.6b | 14.9x | 16.6x | 2.3x |
| Wed, 02 Nov 2022 | AU$2.4t | AU$1.1t | AU$150.7b | 14.6x | 15.7x | 2.2x |
| Fri, 30 Sep 2022 | AU$2.2t | AU$1.1t | AU$149.7b | 14x | 14.9x | 2x |
| Sun, 28 Aug 2022 | AU$2.4t | AU$1.1t | AU$143.6b | 15.3x | 16.9x | 2.3x |
| Tue, 26 Jul 2022 | AU$2.3t | AU$1.0t | AU$132.5b | 15x | 17.3x | 2.2x |
| Thu, 23 Jun 2022 | AU$2.2t | AU$1.0t | AU$133.5b | 15x | 16.3x | 2.1x |
| Sat, 21 May 2022 | AU$2.5t | AU$1.0t | AU$133.3b | 16.2x | 18.5x | 2.4x |
| Mon, 18 Apr 2022 | AU$2.6t | AU$1.0t | AU$129.4b | 17.5x | 20.2x | 2.5x |
| Wed, 16 Mar 2022 | AU$2.5t | AU$1.0t | AU$130.7b | 17.5x | 19.4x | 2.4x |
| Fri, 11 Feb 2022 | AU$2.6t | AU$981.4b | AU$110.7b | 18.5x | 23.4x | 2.6x |
| Sun, 09 Jan 2022 | AU$2.6t | AU$976.9b | AU$104.3b | 19.4x | 25.4x | 2.7x |
| Tue, 07 Dec 2021 | AU$2.5t | AU$981.2b | AU$103.1b | 18.4x | 24.6x | 2.6x |
| Thu, 04 Nov 2021 | AU$2.6t | AU$963.0b | AU$97.8b | 19.7x | 26.5x | 2.7x |
| Sat, 02 Oct 2021 | AU$2.5t | AU$961.5b | AU$95.8b | 18.8x | 26.2x | 2.6x |
| Mon, 30 Aug 2021 | AU$2.6t | AU$949.7b | AU$96.9b | 18.2x | 26.7x | 2.7x |
| Tue, 06 Jul 2021 | AU$2.5t | AU$945.8b | AU$96.5b | 17.7x | 25.9x | 2.6x |
| Fri, 09 Apr 2021 | AU$2.3t | AU$897.3b | AU$70.2b | 17.1x | 32.7x | 2.6x |
| Thu, 31 Dec 2020 | AU$2.2t | AU$874.5b | AU$41.6b | 19.4x | 53.2x | 2.5x |
Price to Earnings Ratio
43.7x
Current Market PE
- Investors are pessimistic on the Australian market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 19.5x which is lower than its 3-year average PE of 24.7x.
Past Earnings Growth
- The earnings for Australian listed companies have grown 39% per year over the last three years.
- Revenues for these companies have grown 10% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Australian Market?
| AU Market | -1.02% | |
| Utilities | 1.73% | |
| Materials | 1.02% | |
| Healthcare | -0.24% | |
| Consumer Discretionary | -0.91% | |
| Consumer Staples | -1.07% | |
| Financials | -1.43% | |
| Industrials | -1.90% | |
| Energy | -2.04% | |
| Tech | -2.86% | |
| Telecom | -3.04% | |
| Real Estate | -4.28% | |
Sector PE
- Investors favour the Real Estate sector the most for future growth, which is trading above its 3-year average PE ratio of 15.0x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 21.7% which is higher than its past year's earnings decline of 47.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings growth rate of 13% per year.
- In contrast, the Energy sector is expected to see its earnings decline by 6.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| BHP BHP Group | AU$45.11 | 4.0% +AU$8.9b | 20.7% | PE11.3x | Materials | |
| FMG Fortescue Metals Group | AU$22.28 | 7.1% +AU$4.5b | 51.6% | PE9.1x | Materials | |
| LYC Lynas Rare Earths | AU$7.07 | 16.5% +AU$933.8m | -15.1% | PE21.3x | Materials | |
| MIN Mineral Resources | AU$60.20 | 6.7% +AU$728.3m | -17.7% | PE47.9x | Materials | |
| PLS Pilbara Minerals | AU$3.82 | 6.7% +AU$722.3m | -25.0% | PE4.8x | Materials |
Market Insights
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