Narrative Update • May 16
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German (DAX) Market Analysis & Valuation
UpdatedMay 20, 2026
DataAggregated Company Financials
Companies771
- 7D1.5%
- 3M-4.1%
- 1Y-1.3%
- YTD-1.2%
In the last week, the market has stayed flat, however the Information Technology sector stood out, gaining 3.2%. As for the longer term, the market has also been flat over the past year. As for the next few years, earnings are expected to grow by 17% per annum.
Market Valuation and Performance
Has the German Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 20 May 2026 | €2.6t | €2.6t | €126.8b | 16.7x | 20.4x | 1x |
| Fri, 17 Apr 2026 | €2.6t | €2.6t | €125.8b | 18.2x | 20.7x | 1x |
| Sun, 15 Mar 2026 | €2.5t | €2.6t | €100.0b | 17.9x | 25.3x | 1x |
| Tue, 10 Feb 2026 | €2.7t | €2.7t | €106.2b | 17.4x | 25.2x | 1x |
| Thu, 08 Jan 2026 | €2.7t | €2.7t | €103.6b | 18.2x | 25.9x | 1x |
| Sat, 06 Dec 2025 | €2.6t | €2.7t | €101.9b | 18.1x | 25.3x | 1x |
| Mon, 03 Nov 2025 | €2.5t | €2.7t | €97.7b | 18x | 26.1x | 0.9x |
| Wed, 01 Oct 2025 | €2.5t | €2.7t | €101.7b | 18.7x | 25x | 0.9x |
| Fri, 29 Aug 2025 | €2.6t | €2.7t | €101.1b | 18.9x | 25.8x | 1x |
| Sun, 27 Jul 2025 | €2.6t | €2.7t | €106.2b | 18.9x | 24.5x | 1x |
| Tue, 24 Jun 2025 | €2.5t | €2.7t | €103.6b | 18.6x | 24.1x | 0.9x |
| Thu, 22 May 2025 | €2.6t | €2.7t | €103.5b | 19x | 25.3x | 1x |
| Sat, 19 Apr 2025 | €2.4t | €2.7t | €107.8b | 17.6x | 22x | 0.9x |
| Mon, 17 Mar 2025 | €2.5t | €2.7t | €123.5b | 17.2x | 20.6x | 0.9x |
| Wed, 12 Feb 2025 | €2.5t | €2.7t | €113.3b | 16.7x | 21.8x | 0.9x |
| Fri, 10 Jan 2025 | €2.3t | €2.7t | €114.5b | 16.2x | 20.1x | 0.8x |
| Sun, 08 Dec 2024 | €2.3t | €2.7t | €114.2b | 15.8x | 20.4x | 0.9x |
| Tue, 05 Nov 2024 | €2.2t | €2.7t | €115.9b | 15.5x | 19.3x | 0.8x |
| Thu, 03 Oct 2024 | €2.3t | €2.7t | €119.8b | 16.4x | 19x | 0.8x |
| Sat, 31 Aug 2024 | €2.2t | €2.7t | €119.6b | 17x | 18.7x | 0.8x |
| Mon, 29 Jul 2024 | €2.2t | €2.7t | €109.6b | 17.7x | 20x | 0.8x |
| Wed, 26 Jun 2024 | €2.2t | €2.7t | €110.7b | 17.1x | 19.7x | 0.8x |
| Fri, 24 May 2024 | €2.3t | €2.7t | €110.9b | 17.5x | 20.3x | 0.8x |
| Sun, 21 Apr 2024 | €2.2t | €2.8t | €119.5b | 17.2x | 18.5x | 0.8x |
| Tue, 19 Mar 2024 | €2.2t | €2.8t | €122.2b | 16.3x | 18.3x | 0.8x |
| Thu, 15 Feb 2024 | €2.1t | €2.9t | €152.2b | 16.2x | 14.1x | 0.8x |
| Sat, 13 Jan 2024 | €2.1t | €2.9t | €146.5b | 16.7x | 14.6x | 0.7x |
| Mon, 11 Dec 2023 | €2.2t | €2.9t | €147.6b | 16.1x | 14.6x | 0.8x |
| Wed, 08 Nov 2023 | €2.0t | €2.9t | €161.2b | 15.6x | 12.5x | 0.7x |
| Fri, 06 Oct 2023 | €2.0t | €3.0t | €131.3b | 15.7x | 15.5x | 0.7x |
| Sun, 03 Sep 2023 | €2.1t | €3.0t | €130.4b | 16.1x | 16.4x | 0.7x |
| Tue, 01 Aug 2023 | €2.2t | €3.0t | €136.8b | 17x | 16.3x | 0.7x |
| Thu, 29 Jun 2023 | €2.1t | €3.0t | €140.4b | 17.2x | 15.3x | 0.7x |
| Sat, 27 May 2023 | €2.2t | €3.0t | €140.1b | 16.8x | 15.5x | 0.7x |
Price to Earnings Ratio
15.5x
Current Market PE
- Investors are relatively neutral on the German 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 20.2x.
Past Earnings Growth
- The earnings for companies in the German industry have declined 3.2% per year over the last three years.
- Revenues have also declined 4.4% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Sector Trends
Which sectors have driven the changes within the German Market?
| DE Market | 1.49% | |
| Tech | 9.07% | |
| Telecom | 4.22% | |
| Financials | 2.77% | |
| Consumer Staples | 2.32% | |
| Healthcare | 1.67% | |
| Energy | 1.33% | |
| Utilities | 0.59% | |
| Consumer Discretionary | -0.43% | |
| Industrials | -1.10% | |
| Real Estate | -1.16% | |
| Materials | -2.49% | |
Sector PE
- Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 58.6x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 32.1%, which is higher than its past year's earnings growth of 5.3% per year.
- The Real Estate 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.
Forecasted Growth
- Analysts are most optimistic on the Energy sector, expecting annual earnings growth of 44% over the next 5 years.
- However this is lower than its past earnings growth rate of 70% per year.
- In contrast, the Utilities sector is expected to see its earnings decline by 2.1% 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 | |
|---|---|---|---|---|---|---|
| SAP SAP | €156.72 | 10.1% +€16.7b | -40.9% | PE25x | Tech | |
| DTE Deutsche Telekom | €29.38 | 6.4% +€8.5b | -12.8% | PE16.1x | Telecom | |
| IFX Infineon Technologies | €64.64 | 11.2% +€8.4b | 90.7% | PE78.2x | Tech | |
| ALV Allianz | €382.60 | 3.9% +€5.4b | 10.0% | PE12.2x | Financials | |
| OHB OHB | €549.00 | 56.4% +€3.8b | 719.4% | PE187.4x | Industrials |