CSL Limited's (ASX:CSL) Price Is Out Of Tune With Earnings
May 22
Australian (ASX) Market Analysis & Valuation
UpdatedMay 23, 2024
DataAggregated Company Financials
Companies1686
- 7D1.1%
- 3M2.8%
- 1Y9.4%
- YTD3.0%
The Materials and Financials sectors drove a 1.1% in the market over the last week. The market is up 9.4% over the last 12 months. Earnings are forecast to grow by 14% annually.
Market Valuation and Performance
Has the Australian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 23 May 2024 | AU$2.6t | AU$1.2t | AU$91.9b | 19.5x | 28.4x | 2.3x |
| Sat, 20 Apr 2024 | AU$2.5t | AU$1.2t | AU$95.9b | 19.8x | 26.6x | 2.2x |
| Mon, 18 Mar 2024 | AU$2.6t | AU$1.2t | AU$96.5b | 19.4x | 26.5x | 2.2x |
| Wed, 14 Feb 2024 | AU$2.5t | AU$1.2t | AU$118.7b | 19x | 21.4x | 2.2x |
| Fri, 12 Jan 2024 | AU$2.5t | AU$1.2t | AU$114.7b | 18.6x | 21.8x | 2.1x |
| Sun, 10 Dec 2023 | AU$2.4t | AU$1.2t | AU$116.3b | 18x | 20.7x | 2.1x |
| Tue, 07 Nov 2023 | AU$2.4t | AU$1.2t | AU$117.6b | 17.9x | 20.1x | 2x |
| Thu, 05 Oct 2023 | AU$2.4t | AU$1.2t | AU$120.0b | 17.5x | 19.8x | 2x |
| Sat, 02 Sep 2023 | AU$2.5t | AU$1.2t | AU$119.5b | 18.5x | 20.5x | 2.1x |
| Mon, 31 Jul 2023 | AU$2.5t | AU$1.2t | AU$145.4b | 16.9x | 17.1x | 2.1x |
| Wed, 28 Jun 2023 | AU$2.4t | AU$1.2t | AU$145.2b | 15.9x | 16.4x | 2x |
| Fri, 26 May 2023 | AU$2.4t | AU$1.2t | AU$146.5b | 16x | 16.4x | 2.1x |
| Sun, 23 Apr 2023 | AU$2.5t | AU$1.2t | AU$144.2b | 16.2x | 17.1x | 2.1x |
| Tue, 21 Mar 2023 | AU$2.2t | AU$1.1t | AU$133.6b | 15.9x | 16.1x | 2x |
| Thu, 16 Feb 2023 | AU$2.5t | AU$1.1t | AU$145.2b | 16.4x | 17x | 2.2x |
| Sat, 14 Jan 2023 | AU$2.5t | AU$1.1t | AU$146.9b | 15.8x | 16.8x | 2.3x |
| Mon, 12 Dec 2022 | AU$2.4t | AU$1.1t | AU$148.7b | 14.8x | 16.3x | 2.2x |
| Wed, 09 Nov 2022 | AU$2.3t | AU$1.1t | AU$150.8b | 14.7x | 15.5x | 2.1x |
| Fri, 07 Oct 2022 | AU$2.3t | AU$1.1t | AU$149.8b | 15x | 15.4x | 2.1x |
| Sun, 04 Sep 2022 | AU$2.3t | AU$1.1t | AU$146.4b | 14.9x | 15.8x | 2.1x |
| Tue, 02 Aug 2022 | AU$2.4t | AU$1.0t | AU$132.1b | 15.2x | 17.9x | 2.3x |
| Thu, 30 Jun 2022 | AU$2.3t | AU$1.0t | AU$134.0b | 15x | 17x | 2.2x |
| Sat, 28 May 2022 | AU$2.4t | AU$1.0t | AU$133.5b | 15.7x | 18.3x | 2.3x |
| Mon, 25 Apr 2022 | AU$2.6t | AU$1.0t | AU$129.7b | 17.5x | 20x | 2.5x |
| Wed, 23 Mar 2022 | AU$2.6t | AU$1.0t | AU$129.6b | 17.8x | 20.2x | 2.5x |
| Fri, 18 Feb 2022 | AU$2.6t | AU$1.0t | AU$121.1b | 18.4x | 21.3x | 2.6x |
| Sun, 16 Jan 2022 | AU$2.6t | AU$975.8b | AU$104.0b | 19.3x | 25.3x | 2.7x |
| Tue, 14 Dec 2021 | AU$2.6t | AU$976.0b | AU$102.2b | 19.1x | 25.4x | 2.7x |
| Thu, 11 Nov 2021 | AU$2.6t | AU$965.6b | AU$98.5b | 19.8x | 26.4x | 2.7x |
| Sat, 09 Oct 2021 | AU$2.5t | AU$959.3b | AU$95.2b | 19.2x | 26x | 2.6x |
| Mon, 06 Sep 2021 | AU$2.6t | AU$952.7b | AU$97.1b | 18.8x | 26.9x | 2.7x |
| Wed, 04 Aug 2021 | AU$2.6t | AU$949.7b | AU$96.9b | 18.1x | 26.6x | 2.7x |
Price to Earnings Ratio
34.6x
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 28.4x which is higher than its 3-year average PE of 20.9x.
Past Earnings Growth
- The earnings for Australian listed companies have grown 9.3% per year over the last three years.
- Revenues for these companies have grown 8.7% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Australian Market?
| AU Market | 1.11% | |
| Materials | 3.10% | |
| Financials | 2.02% | |
| Tech | 1.48% | |
| Real Estate | 1.11% | |
| Utilities | 1.00% | |
| Energy | 0.58% | |
| Industrials | 0.42% | |
| Consumer Discretionary | -0.41% | |
| Consumer Staples | -0.71% | |
| Healthcare | -2.18% | |
| Telecom | -2.83% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth, which is trading above its 3-year average PE ratio of 61.2x.
- Analysts expect its future annual earnings growth (17.2%) 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 31% 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 | |
|---|---|---|---|---|---|---|
| BHP BHP Group | AU$46.24 | 4.9% +AU$10.9b | 8.0% | PE21.1x | Materials | |
| FMG Fortescue | AU$27.30 | 4.9% +AU$3.9b | 39.1% | PE9.7x | Materials | |
| ALL Aristocrat Leisure | AU$46.44 | 14.0% +AU$3.6b | 20.7% | PE19.5x | Consumer Discretionary | |
| NAB National Australia Bank | AU$34.79 | 3.1% +AU$3.2b | 30.7% | PB1.8x | Financials | |
| ANZ ANZ Group Holdings | AU$28.62 | 3.4% +AU$2.8b | 19.4% | PB1.2x | Financials |
