Australia vs Global Equities: Valuation and Earnings Growth

This Jefferies report analyzes Australian equity strategy as of May 2026, comparing ASX 200 performance, valuation, and earnings revisions against major global indices.

Key Takeaways

• 1.The ASX 200 is significantly underperforming global peers YTD, returning -1.0% compared to the Nikkei 225 (+21.5%) and Nasdaq (+17.2%).
• 2.Earnings revisions in the Energy sector have been exceptionally strong, showing a 90.3% upgrade over the last 3 months, whereas Health Care faces significant downgrades of -12.6%.
• 3.ASX 200 Resources stocks are trading at a discount with a PE of 14.4x FY1 despite a robust EPS growth forecast of 37.0% for the first fiscal year.

Table of Contents

• S&P/ASX 200 Price-Earnings Ratio
• Australian Market FY26 Earnings Revisions
• STRATEGY NOTE
• PE, EVM, DPS, EPS Growth & Yield By Market (Global Indices)
• PE, EVM, DPS, EPS Growth & Yield By Market (ASX Sector Indices)
• Jefferies Equity Coverage
• Analyst qualitative assessments summary
• Industry structures
• Regulation
• Capex Expectations
• AUDUSD Exposure
• Equity issuance
• Outlook
• Jefferies vs consensus
• Buybacks
• Company Valuation/Risks
• Analyst Certification
• Investment Recommendation Record
• Company Specific Disclosures
• Explanation of Jefferies Ratings
• Valuation Methodology
• Jefferies Franchise Picks
• Risks which may impede the achievement of our Price Target
• Other Companies Mentioned in This Report

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial