Australia vs Global Equities: Valuation & Earnings Growth - 22 May 2026

Research evidence excerpt

Australia vs Global Equities: Valuation & Earnings Growth - 22 May 2026

Australia | Equity Strategy EquityMayResearch22, 2026

STRATEGY NOTEAustralia vs Global Equities: Valuation &

Earnings Growth - 22 May 2026

Australian Equities Wrap: Valuation Metrics, PE Dispersion, & Australian Exhibit 4 - Global Indices: Year-to-Date

Returns

Market FY26 Earnings Revisions.

YTD return

S&P/ASX 200 Price-Earnings Ratio: ASX200 -0.7%

S&P500 8.8%

Nasdaq 16.3%

Exhibit 1 - S&P/ASX 200: Price-Earnings Ratio

FTSE 100 5.2%

S&P/ASX 200 PE (12MFwd) Hang Seng 0.2%

. Nikkei 225 25.9%

21 +2sd Source: Bloomberg, Factset, Jefferies research

Exhibit 5 - Global Indices: Price-Earnings

17 Ratio's

15 30.0 PE FY1

13 25.0

20.0

11 15.0

9 10.05.0

7 0.0 ASX200 S&P500 Nasdaq FTSE 100 Hang Seng Nikkei 225

.

2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Source: Bloomberg, Factset, Jefferies research

Source: Bloomberg, Factset, Jefferies research

Exhibit 6 - ASX Sector Indices: Year-to Date

Australian Market FY26 Earnings Revisions:

Exhibit 2 - ASX: FY26 Earnings Revisions ASX 200 -0.7%

Earnings Revisions ASX 200 Industrials -6.9%

ASX 200 Resources 17.5% 1 month 3 Months 6 Months 12 Months

ASX 200 REITs -9.6%

Market -0.3% 1.2% 2.9% 3.0%

. ASX Small Ords -9.4%

Market ex Resources -1.3% -2.9% -5.9% -10.0% Source: Bloomberg, Factset, Jefferies research

Market ex Resources & Banks -1.3% -2.8% -6.5% -11.3%. Exhibit 7 - ASX Sector Indices: Price-Earnings

Source: Bloomberg, Factset, Jefferies research Ratio's

PE FY1

Exhibit 3 - ASX Sector Indices: FY26 Earnings Revisions 25.0

GICS Earnings Revisions 20.0

15.0

1 month 3 Months 6 Months 12 Months 10.0

Energy -1.5% 93.6% 75.0% 47.5% 5.0

0.0

Materials 1.7% 3.1% 17.6% 34.3% ASX 200 ASX 200 ASX 200 ASX 200 REITs ASX Small

. Industrials Resources Ords