PRICE-EARNINGS RATIO – AUSTRALIA

Large caps shine in under-loved index

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 23 : 24-Jul-15

Analysis by Morningstar shows that the Australian sharemarket is currently trading at a price/earnings ratio of 15.5. The market’s earnings yield is 6.5 per cent, while the yield on 10-year bonds is around three per cent. Morningstar believes that the local sharemarket still offers value, and it favours large-capitalisation stocks such as National Australia Bank, BHP Billiton, Veda Group, Santos and Goodman Group.

CORPORATES
MORNINGSTAR PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, VEDA GROUP LIMITED – ASX VED, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, GOODMAN GROUP – ASX GMG, SANTOS LIMITED – ASX STO, AWE LIMITED – ASX AWE, ALUMINA LIMITED – ASX AWC, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARRIUM LIMITED – ASX ARI, STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

ASX back on track after a scorching quarter

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 25 : 7-Jul-15

Australia’s benchmark S&P/ASX 200 Index shed 5.5 per cent in June 2015, which Chris Caton of BT Financial Group attributes to the debt crisis in Greece. Meanwhile, Deutsche Bank estimates that the Australian sharemarket is trading at around fair value again, with the price-earnings ratio now at 15.25 times. The market had peaked at 16.5 times earlier in 2015.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BT FINANCIAL GROUP PTY LTD, DEUTSCHE BANK AG, WOOLWORTHS LIMITED – ASX WOW, SEEK LIMITED – ASX SEK, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Don’t make any sudden moves

roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 29 : 12-Aug-14

The Australian sharemarket’s longer-term trading average is about 14.5 times forward earnings, and the general consensus is that this represents fair value. However, the forward price-earnings ratio of blue-chip industrial stocks in the S&P/ASX 100 is currently nearly 17 times, compared with a long-term average of around 15 times. Telstra, Wesfarmers, James Hardie Industries and Amcor are among the stocks that contribute to this

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, WESFARMERS LIMITED – ASX WES, JAMES HARDIE INDUSTRIES PLC – ASX JHX, AMCOR LIMITED – ASX AMC, RAMSAY HEALTH CARE LIMITED – ASX RHC, DOW JONES INDUSTRIAL AVERAGE INDEX, JB HI-FI LIMITED – ASX JBH, REA GROUP LIMITED – ASX REA, HENDERSON GROUP PLC – ASX HGG, GRAINCORP LIMITED – ASX GNC, BORAL LIMITED – ASX BLD, UBS HOLDINGS PTY LTD