French (CAC) Real Estate Industry Analysis

Industry Valuation and Performance

Has the French Real Estate Industry valuation changed over the past few years?

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. However, future earnings are expected to decline by 8.3% which could potentially cause the PE ratio to fall below its historical average.

Past Earnings Growth: The earnings for companies in the Real Estate industry have declined 3.1% per year over the last three years, while revenues for these companies have grown 9.1% 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.

Industry Trends

Which industries have driven the changes within the French Real Estate industry?

Industry PE: Investors are most optimistic about the Real Estate Operating Companies industry, which is trading close to its 3-year average PE ratio of 17.3x. It looks like they are confident that earnings will grow faster in the future than they have historically. Meanwhile, investors are most pessimistic about the Diversified Real Estate industry, which is trading below its 3-year average of 8.8x.

Forecasted Growth: Despite it being negative, analysts are least pessimistic on the Diversified Real Estate industry since they expect its earnings to decline by only 1.5% per year over the next 5 years, which isn't as bad as the other industries. However, this is a reversal from its past annual earnings growth rate of 350% per year. Meanwhile, the Real Estate Development industry is expected to see its earnings decline by 8.5% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?