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Australian (ASX) Market Analysis & Valuation

UpdatedMay 28, 2026
DataAggregated Company Financials
Companies1572
  • 7D2.5%
  • 3M-5.2%
  • 1Y3.3%
  • YTD-1.3%

Over the last 7 days, the market has remained flat, although notably the Materials sector gained 3.3% in that time. In line with that, the market has also been flat over the past year. 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
Thu, 28 May 2026AU$2.9tAU$1.2tAU$113.5b17.2x25.7x2.4x
Sat, 25 Apr 2026AU$2.9tAU$1.2tAU$113.3b17.3x26x2.5x
Mon, 23 Mar 2026AU$2.8tAU$1.2tAU$112.2b17.2x25.2x2.4x
Wed, 18 Feb 2026AU$3.0tAU$1.2tAU$108.3b20.7x27.8x2.5x
Fri, 16 Jan 2026AU$3.0tAU$1.2tAU$109.7b22.1x27.5x2.5x
Sun, 14 Dec 2025AU$2.9tAU$1.2tAU$109.7b21.5x26.9x2.5x
Tue, 11 Nov 2025AU$3.0tAU$1.2tAU$110.2b21x27.1x2.5x
Thu, 09 Oct 2025AU$3.0tAU$1.2tAU$110.5b21.1x27.4x2.5x
Sat, 06 Sep 2025AU$3.0tAU$1.2tAU$111.4b20.5x26.9x2.5x
Mon, 04 Aug 2025AU$2.9tAU$1.2tAU$103.9b18.9x28.1x2.4x
Wed, 02 Jul 2025AU$2.9tAU$1.2tAU$102.5b18.2x27.9x2.4x
Fri, 30 May 2025AU$2.8tAU$1.2tAU$102.9b17.9x27.3x2.3x
Sun, 27 Apr 2025AU$2.7tAU$1.2tAU$104.1b17.2x25.5x2.2x
Tue, 25 Mar 2025AU$2.6tAU$1.2tAU$104.7b17.4x25.3x2.2x
Thu, 20 Feb 2025AU$2.8tAU$1.2tAU$101.5b19.9x27.8x2.4x
Sat, 18 Jan 2025AU$2.7tAU$1.2tAU$90.2b19.2x30.4x2.3x
Mon, 16 Dec 2024AU$2.7tAU$1.2tAU$89.2b20.3x30.7x2.3x
Wed, 13 Nov 2024AU$2.7tAU$1.2tAU$88.3b19.6x30.9x2.3x
Fri, 11 Oct 2024AU$2.7tAU$1.2tAU$87.7b19.7x31x2.4x
Sun, 08 Sep 2024AU$2.6tAU$1.2tAU$87.8b19.1x30x2.3x
Tue, 06 Aug 2024AU$2.5tAU$1.2tAU$92.6b18.4x27.2x2.2x
Thu, 04 Jul 2024AU$2.6tAU$1.2tAU$91.8b18.9x28.1x2.2x
Sat, 01 Jun 2024AU$2.6tAU$1.2tAU$92.2b18.9x27.9x2.2x
Mon, 29 Apr 2024AU$2.5tAU$1.2tAU$91.1b19.4x27.7x2.2x
Wed, 27 Mar 2024AU$2.6tAU$1.2tAU$95.8b19.2x27.1x2.2x
Fri, 23 Feb 2024AU$2.5tAU$1.2tAU$105.2b18.8x24.2x2.2x
Sun, 21 Jan 2024AU$2.5tAU$1.2tAU$115.4b18.6x21.6x2.1x
Tue, 19 Dec 2023AU$2.5tAU$1.2tAU$115.4b18.5x21.5x2.1x
Thu, 16 Nov 2023AU$2.4tAU$1.2tAU$116.8b18x20.4x2x
Sat, 14 Oct 2023AU$2.4tAU$1.2tAU$120.3b17.6x19.8x2x
Mon, 11 Sep 2023AU$2.4tAU$1.2tAU$120.9b18.1x20x2x
Wed, 09 Aug 2023AU$2.5tAU$1.2tAU$145.7b16.8x16.9x2.1x
Fri, 07 Jul 2023AU$2.4tAU$1.2tAU$145.1b16.3x16.5x2.1x
Sun, 04 Jun 2023AU$2.4tAU$1.2tAU$146.0b16.1x16.4x2.1x
Price to Earnings Ratio

16.4x


Total Market Cap: AU$2.4tTotal Earnings: AU$146.0bTotal Revenue: AU$1.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 25.8x202420252026
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 25.8x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 8.1% 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 Market2.49%
Materials6.54%
Consumer Discretionary4.26%
Industrials3.42%
Tech3.22%
Real Estate2.53%
Healthcare1.47%
Financials0.96%
Consumer Staples0.078%
Utilities-2.30%
Energy-2.41%
Telecom-4.98%
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 19.5%, which is higher than its past year's earnings growth of 10.8% per year.
  • The Real Estate sector is the least preferred by investors for future growth, which is trading below its 3-year average of 170x.
Forecasted Growth
  • Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 25% 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 5.3% 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
BHP BHP GroupAU$61.286.9%
+AU$20.1b		59.4%PE21.7xMaterials
WES WesfarmersAU$77.565.2%
+AU$4.4b		-6.3%PE28.8xConsumer Discretionary
CBA Commonwealth Bank of AustraliaAU$164.811.3%
+AU$3.6b		-5.2%PB3.6xFinancials
S32 South32AU$4.7918.6%
+AU$3.4b		56.0%PE38.8xMaterials
WBC Westpac BankingAU$36.392.5%
+AU$3.0b		15.6%PB1.8xFinancials
See more

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Latest News

ASX
AU$46.06
ASX
7D
-22.6%
1Y
-35.4%
S32
AU$4.79
South32
7D
18.6%
1Y
56.0%
EVN
AU$12.63
Evolution Mining
7D
11.1%
1Y
43.7%
IAG
AU$7.69
Insurance Australia Group
7D
-5.5%
1Y
-10.9%
Narrative Update • May 26

IAG: Revised Earnings Profile And P E Settings Will Shape Measured Upside

Analysts have adjusted their fair value estimate for Insurance Australia Group from A$8.05 to A$8.32, citing updated assumptions around discount rates, revenue trends and a slightly higher future P/E multiple as the key drivers of the latest price target revision. Analyst Commentary Recent research commentary around Insurance Australia Group has been mixed, with the latest downgrade highlighting both valuation questions and execution risks alongside some support for the refreshed fair value estimate of A$8.32.
ANZ
AU$35.57
ANZ Group Holdings
7D
2.3%
1Y
23.2%
BHP
AU$61.28
BHP Group
7D
6.9%
1Y
59.4%
CBA
AU$164.81
Commonwealth Bank of Australia
7D
1.3%
1Y
-5.2%
NAB
AU$37.75
National Australia Bank
7D
2.6%
1Y
1.1%
REA
AU$150.40
REA Group
7D
-8.6%
1Y
-39.1%
Narrative Update • May 17

REA: Higher Profitability Assumptions Will Support Future Rerating Potential

Analysts have adjusted the REA Group price target slightly lower to A$206.83 from A$212.09. This reflects updated assumptions for the discount rate, revenue growth, profit margins and future P/E multiples.
WBC
AU$36.39
Westpac Banking
7D
2.5%
1Y
15.6%
Narrative Update • May 16

WBC: Higher Risk Assumptions And Dividend Outlook Will Shape Future Upside

Analysts have reduced their Westpac Banking price target from about A$34.87 to roughly A$34.15, reflecting updated views on discount rates, revenue growth, profit margins and future P/E assumptions. Analyst Commentary Analysts are updating their views on Westpac Banking with a mixed tone, focusing on how current assumptions around discount rates, revenue trends, profit margins and future P/E multiples feed into the updated valuation.
STO
AU$7.89
Santos
7D
-2.5%
1Y
20.5%
WDS
AU$30.71
Woodside Energy Group
7D
-5.5%
1Y
38.8%
Narrative Update • May 12

WDS: Higher Required Returns Will Pressure Margins And Limit Future Upside

Analysts have raised their A$ fair value estimate for Woodside Energy Group from A$21.46 to A$24.37, citing revised assumptions for revenue trends, profit margins and future P/E expectations. Analyst Commentary While the updated A$24.37 fair value estimate reflects revised assumptions for Woodside Energy Group, some market voices remain cautious about how much upside is actually on the table at current levels.
QBE
AU$23.09
QBE Insurance Group
7D
-2.5%
1Y
-1.2%
WES
AU$77.56
Wesfarmers
7D
5.2%
1Y
-6.3%
TLS
AU$5.23
Telstra Group
7D
-4.7%
1Y
10.3%
Narrative Update • May 05

TLS: Future Returns Will Rely On Buybacks Dividends And Risk Repricing

Analysts have trimmed their Telstra Group price targets, citing slightly higher discount rate assumptions and cautious readthrough from recent software sector weakness. Fair value, long term revenue growth, margin and P/E inputs remain broadly unchanged.
SEK
AU$12.30
SEEK
7D
-9.2%
1Y
-49.0%
New Narrative • Apr 30

AI Investment Headwinds May Limit Marketplace Power Yet Still Support Long Term Upside

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