Has the Australian Hospitality Industry valuation changed over the past few years?

Investors are optimistic on the Australian Hospitality industry, and appear confident in long term growth rates. The industry is trading at a PE ratio of 33.0x which is higher than its 3-year average PE of -14.3x. The industry is trading close to its 3-year average PS ratio of 2.8x.

Which industries have driven the changes within the Australian Consumer Discretionary industry?

Investors are most optimistic about the Leisure Facilities industry even though it's trading below its 3-year average PE ratio of 89.4x. Analysts are expecting annual earnings growth of 76.7%, which is lower than the prior year's growth of 130.4% per year. Investors are most pessimistic about the Hotels, Resorts and Cruise Lines industry, which is trading below its 3-year average of 26.3x.

Australian (ASX) Hospitality Industry Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Tue, 28 Jul 2026	AU$62.5b	AU$23.5b	AU$1.9b	22.4x	33x	2.7x
Thu, 25 Jun 2026	AU$60.0b	AU$23.5b	AU$1.9b	23.8x	32.3x	2.6x
Sat, 23 May 2026	AU$54.0b	AU$23.3b	AU$1.8b	23.9x	29.2x	2.3x
Mon, 20 Apr 2026	AU$56.1b	AU$23.6b	AU$1.5b	26.8x	36.5x	2.4x
Wed, 18 Mar 2026	AU$53.3b	AU$23.6b	AU$1.5b	26.2x	34.6x	2.3x
Fri, 13 Feb 2026	AU$70.7b	AU$27.9b	AU$1.9b	31.3x	37.5x	2.5x
Sun, 11 Jan 2026	AU$75.8b	AU$28.2b	AU$1.9b	30.9x	39.4x	2.7x
Tue, 09 Dec 2025	AU$75.6b	AU$28.3b	AU$1.9b	32x	39.2x	2.7x
Thu, 06 Nov 2025	AU$68.5b	AU$24.6b	AU$1.4b	33.5x	49.8x	2.8x
Sat, 04 Oct 2025	AU$73.8b	AU$24.6b	AU$1.3b	35.1x	55.4x	3x
Mon, 01 Sep 2025	AU$75.8b	AU$24.6b	AU$1.3b	35.2x	57x	3.1x
Wed, 30 Jul 2025	AU$71.9b	AU$24.6b	-AU$895,993,544.00	32.8x	-80.2x	2.9x
Fri, 27 Jun 2025	AU$69.5b	AU$24.6b	-AU$895,993,544.00	30.9x	-77.6x	2.8x
Sun, 25 May 2025	AU$67.5b	AU$24.7b	-AU$808,437,544.00	23x	-83.5x	2.7x
Tue, 22 Apr 2025	AU$67.2b	AU$24.5b	-AU$667,337,544.00	20.2x	-100.6x	2.7x
Thu, 20 Mar 2025	AU$68.3b	AU$24.6b	-AU$357,022,544.00	21.6x	-191.3x	2.8x
Sat, 15 Feb 2025	AU$80.4b	AU$24.6b	-AU$916,958,794.00	24.4x	-87.7x	3.3x
Mon, 13 Jan 2025	AU$75.2b	AU$24.6b	-AU$917,403,528.00	23.1x	-82x	3.1x
Wed, 11 Dec 2024	AU$74.7b	AU$24.4b	-AU$917,947,528.00	23.8x	-81.4x	3.1x
Fri, 08 Nov 2024	AU$70.1b	AU$24.6b	-AU$731,088,528.00	22.5x	-96x	2.9x
Sun, 06 Oct 2024	AU$69.3b	AU$24.6b	-AU$731,088,528.00	22.4x	-94.8x	2.8x
Tue, 03 Sep 2024	AU$67.4b	AU$24.5b	-AU$196,128,201.00	21.6x	-343.6x	2.8x
Thu, 01 Aug 2024	AU$68.8b	AU$23.9b	AU$385.0m	22.6x	178.8x	2.9x
Sat, 29 Jun 2024	AU$65.8b	AU$23.6b	AU$390.1m	20.8x	168.6x	2.8x
Mon, 27 May 2024	AU$59.5b	AU$23.6b	AU$365.2m	23.4x	163x	2.5x
Wed, 24 Apr 2024	AU$58.1b	AU$23.4b	AU$292.0m	24.9x	198.9x	2.5x
Fri, 22 Mar 2024	AU$62.6b	AU$23.4b	AU$288.9m	30.5x	216.7x	2.7x
Sun, 18 Feb 2024	AU$61.5b	AU$23.0b	-AU$533,598,187.00	36.3x	-115.3x	2.7x
Tue, 16 Jan 2024	AU$68.3b	AU$24.8b	-AU$868,553,717.00	32.7x	-78.6x	2.8x
Thu, 14 Dec 2023	AU$66.6b	AU$24.8b	-AU$868,553,717.00	32.7x	-76.7x	2.7x
Sat, 11 Nov 2023	AU$66.9b	AU$24.2b	-AU$1,296,867,811.00	34.5x	-51.5x	2.8x
Mon, 09 Oct 2023	AU$66.8b	AU$24.2b	-AU$1,296,867,811.00	33.7x	-51.5x	2.8x
Wed, 06 Sep 2023	AU$70.8b	AU$24.2b	-AU$1,304,490,915.00	35.7x	-54.3x	2.9x
Fri, 04 Aug 2023	AU$70.6b	AU$23.6b	-AU$742,294,541.00	32.8x	-95.1x	3x


AU Market	0.96%
Consumer Discretionary	-3.61%
Hospitality	-0.62%
Hotels, Resorts and Cruise Lines	5.90%
Leisure Facilities	0.91%
Restaurants	0.38%
Casinos and Gaming	-1.17%

Company	Last Price	7D	1Y	Valuation
ALL Aristocrat Leisure	AU$63.79	2.0% +AU$742.5m	-6.7%	PE26x
LNW Light & Wonder	AU$116.86	5.7% +AU$488.1m	-23.1%	PE25.8x
WEB Web Travel Group	AU$3.29	39.4% +AU$336.6m	-28.3%	PE33.5x
FLT Flight Centre Travel Group	AU$12.64	7.6% +AU$179.6m	-0.8%	PE23.5x
GYG Guzman y Gomez	AU$23.68	6.6% +AU$146.4m	-12.1%	PE132.8x

Announcement • Jul 23

Domino's Pizza Enterprises Limited Notes Federal Court Judgment in Gall Class Action Proceeding

Domino's Pizza Enterprises Limited noted yesterday's judgment of the Federal Court of Australia in the long-running Gall class action commenced against it on June 24, 2019. The trial took place in November 2022. Domino's announced the commencement of the Gall class action proceedings to the ASX on June 25, 2019. Between June 24, 2013 and January 23, 2018, Domino’s relied on enterprise agreements certified by the Australian Industrial Relations Commission and Fair Work Commission as applying to all corporate and franchised stores. Investigations in 2009 by the Workplace Ombudsman and in 2011 by the Fair Work Ombudsman accepted and applied those agreements. In yesterday’s judgment, the Court took a contrary view and held that a coverage clause in a 2005 enterprise agreement was invalid. As a result, the Court found that Domino's historical representations about the application of those certified agreements constituted misleading and deceptive conduct. The Court's 560-page Reasons for Judgment (Reasons) describe the proceeding as 'novel', noting that the claims were made under the Australian Consumer Law rather than under the Fair Work Act. The Court assessed Mr. Gall's loss to be in the order of $11,869.33 (plus interest). In doing so, the Court considered the expert evidence submitted by the parties and noted that the assessment was decided on the evidence and by inference as to what it was more likely than not Mr. Gall would have been paid if the Award rates had applied, and it was not simply a matter of calculating the difference between the rates of pay and terms and conditions between the certified agreements and the Award. Domino's is carefully reviewing the Reasons to assess its position, including any grounds of appeal that may be available. As the Court's findings of causation and loss were only in respect of Mr. Gall's claim, Domino's potential wider exposure to other alleged group members remains highly uncertain and unquantifiable. This depends on a separate hearing and determination in relation to the members of the group, the number of those members, each member's individual claim of causation and the individual calculation of loss, and the exhaustion of all avenues of appeal available to Domino's or other group members. As the matter remains before the courts, it is not appropriate to comment further. No orders were made in the Reasons and the Court instead gave directions to the parties as to what the proposed orders should address, and directed the parties to file short minutes of order within seven days in view of Justice Murphy's impending retirement. The Court indicated an intention to make an order referring the balance of the proceeding to mediation. Mr. Gall commenced the proceeding as lead applicant on behalf of an alleged group of Australian franchisee employees who worked as delivery drivers or in-store workers between June 24, 2013 and January 23, 2018. The proceeding concerned historical certified enterprise agreements that were applied instead of the Fast Food Industry Award 2010 (Award). Mr. Gall alleged that those certified agreements did not apply to some franchise stores whose employees should have been paid under the Award. Mr. Gall alleged that Domino's contrary representations to franchisees causing them to pay their employees in accordance with the certified agreements rather than the Award were misleading and deceptive conduct which caused Mr. Gall to suffer loss. The alleged representations were characterised as representations of fact or alternatively representations of opinion. The Reasons set out the evidence in detail in anticipation that the matter will go on appeal and so that all of the relevant evidence is before the Full Court. The Court found that Domino's conduct constituted representations of fact, however, in the alternative case that Domino's conduct were representations of opinion Mr. Gall failed to establish that Domino's did not have reasonable grounds for its opinions. The Court further found that by reason of its legal construction of the certified agreements, the representations of fact constituted misleading and deceptive conduct, and that conduct caused Mr. Gall to suffer loss in the form of an underpayment. However, Mr. Gall's claim for loss of opportunity failed. The questions of causation and loss were only decided in relation to Mr. Gall's claim. All other alleged group members will need to establish causation and loss at a future hearing. Not all of the 35 Common Questions were decided in the Reasons. Additionally, the identification of the franchise stores that are alleged to be subject to the Award, and the identification of employees of those stores, were not determined at the trial or decided in the Reasons. This release has been authorised for release by the Board of Directors.

Australian (ASX) Hospitality Industry Analysis

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