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

Australian (ASX) Market Analysis & Valuation

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies1552
  • 7D0.2%
  • 3M-1.7%
  • 1Y5.8%
  • YTD0.2%

The Materials sector gained 4.4% while the market remained flat over the last week. As for the longer term, the market has risen 5.8% in the past 12 months. 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
Mon, 12 Jan 2026AU$3.0tAU$1.2tAU$109.7b21.8x27.1x2.5x
Wed, 10 Dec 2025AU$2.9tAU$1.2tAU$109.7b21.1x26.5x2.4x
Fri, 07 Nov 2025AU$3.0tAU$1.2tAU$110.7b21.1x26.9x2.5x
Sun, 05 Oct 2025AU$3.0tAU$1.2tAU$110.4b21.2x27.5x2.5x
Tue, 02 Sep 2025AU$3.0tAU$1.2tAU$111.4b20.4x27.1x2.5x
Thu, 31 Jul 2025AU$2.9tAU$1.2tAU$102.9b19.2x28.7x2.4x
Sat, 28 Jun 2025AU$2.9tAU$1.2tAU$102.4b18.3x27.8x2.4x
Mon, 26 May 2025AU$2.8tAU$1.2tAU$102.4b18x27.3x2.3x
Wed, 23 Apr 2025AU$2.6tAU$1.2tAU$104.1b16.8x25x2.1x
Fri, 21 Mar 2025AU$2.6tAU$1.2tAU$105.0b17.7x25.1x2.2x
Sun, 16 Feb 2025AU$2.8tAU$1.2tAU$94.6b19.7x29.9x2.4x
Tue, 14 Jan 2025AU$2.7tAU$1.2tAU$90.4b19.1x29.9x2.3x
Thu, 12 Dec 2024AU$2.8tAU$1.2tAU$89.2b20.3x30.9x2.3x
Sat, 09 Nov 2024AU$2.7tAU$1.2tAU$88.6b19.6x30.9x2.4x
Mon, 07 Oct 2024AU$2.7tAU$1.2tAU$87.3b19.5x30.9x2.3x
Wed, 04 Sep 2024AU$2.7tAU$1.2tAU$87.8b19.7x30.4x2.3x
Fri, 02 Aug 2024AU$2.7tAU$1.2tAU$92.3b19.4x29x2.3x
Sun, 30 Jun 2024AU$2.6tAU$1.2tAU$91.8b19.1x28.2x2.2x
Tue, 28 May 2024AU$2.6tAU$1.2tAU$91.8b19.6x28.2x2.2x
Thu, 25 Apr 2024AU$2.6tAU$1.2tAU$95.5b19.8x26.9x2.2x
Sat, 23 Mar 2024AU$2.6tAU$1.2tAU$96.0b19.5x27x2.2x
Mon, 19 Feb 2024AU$2.6tAU$1.2tAU$114.7b19.1x22.3x2.2x
Wed, 17 Jan 2024AU$2.5tAU$1.2tAU$115.4b18.6x21.5x2.1x
Fri, 15 Dec 2023AU$2.4tAU$1.2tAU$115.2b18.2x21x2.1x
Sun, 12 Nov 2023AU$2.3tAU$1.2tAU$118.4b17.6x19.7x2x
Tue, 10 Oct 2023AU$2.4tAU$1.2tAU$119.6b17.7x19.7x2x
Thu, 07 Sep 2023AU$2.4tAU$1.2tAU$120.7b18.2x20.3x2.1x
Sat, 05 Aug 2023AU$2.5tAU$1.2tAU$146.2b16.8x16.8x2.1x
Mon, 03 Jul 2023AU$2.4tAU$1.2tAU$145.4b16.4x16.6x2.1x
Wed, 31 May 2023AU$2.4tAU$1.2tAU$146.6b16.3x16.4x2.1x
Fri, 28 Apr 2023AU$2.4tAU$1.2tAU$144.9b16.4x16.9x2.1x
Sun, 26 Mar 2023AU$2.2tAU$1.1tAU$138.4b16x16.2x1.9x
Tue, 21 Feb 2023AU$2.5tAU$1.1tAU$141.2b16.5x17.5x2.2x
Thu, 19 Jan 2023AU$2.5tAU$1.1tAU$146.3b16x17x2.3x
Price to Earnings Ratio

17x


Total Market Cap: AU$2.5tTotal Earnings: AU$146.3bTotal Revenue: AU$1.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 24.6x202420252026
Current Market PE
  • Investors are optimistic on the Australian market, and appear confident in strong long term growth rates.
  • The market is trading at a PE ratio of 27.1x which is higher than its 3-year average PE of 24.6x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 9.2% per year over the last three years.
  • Meanwhile revenues for these companies have grown 3.4% 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.

Sector Trends

Which sectors have driven the changes within the Australian Market?

AU Market0.16%
Materials4.41%
Consumer Staples0.56%
Tech0.36%
Industrials0.36%
Energy0.13%
Healthcare-0.13%
Telecom-0.38%
Consumer Discretionary-0.61%
Real Estate-1.10%
Utilities-1.14%
Financials-2.31%
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 15.6% per year.
  • The Energy sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average of 12.7x.
Forecasted Growth
  • Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings growth rate of 16% per year.
  • In contrast, the Financials sector is expected to see its earnings grow by 5.7% 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$47.724.3%
+AU$10.0b		20.3%PE18xMaterials
BSL BlueScope SteelAU$30.0024.3%
+AU$2.6b		54.9%PE177.1xMaterials
LYC Lynas Rare EarthsAU$14.1015.4%
+AU$1.9b		101.7%PE1776.2xMaterials
FMG FortescueAU$22.712.6%
+AU$1.8b		26.7%PE13.8xMaterials
CDA CodanAU$36.8927.1%
+AU$1.4b		131.4%PE64.8xTech
See more

Market Insights

Header cover image
Which Markets Will Sink or Swim in 2026? 🌍
Richard Bowman avatar
Richard Bowman
|
|
What research teams agree on – and where they don’t – heading into 2026.
Continue reading
Three Sectors Expected to Rally in 2026 📈
Last Week

Three Sectors Expected to Rally in 2026 📈

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.
FMG
AU$22.71
Fortescue
7D
2.6%
1Y
26.7%

FMG: Dividend Payout Will Continue To Worsen Emerging Earnings Risk Profile

Analysts have nudged their price target for Fortescue slightly higher to A$19.33 from A$19.18, reflecting small adjustments to assumptions on discount rate, revenue growth, profit margin and future P/E expectations. Valuation Changes Fair Value: updated slightly from A$19.18 to A$19.33 per share.
XRO
AU$107.46
Xero
7D
-4.3%
1Y
-36.8%

XRO: Higher Revenue Outlook Will Be Balanced By Thinner Margins

Analysts have reduced their fair value estimate for Xero from A$134.61 to A$109.01, linking this change to updated assumptions that combine higher expected revenue growth with a lower profit margin profile and a higher future P/E multiple. Valuation Changes Fair value estimate reduced from A$134.61 to A$109.01, reflecting updated assumptions.
S32
AU$3.85
South32
7D
8.5%
1Y
13.2%
WES
AU$81.06
Wesfarmers
7D
-0.8%
1Y
11.6%

WES: Higher Assumed P/E Will Test Execution And Margin Resilience

Analysts have increased their fair value estimate for Wesfarmers to A$60.19 from A$59.41, reflecting updated assumptions for revenue growth, profit margins and a slightly richer future P/E multiple. Analyst Commentary Analysts framing Wesfarmers around the updated A$60.19 fair value are broadly focused on how much investors are being asked to pay for a diversified earnings stream that still needs to deliver against expectations for revenue growth and margins.
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.
CDA
AU$36.89
Codan
7D
27.1%
1Y
131.4%
GMG
AU$30.20
Goodman Group
7D
-2.0%
1Y
-19.3%

GMG: Higher Revenue Assumptions Will Support Stronger Future Operating Performance

Analysts have slightly reduced their price target for Goodman Group to A$37.13 from A$37.26, reflecting small adjustments to fair value, discount rate, revenue growth, profit margin and future P/E assumptions. Valuation Changes Fair Value: Price target updated from A$37.26 to A$37.13, representing a small downward adjustment in the modelled estimate.
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.
BSL
AU$30.00
BlueScope Steel
7D
24.3%
1Y
54.9%
BHP
AU$47.72
BHP Group
7D
4.3%
1Y
20.3%

BHP: Commodity Cycles Legal Liabilities And Copper Projects Will Shape Future Performance

Analysts have trimmed their price target on BHP Group to £21.00 from £22.00, reflecting slightly updated assumptions on fair value, discount rate, revenue growth, profit margin, and future P/E, while maintaining a neutral overall stance. Analyst Commentary Recent research on BHP Group has focused on fine tuning valuation assumptions rather than shifting the overall stance, with the latest move being a trim in the price target while keeping a neutral rating.
LYC
AU$14.10
Lynas Rare Earths
7D
15.4%
1Y
101.7%

LYC: Execution Risks On Project Pipeline Will Pressure Overextended Earnings Expectations

Narrative Update Analysts have lifted their price target for Lynas Rare Earths to A$17.80 from A$16.60, citing what they view as an attractive entry point after the recent share pullback and potential exploration upside from recent drilling results. Analyst Commentary Recent research has highlighted two key angles on Lynas Rare Earths.
LTR
AU$2.05
Liontown
7D
26.5%
1Y
269.4%

LTR: Higher Earnings Multiple Will Likely Prove Unsustainable Amid Moderating Outlook

Liontown's analyst price target has been lifted from A0.35 to A0.50 per share, as analysts factor in improved long term profit margins and a higher justified earnings multiple, despite moderating revenue growth expectations and a slightly higher discount rate. Valuation Changes Fair Value: raised from A$0.35 to A$0.50 per share, representing a substantial upward revision.
WBC
AU$37.90
Westpac Banking
7D
-2.7%
1Y
16.3%
CSL
AU$174.29
CSL
7D
1.4%
1Y
-38.9%

CSL: Shares Will Recover As Seqirus Drag Fades After AGM Downgrade

Analysts have nudged down their price target on CSL by A$5 to reflect slightly softer long term revenue growth assumptions and a modestly higher discount rate, even as they highlight resilient margins and view the recent selloff as an opportunity to re engage with the shares. Analyst Commentary Recent commentary around CSL reflects a more constructive stance on the stock despite near term earnings noise, with valuation support emerging after the sharp pullback.
PME
AU$210.21
Pro Medicus
7D
-5.6%
1Y
-21.7%

Does Pro Medicus (ASX:PME) Deserve A Spot On Your Watchlist?

Oct 08
Does Pro Medicus (ASX:PME) Deserve A Spot On Your Watchlist?