Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Australian (ASX) Market Analysis & Valuation

UpdatedOct 16, 2025
DataAggregated Company Financials
Companies1563
  • 7D0.7%
  • 3M4.8%
  • 1Y8.6%
  • YTD10.0%

In the last week, the market has stayed flat, however the Materials sector stood out, gaining 4.1%. Meanwhile, the market is actually up 8.6% over the past year. 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
Thu, 16 Oct 2025AU$3.0tAU$1.2tAU$110.6b21.3x27.6x2.5x
Sat, 13 Sep 2025AU$3.0tAU$1.2tAU$111.0b20.7x26.9x2.5x
Mon, 11 Aug 2025AU$3.0tAU$1.2tAU$104.0b19.2x28.6x2.5x
Wed, 09 Jul 2025AU$2.9tAU$1.2tAU$102.4b18.4x28.2x2.4x
Fri, 06 Jun 2025AU$2.9tAU$1.2tAU$102.5b18x27.9x2.4x
Sun, 04 May 2025AU$2.7tAU$1.2tAU$100.2b17.6x27.4x2.3x
Tue, 01 Apr 2025AU$2.6tAU$1.2tAU$105.3b17.4x24.8x2.1x
Thu, 27 Feb 2025AU$2.7tAU$1.2tAU$100.0b18.3x27.4x2.3x
Sat, 25 Jan 2025AU$2.8tAU$1.2tAU$89.5b19.3x31x2.4x
Mon, 23 Dec 2024AU$2.7tAU$1.2tAU$89.8b19.8x29.7x2.3x
Wed, 20 Nov 2024AU$2.8tAU$1.2tAU$88.3b19.7x31.3x2.4x
Fri, 18 Oct 2024AU$2.7tAU$1.2tAU$87.9b19.9x31.2x2.4x
Sun, 15 Sep 2024AU$2.7tAU$1.2tAU$88.1b19.7x30.3x2.3x
Tue, 13 Aug 2024AU$2.6tAU$1.2tAU$92.3b19.1x27.9x2.2x
Thu, 11 Jul 2024AU$2.6tAU$1.1tAU$91.0b19x28.6x2.3x
Sat, 08 Jun 2024AU$2.6tAU$1.2tAU$92.2b19.4x28.4x2.3x
Mon, 06 May 2024AU$2.5tAU$1.2tAU$93.8b19.6x27.2x2.2x
Wed, 03 Apr 2024AU$2.6tAU$1.2tAU$95.3b20.2x27.6x2.2x
Fri, 01 Mar 2024AU$2.6tAU$1.2tAU$96.5b19.5x26.7x2.2x
Sun, 28 Jan 2024AU$2.5tAU$1.2tAU$115.7b18.9x21.8x2.2x
Tue, 26 Dec 2023AU$2.5tAU$1.2tAU$114.7b18.7x22x2.2x
Thu, 23 Nov 2023AU$2.4tAU$1.2tAU$116.3b17.8x20.3x2x
Sat, 21 Oct 2023AU$2.3tAU$1.2tAU$119.9b17.6x19.4x2x
Mon, 18 Sep 2023AU$2.5tAU$1.2tAU$120.3b18.2x20.4x2.1x
Wed, 16 Aug 2023AU$2.5tAU$1.2tAU$145.0b16.8x17x2.1x
Fri, 14 Jul 2023AU$2.4tAU$1.2tAU$143.7b16.4x16.9x2.1x
Sun, 11 Jun 2023AU$2.4tAU$1.2tAU$144.8b16x16.5x2.1x
Tue, 09 May 2023AU$2.4tAU$1.2tAU$143.8b16.3x16.9x2.1x
Thu, 06 Apr 2023AU$2.4tAU$1.2tAU$144.0b15.9x16.9x2.1x
Sat, 04 Mar 2023AU$2.4tAU$1.2tAU$144.1b16.5x17x2.1x
Mon, 30 Jan 2023AU$2.5tAU$1.1tAU$145.5b16.3x17.3x2.3x
Wed, 28 Dec 2022AU$2.4tAU$1.1tAU$149.0b14.8x16x2.2x
Fri, 25 Nov 2022AU$2.4tAU$1.1tAU$149.5b14.9x16.3x2.2x
Sun, 23 Oct 2022AU$2.3tAU$1.1tAU$151.1b14.5x15x2.1x
Price to Earnings Ratio

15x


Total Market Cap: AU$2.3tTotal Earnings: AU$151.1bTotal Revenue: AU$1.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Market Price to Earnings3Y Average 23.7x202320242025
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 27.6x which is higher than its 3-year average PE of 23.7x.
Past Earnings Growth
  • The earnings for Australian listed companies have declined 9.9% per year over the last three years.
  • Meanwhile revenues for these companies have grown 3.0% 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 Market0.70%
Materials4.13%
Healthcare1.85%
Utilities-0.018%
Telecom-0.041%
Industrials-0.28%
Energy-0.30%
Consumer Staples-0.33%
Tech-0.37%
Financials-0.42%
Consumer Discretionary-0.43%
Real Estate-0.59%
Sector PE
  • Investors favour the Tech sector the most for future growth which is trading above its 3-year average PE ratio.
    • Analysts expect its future annual earnings growth (23.4%) 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.
  • 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 12.3x.
Forecasted Growth
  • Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 23% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Financials sector is expected to see its earnings grow by 4.8% 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
CSL CSLAU$220.296.4%
+AU$6.4b		-27.0%PE23.1xHealthcare
ANZ ANZ Group HoldingsAU$36.795.7%
+AU$5.9b		15.6%PB1.5xFinancials
BHP BHP GroupAU$43.771.5%
+AU$3.4b		1.8%PE16xMaterials
MQG Macquarie GroupAU$229.002.8%
+AU$2.3b		-3.0%PE23.3xFinancials
GMG Goodman GroupAU$34.503.3%
+AU$2.2b		-7.8%PB3xReal Estate
See more

Market Insights

Header cover image
📈 Markets Break Records: Q3 2025 in Review, Q4 Outlook Ahead
Richard Bowman avatar
Richard Bowman
|
|
Q4 2025 is off to a flying start with record highs being printed left, right, and center. US and Japanese stocks made fresh new highs, while the gold price powered through $4,000 for the first time, and Bitcoin crossed the $126k level. Is this all a case of USD weakness, irrational exuberance, or solid fundamentals? This week, we are reviewing Q3 market performance, Q2 earnings season, and the outlook heading into the end of 2025…
Continue reading
✨Rare Earths: Tiny Market, Outsized Influence
Last Week

✨Rare Earths: Tiny Market, Outsized Influence

Latest News

BHP
AU$43.77
BHP Group
7D
1.5%
1Y
1.8%

It's Unlikely That BHP Group Limited's (ASX:BHP) CEO Will See A Huge Pay Rise This Year

Oct 16
It's Unlikely That BHP Group Limited's (ASX:BHP) CEO Will See A Huge Pay Rise This Year
MQG
AU$229.00
Macquarie Group
7D
2.8%
1Y
-3.0%

Asset Management And Digitization Investments Will Improve Future Efficiency

Macquarie Group's analyst price target has been revised downward from A$221.24 to A$218.54. Analysts point to a broader earnings recovery lag and persistent macroeconomic pressures in their updated outlook.
ANZ
AU$36.79
ANZ Group Holdings
7D
5.7%
1Y
15.6%

Suncorp Acquisition And AI Initiatives Will Improve Future Efficiency And Customer Engagement

Analysts have raised their price target for ANZ Group Holdings from $31.23 to $31.71. They cited small improvements in profit margin and a slightly lower discount rate as factors supporting the increased valuation.
WES
AU$89.60
Wesfarmers
7D
1.5%
1Y
25.9%

Wesfarmers (ASX:WES) Has A Pretty Healthy Balance Sheet

Oct 09
Wesfarmers (ASX:WES) Has A Pretty Healthy Balance Sheet
PME
AU$292.64
Pro Medicus
7D
-1.8%
1Y
53.4%

Does Pro Medicus (ASX:PME) Deserve A Spot On Your Watchlist?

Oct 08
Does Pro Medicus (ASX:PME) Deserve A Spot On Your Watchlist?
EOS
AU$5.95
Electro Optic Systems Holdings
7D
-32.3%
1Y
288.9%
CBA
AU$168.10
Commonwealth Bank of Australia
7D
0.5%
1Y
18.4%

We Think Some Shareholders May Hesitate To Increase Commonwealth Bank of Australia's (ASX:CBA) CEO Compensation

Oct 08
We Think Some Shareholders May Hesitate To Increase Commonwealth Bank of Australia's (ASX:CBA) CEO Compensation
WTC
AU$83.70
WiseTech Global
7D
-2.1%
1Y
-34.1%

Unified Model And E2open Integration Will Expand Global Supply Chain

WiseTech Global’s analyst price target has been lowered from A$130 to A$120. This reflects a cautious outlook as analysts point to uncertainty around product adoption and a shift to a transaction-only revenue model.
ALL
AU$65.61
Aristocrat Leisure
7D
-3.6%
1Y
10.7%

Integration With NeoGames And New Gaming Content Will Expand Market Reach In iLottery And iGaming

Analysts have raised their price target for Aristocrat Leisure from $71.52 to $73.12, citing improved profit margins and a slightly lower discount rate. These factors offset more conservative revenue growth projections.
REA
AU$217.30
REA Group
7D
-2.3%
1Y
-2.2%
TCL
AU$14.58
Transurban Group
7D
3.7%
1Y
8.0%

Transurban Group's (ASX:TCL) Shares May Have Run Too Fast Too Soon

Oct 04
Transurban Group's (ASX:TCL) Shares May Have Run Too Fast Too Soon
360
AU$49.49
Life360
7D
-7.7%
1Y
124.8%

What Life360, Inc.'s (ASX:360) 26% Share Price Gain Is Not Telling You

Oct 03
What Life360, Inc.'s (ASX:360) 26% Share Price Gain Is Not Telling You
CSL
AU$220.29
CSL
7D
6.4%
1Y
-27.0%

Operational Improvements Will Unlock Biotech Potential And China Market Expansion

The analyst consensus price target for CSL has been revised downward by 1.5% to $280.38. Analysts cite near-term uncertainties in end-market demand and distribution dynamics as key factors in the updated valuation.
STO
AU$6.38
Santos
7D
-3.5%
1Y
-8.3%

Barossa LNG And CCS Initiatives Will Drive Future Energy Transition

Analysts have revised Santos' fair value estimate downward from A$8.37 to A$8.10. This change reflects updated expectations for stronger revenue growth and profit margins, along with sector valuation considerations after the XRG takeover proposal was withdrawn.
DRO
AU$4.99
DroneShield
7D
-24.4%
1Y
391.6%

DroneShield Limited (ASX:DRO) Stocks Shoot Up 33% But Its P/S Still Looks Reasonable

Sep 29
DroneShield Limited (ASX:DRO) Stocks Shoot Up 33% But Its P/S Still Looks Reasonable
GMG
AU$34.50
Goodman Group
7D
3.3%
1Y
-7.8%