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Australian (ASX) Market Analysis & Valuation

UpdatedMar 02, 2026
DataAggregated Company Financials
Companies1560
  • 7D1.4%
  • 3M6.4%
  • 1Y12.0%
  • YTD4.3%

The market has climbed 1.4% in the last 7 days, lead by the Materials sector with a gain of 8.0%. As for the past 12 months, the market is up 12%. 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
Wed, 04 Mar 2026AU$3.1tAU$1.2tAU$110.5b20.9x27.9x2.6x
Fri, 30 Jan 2026AU$3.0tAU$1.2tAU$107.9b21.5x28.2x2.6x
Sun, 28 Dec 2025AU$3.0tAU$1.2tAU$109.6b21.7x27.2x2.5x
Tue, 25 Nov 2025AU$2.9tAU$1.2tAU$109.9b21x26.1x2.4x
Thu, 23 Oct 2025AU$2.9tAU$1.2tAU$103.8b21.7x28.2x2.5x
Sat, 20 Sep 2025AU$3.0tAU$1.2tAU$110.8b20.7x26.8x2.5x
Mon, 18 Aug 2025AU$3.0tAU$1.2tAU$105.6b19x28.5x2.5x
Wed, 16 Jul 2025AU$2.9tAU$1.2tAU$102.2b18.8x28.4x2.4x
Fri, 13 Jun 2025AU$2.9tAU$1.2tAU$102.5b18.2x27.9x2.4x
Sun, 11 May 2025AU$2.8tAU$1.2tAU$103.6b17.8x26.5x2.3x
Tue, 08 Apr 2025AU$2.4tAU$1.2tAU$106.9b16.7x22.8x2x
Thu, 06 Mar 2025AU$2.7tAU$1.2tAU$104.9b17.6x25.9x2.2x
Sat, 01 Feb 2025AU$2.8tAU$1.2tAU$90.2b19.8x31.3x2.4x
Mon, 30 Dec 2024AU$2.7tAU$1.2tAU$90.1b19.9x30.3x2.3x
Wed, 27 Nov 2024AU$2.8tAU$1.2tAU$88.4b19.4x31.2x2.4x
Fri, 25 Oct 2024AU$2.7tAU$1.2tAU$88.0b19.8x30.8x2.3x
Sun, 22 Sep 2024AU$2.7tAU$1.2tAU$87.8b19.4x30.9x2.3x
Tue, 20 Aug 2024AU$2.6tAU$1.1tAU$91.0b19.7x28.9x2.3x
Thu, 18 Jul 2024AU$2.7tAU$1.1tAU$90.9b19.5x29.5x2.3x
Sat, 15 Jun 2024AU$2.6tAU$1.2tAU$92.3b18.9x27.9x2.2x
Mon, 13 May 2024AU$2.6tAU$1.2tAU$93.1b19.8x27.7x2.2x
Wed, 10 Apr 2024AU$2.6tAU$1.2tAU$94.7b20.4x27.6x2.2x
Fri, 08 Mar 2024AU$2.6tAU$1.2tAU$96.4b19.8x26.9x2.2x
Sun, 04 Feb 2024AU$2.6tAU$1.2tAU$116.2b19x22.1x2.2x
Tue, 02 Jan 2024AU$2.6tAU$1.2tAU$114.5b18.8x22.3x2.2x
Thu, 30 Nov 2023AU$2.4tAU$1.2tAU$115.9b17.9x20.3x2x
Sat, 28 Oct 2023AU$2.3tAU$1.2tAU$118.4b17.4x19.7x1.9x
Mon, 25 Sep 2023AU$2.4tAU$1.2tAU$119.9b17.7x19.9x2x
Wed, 23 Aug 2023AU$2.4tAU$1.2tAU$130.3b16.8x18.4x2x
Fri, 21 Jul 2023AU$2.5tAU$1.2tAU$143.8b16.5x17.1x2.1x
Sun, 18 Jun 2023AU$2.4tAU$1.2tAU$143.6b16x16.9x2.1x
Tue, 16 May 2023AU$2.4tAU$1.2tAU$145.4b16.3x16.8x2.1x
Thu, 13 Apr 2023AU$2.5tAU$1.2tAU$144.7b16.1x17x2.1x
Sat, 11 Mar 2023AU$2.4tAU$1.2tAU$145.0b16.1x16.6x2.1x
Price to Earnings Ratio

16.6x


Total Market Cap: AU$2.4tTotal Earnings: AU$145.0bTotal 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 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 25.1x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 8.7% 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 Market1.41%
Materials7.99%
Consumer Staples4.85%
Tech2.42%
Telecom1.61%
Industrials0.81%
Energy-0.094%
Utilities-1.13%
Financials-1.24%
Real Estate-1.39%
Healthcare-1.52%
Consumer Discretionary-3.46%
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 23.7%, 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 Tech sector, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 14% 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$57.705.4%
+AU$15.0b		46.1%PE20.1xMaterials
WOW Woolworths GroupAU$36.9017.0%
+AU$6.5b		23.5%PE75.4xConsumer Staples
WDS Woodside Energy GroupAU$30.489.8%
+AU$5.2b		24.5%PE15xEnergy
LYC Lynas Rare EarthsAU$19.0420.7%
+AU$3.3b		169.3%PE232.7xMaterials
EVN Evolution MiningAU$16.877.4%
+AU$2.4b		170.4%PE25.8xMaterials
See more

Market Insights

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Latest News

MQG
AU$196.47
Macquarie Group
7D
-4.9%
1Y
-12.4%
WOW
AU$36.90
Woolworths Group
7D
17.0%
1Y
23.5%
BHP
AU$57.70
BHP Group
7D
5.4%
1Y
46.1%
WDS
AU$30.48
Woodside Energy Group
7D
9.8%
1Y
24.5%

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.
NST
AU$30.71
Northern Star Resources
7D
3.2%
1Y
75.2%
QAN
AU$9.24
Qantas Airways
7D
-11.3%
1Y
-9.4%
WBC
AU$41.80
Westpac Banking
7D
-2.0%
1Y
31.2%

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.
SIG
AU$2.73
Sigma Healthcare
7D
-9.0%
1Y
-6.8%
NAB
AU$47.64
National Australia Bank
7D
-1.5%
1Y
35.9%
EVN
AU$16.87
Evolution Mining
7D
7.4%
1Y
170.4%
LYC
AU$19.04
Lynas Rare Earths
7D
20.7%
1Y
169.3%
FMG
AU$19.58
Fortescue
7D
-3.1%
1Y
21.2%
STO
AU$7.28
Santos
7D
6.9%
1Y
14.6%

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.
XRO
AU$78.86
Xero
7D
9.8%
1Y
-54.7%
CBA
AU$173.98
Commonwealth Bank of Australia
7D
-2.5%
1Y
10.3%

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.
WES
AU$77.24
Wesfarmers
7D
-4.7%
1Y
3.3%

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.