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South African (JSE) Market Analysis & Valuation
UpdatedNov 23, 2024
DataAggregated Company Financials
Companies214
- 7D2.2%
- 3M2.7%
- 1Y13.9%
- YTD11.2%
Over the last 7 days, the market has risen 2.2%, driven by gains in the Financials and Materials sectors of 2.3% and 4.6%, respectively. In the last year, the market has climbed 14%. As for the next few years, earnings are expected to grow by 20% per annum.
Market Valuation and Performance
Has the South African Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 24 Nov 2024 | R6.3t | R5.3t | R344.5b | 10.1x | 18.4x | 1.2x |
| Tue, 22 Oct 2024 | R6.4t | R5.1t | R338.4b | 10.4x | 18.9x | 1.3x |
| Thu, 19 Sep 2024 | R6.1t | R5.2t | R332.1b | 9.7x | 18.4x | 1.2x |
| Sat, 17 Aug 2024 | R6.1t | R5.2t | R411.3b | 9.6x | 14.8x | 1.2x |
| Mon, 15 Jul 2024 | R5.9t | R5.2t | R420.0b | 9.1x | 14.1x | 1.1x |
| Wed, 12 Jun 2024 | R5.4t | R5.2t | R435.6b | 8.6x | 12.5x | 1x |
| Fri, 10 May 2024 | R5.6t | R5.3t | R431.8b | 8.4x | 13x | 1x |
| Sun, 07 Apr 2024 | R5.5t | R5.3t | R432.2b | 8.7x | 12.7x | 1x |
| Tue, 05 Mar 2024 | R5.4t | R5.3t | R502.5b | 8.7x | 10.8x | 1x |
| Thu, 01 Feb 2024 | R5.6t | R5.4t | R541.2b | 9.3x | 10.4x | 1x |
| Sat, 30 Dec 2023 | R5.9t | R5.4t | R539.7b | 9.4x | 10.9x | 1.1x |
| Mon, 27 Nov 2023 | R5.7t | R5.4t | R540.6b | 9.2x | 10.5x | 1x |
| Wed, 25 Oct 2023 | R5.3t | R5.5t | R548.1b | 9.1x | 9.7x | 1x |
| Fri, 22 Sep 2023 | R5.6t | R5.5t | R550.9b | 9.2x | 10.1x | 1x |
| Sun, 20 Aug 2023 | R5.7t | R5.4t | R633.5b | 8.3x | 9x | 1.1x |
| Tue, 18 Jul 2023 | R6.0t | R5.4t | R655.6b | 8.5x | 9.1x | 1.1x |
| Thu, 15 Jun 2023 | R6.0t | R5.4t | R638.1b | 8.4x | 9.5x | 1.1x |
| Sat, 13 May 2023 | R5.9t | R5.4t | R669.9b | 8x | 8.8x | 1.1x |
| Mon, 10 Apr 2023 | R6.1t | R5.3t | R650.4b | 8.6x | 9.4x | 1.1x |
| Wed, 08 Mar 2023 | R6.2t | R5.3t | R640.5b | 8.6x | 9.6x | 1.2x |
| Fri, 03 Feb 2023 | R6.5t | R5.2t | R657.9b | 8.6x | 9.8x | 1.2x |
| Sun, 01 Jan 2023 | R6.0t | R5.2t | R656.5b | 8.3x | 9.1x | 1.1x |
| Tue, 29 Nov 2022 | R6.2t | R5.2t | R662.2b | 8.6x | 9.3x | 1.2x |
| Thu, 27 Oct 2022 | R5.8t | R5.2t | R838.2b | 8.4x | 6.9x | 1.1x |
| Sat, 24 Sep 2022 | R5.5t | R5.1t | R829.0b | 8.4x | 6.6x | 1.1x |
| Mon, 22 Aug 2022 | R6.0t | R5.3t | R778.6b | 8.9x | 7.7x | 1.1x |
| Wed, 20 Jul 2022 | R5.7t | R5.3t | R791.3b | 8.4x | 7.2x | 1.1x |
| Fri, 17 Jun 2022 | R6.3t | R5.2t | R806.8b | 8.7x | 7.8x | 1.2x |
| Sun, 15 May 2022 | R6.4t | R5.2t | R793.8b | 9.2x | 8.1x | 1.2x |
| Tue, 12 Apr 2022 | R7.1t | R5.2t | R761.4b | 9.7x | 9.4x | 1.4x |
| Thu, 10 Mar 2022 | R7.0t | R5.2t | R743.9b | 10x | 9.4x | 1.4x |
| Sat, 05 Feb 2022 | R7.1t | R5.1t | R766.9b | 10.7x | 9.3x | 1.4x |
| Mon, 03 Jan 2022 | R6.9t | R5.1t | R773.6b | 10.8x | 8.9x | 1.4x |
| Wed, 01 Dec 2021 | R6.6t | R5.1t | R770.0b | 10.5x | 8.6x | 1.3x |
Price to Earnings Ratio
8.6x
Current Market PE
- Investors are optimistic on the South African market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 18.4x which is higher than its 3-year average PE of 10.5x.
Past Earnings Growth
- The earnings for South African listed companies have declined 24% per year over the last three years.
- Meanwhile revenues have been flat.
- This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.
Sector Trends
Which sectors have driven the changes within the South African Market?
| ZA Market | 2.25% | |
| Materials | 4.58% | |
| Energy | 3.58% | |
| Financials | 2.26% | |
| Consumer Staples | 1.94% | |
| Consumer Discretionary | 1.89% | |
| Industrials | 1.43% | |
| Real Estate | 0.73% | |
| Healthcare | 0.71% | |
| Tech | 0.48% | |
| Utilities | 0% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Telecom | -0.016% | |
Sector PE
- Investors favour the Telecom sector the most for future growth, which is trading above its 3-year average PE ratio of 18.7x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 38.2% which is higher than its past year's earnings decline of 10.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 39% over the next 5 years.
- This is better than its past earnings decline of 18% per year.
- In contrast, the Energy sector is expected to see its earnings decline by 7.1% 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 | |
|---|---|---|---|---|---|---|
| GFI Gold Fields | R281.64 | 13.4% +R29.8b | 11.7% | PE20.7x | Materials | |
| CPI Capitec Bank Holdings | R3.36k | 3.4% +R13.0b | 68.1% | PB8.5x | Financials | |
| HAR Harmony Gold Mining | R179.48 | 10.3% +R10.4b | 63.1% | PE13x | Materials | |
| FSR FirstRand | R77.92 | 2.2% +R9.4b | 14.5% | PE11.4x | Financials | |
| MRP Mr Price Group | R288.92 | 13.0% +R8.6b | 81.8% | PE22.1x | Consumer Discretionary |
