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Australian (ASX) Financials Sector Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies127
  • 7D-2.3%
  • 3M-5.8%
  • 1Y3.4%
  • YTD-2.3%

Over the last 7 days, the Financials industry has dropped 2.3%, driven by a pullback from Commonwealth Bank of Australia of 4.9%. In the past year, the industry has gained 3.4%. Looking forward, earnings are forecast to grow by 5.7% annually.

Sector Valuation and Performance

Has the Australian Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 11 Jan 2026AU$927.1bAU$222.6bAU$46.6b19x19.9x4.2x
Tue, 09 Dec 2025AU$920.8bAU$222.9bAU$46.7b19.5x19.7x4.1x
Thu, 06 Nov 2025AU$995.8bAU$222.6bAU$47.8b19.6x20.8x4.5x
Sat, 04 Oct 2025AU$983.4bAU$221.3bAU$48.0b19.5x20.5x4.4x
Mon, 01 Sep 2025AU$982.8bAU$221.9bAU$48.2b19x20.4x4.4x
Wed, 30 Jul 2025AU$941.4bAU$220.4bAU$46.6b16.3x20.2x4.3x
Fri, 27 Jun 2025AU$973.8bAU$220.3bAU$46.6b16.7x20.9x4.4x
Sun, 25 May 2025AU$912.6bAU$220.5bAU$46.6b15.4x19.6x4.1x
Tue, 22 Apr 2025AU$850.7bAU$219.6bAU$46.6b14.3x18.2x3.9x
Thu, 20 Mar 2025AU$820.4bAU$219.9bAU$46.6b14.1x17.6x3.7x
Sat, 15 Feb 2025AU$938.0bAU$218.2bAU$46.1b17.1x20.3x4.3x
Mon, 13 Jan 2025AU$894.3bAU$216.7bAU$44.1b18.1x20.3x4.1x
Wed, 11 Dec 2024AU$895.3bAU$215.3bAU$43.9b18.4x20.4x4.2x
Fri, 08 Nov 2024AU$880.9bAU$213.2bAU$44.2b17.6x19.9x4.1x
Sun, 06 Oct 2024AU$823.0bAU$211.7bAU$43.6b17.6x18.9x3.9x
Tue, 03 Sep 2024AU$850.1bAU$212.0bAU$43.7b16.9x19.5x4x
Thu, 01 Aug 2024AU$834.7bAU$211.1bAU$44.1b18.6x18.9x4x
Sat, 29 Jun 2024AU$786.8bAU$210.2bAU$44.1b17.8x17.9x3.7x
Mon, 27 May 2024AU$750.8bAU$210.3bAU$44.2b17.3x17x3.6x
Wed, 24 Apr 2024AU$741.4bAU$213.6bAU$46.1b17.7x16.1x3.5x
Fri, 22 Mar 2024AU$761.8bAU$218.9bAU$46.1b17.7x16.5x3.5x
Sun, 18 Feb 2024AU$734.7bAU$215.2bAU$45.9b17.8x16x3.4x
Tue, 16 Jan 2024AU$702.6bAU$198.5bAU$45.5b16.9x15.4x3.5x
Thu, 14 Dec 2023AU$670.9bAU$198.8bAU$45.6b16.4x14.7x3.4x
Sat, 11 Nov 2023AU$646.0bAU$199.2bAU$45.7b16.5x14.1x3.2x
Mon, 09 Oct 2023AU$648.7bAU$197.7bAU$45.5b16.4x14.2x3.3x
Wed, 06 Sep 2023AU$660.8bAU$198.6bAU$45.9b16.8x14.4x3.3x
Fri, 04 Aug 2023AU$659.8bAU$187.4bAU$44.5b19.9x14.8x3.5x
Sun, 02 Jul 2023AU$643.0bAU$187.0bAU$44.5b17.3x14.4x3.4x
Tue, 30 May 2023AU$627.1bAU$185.5bAU$43.5b17.8x14.4x3.4x
Thu, 27 Apr 2023AU$642.6bAU$182.4bAU$42.1b17.8x15.3x3.5x
Sat, 25 Mar 2023AU$609.1bAU$182.4bAU$42.3b16.5x14.4x3.3x
Mon, 20 Feb 2023AU$655.9bAU$180.6bAU$41.5b16.9x15.8x3.6x
Wed, 18 Jan 2023AU$669.9bAU$177.6bAU$40.2b15.3x16.7x3.8x
Price to Earnings Ratio

16.7x


Total Market Cap: AU$669.9bTotal Earnings: AU$40.2bTotal Revenue: AU$177.6bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Financials Sector Price to Earnings3Y Average 17.6x202420252026
Current Industry PE
  • Investors are optimistic on the Australian Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 19.9x which is higher than its 3-year average PE of 17.6x.
  • The industry is trading close to its 3-year average PS ratio of 3.8x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 5.1% per year over the last three years.
  • Revenues for these companies have grown 7.8% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Australian Financials sector?

AU Market0.16%
Financials-2.31%
Consumer Finance3.65%
Capital Markets0.93%
Insurance0.39%
Mortgage Finance0%0
Mortgage REITs0%0
Diversified Financial-0.69%
Banks-3.61%
Industry PE
  • Investors are most optimistic about the Diversified Financial industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 4.9%, which is higher than its past year's earnings decline of 6.0% per year.
  • Investors are most pessimistic about the Insurance industry, which is trading below its 3-year average of 18.0x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 19% over the next 5 years.
  • However this is lower than its past earnings growth rate of 79% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 2.4% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MQG Macquarie GroupAU$206.081.2%
+AU$859.4m		-10.9%PE20.8x
QBE QBE Insurance GroupAU$20.101.5%
+AU$436.3m		3.2%PE10.4x
ZIP Zip CoAU$3.566.3%
+AU$266.8m		17.1%PE56.6x
SOL WHSP HoldingsAU$37.921.4%
+AU$201.3m		13.0%PE39.5x
ASX ASXAU$52.391.9%
+AU$190.4m		-19.5%PE20.3x

Latest News

CBA
AU$153.22
Commonwealth Bank of Australia
7D
-4.9%
1Y
-1.8%

CBA: Premium P E And Margin Risks Will Likely Restrain Future Returns

Analysts have modestly revised their price target for Commonwealth Bank of Australia, reflecting slightly adjusted assumptions for discount rate, revenue growth, profit margin and future P/E, while keeping fair value broadly unchanged. Analyst Commentary While the recent price target update for Commonwealth Bank of Australia leaves fair value broadly unchanged, it sits against a backdrop of mixed sentiment in global financials research, particularly among insurers.
MQG
AU$206.08
Macquarie Group
7D
1.2%
1Y
-10.9%

MQG: Earnings Recovery Will Gradually Emerge As Concentration Risks Remain Contained

Analysts kept the fair value estimate for Macquarie Group steady at A$224.87, with only slight tweaks to the discount rate and long term assumptions on revenue growth, profit margin and future P/E multiple shaping the updated price target rationale. Analyst Commentary Bullish and bearish analysts looking at Macquarie Group are drawing lessons from recent research on payment platforms, particularly around customer concentration, revenue visibility and how those factors can influence valuation multiples over time.
GQG
AU$1.82
GQG Partners
7D
3.1%
1Y
-1.1%

GQG: Higher Expected Margins And Dividend Will Support Future Upside

Analysts have trimmed their price targets for GQG Partners by a small amount. They point to slightly lower revenue growth assumptions, a marginally higher discount rate, and a higher future P/E multiple, while still expecting firm profit margins.
ASX
AU$52.39
ASX
7D
1.9%
1Y
-19.5%

ASX: Second Supplier Role Will Support Revenue As AI Demand Grows

Narrative update Analysts have trimmed their ASX price target to A$58.78 from A$59.72, citing slightly higher assumed revenue growth, a marginally lower discount rate, and a modestly reduced profit margin with a lower future P/E, alongside recent research upgrades that highlight support from current activity and pricing trends. Analyst Commentary Recent research on ASX has shifted toward a more balanced view, with at least one major firm moving to a Neutral stance and setting a A$57 price target.
ANZ
AU$35.45
ANZ Group Holdings
7D
-2.7%
1Y
21.0%

ANZ: Regulatory Penalties And Governance Changes Will Shape Resilient Future Performance

Analysts have nudged their price target for ANZ Group Holdings slightly lower to about A$35.21 from A$35.24, reflecting updated views on discount rates, revenue growth, profit margins and future P/E assumptions. Analyst Commentary Analysts are using the updated A$35.21 price target to refine how they think about ANZ Group Holdings on both the upside and downside, with views anchored in discount rate assumptions, revenue trends, profit margins and future P/E expectations.
QBE
AU$20.10
QBE Insurance Group
7D
1.5%
1Y
3.2%

QBE: New Group CFO Appointment Will Support Stronger Margins And Returns

Analysts have trimmed their price target for QBE Insurance Group slightly to A$22.21 from A$22.27, citing updated assumptions that combine softer revenue expectations with a modestly higher profit margin and a slightly lower future P/E multiple. What's in the News QBE Insurance Group has appointed Chris Killourhy as Group Chief Financial Officer, with almost 25 years of insurance and finance experience, effective 1 January 2026, subject to regulatory approvals (Key Developments).
MPL
AU$4.85
Medibank Private
7D
0.8%
1Y
27.6%

MPL: Fair Value Update Balances Margin Resilience With Digital Health Risks

Narrative Update Analysts have nudged their Medibank Private fair value estimate higher to A$5.16 from A$5.08. This reflects updated assumptions for slightly stronger revenue growth and profit margins, partly balanced by a higher discount rate and a modestly lower future P/E multiple.
NAB
AU$41.02
National Australia Bank
7D
-3.3%
1Y
8.1%

NAB: Potential HSBC Australia Acquisition Will Support Future Earnings Multiple

Analysts have slightly adjusted their price target on National Australia Bank to A$46.31, reflecting updated assumptions around discount rates, revenue growth, profit margins and future P/E. Their overall valuation view remains broadly unchanged.
ZIP
AU$3.56
Zip Co
7D
6.3%
1Y
17.1%

ZIP: Expanded Stripe Partnership Will Support A More Optimistic Future Outlook

Analysts have increased their fair value estimate for Zip Co from A$2.27 to A$3.74, reflecting updated views on revenue growth, profit margins and a higher assumed future P/E multiple. What's in the News Zip Co announced an expanded partnership with Stripe that makes Zip available through Stripe's optimized checkout interfaces, including Elements, Checkout and Payment Links, for US merchants (Client Announcements).
AMP
AU$1.78
AMP
7D
-2.7%
1Y
10.9%
MFG
AU$9.04
Magellan Financial Group
7D
-8.8%
1Y
-16.6%

Insufficient Growth At Magellan Financial Group Limited (ASX:MFG) Hampers Share Price

Jan 06
Insufficient Growth At Magellan Financial Group Limited (ASX:MFG) Hampers Share Price
CGF
AU$9.13
Challenger
7D
-3.7%
1Y
51.9%

CGF: Capital Markets Recovery And Credit Risks Will Shape Future Returns

Analysts have made a modest trim to their price target on Challenger to about A$9.47 from roughly A$9.47. This reflects slight adjustments to fair value, discount rate assumptions and expected P/E, while still seeing support from a recovering capital markets backdrop cited in recent research on alternative asset managers.
SUN
AU$17.46
Suncorp Group
7D
-1.9%
1Y
-24.2%

SUN: Fair Value Will Remain Attractive As Profitability Expectations Hold Steady

Analysts have trimmed their price target for Suncorp Group to A$20.34 from A$20.54, reflecting updated assumptions around revenue growth, profit margins, and future P/E that are now slightly lower in their models. Valuation Changes Fair Value: trimmed slightly from A$20.54 to A$20.34, reflecting modestly lower model outputs.
BEN
AU$10.94
Bendigo and Adelaide Bank
7D
3.1%
1Y
-17.4%

BEN: Return Ambitions And Execution Risks Will Shape Neutral Future Outlook

Analysts have made a modest upward revision to their price target for Bendigo and Adelaide Bank, reflecting a slightly higher A$13.06 fair value assessment as they balance ambitious return on equity goals with a neutral outlook on execution risk. Analyst Commentary Analyst views on Bendigo and Adelaide Bank remain balanced, with the modestly higher fair value assessment reflecting both confidence in the strategy and recognition of execution challenges.
WBC
AU$37.90
Westpac Banking
7D
-2.7%
1Y
16.3%
SOL
AU$37.92
WHSP Holdings
7D
1.4%
1Y
13.0%

WHSP Holdings Limited's (ASX:SOL) Business Is Trailing The Market But Its Shares Aren't

Dec 18
WHSP Holdings Limited's (ASX:SOL) Business Is Trailing The Market But Its Shares Aren't