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Australian (ASX) Market Analysis & Valuation

UpdatedMar 05, 2026
DataAggregated Company Financials
Companies1571
  • 7D-2.7%
  • 3M2.3%
  • 1Y8.8%
  • YTD0.7%

Over the last 7 days, the market has dropped 2.7%, driven by a decline of 4.1% in the Financials sector. Meanwhile, the Energy sector has outperformed, gaining 4.9% in that time. As for the longer term, the market has actually risen by 8.8% in the last 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
Thu, 05 Mar 2026AU$3.0tAU$1.2tAU$111.1b19.5x26.8x2.5x
Sat, 31 Jan 2026AU$3.0tAU$1.2tAU$108.1b21.5x27.9x2.5x
Mon, 29 Dec 2025AU$3.0tAU$1.2tAU$109.7b21.7x27.2x2.5x
Wed, 26 Nov 2025AU$2.9tAU$1.2tAU$110.0b21x26.2x2.4x
Fri, 24 Oct 2025AU$2.9tAU$1.2tAU$103.6b21.7x28.2x2.5x
Sun, 21 Sep 2025AU$3.0tAU$1.2tAU$110.9b20.7x26.8x2.5x
Tue, 19 Aug 2025AU$3.0tAU$1.2tAU$105.1b19.2x28.8x2.5x
Thu, 17 Jul 2025AU$2.9tAU$1.2tAU$102.5b18.4x28.1x2.4x
Sat, 14 Jun 2025AU$2.9tAU$1.2tAU$102.8b18.1x27.8x2.4x
Mon, 12 May 2025AU$2.8tAU$1.2tAU$103.5b17.8x26.6x2.3x
Wed, 09 Apr 2025AU$2.5tAU$1.2tAU$106.9b16.6x23.4x2x
Fri, 07 Mar 2025AU$2.7tAU$1.2tAU$104.6b17.8x25.8x2.2x
Sun, 02 Feb 2025AU$2.8tAU$1.2tAU$90.2b19.8x31.3x2.4x
Tue, 31 Dec 2024AU$2.7tAU$1.2tAU$89.9b20x30.3x2.3x
Thu, 28 Nov 2024AU$2.8tAU$1.2tAU$88.5b19.6x31.4x2.4x
Sat, 26 Oct 2024AU$2.7tAU$1.2tAU$88.2b19.9x30.8x2.3x
Mon, 23 Sep 2024AU$2.7tAU$1.2tAU$87.7b19.4x30.9x2.3x
Wed, 21 Aug 2024AU$2.6tAU$1.1tAU$89.0b19.9x29.6x2.3x
Fri, 19 Jul 2024AU$2.7tAU$1.1tAU$91.0b19.4x29.3x2.3x
Sun, 16 Jun 2024AU$2.6tAU$1.2tAU$92.4b18.9x27.9x2.2x
Tue, 14 May 2024AU$2.6tAU$1.2tAU$93.1b19.6x27.7x2.2x
Thu, 11 Apr 2024AU$2.6tAU$1.2tAU$94.7b20.4x27.7x2.2x
Sat, 09 Mar 2024AU$2.6tAU$1.2tAU$96.4b19.8x27.2x2.2x
Mon, 05 Feb 2024AU$2.6tAU$1.2tAU$116.2b19x22.1x2.2x
Wed, 03 Jan 2024AU$2.6tAU$1.2tAU$114.6b18.8x22.3x2.2x
Fri, 01 Dec 2023AU$2.4tAU$1.2tAU$116.1b18x20.4x2x
Sun, 29 Oct 2023AU$2.3tAU$1.2tAU$118.5b17.4x19.7x1.9x
Tue, 26 Sep 2023AU$2.4tAU$1.2tAU$120.0b17.7x19.9x2x
Thu, 24 Aug 2023AU$2.4tAU$1.2tAU$130.7b17x18.5x2x
Sat, 22 Jul 2023AU$2.5tAU$1.2tAU$144.6b16.6x17x2.1x
Mon, 19 Jun 2023AU$2.4tAU$1.2tAU$143.6b16x16.9x2.1x
Wed, 17 May 2023AU$2.4tAU$1.2tAU$145.5b16.3x16.6x2.1x
Fri, 14 Apr 2023AU$2.5tAU$1.2tAU$144.1b16.1x17.1x2.1x
Sun, 12 Mar 2023AU$2.4tAU$1.2tAU$145.1b16x16.5x2.1x
Price to Earnings Ratio

16.5x


Total Market Cap: AU$2.4tTotal Earnings: AU$145.1bTotal 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 8.5% 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-2.74%
Energy4.92%
Telecom2.09%
Consumer Staples-0.92%
Utilities-1.10%
Tech-2.12%
Industrials-2.61%
Materials-2.73%
Healthcare-2.81%
Real Estate-3.04%
Financials-4.08%
Consumer Discretionary-4.90%
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 22.3%, 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$30.459.0%
+AU$4.8b		32.5%PE15.1xEnergy
STO SantosAU$7.328.3%
+AU$1.8b		19.4%PE20.5xEnergy
LYC Lynas Rare EarthsAU$19.0010.2%
+AU$1.8b		165.0%PE232.2xMaterials
ALD AmpolAU$32.0615.5%
+AU$1.0b		30.0%PE92.7xEnergy
YAL Yancoal AustraliaAU$6.3412.4%
+AU$924.3m		6.4%PE19xEnergy
See more

Market Insights

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Latest News

ANZ
AU$37.77
ANZ Group Holdings
7D
-5.5%
1Y
28.6%
LYC
AU$19.00
Lynas Rare Earths
7D
10.2%
1Y
165.0%

China-threatening vital rare earth supplier, LYC.

Lynas Rare Earths (ASX: LYC): A Leveraged Bet on Rare Earth Prices and Supply Chain Diversification Key Takeaways Lynas Rare Earths is the largest producer of separated rare earths outside China , making it strategically important in the global push to diversify critical mineral supply chains. Neodymium-Praseodymium (NdPr) oxide drives the majority of Lynas’ revenue , and earnings are highly sensitive to its price.
MQG
AU$198.86
Macquarie Group
7D
-5.1%
1Y
-9.8%
VEA
AU$2.07
Viva Energy Group
7D
19.0%
1Y
22.8%

VEA: Dividend Outlook And Higher P/E Multiple Will Shape Future Returns

Analysts have kept their price target on Viva Energy Group at A$1.90, reflecting updated assumptions for discount rates, revenue trends, profit margins and a higher future P/E multiple. What's in the News Viva Energy Group has declared an ordinary fully franked dividend of A$0.0394 per share for the six month period ended 31 December 2025 (Key Developments).
BHP
AU$55.15
BHP Group
7D
-4.5%
1Y
40.6%
WDS
AU$30.45
Woodside Energy Group
7D
9.0%
1Y
32.5%

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.
WBC
AU$41.37
Westpac Banking
7D
-3.2%
1Y
32.3%

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.
YAL
AU$6.34
Yancoal Australia
7D
12.4%
1Y
6.4%
NAB
AU$47.33
National Australia Bank
7D
-3.5%
1Y
36.8%
FMG
AU$19.39
Fortescue
7D
-7.0%
1Y
20.4%
ALD
AU$32.06
Ampol
7D
15.5%
1Y
30.0%
STO
AU$7.32
Santos
7D
8.3%
1Y
19.4%

STO: Future Returns Will Reflect Low Costs And Papua LNG Execution Risk

The analyst price target for Santos has moved from A$6.75 to A$7.50, with analysts pointing to a solid in line result, a low cost operating model, and expectations for production growth and Papua LNG progress as key supports for the higher fair value and slightly adjusted discount rate, revenue growth, profit margin, and future P/E assumptions. Analyst Commentary Bullish Takeaways Bullish analysts see the move in price targets to A$7.30 to A$7.50 as better aligning the stock with their updated fair value assumptions after a solid in line result and a reaffirmed low cost operating model.
REA
AU$165.90
REA Group
7D
3.3%
1Y
-35.3%
CBA
AU$172.66
Commonwealth Bank of Australia
7D
-2.6%
1Y
12.4%

CBA: Higher P/E Assumptions May Strain Returns If Margins Weaken

Analysts have lifted their fair value estimate for Commonwealth Bank of Australia to A$127.23 from A$120.47, reflecting refreshed assumptions for slightly higher revenue growth, a modestly higher future P/E multiple, and a small adjustment to the discount rate and profit margin. Analyst Commentary Analysts updating their fair value work on Commonwealth Bank of Australia are broadly weighing what they see as supportive revenue trends against more mixed sector signals on pricing, margins, and the sustainability of current conditions.
WHC
AU$8.70
Whitehaven Coal
7D
12.3%
1Y
50.8%

WHC: Buybacks And Higher Commodity Deck Will Shape Future Upside

Analysts have raised their fair value estimate for Whitehaven Coal to A$10.00 from A$9.50, reflecting updated commodity price assumptions and a lower future P/E expectation of 16.17x, partly offset by a more cautious profit margin outlook. Analyst Commentary Recent Street research on Whitehaven Coal presents a mixed picture, with valuation views pulling in different directions.
WES
AU$75.57
Wesfarmers
7D
-5.6%
1Y
3.5%

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.