Is There An Opportunity With Life360, Inc.'s (ASX:360) 32% Undervaluation?
Jan 11
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Australian (ASX) Tech Sector Analysis
UpdatedFeb 01, 2025
DataAggregated Company Financials
Companies112
- 7D2.1%
- 3M8.3%
- 1Y48.2%
- YTD1.9%
The Tech is pretty flat in the last 7 days, but Xero has stood out, gaining 6.2%. The past year has been better, since the industry has gained 51% in that time. Earnings are forecast to grow by 27% 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 |
|---|---|---|---|---|---|---|
| Sat, 01 Feb 2025 | AU$123.3b | AU$13.5b | AU$68.4m | 61.4x | 1804.5x | 9.1x |
| Mon, 30 Dec 2024 | AU$120.8b | AU$13.5b | AU$52.0m | 60.5x | 2321.9x | 8.9x |
| Wed, 27 Nov 2024 | AU$122.6b | AU$13.5b | AU$60.5m | 64.9x | 2025.5x | 9.1x |
| Fri, 25 Oct 2024 | AU$105.8b | AU$13.2b | AU$797.2k | 59.4x | 132779.9x | 8x |
| Sun, 22 Sep 2024 | AU$115.5b | AU$13.2b | AU$4.1m | 63.9x | 28197.8x | 8.7x |
| Tue, 20 Aug 2024 | AU$100.4b | AU$14.9b | -AU$343,166,711.97 | 52x | -292.7x | 6.8x |
| Thu, 18 Jul 2024 | AU$111.1b | AU$15.3b | -AU$331,135,010.41 | 52.9x | -335.6x | 7.3x |
| Sat, 15 Jun 2024 | AU$104.8b | AU$15.4b | -AU$331,590,509.90 | 52.7x | -316.2x | 6.8x |
| Mon, 13 May 2024 | AU$104.1b | AU$15.2b | -AU$569,479,206.85 | 54.3x | -182.8x | 6.9x |
| Wed, 10 Apr 2024 | AU$101.8b | AU$15.2b | -AU$654,250,961.27 | 52.8x | -155.5x | 6.7x |
| Fri, 08 Mar 2024 | AU$104.1b | AU$16.2b | -AU$679,232,744.90 | 50.4x | -153.3x | 6.4x |
| Sun, 04 Feb 2024 | AU$90.6b | AU$17.1b | -AU$1,616,100,804.00 | 46.4x | -56.1x | 5.3x |
| Tue, 02 Jan 2024 | AU$89.5b | AU$17.1b | -AU$1,585,214,073.00 | 41.7x | -56.5x | 5.2x |
| Thu, 30 Nov 2023 | AU$82.9b | AU$17.1b | -AU$1,602,355,969.00 | 41.7x | -51.8x | 4.8x |
| Sat, 28 Oct 2023 | AU$78.1b | AU$17.0b | -AU$1,740,423,311.00 | 38.6x | -44.9x | 4.6x |
| Mon, 25 Sep 2023 | AU$84.8b | AU$17.0b | -AU$1,728,914,306.00 | 41.7x | -49x | 5x |
| Wed, 23 Aug 2023 | AU$91.2b | AU$16.7b | -AU$1,604,530,955.00 | 27.6x | -56.8x | 5.5x |
| Fri, 21 Jul 2023 | AU$90.2b | AU$15.9b | -AU$1,501,488,569.00 | 30.7x | -60.1x | 5.7x |
| Sun, 18 Jun 2023 | AU$87.9b | AU$15.9b | -AU$1,528,058,584.00 | 28x | -57.6x | 5.5x |
| Tue, 16 May 2023 | AU$78.9b | AU$15.7b | -AU$1,546,772,915.00 | 29.3x | -51x | 5x |
| Thu, 13 Apr 2023 | AU$76.0b | AU$15.7b | -AU$1,543,554,030.00 | 30.6x | -49.2x | 4.8x |
| Sat, 11 Mar 2023 | AU$91.1b | AU$22.1b | -AU$1,700,582,712.00 | 31.1x | -53.6x | 4.1x |
| Mon, 06 Feb 2023 | AU$92.4b | AU$20.6b | -AU$897,735,225.00 | 45.1x | -103x | 4.5x |
| Wed, 04 Jan 2023 | AU$84.1b | AU$20.7b | -AU$945,689,675.00 | 44.1x | -88.9x | 4.1x |
| Fri, 02 Dec 2022 | AU$90.7b | AU$20.7b | -AU$955,340,760.00 | 49.2x | -95x | 4.4x |
| Sun, 30 Oct 2022 | AU$86.0b | AU$20.6b | -AU$826,707,809.00 | 41.7x | -104x | 4.2x |
| Tue, 27 Sep 2022 | AU$85.0b | AU$20.4b | -AU$783,200,282.00 | 44.8x | -108.5x | 4.2x |
| Thu, 25 Aug 2022 | AU$93.6b | AU$19.6b | -AU$788,195,126.00 | 31.9x | -118.7x | 4.8x |
| Sat, 23 Jul 2022 | AU$92.2b | AU$19.1b | -AU$835,124,211.00 | 23.2x | -110.4x | 4.8x |
| Mon, 20 Jun 2022 | AU$75.9b | AU$19.1b | -AU$828,918,208.00 | 24.3x | -91.5x | 4x |
| Wed, 18 May 2022 | AU$85.7b | AU$19.0b | -AU$756,631,366.00 | 26.8x | -113.3x | 4.5x |
| Fri, 15 Apr 2022 | AU$98.5b | AU$18.6b | -AU$732,006,567.00 | 30x | -134.6x | 5.3x |
| Sun, 13 Mar 2022 | AU$113.3b | AU$19.6b | -AU$888,848,798.00 | 30.2x | -127.5x | 5.8x |
| Tue, 08 Feb 2022 | AU$120.1b | AU$18.3b | -AU$470,889,957.00 | 34x | -255.1x | 6.6x |
Price to Earnings Ratio
-255.1x
Current Industry PE
- Investors are optimistic on the Australian Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 2kx which is higher than its 3-year average PE of -506x.
- The 3-year average PS ratio of 5.8x is lower than the industry's current PS ratio of 9.1x.
Past Earnings Growth
- Total earnings for the Information Technology industry have gone up over the last three years and the industry is now profitable.
- Revenues have declined 9.7% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Australian Tech sector?
| AU Market | 1.42% | |
| Tech | 2.13% | |
| Software | 3.31% | |
| Electronic Equipment and Components | 0.64% | |
| Communications | -1.64% | |
| IT | -3.78% | |
| Semiconductors | -10.81% | |
| Tech Hardware | -28.90% | |
Industry PE
- Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 27.7%, which is higher than its past year's earnings growth of 6.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Tech Hardware industry, expecting annual earnings growth of 102% over the next 5 years.
- In contrast, the Semiconductors industry is expected to see its earnings grow by 16% 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$183.27 | 6.2% +AU$1.6b | 63.2% | PE143.2x | |
| WTC WiseTech Global | AU$123.81 | 3.0% +AU$1.2b | 66.3% | PE156.3x | |
| TNE Technology One | AU$30.94 | 4.4% +AU$425.4m | 93.4% | PE85.8x | |
| DSE Dropsuite | AU$5.73 | 30.2% +AU$93.4m | 97.6% | PE394.3x | |
| 360 Life360 | AU$25.29 | 1.4% +AU$81.4m | 229.7% | PS10.4x |
