Narrative Update • Sep 04
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Australian (ASX) Market Analysis & Valuation
UpdatedSep 12, 2026
DataAggregated Company Financials
Companies1564
- 7D-2.9%
- 3M-0.9%
- 1Y-2.6%
- YTD-1.6%
Over the last 7 days, the market has dropped 2.9%, driven by a decline of 3.7% in the Materials sector. In the last 12 months the market has been flat overall. As for the next few years, earnings are expected to grow by 11% per annum.
Market Valuation and Performance
Has the Australian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 12 Sep 2026 | AU$2.9t | AU$1.2t | AU$115.8b | 17x | 25.2x | 2.4x |
| Mon, 10 Aug 2026 | AU$3.1t | AU$1.2t | AU$114.6b | 17.6x | 27x | 2.6x |
| Wed, 08 Jul 2026 | AU$2.9t | AU$1.2t | AU$114.7b | 17.1x | 25.7x | 2.4x |
| Fri, 05 Jun 2026 | AU$2.9t | AU$1.2t | AU$113.5b | 17.2x | 25.7x | 2.4x |
| Sun, 03 May 2026 | AU$2.9t | AU$1.2t | AU$112.9b | 17.4x | 26x | 2.5x |
| Tue, 31 Mar 2026 | AU$2.8t | AU$1.2t | AU$114.9b | 17.2x | 24.6x | 2.3x |
| Thu, 26 Feb 2026 | AU$3.1t | AU$1.2t | AU$111.1b | 20.3x | 27.6x | 2.6x |
| Sat, 24 Jan 2026 | AU$3.0t | AU$1.2t | AU$108.8b | 21.7x | 27.8x | 2.5x |
| Mon, 22 Dec 2025 | AU$2.9t | AU$1.2t | AU$109.9b | 21.5x | 26.6x | 2.4x |
| Wed, 19 Nov 2025 | AU$2.9t | AU$1.2t | AU$110.1b | 20.6x | 26x | 2.4x |
| Fri, 17 Oct 2025 | AU$3.1t | AU$1.2t | AU$110.7b | 21.7x | 27.8x | 2.6x |
| Sun, 14 Sep 2025 | AU$3.0t | AU$1.2t | AU$110.8b | 20.4x | 27x | 2.5x |
| Tue, 12 Aug 2025 | AU$3.0t | AU$1.2t | AU$104.0b | 19x | 28.7x | 2.5x |
| Thu, 10 Jul 2025 | AU$2.9t | AU$1.2t | AU$102.5b | 18.4x | 28x | 2.4x |
| Sat, 07 Jun 2025 | AU$2.8t | AU$1.2t | AU$102.6b | 17.9x | 27.7x | 2.3x |
| Mon, 05 May 2025 | AU$2.7t | AU$1.2t | AU$100.2b | 17.6x | 27.4x | 2.3x |
| Wed, 02 Apr 2025 | AU$2.6t | AU$1.2t | AU$105.3b | 17.7x | 25x | 2.2x |
| Fri, 28 Feb 2025 | AU$2.8t | AU$1.2t | AU$104.5b | 18.5x | 26.5x | 2.3x |
| Sun, 26 Jan 2025 | AU$2.8t | AU$1.2t | AU$89.5b | 19.3x | 31x | 2.4x |
| Tue, 24 Dec 2024 | AU$2.7t | AU$1.2t | AU$89.9b | 20.2x | 30.2x | 2.3x |
| Thu, 21 Nov 2024 | AU$2.7t | AU$1.2t | AU$88.3b | 19.7x | 31.1x | 2.4x |
| Sat, 19 Oct 2024 | AU$2.7t | AU$1.2t | AU$87.8b | 19.7x | 31.2x | 2.4x |
| Mon, 16 Sep 2024 | AU$2.7t | AU$1.2t | AU$88.1b | 19.7x | 30.3x | 2.3x |
| Wed, 14 Aug 2024 | AU$2.6t | AU$1.2t | AU$92.4b | 19.1x | 27.9x | 2.2x |
| Fri, 12 Jul 2024 | AU$2.6t | AU$1.1t | AU$90.9b | 19.2x | 28.8x | 2.3x |
| Sun, 09 Jun 2024 | AU$2.6t | AU$1.2t | AU$92.5b | 19.2x | 28.3x | 2.3x |
| Tue, 07 May 2024 | AU$2.6t | AU$1.2t | AU$93.7b | 19.5x | 27.4x | 2.2x |
| Thu, 04 Apr 2024 | AU$2.6t | AU$1.2t | AU$95.3b | 20.1x | 27.3x | 2.2x |
| Sat, 02 Mar 2024 | AU$2.6t | AU$1.2t | AU$96.8b | 19.8x | 26.8x | 2.2x |
| Mon, 29 Jan 2024 | AU$2.5t | AU$1.2t | AU$115.7b | 18.9x | 21.8x | 2.2x |
| Wed, 27 Dec 2023 | AU$2.5t | AU$1.2t | AU$114.7b | 18.7x | 22x | 2.2x |
| Fri, 24 Nov 2023 | AU$2.4t | AU$1.2t | AU$116.4b | 17.7x | 20.2x | 2x |
| Sun, 22 Oct 2023 | AU$2.3t | AU$1.2t | AU$120.0b | 17.6x | 19.4x | 2x |
| Tue, 19 Sep 2023 | AU$2.4t | AU$1.2t | AU$120.2b | 18.1x | 20.3x | 2.1x |
Price to Earnings Ratio
20.3x
Current Market PE
- Investors are relatively neutral on the Australian market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 26.6x.
Past Earnings Growth
- Both revenue and earnings for Australian listed companies have remained mostly flat over the last three years.
- This means sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Sector Trends
Which sectors have driven the changes within the Australian Market?
| AU Market | -2.94% | |
| Energy | 2.26% | |
| Utilities | 0.33% | |
| Industrials | -1.28% | |
| Financials | -2.34% | |
| Telecom | -3.27% | |
| Real Estate | -3.60% | |
| Consumer Staples | -3.70% | |
| Materials | -3.73% | |
| Healthcare | -3.75% | |
| Consumer Discretionary | -4.85% | |
| Tech | -8.30% | |
Sector PE
- Investors favour the Tech sector the most for future growth which is trading above its 3-year average PE ratio.
- The market's confidence is likely because analysts are expecting annual earnings growth of 20.3%, which is higher than its past year's earnings growth of 11.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 30% over the next 5 years.
- This is better than its past earnings growth rate of 19% per year.
- In contrast, the Utilities sector is expected to see its earnings grow by 2.1% 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 | |
|---|---|---|---|---|---|---|
| WDS Woodside Energy Group | AU$32.86 | 3.2% +AU$2.0b | 35.7% | PE14.6x | Energy | |
| SRL Sunrise Energy Metals | AU$22.12 | 45.0% +AU$1.4b | 662.8% | PS33464x | Materials | |
| STO Santos | AU$8.59 | 4.6% +AU$1.2b | 13.2% | PE27.2x | Energy | |
| ORG Origin Energy | AU$11.57 | 1.9% +AU$377.9m | -6.7% | PE12.6x | Utilities | |
| TLS Telstra Group | AU$4.83 | 0.6% +AU$333.9m | -2.6% | PE24x | Telecom |