Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Australian (ASX) Market Analysis & Valuation

UpdatedMar 07, 2026
DataAggregated Company Financials
Companies1570
  • 7D-3.7%
  • 3M1.8%
  • 1Y10.9%
  • YTD0.5%

Over the last 7 days, the market has dropped 2.6%, driven by a loss of 3.3% in the Financials sector. In contrast, the Energy sector has actually gained 7.9%. In contrast to the last week, the market is actually up 9.7% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 07 Mar 2026AU$3.0tAU$1.2tAU$111.3b19.2x26.7x2.5x
Mon, 02 Feb 2026AU$3.0tAU$1.2tAU$108.3b21.5x27.8x2.5x
Wed, 31 Dec 2025AU$3.0tAU$1.2tAU$109.7b21.6x27x2.5x
Fri, 28 Nov 2025AU$2.9tAU$1.2tAU$110.4b21.4x26.5x2.4x
Sun, 26 Oct 2025AU$2.9tAU$1.2tAU$103.6b21.8x28.2x2.5x
Tue, 23 Sep 2025AU$3.0tAU$1.2tAU$110.9b20.5x26.9x2.5x
Thu, 21 Aug 2025AU$3.0tAU$1.2tAU$104.8b18.8x28.7x2.5x
Sat, 19 Jul 2025AU$2.9tAU$1.2tAU$102.5b18.4x28.7x2.4x
Mon, 16 Jun 2025AU$2.9tAU$1.2tAU$102.7b18.1x27.8x2.4x
Wed, 14 May 2025AU$2.8tAU$1.2tAU$103.7b18x26.7x2.3x
Fri, 11 Apr 2025AU$2.6tAU$1.2tAU$105.9b16.9x24.2x2.1x
Sun, 09 Mar 2025AU$2.7tAU$1.2tAU$104.7b17.9x25.3x2.2x
Tue, 04 Feb 2025AU$2.8tAU$1.2tAU$90.9b19.3x30.6x2.4x
Thu, 02 Jan 2025AU$2.7tAU$1.2tAU$90.3b19.9x29.9x2.3x
Sat, 30 Nov 2024AU$2.8tAU$1.2tAU$88.3b19.6x31.5x2.4x
Mon, 28 Oct 2024AU$2.7tAU$1.2tAU$88.3b19.9x30.7x2.3x
Wed, 25 Sep 2024AU$2.7tAU$1.2tAU$87.6b19.5x30.7x2.3x
Fri, 23 Aug 2024AU$2.6tAU$1.1tAU$87.8b19.7x30.2x2.3x
Sun, 21 Jul 2024AU$2.6tAU$1.2tAU$91.2b19.2x29x2.3x
Tue, 18 Jun 2024AU$2.6tAU$1.2tAU$92.4b18.8x27.8x2.2x
Thu, 16 May 2024AU$2.6tAU$1.2tAU$93.0b19.7x27.8x2.2x
Sat, 13 Apr 2024AU$2.6tAU$1.2tAU$95.3b20.3x27.2x2.2x
Mon, 11 Mar 2024AU$2.6tAU$1.2tAU$96.5b19.6x27.2x2.2x
Wed, 07 Feb 2024AU$2.5tAU$1.2tAU$118.2b19x21.3x2.2x
Fri, 05 Jan 2024AU$2.5tAU$1.2tAU$115.1b18.5x21.9x2.2x
Sun, 03 Dec 2023AU$2.4tAU$1.2tAU$115.5b18x20.5x2x
Tue, 31 Oct 2023AU$2.3tAU$1.2tAU$119.5b17.3x19.1x1.9x
Thu, 28 Sep 2023AU$2.4tAU$1.2tAU$120.5b17.9x19.7x2x
Sat, 26 Aug 2023AU$2.4tAU$1.2tAU$125.3b17.1x19.2x2x
Mon, 24 Jul 2023AU$2.5tAU$1.2tAU$144.9b16.6x17x2.1x
Wed, 21 Jun 2023AU$2.5tAU$1.2tAU$144.3b16.2x17x2.1x
Fri, 19 May 2023AU$2.4tAU$1.2tAU$145.6b16.3x16.6x2.1x
Sun, 16 Apr 2023AU$2.5tAU$1.2tAU$144.3b16.2x17.1x2.1x
Tue, 14 Mar 2023AU$2.4tAU$1.2tAU$144.5b15.9x16.5x2.1x
Price to Earnings Ratio

16.5x


Total Market Cap: AU$2.4tTotal Earnings: AU$144.5bTotal Revenue: AU$1.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 25.1x202420252026
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 25.1x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 8.4% 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-3.68%
Energy7.08%
Tech2.13%
Telecom1.37%
Consumer Staples0.11%
Healthcare-1.02%
Utilities-1.29%
Industrials-3.04%
Financials-3.23%
Real Estate-4.45%
Consumer Discretionary-4.49%
Materials-8.35%
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 22.2%, which is higher than its past year's earnings growth of 14.0% per year.
  • The Real Estate sector is the least preferred by investors for future growth, which is trading below its 3-year average of 169x.
Forecasted Growth
  • Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 24% 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 5.6% 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
WDS Woodside Energy GroupAU$30.758.6%
+AU$4.6b		36.7%PE15.1xEnergy
STO SantosAU$7.4610.4%
+AU$2.3b		23.9%PE20.8xEnergy
WTC WiseTech GlobalAU$52.7210.9%
+AU$1.7b		-40.6%PE76xTech
REA REA GroupAU$174.014.6%
+AU$994.0m		-28.2%PE40.1xTelecom
COL Coles GroupAU$21.152.9%
+AU$789.1m		12.4%PE27.9xConsumer Staples
See more

Market Insights

Header cover image
What the next 25 years will look like 🔮
Richard Bowman avatar
Richard Bowman
The first 25 years of this century were shaped by a few notable themes: China, Tech, and low interest rates. Let's now look at the themes shaping the next quarter of the century.
Continue reading
Three contrarian investing ideas for a new market

Latest News

STO
AU$7.46
Santos
7D
10.4%
1Y
23.9%

Santos: Undervalued After Takeover Fallout

Santos (ASX: STO) experienced a sharp share price drop after the failed A$36 billion takeover by a consortium led by ADNOC. While the deal’s withdrawal removed a near-term premium, it highlighted the strategic value of Santos’ LNG and gas assets.
NAB
AU$46.82
National Australia Bank
7D
-4.5%
1Y
36.7%

NAB: Higher Future P/E Expectations Will Likely Outpace Modest Margin Support

Narrative Update on National Australia Bank Analysts have raised their price target for National Australia Bank from A$30.00 to A$34.00, supported by updated modelling that uses a slightly lower discount rate, modestly higher revenue growth and profit margin assumptions, and a higher future P/E multiple. What’s in the News Long standing Group Executive Shaun Dooley plans to retire by the end of 2026 after a 33 year career at National Australia Bank, having served as Group Chief Risk Officer since 2018 and acting Group Chief Financial Officer since March 2025 (company event filing).
BHP
AU$52.81
BHP Group
7D
-9.6%
1Y
35.5%

BHP: Commodity Cycles And China Recovery Will Shape Future Returns

The analyst fair value estimate for BHP Group has been adjusted slightly higher to A$51.98 from A$51.72. This change reflects a series of recent price target increases across the Street as analysts factor in updated assumptions for revenue growth, margins and valuation multiples.
NST
AU$26.98
Northern Star Resources
7D
-10.9%
1Y
56.7%

NST: Updated Commodity Outlook And 2026 Guidance Will Shape Balanced Future Prospects

Analysts have raised their price target for Northern Star Resources to A$35 from A$30, citing updated commodity price assumptions and a lower projected future P/E multiple as key drivers of the higher fair value estimate, now at about A$30.96. Analyst Commentary Bullish Takeaways Bullish analysts see the higher A$35 price target as aligned with refreshed commodity assumptions, which lift their fair value range for the shares relative to the prior A$30 level.
ANZ
AU$37.64
ANZ Group Holdings
7D
-6.0%
1Y
31.3%
REA
AU$174.01
REA Group
7D
4.6%
1Y
-28.2%

REA: Share Buyback And Dividend Policy Will Support Future Upside

Analysts have adjusted their fair value estimate for REA Group from A$290.00 to A$253.00, reflecting updated assumptions around revenue growth, profit margins, discount rates, and future P/E multiples following mixed recent research views. Analyst Commentary Recent research on REA Group has been mixed, with an upgrade from JPMorgan and a downgrade from another major firm occurring in close succession.
MQG
AU$200.30
Macquarie Group
7D
-6.2%
1Y
-4.2%
TLS
AU$5.24
Telstra Group
7D
1.2%
1Y
26.3%

TLS: Future Returns Will Depend On Buybacks Dividends And P/E Support

Analysts have raised their price target on Telstra Group to A$5.21 from A$4.97, reflecting updated views on revenue growth, profit margins and future P/E assumptions. What's in the News Telstra Group announced an increase in its equity buyback authority by A$250 million on February 19, 2026, bringing the total authorization to A$1.25 billion (Key Developments).
XRO
AU$87.63
Xero
7D
5.4%
1Y
-47.2%

XERO Limited's Technical Analysis

1. Momentum & Trend Indicators The MACD is positive at 0.42, suggesting bullish momentum, yet the share price (A$122.35) is just above the 20-day EMA(121.06) and below the 50-day SMA(120.80) – a tug-of-war that keeps the overall trend “neutral-to-bullish”.
WTC
AU$52.72
WiseTech Global
7D
10.9%
1Y
-40.6%
WDS
AU$30.75
Woodside Energy Group
7D
8.6%
1Y
36.7%

WDS: Updated LNG Earnings Profile Will Support Future Return Potential

Analysts have increased their fair value estimate for Woodside Energy Group from about A$36.87 to around A$37.48. They cited updated assumptions on revenue growth, profit margins and future P/E that refine their overall assessment of risk and return.
COL
AU$21.15
Coles Group
7D
2.9%
1Y
12.4%
WBC
AU$41.00
Westpac Banking
7D
-3.6%
1Y
34.1%

WBC: Steady Assumptions And Higher P/E Will Restrain Future Returns

Analysts have maintained Westpac Banking's fair value at A$35.31 and made minor adjustments to assumptions such as discount rate, revenue growth, profit margin and future P/E, reflecting a largely steady view of the bank's outlook and risk profile. What's in the News Shareholders approved an amendment to Westpac Banking Corporation's constitution at the annual general meeting held on December 11, 2025.
FMG
AU$19.25
Fortescue
7D
-8.9%
1Y
20.9%
ALD
AU$30.96
Ampol
7D
9.9%
1Y
26.7%
WES
AU$75.82
Wesfarmers
7D
-4.8%
1Y
5.5%

WES: Capital Discipline And Earnings Quality Will Support Stronger Future Returns

Analysts have trimmed their Wesfarmers price target by A$1, citing slightly higher assumed risk, a modest adjustment to revenue growth expectations, and a small change to forecast profit margins and future P/E assumptions. Analyst Commentary Bullish analysts looking at Wesfarmers are weighing near term valuation tweaks against the longer term earnings profile and capital discipline of the group.