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Australian (ASX) Market Analysis & Valuation

UpdatedFeb 15, 2026
DataAggregated Company Financials
Companies1550
  • 7D2.0%
  • 3M2.5%
  • 1Y3.0%
  • YTD0.9%

The market is up 2.0% over the last week, with the Financials sector leading the way, up 5.1%. In contrast, the Healthcare sector is lagging, dropping 11%. In the last year, the market has climbed 3.0%. 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
Mon, 16 Feb 2026AU$3.0tAU$1.2tAU$106.1b20.8x28.3x2.5x
Wed, 14 Jan 2026AU$3.0tAU$1.2tAU$109.6b21.7x27.4x2.5x
Fri, 12 Dec 2025AU$2.9tAU$1.2tAU$109.6b21.3x26.6x2.4x
Sun, 09 Nov 2025AU$3.0tAU$1.2tAU$110.6b20.8x26.8x2.5x
Tue, 07 Oct 2025AU$3.0tAU$1.2tAU$110.4b21.1x27.5x2.5x
Thu, 04 Sep 2025AU$3.0tAU$1.2tAU$111.5b20.3x26.5x2.4x
Sat, 02 Aug 2025AU$2.9tAU$1.2tAU$104.1b18.9x28x2.4x
Mon, 30 Jun 2025AU$2.9tAU$1.2tAU$102.5b18.3x27.8x2.4x
Wed, 28 May 2025AU$2.8tAU$1.2tAU$102.7b17.9x27.3x2.3x
Fri, 25 Apr 2025AU$2.7tAU$1.2tAU$104.2b17.2x25.4x2.2x
Sun, 23 Mar 2025AU$2.6tAU$1.2tAU$104.8b17.6x25.2x2.2x
Tue, 18 Feb 2025AU$2.8tAU$1.2tAU$94.6b19.8x29.9x2.4x
Thu, 16 Jan 2025AU$2.7tAU$1.2tAU$90.2b19.1x30.1x2.3x
Sat, 14 Dec 2024AU$2.7tAU$1.2tAU$89.1b20.3x30.7x2.3x
Mon, 11 Nov 2024AU$2.7tAU$1.2tAU$88.4b19.6x31x2.4x
Wed, 09 Oct 2024AU$2.7tAU$1.2tAU$87.6b19.5x30.9x2.3x
Fri, 06 Sep 2024AU$2.6tAU$1.2tAU$87.8b19.2x29.9x2.3x
Sun, 04 Aug 2024AU$2.6tAU$1.2tAU$92.3b19.3x28.4x2.3x
Tue, 02 Jul 2024AU$2.6tAU$1.2tAU$91.8b18.9x28.2x2.2x
Thu, 30 May 2024AU$2.6tAU$1.2tAU$92.3b19.5x27.7x2.2x
Sat, 27 Apr 2024AU$2.5tAU$1.2tAU$91.2b19.4x27.7x2.2x
Mon, 25 Mar 2024AU$2.6tAU$1.2tAU$96.0b19.5x27x2.2x
Wed, 21 Feb 2024AU$2.6tAU$1.2tAU$114.8b19.1x22.3x2.2x
Fri, 19 Jan 2024AU$2.5tAU$1.2tAU$115.6b18.5x21.3x2.1x
Sun, 17 Dec 2023AU$2.5tAU$1.2tAU$115.3b18.4x21.6x2.1x
Tue, 14 Nov 2023AU$2.3tAU$1.2tAU$117.8b18.1x19.8x2x
Thu, 12 Oct 2023AU$2.4tAU$1.2tAU$119.1b17.8x20.1x2x
Sat, 09 Sep 2023AU$2.4tAU$1.2tAU$120.7b18x20x2x
Mon, 07 Aug 2023AU$2.5tAU$1.2tAU$146.1b16.8x16.9x2.1x
Wed, 05 Jul 2023AU$2.4tAU$1.2tAU$145.2b16.4x16.8x2.1x
Fri, 02 Jun 2023AU$2.4tAU$1.2tAU$146.9b16x16.2x2x
Sun, 30 Apr 2023AU$2.5tAU$1.2tAU$145.0b16.3x16.9x2.1x
Tue, 28 Mar 2023AU$2.3tAU$1.2tAU$145.1b15.9x16.1x2x
Thu, 23 Feb 2023AU$2.5tAU$1.1tAU$135.9b16.5x18.1x2.2x
Price to Earnings Ratio

18.1x


Total Market Cap: AU$2.5tTotal Earnings: AU$135.9bTotal Revenue: AU$1.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 24.9x202420252026
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 28.3x which is higher than its 3-year average PE of 24.9x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 7.9% 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 Market2.05%
Utilities9.14%
Financials5.06%
Materials4.54%
Real Estate2.01%
Consumer Staples1.69%
Industrials1.41%
Energy0.30%
Telecom-1.24%
Consumer Discretionary-1.28%
Tech-4.69%
Healthcare-11.27%
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 22.0%, which is higher than its past year's earnings growth of 14.5% 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 12.9x.
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 1.5% per year.
  • In contrast, the Financials sector is expected to see its earnings grow by 5.3% 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
CBA Commonwealth Bank of AustraliaAU$176.2010.9%
+AU$28.9b		6.5%PB3.8xFinancials
BHP BHP GroupAU$51.134.8%
+AU$11.9b		25.0%PE20.4xMaterials
ANZ ANZ Group HoldingsAU$40.8910.5%
+AU$11.7b		30.7%PB1.7xFinancials
NAB National Australia BankAU$46.016.1%
+AU$8.1b		12.2%PB2.2xFinancials
GMG Goodman GroupAU$31.027.4%
+AU$4.4b		-12.9%PB2.7xReal Estate
See more

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Latest News

CBA
AU$176.20
Commonwealth Bank of Australia
7D
10.9%
1Y
6.5%

Commonwealth Bank of Australia (ASX:CBA) Has Announced A Dividend Of A$2.35

Feb 16
Commonwealth Bank of Australia (ASX:CBA) Has Announced A Dividend Of A$2.35
IAG
AU$6.87
Insurance Australia Group
7D
-11.1%
1Y
-12.0%

Insurance Australia Group's (ASX:IAG) Dividend Will Be A$0.12

Feb 15
Insurance Australia Group's (ASX:IAG) Dividend Will Be A$0.12
COH
AU$199.22
Cochlear
7D
-20.4%
1Y
-24.2%

Some Confidence Is Lacking In Cochlear Limited (ASX:COH) As Shares Slide 26%

Feb 15
Some Confidence Is Lacking In Cochlear Limited (ASX:COH) As Shares Slide 26%
PME
AU$118.22
Pro Medicus
7D
-25.0%
1Y
-58.3%
WBC
AU$40.52
Westpac Banking
7D
2.8%
1Y
16.7%

WBC: Higher P/E Assumptions Will Limit Future Share Price Upside

Analysts have raised their price target for Westpac Banking to A$35.31 from A$33.86, reflecting updated assumptions around revenue growth, profit margin and future P/E. 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 (Key Developments).
CSL
AU$150.01
CSL
7D
-16.9%
1Y
-41.6%
WTC
AU$42.62
WiseTech Global
7D
-10.5%
1Y
-65.6%

WiseTech Global Limited (ASX:WTC) Shares Slammed 29% But Getting In Cheap Might Be Difficult Regardless

Feb 12
WiseTech Global Limited (ASX:WTC) Shares Slammed 29% But Getting In Cheap Might Be Difficult Regardless
ALL
AU$48.44
Aristocrat Leisure
7D
-4.6%
1Y
-37.1%

ALL: Expanded Buyback And Margin Strength Will Support Future Upside

Analysts have trimmed their price target on Aristocrat Leisure to about A$70 from around A$73, citing a slightly higher discount rate, more measured revenue growth assumptions, and a modestly lower future P/E multiple, partly balanced by a small uplift in projected profit margins. Analyst Commentary Recent research on Aristocrat Leisure points to a more balanced stance, with some analysts reassessing how much they are willing to pay for the company while still acknowledging its profitability profile.
GMG
AU$31.02
Goodman Group
7D
7.4%
1Y
-12.9%

GMG: Higher Discount Rate Assumptions Will Support Stronger Future Operating Performance

Analysts have trimmed their fair value estimate for Goodman Group to about A$36.64 from roughly A$37.05, citing slightly higher assumed discount rates and only marginal tweaks to revenue growth, profit margin and future P/E inputs. Valuation Changes Fair Value: Trimmed slightly from about A$37.05 to about A$36.64 per security.
LNW
AU$138.03
Light & Wonder
7D
-12.5%
1Y
-10.8%
ANZ
AU$40.89
ANZ Group Holdings
7D
10.5%
1Y
30.7%

ANZ: Regulatory Penalties And Earnings Assumptions Will Guide Future Outcomes

Analysts have made a small upward adjustment to their fair value estimate for ANZ Group Holdings, lifting the implied price target from about A$35.88 to roughly A$35.92. This reflects updated assumptions around discount rate, revenue growth, profit margins and future P/E, which are similar in spirit to recent sector research where modest target changes are tied to refined earnings and return expectations rather than a major shift in outlook.
MQG
AU$216.17
Macquarie Group
7D
4.0%
1Y
-8.2%

MQG: Neutral Upgrade Will Reflect Improving Outlook And Balanced Risk Reward Profile

Narrative update on Macquarie Group Analysts have made a small upward adjustment to their implied fair value and price outlook for Macquarie Group, reflected in a slightly higher price target supported by a Neutral rating upgrade and comments around valuation and an improving outlook. Analyst Commentary Recent research on Macquarie Group has centered on valuation and an improving outlook, leading to an upgrade to Neutral with a A$280.73 price target from a major global broker.
XRO
AU$73.49
Xero
7D
-10.1%
1Y
-60.4%

XRO: AI Analytics And RBC Upgrade Will Support Stronger Future Returns

Analysts have nudged their Xero fair value estimate slightly higher to about A$230 per share, reflecting updated assumptions around growth, margins and future P/E multiples following recent positive research commentary and upgrades. Analyst Commentary Recent research has generally framed Xero as a high quality growth platform with room for further execution, particularly around monetisation and operating discipline.
WES
AU$87.69
Wesfarmers
7D
3.1%
1Y
11.4%

WES: Higher Required Returns Will Pressure P/E Reliance Going Forward

Analysts have trimmed their fair value estimate for Wesfarmers slightly to A$60.17 from A$60.19, reflecting updated assumptions around the discount rate, revenue growth, profit margins and future P/E multiples. Analyst Commentary Bearish analysts are treating the trimmed A$60.17 fair value as a reminder that execution and valuation risks remain in focus for Wesfarmers, even if the adjustment is small in absolute terms.
BHP
AU$51.13
BHP Group
7D
4.8%
1Y
25.0%

BHP: Commodity Cycles Legal Risks And Mega Deals Will Shape Future Performance

Analysts nudged their BHP Group price targets higher, with the modelled fair value moving from about A$48.99 to A$48.17 as they factored in updated revenue growth, profit margin, P/E and discount rate assumptions aligned with the latest Street research. Analyst Commentary Recent Street research around BHP Group has been relatively limited in volume, but the available signals point to modest valuation adjustments rather than wholesale changes in conviction.
NAB
AU$46.01
National Australia Bank
7D
6.1%
1Y
12.2%

NAB: Governance Changes Will Signal Overvaluation Risk Despite Higher Fair Value Estimate

Analysts have nudged their price target for National Australia Bank higher to A$39.23 from A$38.75, citing updated assumptions for revenue growth, profit margins, and a slightly revised P/E outlook. What's in the News Shareholders approved an amendment to National Australia Bank's constitution at the AGM held on 12 December 2025, signaling governance changes that investors may want to review in the meeting materials (Key Developments).