Some Confidence Is Lacking In Domain Holdings Australia Limited's (ASX:DHG) P/E
May 03
Australian (ASX) Telecom Sector Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies48
- 7D0.5%
- 3M-5.2%
- 1Y1.2%
- YTD-4.3%
Over the last 7 days, the Telecom industry has remained flat, although notably REA Group gained 4.7%. In line with that, the industry has also been flat over the past 12 months. Looking forward, earnings are forecast to grow by 16% annually.
Sector Valuation and Performance
Has the Australian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 08 May 2024 | AU$110.5b | AU$43.6b | AU$2.8b | 31x | 38.9x | 2.5x |
| Fri, 05 Apr 2024 | AU$112.8b | AU$43.6b | AU$2.9b | 30x | 39x | 2.6x |
| Sun, 03 Mar 2024 | AU$115.0b | AU$43.6b | AU$2.9b | 34.8x | 39.8x | 2.6x |
| Tue, 30 Jan 2024 | AU$119.3b | AU$43.2b | AU$3.4b | 21.9x | 35.4x | 2.8x |
| Thu, 28 Dec 2023 | AU$117.8b | AU$43.2b | AU$3.4b | 20.9x | 34.9x | 2.7x |
| Sat, 25 Nov 2023 | AU$108.4b | AU$43.2b | AU$3.4b | 20.9x | 32.1x | 2.5x |
| Mon, 23 Oct 2023 | AU$109.8b | AU$43.2b | AU$3.4b | 20.9x | 32.6x | 2.5x |
| Wed, 20 Sep 2023 | AU$111.8b | AU$43.2b | AU$3.4b | 19.9x | 33.1x | 2.6x |
| Fri, 18 Aug 2023 | AU$115.2b | AU$43.3b | AU$3.6b | 18.2x | 32x | 2.7x |
| Sun, 16 Jul 2023 | AU$115.2b | AU$42.4b | AU$3.3b | 21.6x | 35.1x | 2.7x |
| Tue, 13 Jun 2023 | AU$111.4b | AU$42.4b | AU$3.3b | 20x | 33.9x | 2.6x |
| Thu, 11 May 2023 | AU$113.5b | AU$42.4b | AU$3.3b | 21.2x | 34.6x | 2.7x |
| Sat, 08 Apr 2023 | AU$113.3b | AU$42.4b | AU$3.3b | 22.5x | 34.5x | 2.7x |
| Mon, 06 Mar 2023 | AU$107.2b | AU$42.3b | AU$3.3b | 21.7x | 32.7x | 2.5x |
| Wed, 01 Feb 2023 | AU$108.9b | AU$40.3b | AU$3.0b | 39.1x | 36.1x | 2.7x |
| Fri, 30 Dec 2022 | AU$102.3b | AU$40.3b | AU$3.0b | 33.6x | 33.9x | 2.5x |
| Sun, 27 Nov 2022 | AU$106.2b | AU$40.3b | AU$3.0b | 31.6x | 35.2x | 2.6x |
| Tue, 25 Oct 2022 | AU$100.9b | AU$40.3b | AU$3.0b | 29.4x | 33.5x | 2.5x |
| Thu, 22 Sep 2022 | AU$103.4b | AU$40.1b | AU$3.0b | 32.3x | 34.4x | 2.6x |
| Sat, 20 Aug 2022 | AU$112.9b | AU$39.3b | AU$3.0b | 33.1x | 37.1x | 2.9x |
| Mon, 18 Jul 2022 | AU$104.9b | AU$38.6b | AU$2.8b | 38.7x | 37.4x | 2.7x |
| Wed, 15 Jun 2022 | AU$99.3b | AU$38.6b | AU$2.8b | 36.8x | 35.4x | 2.6x |
| Fri, 13 May 2022 | AU$108.0b | AU$38.8b | AU$2.8b | 38.9x | 38.2x | 2.8x |
| Sun, 10 Apr 2022 | AU$115.2b | AU$38.8b | AU$2.8b | 42.4x | 40.8x | 3x |
| Tue, 08 Mar 2022 | AU$110.2b | AU$38.8b | AU$2.8b | 42.3x | 39.6x | 2.8x |
| Thu, 03 Feb 2022 | AU$119.4b | AU$38.0b | AU$3.6b | 28.1x | 32.8x | 3.1x |
| Sat, 01 Jan 2022 | AU$129.2b | AU$38.3b | AU$3.7b | 29.3x | 35.4x | 3.4x |
| Mon, 29 Nov 2021 | AU$127.9b | AU$38.2b | AU$3.7b | 30.5x | 35x | 3.3x |
| Wed, 27 Oct 2021 | AU$125.7b | AU$38.3b | AU$3.7b | 29.3x | 34.4x | 3.3x |
| Fri, 24 Sep 2021 | AU$126.6b | AU$38.2b | AU$3.7b | 27.4x | 34.6x | 3.3x |
| Sun, 22 Aug 2021 | AU$123.1b | AU$38.2b | AU$3.7b | 29.4x | 33.6x | 3.2x |
| Fri, 09 Jul 2021 | AU$119.5b | AU$38.2b | AU$3.7b | 25x | 32.6x | 3.1x |
Price to Earnings Ratio
36.9x
Current Industry PE
- Investors are optimistic on the Australian Communication Services industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 38.9x which is higher than its 3-year average PE of 35.4x.
- The industry is trading close to its 3-year average PS ratio of 2.8x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have declined 2.2% per year over the last three years.
- Meanwhile revenues for these companies have grown 5.1% 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 Australian Telecom sector?
| AU Market | 1.62% | |
| Telecom | 0.52% | |
| Interactive Media and Services | 2.17% | |
| Entertainment | 0.55% | |
| Wireless Telecom | 0% | |
| Media | -0.059% | |
| Telecom Services and Carriers | -0.87% | |
Industry PE
- Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio of 33.2x.
- Analysts are expecting annual earnings growth of 29.9%, which is higher than its past year's earnings growth of 2.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 30% over the next 5 years.
- This is better than its past earnings growth rate of 2.9% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 12% 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 | |
|---|---|---|---|---|---|
| REA REA Group | AU$185.00 | 4.7% +AU$1.1b | 34.4% | PE86.7x | |
| CAR CAR Group | AU$35.21 | 5.0% +AU$630.3m | 52.8% | PE38.4x | |
| TLS Telstra Group | AU$3.65 | 0.3% +AU$115.4m | -15.3% | PE20.8x | |
| DHG Domain Holdings Australia | AU$3.15 | 5.0% +AU$94.6m | -0.9% | PE44.1x | |
| NEC Nine Entertainment Holdings | AU$1.52 | 3.1% +AU$70.7m | -23.0% | PE25x |
