Has the South African Market valuation changed over the past few years?

Investors are pessimistic on the market, indicating that they anticipate earnings will not grow as fast as they have historically. The market is trading at a PE ratio of 7.3x which is lower than its 3-year average PE of 21.5x.

Which sectors have driven the changes within the South African Market?

Investors are most optimistic about the Healthcare sector, which is trading close to its 3-year average PE ratio of 15.0x. Analysts are expecting annual earnings growth of 23%, which is lower than the prior year's growth of 100% per year. This could indicate that the market believes that analysts are underestimating future growth. Investors are most pessimistic about the Energy sector, which is trading close to its 3-year average of 4.4x.

South African (JSE) Market Analysis & Valuation

Date	Market Cap	Revenue	Earnings	PE
Tue, 28 Jun 2022	R6.4t	R5.2t	R872.9b	8.7x
Thu, 26 May 2022	R6.2t	R5.2t	R790.8b	9x
Sat, 23 Apr 2022	R6.7t	R5.2t	R782.5b	9.7x
Mon, 21 Mar 2022	R7.3t	R5.2t	R768.1b	10.3x
Wed, 16 Feb 2022	R7.2t	R5.1t	R762.3b	11x
Fri, 14 Jan 2022	R7.2t	R5.1t	R764.9b	10.6x
Sun, 12 Dec 2021	R6.7t	R5.1t	R773.2b	10x
Tue, 09 Nov 2021	R6.7t	R5.0t	R586.5b	11.1x
Thu, 07 Oct 2021	R6.5t	R5.0t	R581.6b	11.3x
Sat, 04 Sep 2021	R6.5t	R4.9t	R513.3b	11.8x
Mon, 02 Aug 2021	R6.6t	R4.9t	R513.3b	11.5x
Thu, 06 May 2021	R6.6t	R4.6t	R373.1b	12.3x
Sun, 07 Feb 2021	R6.2t	R4.4t	R192.2b	12x
Sat, 31 Oct 2020	R5.2t	R4.3t	R127.2b	11.8x
Tue, 04 Aug 2020	R5.6t	R4.3t	R111.5b	12.6x
Fri, 08 May 2020	R5.0t	R4.4t	R219.4b	11x
Mon, 10 Feb 2020	R5.9t	R4.4t	R319.3b	11.4x
Sun, 03 Nov 2019	R6.0t	R4.3t	R343.2b	11.7x
Wed, 07 Aug 2019	R6.6t	R4.2t	R354.6b	12.3x


ZA Market	3.04%
Consumer Discretionary	18.98%
Energy	3.72%
Healthcare	3.24%
Utilities	0%
Financials	-0.11%
Telecom	-0.24%
Real Estate	-0.24%
Consumer Staples	-0.53%
Industrials	-0.64%
Materials	-0.80%
Tech	-1.95%

Company	Last Price	7D	1Y	Valuation	Sector
APN Aspen Pharmacare Holdings	R146.62	7.8% +R4.5b	-8.2%	PS11.1x	Healthcare
KIO Kumba Iron Ore	R535.46	2.4% +R4.0b	-16.3%	PS5.2x	Materials
INL Investec Group	R90.50	4.0% +R3.1b	63.6%	PS8.9x	Financials
SLM Sanlam	R55.56	1.8% +R2.0b	-10.2%	PS12x	Financials
OMU Old Mutual	R11.77	2.9% +R1.6b	-12.4%	PS8.3x	Financials

Jun 02

Gold Fields Limited (JSE:GFI) entered into a definitive agreement to acquire Yamana Gold Inc. (TSX:YRI) for $7.1 billion.

Gold Fields Limited (JSE:GFI) entered into a definitive agreement to acquire Yamana Gold Inc. (TSX:YRI) for $7.1 billion on May 31, 2022. Under the terms of the transaction, all of the outstanding Yamana Shares will be exchanged at a ratio of 0.6 of an ordinary share in Gold Fields or 0.6 of a Gold Fields American depositary share for each Yamana Share. Upon closing of the transaction, it is anticipated that Gold Fields Shareholders and Yamana Shareholders will own approximately 61% and 39% of the Combined Group, respectively. Yamana will become a wholly-owned subsidiary of Gold Fields after the completion of the Plan of Arrangement. Combined Group will be headquartered in Johannesburg with operations across South Africa, Ghana, Australia, Canada and South America. Following completion of the Plan of Arrangement, the Yamana Shares will be delisted from the Toronto Stock Exchange (TSX), NYSE and London Stock Exchange (LSE), while the listings of the Gold Fields Shares will continue on the JSE, and the listing of the Gold Fields ADSs will continue as a secondary listing on the NYSE. In addition, under certain circumstances, Gold Fields would be entitled to a $300 million termination fee and Yamana would be entitled to a $450 million termination fee. The transaction will require the approval of at least 66 2/3% of the votes cast by Yamana Shareholders, transaction will also require the approval of certain resolutions pertaining to the implementation of the Transaction by Gold Fields Shareholders, including in respect of, inter alia, the issuance of the Gold Fields Consideration Shares under the transaction which requires the approval of at least 75% of the voting rights exercised on such resolution by Gold Fields Shareholders at an extraordinary general meeting. The transaction is also subject to approval by the Ontario Superior Court of Justice, applicable stock exchange approval, applicable regulatory approvals in a number of jurisdictions, including approval under the Competition Act (Canada) and Investment Canada Act (Canada) and approval of the Financial Surveillance Department of the South African Reserve Bank, approval of listing of consideration shares on exchange and other closing customary conditions. The Transaction has been unanimously approved by the Board of Directors of both Gold Fields and Yamana. The Board of Directors of Gold Fields recommends that Gold Fields’ shareholders vote in favor of the transaction. The Board of Directors of Yamana recommends that Yamana Shareholders vote in favor of the transaction. Certain senior officers and all of the directors of each of Yamana and Gold Fields have entered into voting support agreements with Gold Fields and Yamana, respectively, agreeing to vote their Yamana Shares and Gold Fields Shares, respectively, in favor of the transaction. The transaction is expected to close in the second half of 2022. Canaccord Genuity Corp. and The Bank of Nova Scotia (TSX:BNS) acted as fairness opinion providers to Yamana Gold Inc. Canaccord Genuity Corp., The Bank of Nova Scotia and Stifel Nicolaus Canada Inc acted as financial advisors and Cassels Brock & Blackwell LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisors to Yamana Gold Inc. Gold Fields has engaged Merrill Lynch South Africa (Pty) Ltd and Ben Davies, Peter Surr, Christos Tomaras and Anthony Knox of Merrill Lynch International as financial advisors and Fasken Martineau DuMoulin LLP, Linklaters LLP and Webber Wentzel as its legal advisors in connection with the transaction.

South African (JSE) Market Analysis & Valuation

Market Valuation and Performance

Sector Trends

Top Stock Gainers and Losers

Latest News

TGA

Price target increased to R269

SHP

With Shoprite Holdings Limited (JSE:SHP) It Looks Like You'll Get What You Pay For

REM

Remgro Wants Equal Partner in Possible Mediclinic Buyout

APN

Here's Why We Think Aspen Pharmacare Holdings (JSE:APN) Might Deserve Your Attention Today

IMP

An Intrinsic Calculation For Impala Platinum Holdings Limited (JSE:IMP) Suggests It's 39% Undervalued

NPN

Naspers Limited to Report Fiscal Year 2022 Results on Jun 27, 2022

GFI

Gold Fields Limited (JSE:GFI) entered into a definitive agreement to acquire Yamana Gold Inc. (TSX:YRI) for $7.1 billion.

SSW

Now 23% undervalued after recent price drop

ANG

AngloGold Ashanti Limited to Report First Half, 2022 Results on Aug 05, 2022

PIK

Pick n Pay Stores Limited, Annual General Meeting, Jul 26, 2022

SOL

\Hagens Berman Sobol Shapiro LLP Announces Proposed Class Action Settlement on Behalf of Purchasers of Sasol Limited American Depository Receipts

CPI

Upcoming dividend of R39.40 per share

KIO

Kumba Iron Ore Limited (JSE:KIO) Shares Could Be 22% Above Their Intrinsic Value Estimate

ABG

Upcoming dividend of R4.75 per share

FSR

Upcoming dividend of R1.57 per share

BID

Upcoming dividend of R3.00 per share