Is Fortescue Metals Group Limited (ASX:FMG) Worth AU$22.5 Based On Its Intrinsic Value?
Jan 30
Australian (ASX) Market Analysis & Valuation
UpdatedFeb 03, 2023
DataAggregated Company Financials
Companies1902
- 7D0.5%
- 3M8.3%
- 1Y2.1%
- YTD8.2%
In the last week, the market has stayed flat, however the Information Technology sector stood out, gaining 4.4%. In line with that, the market has also been flat over the past year. Earnings are forecast to grow by 6.2% 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 |
|---|---|---|---|---|---|---|
| Sat, 04 Feb 2023 | AU$2.5t | AU$1.1t | AU$145.3b | 16.4x | 17.5x | 2.4x |
| Mon, 02 Jan 2023 | AU$2.4t | AU$1.1t | AU$148.0b | 14.8x | 16.1x | 2.2x |
| Wed, 30 Nov 2022 | AU$2.5t | AU$1.1t | AU$149.5b | 14.6x | 16.4x | 2.2x |
| Fri, 28 Oct 2022 | AU$2.3t | AU$1.1t | AU$149.3b | 14.7x | 15.6x | 2.1x |
| Sun, 25 Sep 2022 | AU$2.2t | AU$1.1t | AU$149.4b | 14.4x | 15x | 2.1x |
| Tue, 23 Aug 2022 | AU$2.4t | AU$1.0t | AU$144.0b | 15.3x | 16.6x | 2.3x |
| Thu, 21 Jul 2022 | AU$2.3t | AU$1.0t | AU$132.8b | 14.9x | 17.4x | 2.3x |
| Sat, 18 Jun 2022 | AU$2.2t | AU$1.0t | AU$133.4b | 14.5x | 16.2x | 2.1x |
| Mon, 16 May 2022 | AU$2.4t | AU$1.1t | AU$134.0b | 16.2x | 18.2x | 2.3x |
| Wed, 13 Apr 2022 | AU$2.6t | AU$1.0t | AU$129.1b | 17.2x | 20x | 2.5x |
| Fri, 11 Mar 2022 | AU$2.5t | AU$1.0t | AU$130.1b | 17.8x | 19.6x | 2.5x |
| Sun, 06 Feb 2022 | AU$2.5t | AU$978.9b | AU$104.9b | 18.3x | 24.2x | 2.6x |
| Tue, 04 Jan 2022 | AU$2.6t | AU$973.8b | AU$103.7b | 19.4x | 25.5x | 2.7x |
| Thu, 02 Dec 2021 | AU$2.5t | AU$979.7b | AU$102.6b | 18.6x | 24.9x | 2.6x |
| Sat, 30 Oct 2021 | AU$2.6t | AU$955.9b | AU$95.5b | 19.8x | 26.9x | 2.7x |
| Mon, 27 Sep 2021 | AU$2.5t | AU$961.2b | AU$95.6b | 19.1x | 25.9x | 2.6x |
| Wed, 25 Aug 2021 | AU$2.6t | AU$949.7b | AU$96.9b | 18.4x | 26.8x | 2.7x |
| Thu, 01 Jul 2021 | AU$2.5t | AU$945.8b | AU$96.5b | 17.7x | 25.9x | 2.6x |
| Sun, 04 Apr 2021 | AU$2.3t | AU$897.3b | AU$70.2b | 17.1x | 32.7x | 2.6x |
| Wed, 06 Jan 2021 | AU$2.2t | AU$874.5b | AU$41.6b | 19.4x | 53.2x | 2.5x |
| Sat, 10 Oct 2020 | AU$1.9t | AU$870.7b | AU$44.4b | 19.7x | 43.4x | 2.2x |
| Fri, 03 Jul 2020 | AU$1.9t | AU$884.9b | AU$47.9b | 19.8x | 39.2x | 2.1x |
| Mon, 06 Apr 2020 | AU$1.6t | AU$930.2b | AU$75.2b | 15.7x | 20.6x | 1.7x |
Price to Earnings Ratio
21.4x
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 17.5x which is lower than its 3-year average PE of 28.5x.
Past Earnings Growth
- The earnings for Australian listed companies have grown 16% per year over the last three years.
- Revenues for these companies have grown 5.4% 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 | 0.54% | |
| Tech | 4.39% | |
| Consumer Staples | 2.98% | |
| Real Estate | 2.88% | |
| Industrials | 2.01% | |
| Healthcare | 1.94% | |
| Consumer Discretionary | 1.74% | |
| Telecom | 1.51% | |
| Financials | 0.42% | |
| Utilities | -0.54% | |
| Materials | -0.84% | |
| Energy | -4.39% | |
Sector PE
- Investors are most optimistic about the Healthcare sector, which is trading close to its 3-year average PE ratio of 57.4x.
- This optimism is likely because analysts are expecting annual earnings growth of 16.1% which is higher than its past year's earnings decline of 6.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Utilities sector, expecting annual earnings growth of 37% over the next 5 years.
- However this is lower than its past earnings growth rate of 289% per year.
- In contrast, the Energy sector is expected to see its earnings decline by 5.7% 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 | |
|---|---|---|---|---|---|---|
| CSL CSL | AU$313.81 | 6.5% +AU$9.2b | 21.3% | PE47.4x | Healthcare | |
| ANZ ANZ Group Holdings | AU$25.75 | 3.1% +AU$2.3b | -4.9% | PB1.2x | Financials | |
| CBA Commonwealth Bank of Australia | AU$111.15 | 1.2% +AU$2.2b | 18.1% | PB2.6x | Financials | |
| GMG Goodman Group | AU$20.95 | 5.2% +AU$2.0b | -11.8% | PB2.4x | Real Estate | |
| WOW Woolworths Group | AU$36.51 | 3.9% +AU$1.6b | 4.2% | PE28.6x | Consumer Staples |
Market Insights
The US market experienced gains galore in the second half of the week after the Fed raised rates for the 8th time since March last year...
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