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Australian (ASX) Market Analysis & Valuation

UpdatedJan 07, 2026
DataAggregated Company Financials
Companies1552
  • 7D-0.3%
  • 3M-2.9%
  • 1Y5.0%
  • YTD-0.5%

In the last week, the market has stayed flat, however the Materials sector stood out, gaining 4.3%. As for the longer term, the market has risen 5.0% in the past 12 months. Earnings are forecast to grow by 12% annually.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

Has the Australian Market valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 07 Jan 2026AU$3.0tAU$1.2tAU$109.6b21.3x27x2.5x
Fri, 05 Dec 2025AU$2.9tAU$1.2tAU$109.9b21.5x26.6x2.4x
Sun, 02 Nov 2025AU$3.0tAU$1.2tAU$110.6b21.7x27.2x2.5x
Tue, 30 Sep 2025AU$3.0tAU$1.2tAU$110.8b20.9x27x2.5x
Thu, 28 Aug 2025AU$3.0tAU$1.2tAU$106.1b19x28.5x2.5x
Sat, 26 Jul 2025AU$2.9tAU$1.2tAU$102.2b18.7x28.5x2.4x
Mon, 23 Jun 2025AU$2.8tAU$1.2tAU$103.0b17.9x27.6x2.3x
Wed, 21 May 2025AU$2.8tAU$1.2tAU$103.0b17.9x27.1x2.3x
Fri, 18 Apr 2025AU$2.6tAU$1.2tAU$104.4b17.1x24.9x2.1x
Sun, 16 Mar 2025AU$2.6tAU$1.2tAU$104.9b17.5x24.7x2.1x
Tue, 11 Feb 2025AU$2.8tAU$1.2tAU$91.9b19.8x30.6x2.4x
Thu, 09 Jan 2025AU$2.8tAU$1.2tAU$90.2b19.8x30.6x2.3x
Sat, 07 Dec 2024AU$2.8tAU$1.2tAU$88.9b20.3x31.3x2.4x
Mon, 04 Nov 2024AU$2.7tAU$1.2tAU$88.7b19.5x30.2x2.3x
Wed, 02 Oct 2024AU$2.7tAU$1.2tAU$87.0b19.8x31.3x2.4x
Fri, 30 Aug 2024AU$2.7tAU$1.2tAU$87.4b19.7x30.4x2.3x
Sun, 28 Jul 2024AU$2.6tAU$1.2tAU$92.1b19.2x28.5x2.3x
Tue, 25 Jun 2024AU$2.6tAU$1.2tAU$92.1b18.9x28x2.2x
Thu, 23 May 2024AU$2.6tAU$1.2tAU$91.9b19.5x28.4x2.3x
Sat, 20 Apr 2024AU$2.5tAU$1.2tAU$95.9b19.8x26.6x2.2x
Mon, 18 Mar 2024AU$2.6tAU$1.2tAU$96.5b19.4x26.5x2.2x
Wed, 14 Feb 2024AU$2.5tAU$1.2tAU$118.7b19x21.4x2.2x
Fri, 12 Jan 2024AU$2.5tAU$1.2tAU$114.7b18.6x21.8x2.1x
Sun, 10 Dec 2023AU$2.4tAU$1.2tAU$116.3b18x20.7x2.1x
Tue, 07 Nov 2023AU$2.4tAU$1.2tAU$117.6b17.9x20.1x2x
Thu, 05 Oct 2023AU$2.4tAU$1.2tAU$120.0b17.5x19.8x2x
Sat, 02 Sep 2023AU$2.5tAU$1.2tAU$119.5b18.5x20.5x2.1x
Mon, 31 Jul 2023AU$2.5tAU$1.2tAU$145.4b16.9x17.1x2.1x
Wed, 28 Jun 2023AU$2.4tAU$1.2tAU$145.2b15.9x16.4x2x
Fri, 26 May 2023AU$2.4tAU$1.2tAU$146.5b16x16.4x2.1x
Sun, 23 Apr 2023AU$2.5tAU$1.2tAU$144.2b16.2x17.1x2.1x
Tue, 21 Mar 2023AU$2.2tAU$1.1tAU$133.6b15.9x16.1x2x
Thu, 16 Feb 2023AU$2.5tAU$1.1tAU$145.2b16.4x17x2.2x
Sat, 14 Jan 2023AU$2.5tAU$1.1tAU$146.9b15.8x16.8x2.3x
Price to Earnings Ratio

16.8x


Total Market Cap: AU$2.5tTotal Earnings: AU$146.9bTotal Revenue: AU$1.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 24.5x202420252026
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 24.5x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 9.3% 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 Market-0.30%
Materials4.34%
Energy1.64%
Industrials-0.35%
Telecom-1.42%
Financials-1.80%
Real Estate-1.95%
Healthcare-2.20%
Consumer Staples-2.24%
Utilities-2.33%
Consumer Discretionary-2.51%
Tech-2.68%
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 22.2%, 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 5.6% 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$47.224.7%
+AU$10.8b		22.0%PE17.9xMaterials
FMG FortescueAU$22.843.6%
+AU$2.4b		32.4%PE14xMaterials
BSL BlueScope SteelAU$29.5422.5%
+AU$2.4b		54.4%PE174.4xMaterials
PLS PLS GroupAU$4.8415.8%
+AU$2.1b		113.2%PS20.3xMaterials
S32 South32AU$3.787.4%
+AU$1.2b		11.2%PE35.8xMaterials
See more

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BSL
AU$29.54
BlueScope Steel
7D
22.5%
1Y
54.4%
SGH
AU$48.60
SGH
7D
3.8%
1Y
2.7%
ALL
AU$55.13
Aristocrat Leisure
7D
-4.5%
1Y
-22.9%

ALL: Calmer Operating Backdrop And Rising Dividend Will Support Stronger Returns

Analysts have modestly raised their price target on Aristocrat Leisure to $72.81, citing an updated risk outlook and relatively calm operating conditions that, similar to recent insurance sector commentary, have not materially disrupted earnings expectations. Analyst Commentary Recent commentary from bullish analysts indicates that the modest price target uplift for Aristocrat Leisure is supported by a more stable macro backdrop, particularly when compared with sectors that are highly sensitive to catastrophic events and sudden claims volatility.
NST
AU$25.15
Northern Star Resources
7D
-4.3%
1Y
59.3%
FMG
AU$22.84
Fortescue
7D
3.6%
1Y
32.4%

There's No Escaping Fortescue Ltd's (ASX:FMG) Muted Earnings

Dec 27
There's No Escaping Fortescue Ltd's (ASX:FMG) Muted Earnings
WES
AU$79.78
Wesfarmers
7D
-2.3%
1Y
11.1%

WES: Special Dividend And Earnings Resilience Will Guide Returns Ahead

Analysts have modestly lifted their price target on Wesfarmers, citing slightly lower discount rate assumptions and stable long term growth and profitability forecasts that support a fair value estimate of about $80.82 per share. Analyst Commentary Bullish analysts view the uplift in Wesfarmers' valuation as supported by a more constructive risk backdrop, with a slightly lower discount rate reflecting reduced perceived macro and company specific risk.
CBA
AU$155.85
Commonwealth Bank of Australia
7D
-3.4%
1Y
-0.8%

CBA: Elevated Margin Pressures Will Likely Cap Future Share Price Upside

Analysts have nudged their fair value estimate for Commonwealth Bank of Australia fractionally lower, trimming the price target by about A$0.19 to roughly A$99.81, as slightly softer long term margins and a marginally lower discount rate offset improved top line growth expectations. Analyst Commentary Bearish analysts acknowledge that Commonwealth Bank of Australia continues to execute solidly on revenue growth, but argue that the recent fair value trim underscores mounting risks to the medium term outlook.
MQG
AU$206.07
Macquarie Group
7D
1.1%
1Y
-9.1%

MQG: Earnings Recovery Will Gradually Emerge As Extended Trough Persists

Analysts have slightly reduced their price target for Macquarie Group to A$207.58, reflecting expectations for a broader and more prolonged earnings trough than a typical cycle, and a slower profit recovery despite only marginal shifts in underlying growth and margin assumptions. Analyst Commentary Analyst views on Macquarie Group remain divided, with valuation framed around the depth and duration of the current earnings trough and the pace of any subsequent recovery.
NAB
AU$41.53
National Australia Bank
7D
-1.9%
1Y
9.8%
LTR
AU$1.94
Liontown
7D
21.6%
1Y
240.4%

LTR: Higher Earnings Multiple Will Likely Prove Unsustainable Amid Moderating Outlook

Liontown's analyst price target has been lifted from A0.35 to A0.50 per share, as analysts factor in improved long term profit margins and a higher justified earnings multiple, despite moderating revenue growth expectations and a slightly higher discount rate. Valuation Changes Fair Value: raised from A$0.35 to A$0.50 per share, representing a substantial upward revision.
WBC
AU$38.19
Westpac Banking
7D
-2.2%
1Y
16.2%
PLS
AU$4.84
PLS Group
7D
15.8%
1Y
113.2%
BHP
AU$47.22
BHP Group
7D
4.7%
1Y
22.0%
CSL
AU$168.29
CSL
7D
-2.4%
1Y
-41.1%

CSL: Shares Will Recover As Seqirus Drag Fades After AGM Downgrade

Analysts have nudged down their price target on CSL by A$5 to reflect slightly softer long term revenue growth assumptions and a modestly higher discount rate, even as they highlight resilient margins and view the recent selloff as an opportunity to re engage with the shares. Analyst Commentary Recent commentary around CSL reflects a more constructive stance on the stock despite near term earnings noise, with valuation support emerging after the sharp pullback.
S32
AU$3.78
South32
7D
7.4%
1Y
11.2%

S32: Cannington Sale Prospects Will Shape Outlook Amid Steady Earnings Expectations

Narrative Update on South32 The analyst price target for South32 has been raised from $3.38 to $3.48 as analysts factor in slightly stronger long term revenue growth and higher future valuation multiples. This is partially offset by modestly lower profit margin expectations and a marginally higher discount rate.
SIG
AU$2.83
Sigma Healthcare
7D
-4.7%
1Y
n/a