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Australian (ASX) Market Analysis & Valuation

UpdatedJan 17, 2026
DataAggregated Company Financials
Companies1551
  • 7D1.9%
  • 3M-0.9%
  • 1Y7.6%
  • YTD2.1%

The market is up 1.9% over the last week, with the Materials sector leading the way, up 3.6%. The market is up 7.6% over the last 12 months. 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
Sun, 18 Jan 2026AU$3.0tAU$1.2tAU$109.6b22x27.7x2.5x
Tue, 16 Dec 2025AU$2.9tAU$1.2tAU$109.7b21.4x26.7x2.4x
Thu, 13 Nov 2025AU$3.0tAU$1.2tAU$110.0b20.9x27x2.5x
Sat, 11 Oct 2025AU$3.0tAU$1.2tAU$110.7b21.2x27.4x2.5x
Mon, 08 Sep 2025AU$3.0tAU$1.2tAU$111.4b20.5x26.9x2.5x
Wed, 06 Aug 2025AU$3.0tAU$1.2tAU$103.7b18.9x28.5x2.4x
Fri, 04 Jul 2025AU$2.9tAU$1.2tAU$102.2b18.5x28.2x2.4x
Sun, 01 Jun 2025AU$2.8tAU$1.2tAU$102.9b18.1x27.4x2.3x
Tue, 29 Apr 2025AU$2.7tAU$1.2tAU$104.1b17.3x25.5x2.2x
Thu, 27 Mar 2025AU$2.6tAU$1.2tAU$104.6b17.6x25.3x2.2x
Sat, 22 Feb 2025AU$2.8tAU$1.2tAU$99.0b18.9x28x2.4x
Mon, 20 Jan 2025AU$2.7tAU$1.2tAU$90.2b19.3x30.4x2.3x
Wed, 18 Dec 2024AU$2.7tAU$1.2tAU$89.3b20.4x30.7x2.3x
Fri, 15 Nov 2024AU$2.7tAU$1.2tAU$88.3b19.4x30.7x2.3x
Sun, 13 Oct 2024AU$2.7tAU$1.2tAU$87.6b19.5x31.1x2.4x
Tue, 10 Sep 2024AU$2.6tAU$1.2tAU$88.2b19.1x29.8x2.3x
Thu, 08 Aug 2024AU$2.5tAU$1.2tAU$92.0b18.7x27.5x2.2x
Sat, 06 Jul 2024AU$2.6tAU$1.2tAU$91.2b19.1x28.5x2.3x
Mon, 03 Jun 2024AU$2.6tAU$1.2tAU$92.2b18.9x27.9x2.2x
Wed, 01 May 2024AU$2.6tAU$1.2tAU$91.4b19.5x28x2.2x
Fri, 29 Mar 2024AU$2.6tAU$1.2tAU$95.9b20.1x27.5x2.2x
Sun, 25 Feb 2024AU$2.6tAU$1.2tAU$104.4b19.3x24.5x2.2x
Tue, 23 Jan 2024AU$2.5tAU$1.2tAU$115.5b18.6x21.7x2.1x
Thu, 21 Dec 2023AU$2.5tAU$1.2tAU$114.9b18.7x21.9x2.2x
Sat, 18 Nov 2023AU$2.4tAU$1.2tAU$116.9b18x20.2x2x
Mon, 16 Oct 2023AU$2.4tAU$1.2tAU$120.0b17.8x19.8x2x
Wed, 13 Sep 2023AU$2.4tAU$1.2tAU$120.5b18.1x20.2x2x
Fri, 11 Aug 2023AU$2.5tAU$1.2tAU$144.8b16.8x17.1x2.1x
Sun, 09 Jul 2023AU$2.4tAU$1.2tAU$145.3b16.1x16.3x2x
Tue, 06 Jun 2023AU$2.4tAU$1.2tAU$146.2b16.1x16.5x2.1x
Thu, 04 May 2023AU$2.4tAU$1.2tAU$144.4b16.3x16.7x2.1x
Sat, 01 Apr 2023AU$2.4tAU$1.2tAU$144.6b16x16.7x2.1x
Mon, 27 Feb 2023AU$2.5tAU$1.1tAU$139.3b16.7x17.6x2.2x
Wed, 25 Jan 2023AU$2.5tAU$1.1tAU$146.2b16.1x17.2x2.3x
Price to Earnings Ratio

17.2x


Total Market Cap: AU$2.5tTotal Earnings: AU$146.2bTotal Revenue: AU$1.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 24.7x202420252026
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 27.7x which is higher than its 3-year average PE of 24.6x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 9.2% per year over the last three years.
  • Meanwhile revenues for these companies have grown 3.4% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Sector Trends

Which sectors have driven the changes within the Australian Market?

AU Market1.95%
Materials3.64%
Consumer Discretionary2.71%
Financials1.88%
Industrials1.81%
Energy1.76%
Real Estate1.53%
Consumer Staples1.10%
Healthcare0.31%
Telecom0.27%
Tech-1.36%
Utilities-3.12%
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 22.1%, which is higher than its past year's earnings growth of 15.6% 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 12.7x.
Forecasted Growth
  • Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings growth rate of 16% 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$48.992.7%
+AU$6.4b		22.3%PE18.4xMaterials
ANZ ANZ Group HoldingsAU$37.525.8%
+AU$6.2b		27.4%PB1.6xFinancials
NAB National Australia BankAU$42.674.0%
+AU$5.0b		12.9%PB2.1xFinancials
WBC Westpac BankingAU$39.193.4%
+AU$4.4b		21.9%PB1.8xFinancials
NST Northern Star ResourcesAU$26.838.5%
+AU$3.0b		53.8%PE28.6xMaterials
See more

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XRO
AU$103.63
Xero
7D
-3.6%
1Y
-38.2%
360
AU$29.23
Life360
7D
-9.6%
1Y
29.2%
MQG
AU$211.86
Macquarie Group
7D
2.8%
1Y
-8.3%
ZIP
AU$3.08
Zip Co
7D
-13.5%
1Y
0.7%
NST
AU$26.83
Northern Star Resources
7D
8.5%
1Y
53.8%
IAG
AU$7.62
Insurance Australia Group
7D
-5.0%
1Y
-12.0%

IAG: RACQ Integration Will Support Stronger 2026 Outlook With Fair Valuation

Analysts have slightly reduced their price target for Insurance Australia Group to A$8.68 from A$8.72, reflecting updated assumptions of softer revenue growth, a modestly stronger profit margin profile, and a marginally lower forward P/E multiple. What's in the News Raised fiscal 2026 guidance for gross written premium growth to about 10%, reflecting the planned inclusion of RACQ Insurance from 1 September 2025 (Corporate Guidance).
WES
AU$83.21
Wesfarmers
7D
2.7%
1Y
17.0%

WES: Higher Assumed P/E Will Test Execution And Margin Resilience

Analysts have increased their fair value estimate for Wesfarmers to A$60.19 from A$59.41, reflecting updated assumptions for revenue growth, profit margins and a slightly richer future P/E multiple. Analyst Commentary Analysts framing Wesfarmers around the updated A$60.19 fair value are broadly focused on how much investors are being asked to pay for a diversified earnings stream that still needs to deliver against expectations for revenue growth and margins.
ANZ
AU$37.52
ANZ Group Holdings
7D
5.8%
1Y
27.4%

ANZ: Regulatory Penalties And Governance Changes Will Shape Resilient Future Performance

Analysts have nudged their price target for ANZ Group Holdings slightly lower to about A$35.21 from A$35.24, reflecting updated views on discount rates, revenue growth, profit margins and future P/E assumptions. Analyst Commentary Analysts are using the updated A$35.21 price target to refine how they think about ANZ Group Holdings on both the upside and downside, with views anchored in discount rate assumptions, revenue trends, profit margins and future P/E expectations.
GMG
AU$31.61
Goodman Group
7D
4.7%
1Y
-16.5%

GMG: Higher Revenue Assumptions Will Support Stronger Future Operating Performance

Analysts have slightly reduced their price target for Goodman Group to A$37.13 from A$37.26, reflecting small adjustments to fair value, discount rate, revenue growth, profit margin and future P/E assumptions. Valuation Changes Fair Value: Price target updated from A$37.26 to A$37.13, representing a small downward adjustment in the modelled estimate.
NAB
AU$42.67
National Australia Bank
7D
4.0%
1Y
12.9%

NAB: Potential HSBC Australia Acquisition Will Support Future Earnings Multiple

Analysts have slightly adjusted their price target on National Australia Bank to A$46.31, reflecting updated assumptions around discount rates, revenue growth, profit margins and future P/E. Their overall valuation view remains broadly unchanged.
BHP
AU$48.99
BHP Group
7D
2.7%
1Y
22.3%

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Analysts have trimmed their price target on BHP Group to £21.00 from £22.00, reflecting slightly updated assumptions on fair value, discount rate, revenue growth, profit margin, and future P/E, while maintaining a neutral overall stance. Analyst Commentary Recent research on BHP Group has focused on fine tuning valuation assumptions rather than shifting the overall stance, with the latest move being a trim in the price target while keeping a neutral rating.
ORG
AU$10.94
Origin Energy
7D
-3.7%
1Y
-1.9%

ORG: LNG Output Guidance And Margin Assumptions Will Steady Future Expectations

Analysts have kept their fair value estimate for Origin Energy steady at A$12.15 per share, with only small tweaks in profit margin assumptions and a slightly higher future P/E ratio cited as the main drivers of the updated price target view. What's in the News Origin Energy issued production guidance for fiscal 2026, with Australia Pacific LNG output expected in the range of 635 to 680 PJ.
SUN
AU$16.90
Suncorp Group
7D
-3.2%
1Y
-26.5%

SUN: Fair Value Will Remain Attractive As Profitability Expectations Hold Steady

Analysts have trimmed their price target for Suncorp Group to A$20.34 from A$20.54, reflecting updated assumptions around revenue growth, profit margins, and future P/E that are now slightly lower in their models. Valuation Changes Fair Value: trimmed slightly from A$20.54 to A$20.34, reflecting modestly lower model outputs.
MSB
AU$2.64
Mesoblast
7D
-14.0%
1Y
-1.9%
WBC
AU$39.19
Westpac Banking
7D
3.4%
1Y
21.9%
PME
AU$202.90
Pro Medicus
7D
-3.5%
1Y
-18.4%

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