At AU$14.44, Is Megaport Limited (ASX:MP1) Worth Looking At Closely?
Jun 30
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Australian (ASX) IT Industry Analysis
UpdatedJul 03, 2025
DataAggregated Company Financials
Companies19
- 7D-1.4%
- 3M28.1%
- 1Y-14.7%
- YTD-3.7%
Over the last 7 days, the IT industry has dropped 1.4%, driven by declines in Megaport and NEXTDC of 4.9% and 1.1%, respectively. The industry has fallen 15% in the last year. Looking forward, earnings are forecast to grow by 2.0% annually.
Industry Valuation and Performance
Has the Australian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 06 Jul 2025 | AU$15.4b | AU$2.8b | -AU$89,596,948.70 | 36.1x | -171.9x | 5.5x |
| Tue, 03 Jun 2025 | AU$14.3b | AU$2.8b | -AU$89,985,123.30 | 39.6x | -158.4x | 5.1x |
| Thu, 01 May 2025 | AU$13.1b | AU$2.8b | -AU$90,413,315.90 | 42.3x | -145.3x | 4.7x |
| Sat, 29 Mar 2025 | AU$13.0b | AU$2.8b | -AU$90,915,541.80 | 34.9x | -143x | 4.6x |
| Mon, 24 Feb 2025 | AU$16.1b | AU$2.8b | -AU$209,320,418.90 | 76.9x | -76.9x | 5.8x |
| Wed, 22 Jan 2025 | AU$16.1b | AU$2.6b | -AU$191,151,310.00 | 80.8x | -84.3x | 6.1x |
| Fri, 20 Dec 2024 | AU$15.3b | AU$2.6b | -AU$190,420,394.10 | 71.3x | -80.6x | 5.8x |
| Sun, 17 Nov 2024 | AU$17.0b | AU$2.6b | -AU$185,683,318.90 | 70.1x | -91.6x | 6.5x |
| Tue, 15 Oct 2024 | AU$17.1b | AU$2.6b | -AU$179,364,134.60 | 66.5x | -95.2x | 6.6x |
| Thu, 12 Sep 2024 | AU$15.4b | AU$2.6b | -AU$171,954,054.10 | 63.6x | -89.7x | 5.9x |
| Sat, 10 Aug 2024 | AU$15.3b | AU$4.4b | -AU$217,502,962.20 | 41x | -70.4x | 3.5x |
| Mon, 08 Jul 2024 | AU$15.3b | AU$4.4b | -AU$212,803,418.00 | 37.1x | -71.8x | 3.5x |
| Wed, 05 Jun 2024 | AU$15.1b | AU$4.4b | -AU$215,849,856.20 | 33.3x | -70.1x | 3.5x |
| Fri, 03 May 2024 | AU$14.3b | AU$4.4b | -AU$217,786,351.80 | 35.4x | -65.7x | 3.3x |
| Sun, 31 Mar 2024 | AU$15.5b | AU$4.4b | -AU$219,014,373.40 | 39.2x | -70.6x | 3.5x |
| Tue, 27 Feb 2024 | AU$13.8b | AU$4.4b | -AU$440,720,817.00 | 38.5x | -31.3x | 3.1x |
| Thu, 25 Jan 2024 | AU$12.5b | AU$4.4b | -AU$455,300,113.00 | 35.8x | -27.4x | 2.8x |
| Sat, 23 Dec 2023 | AU$11.9b | AU$4.4b | -AU$442,413,805.00 | 33.8x | -27x | 2.7x |
| Mon, 20 Nov 2023 | AU$11.9b | AU$4.5b | -AU$458,213,207.00 | 31.5x | -25.9x | 2.6x |
| Wed, 18 Oct 2023 | AU$11.8b | AU$4.5b | -AU$472,573,796.00 | 30.2x | -25x | 2.6x |
| Fri, 15 Sep 2023 | AU$11.8b | AU$4.5b | -AU$462,713,368.00 | 28.6x | -25.6x | 2.6x |
| Sun, 13 Aug 2023 | AU$12.2b | AU$4.3b | -AU$463,087,239.00 | 25.2x | -26.3x | 2.9x |
| Tue, 11 Jul 2023 | AU$9.4b | AU$3.9b | -AU$465,466,400.00 | 18.6x | -20.2x | 2.4x |
| Thu, 08 Jun 2023 | AU$9.5b | AU$3.9b | -AU$461,434,573.00 | 18.5x | -20.6x | 2.4x |
| Sat, 06 May 2023 | AU$8.2b | AU$3.9b | -AU$462,276,962.00 | 24.1x | -17.8x | 2.1x |
| Mon, 03 Apr 2023 | AU$7.5b | AU$3.9b | -AU$465,849,276.00 | 23.5x | -16.1x | 1.9x |
| Wed, 01 Mar 2023 | AU$25.1b | AU$10.2b | -AU$636,251,638.00 | 25.4x | -39.4x | 2.4x |
| Fri, 27 Jan 2023 | AU$24.2b | AU$9.3b | -AU$74,685,607.00 | 34.3x | -324.2x | 2.6x |
| Sun, 25 Dec 2022 | AU$25.8b | AU$9.5b | -AU$64,949,238.00 | 32.1x | -397.4x | 2.7x |
| Tue, 22 Nov 2022 | AU$26.8b | AU$9.5b | -AU$72,571,132.00 | 41.6x | -368.7x | 2.8x |
| Thu, 20 Oct 2022 | AU$25.3b | AU$9.6b | AU$45.3m | 37.7x | 558.4x | 2.6x |
| Sat, 17 Sep 2022 | AU$26.1b | AU$9.3b | AU$24.8m | 39.4x | 1053.4x | 2.8x |
| Mon, 15 Aug 2022 | AU$26.6b | AU$9.0b | -AU$268,428,285.00 | 37.4x | -99x | 3x |
| Wed, 13 Jul 2022 | AU$26.0b | AU$8.9b | -AU$279,588,735.00 | 26x | -93.1x | 2.9x |
Price to Earnings Ratio
-93.1x
Current Industry PE
- Investors are optimistic on the Australian IT industry, and appear confident in long term growth rates.
- The 3-year average PS ratio of 3.7x is lower than the industry's current PS ratio of 5.5x.
Past Earnings Growth
- The earnings for companies in the IT industry have improved over the last three years.
- Meanwhile revenues for these companies have declined 32% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, losses have been shrinking.
Industry Trends
Which industries have driven the changes within the Australian Tech industry?
| AU Market | 1.13% | |
| Tech | 0.33% | |
| IT | -1.38% | |
| IT Consulting | 0.95% | |
| Data Processing Services | 0.66% | |
| Internet Services and Infrastructure | -1.72% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 11.3x.
- Analysts are expecting annual earnings growth of 23.6%, which is higher than its past year's earnings decline of 12.4% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 12% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| DTL Data#3 | AU$7.63 | 1.6% +AU$18.6m | -7.2% | PE26.7x | |
| FCT FirstWave Cloud Technology | AU$0.016 | 33.3% +AU$6.9m | -15.8% | PS2.7x | |
| APX Appen | AU$1.17 | 1.7% +AU$5.3m | 143.8% | PS0.9x | |
| SPX Spenda | AU$0.007 | 16.7% +AU$4.6m | -12.5% | PS4.2x | |
| WRK Wrkr | AU$0.085 | 2.4% +AU$3.4m | 183.3% | PS17.9x |
