Unpleasant Surprises Could Be In Store For Australian Foundation Investment Company Limited's (ASX:AFI) Shares
Jul 28
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Australian (ASX) Capital Markets Industry Analysis
UpdatedAug 13, 2025
DataAggregated Company Financials
Companies78
- 7D-1.5%
- 3M3.1%
- 1Y8.7%
- YTD0.9%
Over the last 7 days, the Capital Markets industry has dropped 1.5%, driven by declines in ASX and GQG Partners of 8.0% and 15%, respectively. Meanwhile, MA Financial Group actually outperformed within the industry, gaining 5.4% in the last week. This takes the industry's 12 month performance to a gain of 8.7%. As for the next few years, earnings are expected to grow by 12% per annum.
Industry Valuation and Performance
Has the Australian Capital Markets Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 13 Aug 2025 | AU$164.4b | AU$30.0b | AU$7.2b | 16.3x | 22.9x | 5.5x |
| Fri, 11 Jul 2025 | AU$166.8b | AU$30.0b | AU$7.2b | 15.5x | 23.2x | 5.6x |
| Sun, 08 Jun 2025 | AU$160.8b | AU$30.0b | AU$7.2b | 15.1x | 22.3x | 5.4x |
| Tue, 06 May 2025 | AU$149.5b | AU$30.0b | AU$7.2b | 14.8x | 20.7x | 5x |
| Thu, 03 Apr 2025 | AU$153.5b | AU$33.6b | AU$7.4b | 14.3x | 20.8x | 4.6x |
| Sat, 01 Mar 2025 | AU$167.0b | AU$30.0b | AU$7.2b | 17.5x | 23.1x | 5.6x |
| Mon, 27 Jan 2025 | AU$173.6b | AU$29.9b | AU$6.4b | 20.7x | 27.2x | 5.8x |
| Wed, 25 Dec 2024 | AU$164.7b | AU$30.1b | AU$6.3b | 20.6x | 25.9x | 5.5x |
| Fri, 22 Nov 2024 | AU$168.1b | AU$30.0b | AU$6.3b | 20x | 26.6x | 5.6x |
| Sun, 20 Oct 2024 | AU$168.9b | AU$29.7b | AU$6.1b | 19.6x | 27.6x | 5.7x |
| Tue, 17 Sep 2024 | AU$157.0b | AU$29.6b | AU$6.1b | 17.9x | 25.9x | 5.3x |
| Thu, 15 Aug 2024 | AU$148.3b | AU$28.9b | AU$6.3b | 21.7x | 23.5x | 5.1x |
| Sat, 13 Jul 2024 | AU$147.7b | AU$28.9b | AU$6.3b | 21.9x | 23.5x | 5.1x |
| Mon, 10 Jun 2024 | AU$143.2b | AU$28.9b | AU$6.3b | 21.2x | 22.7x | 5x |
| Wed, 08 May 2024 | AU$140.5b | AU$28.9b | AU$6.3b | 20.9x | 22.3x | 4.9x |
| Fri, 05 Apr 2024 | AU$142.1b | AU$30.4b | AU$7.1b | 20.8x | 20.1x | 4.7x |
| Sun, 03 Mar 2024 | AU$140.8b | AU$30.6b | AU$7.1b | 22.9x | 19.9x | 4.6x |
| Tue, 30 Jan 2024 | AU$139.0b | AU$30.3b | AU$7.0b | 22.1x | 20x | 4.6x |
| Thu, 28 Dec 2023 | AU$134.1b | AU$30.1b | AU$6.8b | 20.5x | 19.7x | 4.5x |
| Sat, 25 Nov 2023 | AU$122.7b | AU$30.1b | AU$6.8b | 19.4x | 18x | 4.1x |
| Mon, 23 Oct 2023 | AU$117.3b | AU$30.3b | AU$7.4b | 19.5x | 15.9x | 3.9x |
| Wed, 20 Sep 2023 | AU$125.6b | AU$30.3b | AU$7.4b | 20.3x | 17x | 4.1x |
| Fri, 18 Aug 2023 | AU$123.7b | AU$29.9b | AU$7.4b | 21.2x | 16.8x | 4.1x |
| Sun, 16 Jul 2023 | AU$128.9b | AU$29.7b | AU$7.5b | 20.8x | 17.2x | 4.3x |
| Tue, 13 Jun 2023 | AU$123.4b | AU$29.8b | AU$7.5b | 20.2x | 16.4x | 4.1x |
| Thu, 11 May 2023 | AU$128.1b | AU$29.8b | AU$7.5b | 20.6x | 17x | 4.3x |
| Sat, 08 Apr 2023 | AU$126.7b | AU$28.9b | AU$7.3b | 20.8x | 17.3x | 4.4x |
| Mon, 06 Mar 2023 | AU$131.6b | AU$28.9b | AU$7.4b | 21.4x | 17.7x | 4.6x |
| Wed, 01 Feb 2023 | AU$133.7b | AU$28.9b | AU$7.6b | 17.4x | 17.6x | 4.6x |
| Fri, 30 Dec 2022 | AU$121.4b | AU$28.9b | AU$7.6b | 16.5x | 16x | 4.2x |
| Sun, 27 Nov 2022 | AU$128.9b | AU$28.9b | AU$7.6b | 17.1x | 16.9x | 4.5x |
| Tue, 25 Oct 2022 | AU$116.6b | AU$28.3b | AU$7.4b | 16.4x | 15.7x | 4.1x |
| Thu, 22 Sep 2022 | AU$125.1b | AU$28.3b | AU$7.3b | 17.1x | 17x | 4.4x |
| Sat, 20 Aug 2022 | AU$136.8b | AU$27.7b | AU$7.4b | 17x | 18.5x | 4.9x |
Price to Earnings Ratio
18.5x
Current Industry PE
- Investors are optimistic on the Australian Capital Markets industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 22.9x which is higher than its 3-year average PE of 20.3x.
- The 3-year average PS ratio of 4.8x is lower than the industry's current PS ratio of 5.5x.
Past Earnings Growth
- The earnings for companies in the Capital Markets industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 2.7% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Financials industry?
| AU Market | 1.37% | |
| Financials | 0.54% | |
| Capital Markets | -1.48% | |
| Diversified Capital Markets | -0.43% | |
| Investment Banking and Brokerage | -0.77% | |
| Asset Management | -1.47% | |
| Financial Exchanges and Data | -7.98% | |
Industry PE
- Investors are most optimistic about the Investment Banking and Brokerage industry which is trading above its 3-year average PE ratio of 79.3x.
- Analysts are expecting annual earnings growth of 23.2%, which is lower than the prior year's growth of 35.3% per year.
- Investors are most pessimistic about the Asset Management industry, which is trading close to its 3-year average of 22.4x.
Forecasted Growth
- Analysts are most optimistic on the Investment Banking and Brokerage industry, expecting annual earnings growth of 23% over the next 5 years.
- However this is lower than its past earnings growth rate of 35% per year.
- In contrast, the Financial Exchanges and Data industry is expected to see its earnings grow by 4.5% 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 | |
|---|---|---|---|---|---|
| MAF MA Financial Group | AU$8.40 | 5.3% +AU$68.4m | 88.8% | PE32.7x | |
| AFI Australian Foundation Investment | AU$7.39 | 0.4% +AU$37.6m | 1.7% | PE32.5x | |
| MFF MFF Capital Investments | AU$4.59 | 1.3% +AU$35.2m | 22.1% | PE3.9x | |
| PPT Perpetual | AU$21.55 | 0.7% +AU$17.9m | 2.8% | PS1.8x | |
| AUI Australian United Investment | AU$11.53 | 0.8% +AU$11.2m | 10.1% | PE28.4x |
