Sasol (JSE:SOL) Might Have The Makings Of A Multi-Bagger
Oct 25
South African (JSE) Market Analysis & Valuation
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies241
- 7D-1.2%
- 3M-11.9%
- 1Y-7.1%
- YTD-11.4%
Over the last 7 days, the market has dropped 1.2%, driven by a decline of 4.2% in the Materials sector. The market has dropped 7.1% in the last year. As for the next few years, earnings are expected to grow by 9.6% per annum.
Market Valuation and Performance
Has the South African Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R5.3t | R5.5t | R548.4b | 8.9x | 9.7x | 1x |
| Thu, 28 Sep 2023 | R5.6t | R5.6t | R555.3b | 9x | 10x | 1x |
| Sat, 26 Aug 2023 | R5.8t | R5.4t | R598.4b | 8.5x | 9.7x | 1.1x |
| Mon, 24 Jul 2023 | R6.0t | R5.4t | R656.7b | 8.5x | 9.1x | 1.1x |
| Wed, 21 Jun 2023 | R6.0t | R5.4t | R638.5b | 8.4x | 9.4x | 1.1x |
| Fri, 19 May 2023 | R5.9t | R5.4t | R673.5b | 7.8x | 8.7x | 1.1x |
| Sun, 16 Apr 2023 | R6.2t | R5.3t | R656.6b | 8.4x | 9.4x | 1.2x |
| Tue, 14 Mar 2023 | R6.0t | R5.2t | R647.2b | 8.4x | 9.3x | 1.2x |
| Thu, 09 Feb 2023 | R6.4t | R5.2t | R661.4b | 8.4x | 9.7x | 1.2x |
| Sat, 07 Jan 2023 | R6.2t | R5.2t | R658.0b | 8.3x | 9.4x | 1.2x |
| Mon, 05 Dec 2022 | R6.0t | R5.2t | R658.8b | 8.3x | 9.2x | 1.2x |
| Wed, 02 Nov 2022 | R5.8t | R5.2t | R842.6b | 8.6x | 6.9x | 1.1x |
| Fri, 30 Sep 2022 | R5.5t | R5.1t | R835.3b | 8.4x | 6.6x | 1.1x |
| Sun, 28 Aug 2022 | R6.0t | R5.3t | R801.1b | 8.5x | 7.5x | 1.1x |
| Tue, 26 Jul 2022 | R5.9t | R5.3t | R787.7b | 8.6x | 7.4x | 1.1x |
| Thu, 23 Jun 2022 | R6.1t | R5.2t | R804.3b | 8.8x | 7.6x | 1.2x |
| Sat, 21 May 2022 | R6.3t | R5.2t | R794.8b | 9.1x | 8x | 1.2x |
| Mon, 18 Apr 2022 | R6.9t | R5.2t | R765.7b | 9.9x | 9x | 1.3x |
| Wed, 16 Mar 2022 | R6.9t | R5.2t | R763.6b | 10x | 9.1x | 1.3x |
| Fri, 11 Feb 2022 | R7.2t | R5.1t | R760.8b | 10.7x | 9.5x | 1.4x |
| Sun, 09 Jan 2022 | R6.9t | R5.1t | R768.8b | 10.8x | 9x | 1.4x |
| Tue, 07 Dec 2021 | R6.7t | R5.1t | R770.5b | 10.2x | 8.7x | 1.3x |
| Thu, 04 Nov 2021 | R6.8t | R5.0t | R589.4b | 11x | 11.5x | 1.3x |
| Sat, 02 Oct 2021 | R6.5t | R5.0t | R572.0b | 11.4x | 11.3x | 1.3x |
| Mon, 30 Aug 2021 | R6.5t | R4.9t | R513.3b | 11.9x | 12.7x | 1.3x |
| Tue, 06 Jul 2021 | R6.5t | R4.8t | R511.2b | 11.5x | 12.7x | 1.3x |
| Fri, 09 Apr 2021 | R6.7t | R4.6t | R371.9b | 12.4x | 17.9x | 1.5x |
| Thu, 31 Dec 2020 | R5.9t | R4.4t | R191.5b | 11.4x | 30.9x | 1.3x |
Price to Earnings Ratio
41.2x
Current Market PE
- Investors are pessimistic on the South African market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 9.7x which is lower than its 3-year average PE of 13.7x.
Past Earnings Growth
- The earnings for South African listed companies have grown 63% per year over the last three years.
- Revenues for these companies have grown 8.1% 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 South African Market?
| ZA Market | -1.18% | |
| Energy | 2.49% | |
| Consumer Staples | 1.60% | |
| Consumer Discretionary | 0.88% | |
| Utilities | 0% | |
| Healthcare | -0.64% | |
| Real Estate | -0.76% | |
| Industrials | -0.87% | |
| Financials | -1.22% | |
| Telecom | -1.60% | |
| Tech | -2.49% | |
| Materials | -4.19% | |
Sector PE
- Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 87.6x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 65.2%, which is higher than its past year's earnings growth of 3.2% per year.
- The Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 4.4x.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 65% over the next 5 years.
- This is better than its past earnings growth rate of 3.2% per year.
- In contrast, the Energy sector is expected to see its earnings decline by 26% 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 | |
|---|---|---|---|---|---|---|
| CLS Clicks Group | R272.97 | 12.2% +R7.1b | -12.3% | PE25.8x | Consumer Staples | |
| KIO Kumba Iron Ore | R497.25 | 2.5% +R4.0b | 43.7% | PE12.2x | Materials | |
| NPN Naspers | R2.93k | 0.8% +R3.7b | 54.1% | PE7.6x | Consumer Discretionary | |
| APN Aspen Pharmacare Holdings | R169.63 | 3.8% +R2.8b | 12.1% | PE14.4x | Healthcare | |
| SHP Shoprite Holdings | R241.68 | 2.0% +R2.6b | 3.3% | PE20.8x | Consumer Staples |
Market Insights
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