Why Australian shares will get more expensive before they get cheaper
Two things can drive share prices: earnings, and how much investors are willing to pay for those earnings. Reporting season puts the focus on the latter.
When investors stick their heads up after the annual results avalanche in a fortnight, they will realise Australian shares are more expensive and will need to come to peace with it.
At earnings season’s halfway mark, we can already see that management teams are more cautious than sell-side analysts had expected, causing analysts to wind back FY25 earnings per share forecasts and making shares more expensive on a forward P/E multiple basis.
Loading...
Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
