An Intrinsic Calculation For Codan Limited (ASX:CDA) Suggests It's 32% Undervalued
Apr 24
Australian (ASX) Tech Sector Analysis
UpdatedMay 02, 2024
DataAggregated Company Financials
Companies125
- 7D-0.7%
- 3M17.0%
- 1Y31.8%
- YTD14.9%
In the last week, the Tech industry is flat overall, with WiseTech Global standing out by going down 3.0%. The past year has been better, since the industry has gained 32% in that time. Earnings are forecast to grow by 30% annually.
Sector Valuation and Performance
Has the Australian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 02 May 2024 | AU$99.6b | AU$15.2b | -AU$632,820,562.06 | 52.9x | -157.4x | 6.5x |
| Sat, 30 Mar 2024 | AU$104.5b | AU$15.3b | -AU$663,777,972.36 | 53.1x | -157.4x | 6.8x |
| Mon, 26 Feb 2024 | AU$97.4b | AU$16.2b | -AU$1,025,258,231.25 | 47.1x | -95x | 6x |
| Wed, 24 Jan 2024 | AU$90.4b | AU$17.1b | -AU$1,604,169,938.00 | 41.3x | -56.4x | 5.3x |
| Fri, 22 Dec 2023 | AU$87.7b | AU$17.1b | -AU$1,589,442,845.00 | 41.1x | -55.2x | 5.1x |
| Sun, 19 Nov 2023 | AU$83.5b | AU$17.1b | -AU$1,616,255,943.00 | 37.3x | -51.7x | 4.9x |
| Tue, 17 Oct 2023 | AU$84.2b | AU$17.0b | -AU$1,738,680,806.00 | 41x | -48.4x | 4.9x |
| Thu, 14 Sep 2023 | AU$86.3b | AU$17.0b | -AU$1,730,410,508.00 | 41x | -49.8x | 5.1x |
| Sat, 12 Aug 2023 | AU$92.0b | AU$16.3b | -AU$1,521,950,782.00 | 33.7x | -60.4x | 5.6x |
| Mon, 10 Jul 2023 | AU$83.9b | AU$15.9b | -AU$1,517,402,585.00 | 30.6x | -55.3x | 5.3x |
| Wed, 07 Jun 2023 | AU$85.0b | AU$16.0b | -AU$1,547,452,032.00 | 26.6x | -54.9x | 5.3x |
| Fri, 05 May 2023 | AU$76.8b | AU$15.7b | -AU$1,549,267,189.00 | 30.1x | -49.6x | 4.9x |
| Sun, 02 Apr 2023 | AU$74.3b | AU$15.7b | -AU$1,541,897,304.00 | 30.1x | -48.2x | 4.7x |
| Tue, 28 Feb 2023 | AU$89.8b | AU$21.9b | -AU$1,154,463,839.00 | 32.3x | -77.8x | 4.1x |
| Thu, 26 Jan 2023 | AU$89.0b | AU$20.6b | -AU$939,622,711.00 | 45.6x | -94.7x | 4.3x |
| Sat, 24 Dec 2022 | AU$85.1b | AU$20.8b | -AU$946,109,689.00 | 44.2x | -90x | 4.1x |
| Mon, 21 Nov 2022 | AU$89.6b | AU$20.7b | -AU$969,285,101.00 | 48x | -92.4x | 4.3x |
| Wed, 19 Oct 2022 | AU$87.6b | AU$20.7b | -AU$825,958,024.00 | 42.6x | -106x | 4.2x |
| Fri, 16 Sep 2022 | AU$90.7b | AU$20.3b | -AU$784,595,721.00 | 46.4x | -115.7x | 4.5x |
| Sun, 14 Aug 2022 | AU$92.9b | AU$19.3b | -AU$818,859,825.00 | 25.9x | -113.4x | 4.8x |
| Tue, 12 Jul 2022 | AU$83.6b | AU$19.1b | -AU$835,823,858.00 | 26x | -100.1x | 4.4x |
| Thu, 09 Jun 2022 | AU$82.4b | AU$18.8b | -AU$796,532,060.00 | 26.7x | -103.4x | 4.4x |
| Sat, 07 May 2022 | AU$87.9b | AU$18.7b | -AU$746,662,988.00 | 26.4x | -117.8x | 4.7x |
| Mon, 04 Apr 2022 | AU$121.3b | AU$19.4b | -AU$890,692,213.00 | 30.6x | -136.2x | 6.3x |
| Wed, 02 Mar 2022 | AU$117.3b | AU$19.4b | -AU$859,270,872.00 | 32.6x | -136.5x | 6.1x |
| Fri, 28 Jan 2022 | AU$115.9b | AU$18.2b | -AU$466,903,367.00 | 33.5x | -248.3x | 6.4x |
| Sun, 26 Dec 2021 | AU$140.9b | AU$17.9b | -AU$471,636,846.00 | 33x | -298.7x | 7.9x |
| Tue, 23 Nov 2021 | AU$150.8b | AU$18.0b | -AU$466,005,342.00 | 35.5x | -323.7x | 8.4x |
| Thu, 21 Oct 2021 | AU$149.6b | AU$17.9b | -AU$426,773,269.00 | 37.1x | -350.6x | 8.4x |
| Sat, 18 Sep 2021 | AU$150.1b | AU$18.1b | -AU$424,226,354.00 | 38.5x | -353.9x | 8.3x |
| Mon, 16 Aug 2021 | AU$143.6b | AU$17.8b | -AU$406,112,560.01 | 41.7x | -353.6x | 8.1x |
| Mon, 31 May 2021 | AU$120.8b | AU$17.2b | -AU$353,121,275.62 | 30.8x | -342x | 7x |
Price to Earnings Ratio
-383.4x
Current Industry PE
- Investors are optimistic on the Australian Information Technology industry, and appear confident in long term growth rates.
- The 3-year average PS ratio of 5.7x is lower than the industry's current PS ratio of 6.5x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have deteriorated over the last three years.
- Revenues have also declined 4.0% per year.
- This means overall sales from these companies are declining and losses are subsequently expanding as well.
Industry Trends
Which industries have driven the changes within the Australian Tech sector?
| AU Market | -1.54% | |
| Tech | -0.75% | |
| Tech Hardware | 7.16% | |
| Semiconductors | 3.47% | |
| Software | -0.48% | |
| Electronic Equipment and Components | -1.65% | |
| IT | -2.07% | |
| Communications | -12.75% | |
Industry PE
- Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 85.9x.
- Analysts are expecting annual earnings growth of 17.1%, which is higher than its past year's earnings growth of 12.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 64% over the next 5 years.
- This is better than its past earnings growth rate of 8.6% per year.
- In contrast, the IT industry is expected to see its earnings grow by 15% 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 | |
|---|---|---|---|---|---|
| XRO Xero | AU$123.63 | 3.2% +AU$581.8m | 33.5% | PS13.5x | |
| 360 Life360 | AU$14.59 | 8.8% +AU$252.8m | 177.9% | PS6.5x | |
| ALU Altium | AU$65.90 | 0.7% +AU$59.4m | 77.6% | PE81.5x | |
| VNL Vinyl Group | AU$0.14 | 45.8% +AU$52.9m | 204.3% | PS93.5x | |
| IFM Infomedia | AU$1.70 | 2.7% +AU$16.9m | 16.9% | PE64.5x |
