Australian (ASX) Healthcare Sector Analysis

Sector Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Thu, 16 Jul 2026	AU$173.6b	AU$78.4b	AU$2.0b	27.9x	88.3x	2.2x
Sat, 13 Jun 2026	AU$156.1b	AU$78.1b	AU$1.8b	24.1x	85.6x	2x
Mon, 11 May 2026	AU$159.4b	AU$77.4b	AU$1.9b	26.2x	82.8x	2.1x
Wed, 08 Apr 2026	AU$170.6b	AU$78.5b	AU$2.0b	23.5x	85.6x	2.2x
Fri, 06 Mar 2026	AU$180.2b	AU$78.1b	AU$2.0b	26.8x	92.1x	2.3x
Sun, 01 Feb 2026	AU$215.0b	AU$72.8b	AU$4.3b	31.9x	49.6x	3x
Tue, 30 Dec 2025	AU$215.0b	AU$73.9b	AU$4.5b	33x	47.8x	2.9x
Thu, 27 Nov 2025	AU$225.4b	AU$74.8b	AU$4.6b	31.6x	48.6x	3x
Sat, 25 Oct 2025	AU$243.8b	AU$74.9b	AU$4.6b	30.6x	52.7x	3.3x
Mon, 22 Sep 2025	AU$238.1b	AU$74.5b	AU$4.6b	31.8x	52.2x	3.2x
Wed, 20 Aug 2025	AU$252.7b	AU$70.9b	AU$5.2b	26.5x	48.2x	3.6x
Fri, 18 Jul 2025	AU$264.4b	AU$71.9b	AU$4.3b	28.3x	61.5x	3.7x
Sun, 15 Jun 2025	AU$254.7b	AU$71.8b	AU$4.3b	25.8x	59.4x	3.5x
Tue, 13 May 2025	AU$249.3b	AU$70.7b	AU$4.9b	26.5x	50.8x	3.5x
Thu, 10 Apr 2025	AU$234.4b	AU$72.2b	AU$5.1b	24.9x	45.7x	3.2x
Sat, 08 Mar 2025	AU$261.1b	AU$71.1b	AU$4.9b	28.8x	53.2x	3.7x
Mon, 03 Feb 2025	AU$253.8b	AU$68.9b	AU$3.4b	26.8x	75x	3.7x
Wed, 01 Jan 2025	AU$244.6b	AU$68.9b	AU$3.4b	25.4x	72.6x	3.5x
Fri, 29 Nov 2024	AU$248.8b	AU$68.0b	AU$3.2b	26.9x	77.6x	3.7x
Sun, 27 Oct 2024	AU$242.1b	AU$67.6b	AU$3.1b	26x	76.9x	3.6x
Tue, 24 Sep 2024	AU$238.8b	AU$66.7b	AU$3.0b	27.2x	78.4x	3.6x
Thu, 22 Aug 2024	AU$243.5b	AU$63.6b	AU$3.2b	36.1x	77.3x	3.8x
Sat, 20 Jul 2024	AU$244.6b	AU$62.6b	AU$2.6b	33.1x	94x	3.9x
Mon, 17 Jun 2024	AU$231.3b	AU$63.1b	AU$2.7b	31.7x	87.2x	3.7x
Wed, 15 May 2024	AU$225.1b	AU$61.2b	AU$2.6b	26.3x	85.8x	3.7x
Fri, 12 Apr 2024	AU$223.6b	AU$61.5b	AU$2.7b	26.2x	84.1x	3.6x
Sun, 10 Mar 2024	AU$225.8b	AU$61.4b	AU$2.6b	25.7x	86.5x	3.7x
Tue, 06 Feb 2024	AU$231.4b	AU$59.3b	AU$3.1b	25x	75.7x	3.9x
Thu, 04 Jan 2024	AU$224.2b	AU$60.0b	AU$2.8b	24.8x	80.7x	3.7x
Sat, 02 Dec 2023	AU$206.4b	AU$60.3b	AU$2.9b	24.8x	72.3x	3.4x
Mon, 30 Oct 2023	AU$186.6b	AU$61.3b	AU$3.0b	24.3x	62.1x	3x
Wed, 27 Sep 2023	AU$202.5b	AU$61.1b	AU$2.9b	24.2x	69.4x	3.3x
Fri, 25 Aug 2023	AU$208.3b	AU$61.7b	AU$2.9b	25.2x	72.7x	3.4x
Sun, 23 Jul 2023	AU$212.2b	AU$57.5b	AU$2.9b	27x	74x	3.7x

Current Industry PE

Investors are optimistic on the Australian Healthcare industry, and appear confident in long term growth rates.

The industry is trading at a PE ratio of 88.3x which is higher than its 3-year average PE of 70.9x.

The 3-year average PS ratio of 3.3x is higher than the industry's current PS ratio of 2.2x.

Past Earnings Growth

The earnings for companies in the Healthcare industry have declined 12% per year over the last three years.
Meanwhile revenues for these companies have grown 11% 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, which has decreased profits.

Industry Trends

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


AU Market	0.05%
Healthcare	-1.14%
Healthcare Services	1.27%
Pharma	0.74%
Life Sciences	0.57%
Biotech	-0.68%
Medical Equipment	-3.24%
Healthtech	-7.22%

Industry PE

Investors are most optimistic about the Healthtech industry even though it's trading below its 3-year average PE ratio of 2kx.

Analysts are expecting annual earnings growth of 5.2%, which is lower than the prior year's growth of 92.7% per year.

Forecasted Growth

Analysts are most optimistic on the Pharma industry, expecting annual earnings growth of 44% over the next 5 years.
This is better than its past earnings decline of 60% per year.

In contrast, the Healthtech industry is expected to see its earnings grow by 5.2% 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
SIG Sigma Healthcare	AU$2.93	4.6% +AU$1.5b	6.5%	PE56.2x
MSB Mesoblast	AU$2.59	28.2% +AU$744.5m	50.1%	PS35.9x
NEU Neuren Pharmaceuticals	AU$17.54	4.8% +AU$101.1m	18.8%	PE72.8x
RHC Ramsay Health Care	AU$43.36	0.7% +AU$71.3m	13.3%	PE36.5x
PYC PYC Therapeutics	AU$1.62	3.5% +AU$54.1m	18.8%	PS77.3x

Mesoblast Limited Achieves Target of 300 Treated Patients in Pivotal Phase 3 Trial for Chronic Low Back Pain

Mesoblast Limited has achieved its target of at least 300 patients treated in the MSB-DR004 pivotal Phase 3 randomized controlled trial of rexlemestrocel-L for chronic low back pain (CLBP) associated with degenerative disc disease. The trial aims to confirm the durable pain reduction from a single intra-discal injection of rexlemestrocel-L seen in the earlier MSB-DR003 trial. Commercial manufacturing is proceeding in parallel so that the company can file for approval as soon as possible after trial results readout. CLBP caused by inflammation and degenerative disc disease is a serious condition with a prevalence of over 7 million people in the U.S. alone. The indication is a potential blockbuster for Mesoblast with potential peak year revenue of more than USD 10 billion with single digit market penetration. The trial's primary endpoint is powered to show a significant difference in reduction of low back pain at 12 months between rexlemestrocel-L and sham controls. Secondary endpoints include improvements in function, quality of life, and cessation of pain medication, including opioids. Rexlemestrocel-L has Regenerative Medicine Advanced Therapy (RMAT) designation from the United States Food and Drug Administration (FDA) for treatment of CLBP due to degenerative disc disease providing eligibility for priority review once the Biologics License Application (BLA) has been filed. Top-line results are expected in mid-calendar year 2027 after the last treated patient has completed 12 months follow-up. The 300-patient randomized controlled confirmatory Phase 3 trial of Mesoblast's second generation allogeneic, STRO3-immunoselected, and industrially manufactured stromal cell product candidate rexlemestrocel-L in combination with hyaluronic acid (HA) as delivery agent for injection into the lumbar disc is actively enrolling in patients with chronic low back pain (CLBP) due to inflammatory degenerative disc disease (DDD) of less than five years duration at multiple sites across the U.S. FDA has previously agreed on the design of this 300-patient randomized, placebo-controlled confirmatory Phase 3 trial, and the 12-month primary endpoint of pain reduction as an approvable indication. This endpoint was successfully met in Mesoblast's first Phase 3 trial. Key secondary measures include improvement in quality of life and function. A particular focus is on treatment of patients on opioids, since discogenic back pain accounts for approximately 50% of prescription opioid usage in the U.S. Significant pain reduction and opioid cessation were observed in Mesoblast's first Phase 3 trial. FDA has designated rexlemestrocel-L a Regenerative Medicine Advanced Therapy (RMAT) for the treatment of chronic low back pain. RMAT designation provides all the benefits of Breakthrough and Fast Track designations, including rolling review and eligibility for priority review on filing of a Biologics License Application (BLA). Back pain is the leading cause of disability in Americans under 45 years, with an annual prevalence in the general U.S. adult population of 10-30%. CLBP caused by inflammation and degenerative disc disease (DDD) is a serious condition with a prevalence of over 7 million people in the U.S. alone. CLBP due to DDD is a leading cause of disability, and is associated with impaired quality of life, severe limitations in ability to perform activities of daily living, reduced ability to work, and negative impacts on mental health. CLBP accounts for approximately 50% of prescription opioid usage in the U.S., making the condition a significant contributor to the opioid epidemic.

Australian (ASX) Healthcare Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

New minor risk - Share price stability

REG: CFO Transition And M&A Pipeline Will Support Future Earnings Upside

Mesoblast Limited Achieves Target of 300 Treated Patients in Pivotal Phase 3 Trial for Chronic Low Back Pain

Cochlear Wins FDA Clearance for Osia 3 Sound Processor With Rechargeable Design

Mount Sinai Health System Reports New Prevalence Estimate For Phelan-McDermid Syndrome And Highlights Ongoing Clinical Trials

TLX: Future Clinical Decisions And Deal Flow Will Balance Execution Risks

IMR: Equity Raise And New Cardiac Platform Will Drive Future Upside

PME: Elevated Market Share Expectations Will Pressure Future Share Returns

CSL: Roofing Platform Repricing Will Drive Future Rebound Case

Pyc Therapeutics Limited Announces Appointment of Thomas Ulmer as Chief Financial Officer

Sigma Healthcare Limited to Report Fiscal Year 2026 Results on Aug 27, 2026

SHL: Higher Discount Rate Will Pressure Future Earnings Multiple

Now 20% undervalued

4DMedical Wins TGA Approval to Commercialize CT:VQ Lung Imaging Across Australia

New minor risk - Market cap size

Consensus EPS estimates upgraded to AU$0.082 loss