Is Xero Limited (ASX:XRO) Worth AU$125 Based On Its Intrinsic Value?
May 22
Australian (ASX) Application Software Industry Analysis
UpdatedMay 22, 2024
DataAggregated Company Financials
Companies78
- 7D2.1%
- 3M9.6%
- 1Y28.1%
- YTDn/a
Over the last 7 days, the Application Software industry has risen 2.1%, driven by gains from WiseTech Global of 2.6%. During this same period, the FINEOS Corporation Holdings underperformed, falling 15%. This takes the industry's 12 month performance to a gain of 28%. Looking forward, earnings are forecast to grow by 34% annually.
Industry Valuation and Performance
Has the Australian Application Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 23 May 2024 | AU$82.0b | AU$7.5b | -AU$213,982,676.30 | 60.7x | -383x | 11x |
| Sat, 20 Apr 2024 | AU$77.1b | AU$7.5b | -AU$273,365,969.27 | 63.4x | -282x | 10.3x |
| Mon, 18 Mar 2024 | AU$81.1b | AU$7.5b | -AU$288,006,142.40 | 60.9x | -281.4x | 10.8x |
| Wed, 14 Feb 2024 | AU$68.5b | AU$7.5b | -AU$658,810,511.30 | 56.4x | -104x | 9.2x |
| Fri, 12 Jan 2024 | AU$67.3b | AU$8.1b | -AU$926,476,849.00 | 59.1x | -72.7x | 8.3x |
| Sun, 10 Dec 2023 | AU$64.8b | AU$8.1b | -AU$927,060,093.00 | 60.4x | -69.9x | 8x |
| Tue, 07 Nov 2023 | AU$62.6b | AU$7.9b | -AU$1,043,195,949.00 | 54.4x | -60x | 7.9x |
| Thu, 05 Oct 2023 | AU$64.6b | AU$7.8b | -AU$995,327,227.00 | 58.6x | -64.9x | 8.2x |
| Sat, 02 Sep 2023 | AU$69.7b | AU$7.8b | -AU$991,396,220.00 | 63.4x | -70.3x | 8.9x |
| Mon, 31 Jul 2023 | AU$73.9b | AU$7.5b | -AU$762,794,294.00 | 52.5x | -96.9x | 9.9x |
| Wed, 28 Jun 2023 | AU$67.3b | AU$7.5b | -AU$772,625,085.00 | 46.2x | -87.1x | 9x |
| Fri, 26 May 2023 | AU$65.6b | AU$7.5b | -AU$792,482,696.00 | 44.6x | -82.8x | 8.8x |
| Sun, 23 Apr 2023 | AU$61.4b | AU$7.2b | -AU$726,818,327.00 | 47.3x | -84.5x | 8.5x |
| Tue, 21 Mar 2023 | AU$57.3b | AU$7.3b | -AU$725,693,910.00 | 44.5x | -78.9x | 7.9x |
| Thu, 16 Feb 2023 | AU$56.3b | AU$6.9b | -AU$568,952,592.00 | 53.9x | -99x | 8.2x |
| Sat, 14 Jan 2023 | AU$53.1b | AU$6.9b | -AU$563,574,688.00 | 51.9x | -94.1x | 7.7x |
| Mon, 12 Dec 2022 | AU$53.4b | AU$6.9b | -AU$567,888,849.00 | 51.3x | -94x | 7.7x |
| Wed, 09 Nov 2022 | AU$53.4b | AU$6.7b | -AU$564,712,047.00 | 51x | -94.6x | 8x |
| Fri, 07 Oct 2022 | AU$55.1b | AU$6.6b | -AU$523,560,923.00 | 48.2x | -105.2x | 8.3x |
| Sun, 04 Sep 2022 | AU$56.0b | AU$6.6b | -AU$504,058,320.00 | 53.1x | -111.1x | 8.5x |
| Tue, 02 Aug 2022 | AU$55.4b | AU$6.2b | -AU$360,164,910.00 | 26.2x | -153.7x | 8.9x |
| Thu, 30 Jun 2022 | AU$46.6b | AU$6.2b | -AU$361,962,044.00 | 25.2x | -128.7x | 7.5x |
| Sat, 28 May 2022 | AU$51.6b | AU$6.2b | -AU$329,221,890.00 | 25.6x | -156.7x | 8.3x |
| Mon, 25 Apr 2022 | AU$56.2b | AU$6.0b | -AU$341,948,883.00 | 30.7x | -164.5x | 9.4x |
| Wed, 23 Mar 2022 | AU$58.6b | AU$6.1b | -AU$342,818,289.00 | 36x | -170.9x | 9.7x |
| Fri, 18 Feb 2022 | AU$60.6b | AU$5.8b | -AU$241,565,145.00 | 44.1x | -250.9x | 10.5x |
| Sun, 16 Jan 2022 | AU$66.1b | AU$5.6b | -AU$78,055,238.00 | 44.2x | -847.4x | 11.8x |
| Tue, 14 Dec 2021 | AU$70.6b | AU$5.4b | -AU$85,562,175.00 | 40.5x | -824.9x | 13.1x |
| Thu, 11 Nov 2021 | AU$72.4b | AU$5.3b | -AU$45,083,523.00 | 46.2x | -1605.4x | 13.7x |
| Sat, 09 Oct 2021 | AU$67.7b | AU$5.4b | -AU$84,728,145.00 | 44x | -798.7x | 12.6x |
| Mon, 06 Sep 2021 | AU$69.3b | AU$5.2b | -AU$66,436,677.89 | 43.8x | -1042.6x | 13.3x |
| Wed, 04 Aug 2021 | AU$62.6b | AU$5.3b | -AU$69,482,902.11 | 44.7x | -900.7x | 11.9x |
Price to Earnings Ratio
-843.2x
Current Industry PE
- Investors are optimistic on the Australian Application Software industry, and appear confident in long term growth rates.
- The 3-year average PS ratio of 9.6x is lower than the industry's current PS ratio of 11.0x.
Past Earnings Growth
- The earnings for companies in the Application Software industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 13% 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 caused losses to expand.
Industry Comparison
How does Australian Application Software compare with similar industries?
| AU Market | 1.47% | |
| Tech | 1.38% | |
| Software | 2.10% | |
| Application Software | 2.13% | |
| Systems Software | -1.31% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| WTC WiseTech Global | AU$100.03 | 2.6% +AU$846.9m | 37.2% | PE149.5x | |
| TNE Technology One | AU$17.86 | 10.4% +AU$547.0m | 12.3% | PE53.1x | |
| XRO Xero | AU$124.00 | 1.9% +AU$348.8m | 14.0% | PS13.3x | |
| NXL Nuix | AU$3.02 | 28.5% +AU$216.8m | 217.9% | PS5.1x | |
| 360 Life360 | AU$15.82 | 4.5% +AU$142.0m | 139.7% | PS7x |
