The Real Estate industry is down 1.2% over the last week with Vonovia the worst performer, down 1.2%. On the other hand TLG Immobilien is actually up 5.3%. The industry has fallen 43% in the last year. As for the next few years, earnings are forecast to decline by 8.6% per annum.
Sector Valuation and Performance
Has the German Real Estate Sector valuation changed over the past few years?
Investors are relatively neutral on the German Real Estate industry at the moment, indicating that they anticipate long term growth rates to remain steady.
The industry is trading close to its 3-year average PE ratio of 10.0x.
The 3-year average PS ratio of 5.5x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
The earnings for companies in the Real Estate industry have declined 14% per year over the last three years.
Meanwhile revenues for these companies have grown 19% 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.
Which industries have driven the changes within the German Real Estate sector?
Investors are most optimistic about the Real Estate industry, which is trading close to its 3-year average PE ratio of 10.0x.
Analysts are expecting annual earnings decline of 9.0%, which is worse than the prior year's decline of 0.08%.
Investors are most pessimistic about the REITS industry, which is trading below its 3-year average of 11.1x.
Despite it being negative, analysts are least pessimistic on the REITS industry since they expect its earnings to decline by only 1.3% per year over the next 5 years, which isn't as bad as the other industries.
This is a reversal from its past annual earnings growth rate of 0.8% per year.
In contrast, the Real Estate industry is expected to see its earnings decline by 9.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?