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Australian (ASX) Market Analysis & Valuation

UpdatedMay 16, 2026
DataAggregated Company Financials
Companies1576
  • 7D-1.4%
  • 3M-3.1%
  • 1Y3.0%
  • YTD-2.1%

Over the last 7 days, the market has dropped 1.4%, driven by a loss of 4.1% in the Financials sector. In contrast to the last week, the market is actually up 3.0% over the past year. Looking forward, earnings are forecast to grow by 12% annually.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

Has the Australian Market valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 16 May 2026AU$2.9tAU$1.2tAU$113.5b17.2x25.5x2.4x
Mon, 13 Apr 2026AU$3.0tAU$1.2tAU$113.7b17.4x26.3x2.5x
Wed, 11 Mar 2026AU$2.9tAU$1.2tAU$110.7b19.2x26.4x2.4x
Fri, 06 Feb 2026AU$3.0tAU$1.2tAU$108.4b21.1x27.8x2.5x
Sun, 04 Jan 2026AU$3.0tAU$1.2tAU$109.7b21.7x27.1x2.5x
Tue, 02 Dec 2025AU$2.9tAU$1.2tAU$110.2b21.2x26.4x2.4x
Thu, 30 Oct 2025AU$3.0tAU$1.2tAU$110.2b21.5x27.4x2.5x
Sat, 27 Sep 2025AU$3.0tAU$1.2tAU$111.2b20.9x26.7x2.5x
Mon, 25 Aug 2025AU$3.0tAU$1.2tAU$107.3b19.3x28.2x2.5x
Wed, 23 Jul 2025AU$2.9tAU$1.2tAU$102.5b19x28.5x2.4x
Fri, 20 Jun 2025AU$2.8tAU$1.2tAU$102.9b17.9x27.7x2.3x
Sun, 18 May 2025AU$2.8tAU$1.2tAU$103.0b17.9x27.1x2.3x
Tue, 15 Apr 2025AU$2.6tAU$1.2tAU$104.9b17.2x24.6x2.1x
Thu, 13 Mar 2025AU$2.6tAU$1.2tAU$104.9b17.7x24.7x2.1x
Sat, 08 Feb 2025AU$2.8tAU$1.2tAU$91.4b19.7x30.8x2.4x
Mon, 06 Jan 2025AU$2.7tAU$1.2tAU$90.1b20x30.3x2.3x
Wed, 04 Dec 2024AU$2.8tAU$1.2tAU$88.4b20.1x31.7x2.4x
Fri, 01 Nov 2024AU$2.7tAU$1.2tAU$88.5b19.6x30.5x2.3x
Sun, 29 Sep 2024AU$2.7tAU$1.2tAU$87.0b19.7x31.2x2.4x
Tue, 27 Aug 2024AU$2.7tAU$1.2tAU$86.9b19.5x30.7x2.3x
Thu, 25 Jul 2024AU$2.6tAU$1.2tAU$91.6b19.3x28.9x2.3x
Sat, 22 Jun 2024AU$2.6tAU$1.2tAU$92.1b18.8x28.2x2.2x
Mon, 20 May 2024AU$2.6tAU$1.2tAU$92.3b19.4x28.2x2.2x
Wed, 17 Apr 2024AU$2.6tAU$1.2tAU$95.8b19.9x27x2.2x
Fri, 15 Mar 2024AU$2.6tAU$1.2tAU$96.2b19.6x26.8x2.2x
Sun, 11 Feb 2024AU$2.5tAU$1.2tAU$119.1b19.1x21.4x2.2x
Tue, 09 Jan 2024AU$2.5tAU$1.2tAU$114.8b18.5x21.7x2.1x
Thu, 07 Dec 2023AU$2.4tAU$1.2tAU$116.3b18x20.6x2x
Sat, 04 Nov 2023AU$2.4tAU$1.2tAU$118.1b17.8x19.9x2x
Mon, 02 Oct 2023AU$2.4tAU$1.2tAU$119.3b18.2x20x2x
Wed, 30 Aug 2023AU$2.4tAU$1.2tAU$121.8b17.6x19.9x2x
Fri, 28 Jul 2023AU$2.5tAU$1.2tAU$144.2b16.8x17.4x2.2x
Sun, 25 Jun 2023AU$2.4tAU$1.2tAU$145.3b15.9x16.3x2x
Tue, 23 May 2023AU$2.4tAU$1.2tAU$145.7b16.1x16.7x2.1x
Price to Earnings Ratio

16.7x


Total Market Cap: AU$2.4tTotal Earnings: AU$145.7bTotal Revenue: AU$1.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 25.7x202420252026
Current Market PE
  • Investors are relatively neutral on the Australian market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
  • The market is trading close to its 3-year average PE ratio of 25.7x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 8.0% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

Which sectors have driven the changes within the Australian Market?

AU Market-1.36%
Energy2.09%
Utilities1.32%
Materials1.23%
Real Estate1.19%
Consumer Discretionary0.35%
Industrials-0.0091%
Telecom-1.01%
Consumer Staples-2.03%
Tech-2.29%
Financials-4.08%
Healthcare-7.01%
Sector PE
  • Investors favour the Tech sector the most for future growth which is trading above its 3-year average PE ratio.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 20.2%, which is higher than its past year's earnings growth of 13.5% per year.
  • The Real Estate sector is the least preferred by investors for future growth, which is trading below its 3-year average of 170x.
Forecasted Growth
  • Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings growth rate of 19% per year.
  • In contrast, the Financials sector 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?

CompanyLast Price7D1YValuationSector
BHP BHP GroupAU$60.464.3%
+AU$12.8b		52.2%PE21.5xMaterials
FMG FortescueAU$22.606.3%
+AU$4.1b		32.9%PE13.4xMaterials
ALL Aristocrat LeisureAU$51.5310.0%
+AU$2.8b		-18.0%PE21.1xConsumer Discretionary
GMG Goodman GroupAU$31.383.7%
+AU$2.3b		-1.4%PB2.7xReal Estate
WDS Woodside Energy GroupAU$31.254.0%
+AU$2.3b		42.6%PE15.7xEnergy
See more

Market Insights

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Latest News

BHP
AU$60.46
BHP Group
7D
4.3%
1Y
52.2%
WTC
AU$38.01
WiseTech Global
7D
-10.1%
1Y
-62.6%
WBC
AU$35.84
Westpac Banking
7D
-4.3%
1Y
13.4%
ALL
AU$51.53
Aristocrat Leisure
7D
10.0%
1Y
-18.0%
Narrative Update • May 15

ALL: Lower P E Framework And Dividend Payout Will Support Future Returns

Analysts have adjusted their price target on Aristocrat Leisure to A$63.04 from A$63.97, reflecting updated assumptions around slightly higher revenue, improved profit margins and a lower future P/E multiple. Analyst Commentary Recent research on Aristocrat Leisure points to a generally constructive tone, with price targets and assumptions being refined rather than overhauled.
NAB
AU$36.52
National Australia Bank
7D
-4.8%
1Y
-1.3%
LYC
AU$17.95
Lynas Rare Earths
7D
-7.7%
1Y
134.3%
STO
AU$7.88
Santos
7D
4.8%
1Y
22.4%
IAG
AU$8.01
Insurance Australia Group
7D
10.0%
1Y
-7.4%
ANZ
AU$35.21
ANZ Group Holdings
7D
-4.3%
1Y
21.8%
Narrative Update • May 13

ANZ: Mixed Broker Views And Merchant Venture Review Will Shape Outlook

Narrative Update on ANZ Group Holdings The analyst price target for ANZ Group Holdings has been adjusted slightly lower to A$36.20 from A$36.66 as analysts factor in a higher discount rate, a modestly higher future P/E assumption, and recent mixed views on revenue trends and valuation following a downgrade to Neutral and a separate upgrade in coverage. Analyst Commentary Recent research on ANZ Group reflects a split view, with some analysts more constructive on the stock following a rating upgrade and others turning cautious after a downgrade tied to revenue trends and valuation.
GMG
AU$31.38
Goodman Group
7D
3.7%
1Y
-1.4%
Narrative Update • May 13

GMG: Data Center Expansion And Asset Sales Will Shape Balanced Future Prospects

Analysts have kept Goodman Group's A$34.46 price target broadly steady, reflecting only small model tweaks to the discount rate and long term P/E assumptions, rather than a change in their overall view of the stock. What's in the News Goodman Group and DataBank formed a joint venture to develop a new 32MW data center facility in Los Angeles, a market described as supply constrained for data center capacity, with phased capacity expected to be available between December 2026 and September 2027 (Key Developments).
FMG
AU$22.60
Fortescue
7D
6.3%
1Y
32.9%
MQG
AU$242.96
Macquarie Group
7D
1.6%
1Y
15.0%
Analysis Article • May 12

Earnings Beat: Macquarie Group Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Macquarie Group Limited ( ASX:MQG ) investors will be delighted, with the company turning in some strong numbers with...
CBA
AU$159.40
Commonwealth Bank of Australia
7D
-9.4%
1Y
-6.0%
Narrative Update • May 12

CBA: Elevated P/E And Thin Margin Cushion May Pressure Future Returns

Analysts have made a small adjustment to the Commonwealth Bank of Australia price target to A$125.95. This reflects slightly higher discount rate assumptions, modestly lower revenue growth expectations, and a marginally stronger projected profit margin and future P/E.
CSL
AU$97.96
CSL
7D
-18.3%
1Y
-59.5%
WDS
AU$31.25
Woodside Energy Group
7D
4.0%
1Y
42.6%
Narrative Update • May 12

WDS: Higher Required Returns Will Pressure Margins And Limit Future Upside

Analysts have raised their A$ fair value estimate for Woodside Energy Group from A$21.46 to A$24.37, citing revised assumptions for revenue trends, profit margins and future P/E expectations. Analyst Commentary While the updated A$24.37 fair value estimate reflects revised assumptions for Woodside Energy Group, some market voices remain cautious about how much upside is actually on the table at current levels.
REA
AU$162.01
REA Group
7D
-8.4%
1Y
-34.7%