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Has the French Financials Sector valuation changed over the past few years?
|Wed, 01 Dec 2021||€273.7b||€297.9b||€29.8b||8x|
|Fri, 29 Oct 2021||€290.4b||€301.5b||€28.2b||9.1x|
|Sun, 26 Sep 2021||€266.7b||€300.7b||€27.7b||8x|
|Tue, 24 Aug 2021||€263.7b||€299.2b||€26.6b||9.4x|
|Wed, 30 Jun 2021||€251.9b||€299.2b||€26.6b||9.1x|
|Sat, 03 Apr 2021||€246.8b||€278.2b||€19.2b||12x|
|Tue, 05 Jan 2021||€212.0b||€268.3b||€15.2b||14.2x|
|Fri, 09 Oct 2020||€167.1b||€274.9b||€16.5b||12.2x|
|Thu, 02 Jul 2020||€187.4b||€269.5b||€16.2b||13.8x|
|Sun, 05 Apr 2020||€159.7b||€297.3b||€20.6b||11.6x|
|Wed, 08 Jan 2020||€266.9b||€314.0b||€23.8b||11.3x|
|Tue, 01 Oct 2019||€241.6b||€293.9b||€20.8b||11.1x|
|Fri, 05 Jul 2019||€230.6b||€295.9b||€21.5b||10x|
|Mon, 08 Apr 2019||€230.5b||€283.1b||€22.0b||10.2x|
|Thu, 10 Jan 2019||€210.7b||€273.2b||€22.0b||9.8x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 11.3x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Financials industry have grown 9.5% per year over the last three years, while revenues have remained mostly flat. This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Which industries have driven the changes within the French Financials sector?
Industry PE: Investors are most optimistic about the Diversified Financial industry even though it's trading below its 3-year average PE ratio of 24.0x. However analysts are expecting annual earnings decline of 14%, which is lower than the prior year's growth of 12% per year. So the market might believe that analysts are underestimating future growth or they expect the Diversified Financial industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 9.8x.
Forecasted Growth: Analysts are most optimistic on the Insurance industry, expecting annual earnings growth of 6.1% over the next 5 years. Meanwhile, the Diversified Financial industry is expected to see its earnings decline by 14% per year over the next few years.
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