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Australian (ASX) Market Analysis & Valuation
UpdatedJun 16, 2024
DataAggregated Company Financials
Companies1681
- 7D-1.7%
- 3M0.4%
- 1Y7.0%
- YTD1.3%
Over the last 7 days, the market has dropped 1.7%, driven by a decline of 4.5% in the Materials sector. As for the longer term, the market has actually risen by 7.0% in the last year. As for the next few years, earnings are expected to grow by 14% per annum.
Market Valuation and Performance
Has the Australian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 16 Jun 2024 | AU$2.6t | AU$1.2t | AU$92.4b | 18.9x | 27.9x | 2.2x |
| Tue, 14 May 2024 | AU$2.6t | AU$1.2t | AU$93.1b | 19.6x | 27.7x | 2.2x |
| Thu, 11 Apr 2024 | AU$2.6t | AU$1.2t | AU$94.7b | 20.4x | 27.7x | 2.2x |
| Sat, 09 Mar 2024 | AU$2.6t | AU$1.2t | AU$96.4b | 19.8x | 27.2x | 2.2x |
| Mon, 05 Feb 2024 | AU$2.6t | AU$1.2t | AU$116.2b | 19x | 22.1x | 2.2x |
| Wed, 03 Jan 2024 | AU$2.6t | AU$1.2t | AU$114.6b | 18.8x | 22.3x | 2.2x |
| Fri, 01 Dec 2023 | AU$2.4t | AU$1.2t | AU$116.1b | 18x | 20.4x | 2x |
| Sun, 29 Oct 2023 | AU$2.3t | AU$1.2t | AU$118.5b | 17.4x | 19.7x | 1.9x |
| Tue, 26 Sep 2023 | AU$2.4t | AU$1.2t | AU$120.0b | 17.7x | 19.9x | 2x |
| Thu, 24 Aug 2023 | AU$2.4t | AU$1.2t | AU$130.7b | 17x | 18.5x | 2x |
| Sat, 22 Jul 2023 | AU$2.5t | AU$1.2t | AU$144.6b | 16.6x | 17x | 2.1x |
| Mon, 19 Jun 2023 | AU$2.4t | AU$1.2t | AU$143.6b | 16x | 16.9x | 2.1x |
| Wed, 17 May 2023 | AU$2.4t | AU$1.2t | AU$145.5b | 16.3x | 16.6x | 2.1x |
| Fri, 14 Apr 2023 | AU$2.5t | AU$1.2t | AU$144.1b | 16.1x | 17.1x | 2.1x |
| Sun, 12 Mar 2023 | AU$2.4t | AU$1.2t | AU$145.1b | 16x | 16.5x | 2.1x |
| Tue, 07 Feb 2023 | AU$2.5t | AU$1.1t | AU$147.3b | 16.4x | 17.2x | 2.3x |
| Thu, 05 Jan 2023 | AU$2.4t | AU$1.1t | AU$147.7b | 14.8x | 16x | 2.2x |
| Sat, 03 Dec 2022 | AU$2.5t | AU$1.1t | AU$148.6b | 14.9x | 16.5x | 2.3x |
| Mon, 31 Oct 2022 | AU$2.3t | AU$1.1t | AU$150.9b | 14.3x | 15.2x | 2.1x |
| Wed, 28 Sep 2022 | AU$2.2t | AU$1.1t | AU$150.1b | 14.5x | 14.7x | 2x |
| Fri, 26 Aug 2022 | AU$2.4t | AU$1.1t | AU$144.5b | 15.2x | 16.6x | 2.3x |
| Sun, 24 Jul 2022 | AU$2.3t | AU$1.0t | AU$132.5b | 15.1x | 17.4x | 2.2x |
| Tue, 21 Jun 2022 | AU$2.1t | AU$1.0t | AU$134.0b | 14.9x | 16x | 2.1x |
| Thu, 19 May 2022 | AU$2.5t | AU$1.0t | AU$133.4b | 16.5x | 18.5x | 2.4x |
| Sat, 16 Apr 2022 | AU$2.6t | AU$1.0t | AU$129.3b | 17.5x | 20.2x | 2.5x |
| Mon, 14 Mar 2022 | AU$2.5t | AU$1.0t | AU$130.2b | 17.6x | 19.4x | 2.4x |
| Wed, 09 Feb 2022 | AU$2.6t | AU$980.4b | AU$105.9b | 18.3x | 24.2x | 2.6x |
| Fri, 07 Jan 2022 | AU$2.7t | AU$974.1b | AU$103.8b | 14.3x | 25.9x | 2.8x |
| Sun, 05 Dec 2021 | AU$2.5t | AU$982.1b | AU$103.0b | 18.6x | 24.7x | 2.6x |
| Tue, 02 Nov 2021 | AU$2.6t | AU$960.3b | AU$97.4b | 19.7x | 26.6x | 2.7x |
| Thu, 30 Sep 2021 | AU$2.5t | AU$961.4b | AU$95.9b | 18.7x | 26.2x | 2.6x |
| Sat, 28 Aug 2021 | AU$2.6t | AU$949.7b | AU$96.9b | 18x | 26.7x | 2.7x |
| Sun, 04 Jul 2021 | AU$2.5t | AU$945.8b | AU$96.5b | 17.7x | 25.9x | 2.6x |
Price to Earnings Ratio
25.9x
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 27.9x which is higher than its 3-year average PE of 20.7x.
Past Earnings Growth
- The earnings for Australian listed companies have remained mostly flat over the last three years.
- Meanwhile revenues have grown 7.1% 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.
Sector Trends
Which sectors have driven the changes within the Australian Market?
| AU Market | -1.68% | |
| Consumer Discretionary | 0.34% | |
| Healthcare | -0.085% | |
| Tech | -0.37% | |
| Consumer Staples | -0.44% | |
| Telecom | -0.80% | |
| Financials | -0.95% | |
| Real Estate | -1.45% | |
| Energy | -1.51% | |
| Industrials | -2.15% | |
| Utilities | -2.60% | |
| Materials | -4.54% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth, which is trading above its 3-year average PE ratio of 61.9x.
- Analysts expect its future annual earnings growth (17.6%) to be largely in line with prior year's earnings growth.
- The market's confidence could indicate that the market believes that analysts are underestimating future growth.
Forecasted Growth
- Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 32% over the next 5 years.
- This is better than its past earnings decline of 36% per year.
- In contrast, the Utilities sector is expected to see its earnings decline by 13% 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 | Sector | |
|---|---|---|---|---|---|---|
| GMG Goodman Group | AU$35.77 | 1.3% +AU$873.6m | 77.0% | PB3.9x | Real Estate | |
| JHX James Hardie Industries | AU$48.30 | 4.0% +AU$780.7m | 20.7% | PE27x | Materials | |
| PME Pro Medicus | AU$131.17 | 4.2% +AU$553.5m | 90.6% | PE196.5x | Healthcare | |
| REA REA Group | AU$192.08 | 1.9% +AU$484.9m | 39.8% | PE90x | Telecom | |
| JBH JB Hi-Fi | AU$63.28 | 5.7% +AU$372.8m | 46.9% | PE15.1x | Consumer Discretionary |
