Narrative Update • Sep 04
Have your own idea? Try our Stock Screener
- 7D1.2%
- 3M-10.3%
- 1Y-13.7%
- YTD6.4%
In the last week, the IT industry is up 1.2%, with Megaport up 7.7%. In contrast, the industry has lost 14% in the last 12 months. As for the next few years, earnings are expected to grow by 11% per annum.
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 |
|---|---|---|---|---|---|---|
| Thu, 10 Sep 2026 | AU$18.0b | AU$3.2b | AU$38.4m | 29.7x | 468.8x | 5.7x |
| Sat, 08 Aug 2026 | AU$19.9b | AU$3.0b | -AU$124,029,313.40 | 34.9x | -160.8x | 6.6x |
| Mon, 06 Jul 2026 | AU$17.8b | AU$3.0b | -AU$124,913,282.80 | 42.6x | -142.6x | 5.9x |
| Wed, 03 Jun 2026 | AU$19.4b | AU$3.0b | -AU$123,927,109.20 | 37.1x | -156.9x | 6.4x |
| Fri, 01 May 2026 | AU$15.0b | AU$3.0b | -AU$124,652,959.40 | 38.4x | -120x | 4.9x |
| Sun, 29 Mar 2026 | AU$12.4b | AU$3.1b | -AU$125,916,221.60 | 41.2x | -98.4x | 4.1x |
| Tue, 24 Feb 2026 | AU$14.0b | AU$2.9b | -AU$98,625,334.90 | 40x | -142.2x | 4.9x |
| Thu, 22 Jan 2026 | AU$15.1b | AU$2.9b | -AU$99,371,406.70 | 45x | -151.5x | 5.2x |
| Sat, 20 Dec 2025 | AU$14.2b | AU$2.9b | -AU$100,350,527.00 | 41.5x | -141.3x | 4.9x |
| Mon, 17 Nov 2025 | AU$15.3b | AU$2.9b | -AU$100,692,679.10 | 42.4x | -151.6x | 5.3x |
| Wed, 15 Oct 2025 | AU$16.9b | AU$2.9b | -AU$101,174,704.70 | 40.4x | -166.7x | 5.8x |
| Fri, 12 Sep 2025 | AU$17.8b | AU$2.9b | -AU$82,775,023.30 | 39.1x | -215.3x | 6.2x |
| Sun, 10 Aug 2025 | AU$16.0b | AU$2.8b | -AU$87,771,037.80 | 31.9x | -181.9x | 5.6x |
| Tue, 08 Jul 2025 | AU$15.1b | AU$2.8b | -AU$89,915,091.80 | 36.1x | -167.7x | 5.4x |
| Thu, 05 Jun 2025 | AU$14.6b | AU$2.8b | -AU$90,013,135.90 | 39.6x | -161.7x | 5.2x |
| Sat, 03 May 2025 | AU$13.7b | AU$2.8b | -AU$90,239,237.60 | 43.7x | -151.9x | 4.9x |
| Mon, 31 Mar 2025 | AU$13.0b | AU$2.8b | -AU$90,943,554.40 | 34.9x | -142.9x | 4.6x |
| Wed, 26 Feb 2025 | AU$15.5b | AU$2.8b | -AU$230,786,738.20 | 73.2x | -67.1x | 5.6x |
| Fri, 24 Jan 2025 | AU$16.3b | AU$2.6b | -AU$190,050,310.10 | 80.5x | -85.9x | 6.2x |
| Sun, 22 Dec 2024 | AU$15.3b | AU$2.6b | -AU$190,309,368.90 | 71.6x | -80.5x | 5.8x |
| Tue, 19 Nov 2024 | AU$16.8b | AU$2.6b | -AU$185,683,318.90 | 70.9x | -90.7x | 6.4x |
| Thu, 17 Oct 2024 | AU$17.0b | AU$2.6b | -AU$180,862,974.80 | 67.7x | -93.8x | 6.5x |
| Sat, 14 Sep 2024 | AU$16.3b | AU$2.6b | -AU$171,324,911.30 | 62.6x | -95.2x | 6.3x |
| Mon, 12 Aug 2024 | AU$15.3b | AU$4.4b | -AU$217,479,346.40 | 41x | -70.4x | 3.5x |
| Wed, 10 Jul 2024 | AU$15.4b | AU$4.4b | -AU$213,098,615.50 | 36.9x | -72.4x | 3.5x |
| Fri, 07 Jun 2024 | AU$15.4b | AU$4.4b | -AU$215,531,042.90 | 34x | -71.3x | 3.5x |
| Sun, 05 May 2024 | AU$14.6b | AU$4.4b | -AU$216,511,098.60 | 35.3x | -67.2x | 3.3x |
| Tue, 02 Apr 2024 | AU$15.5b | AU$4.4b | -AU$219,014,373.40 | 39.2x | -70.6x | 3.5x |
| Thu, 29 Feb 2024 | AU$14.8b | AU$4.4b | -AU$227,264,929.90 | 39.6x | -64.9x | 3.4x |
| Sat, 27 Jan 2024 | AU$12.4b | AU$4.4b | -AU$456,228,364.00 | 35.7x | -27.3x | 2.8x |
| Mon, 25 Dec 2023 | AU$11.9b | AU$4.4b | -AU$443,014,438.00 | 33.8x | -27x | 2.7x |
| Wed, 22 Nov 2023 | AU$11.9b | AU$4.4b | -AU$458,112,168.00 | 32.8x | -26x | 2.7x |
| Fri, 20 Oct 2023 | AU$11.5b | AU$4.5b | -AU$471,399,832.00 | 29.1x | -24.4x | 2.5x |
| Sun, 17 Sep 2023 | AU$11.9b | AU$4.5b | -AU$463,464,159.00 | 28.5x | -25.6x | 2.6x |
Price to Earnings Ratio
-25.6x
Current Industry PE
- Investors are optimistic on the Australian IT industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 469x which is higher than its 3-year average PE of -107x.
- The 3-year average PS ratio of 4.8x is lower than the industry's current PS ratio of 5.7x.
Past Earnings Growth
- Total earnings for the IT industry have gone up over the last three years and the industry is now profitable.
- Revenues have declined 11% 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 industry?
| AU Market | -0.63% | |
| Tech | -4.46% | |
| IT | 1.24% | |
| Internet Services and Infrastructure | 2.05% | |
| Data Processing Services | -3.96% | |
| IT Consulting | -4.26% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 9.2%, which is higher than its past year's earnings decline of 7.8% per year.
- Investors are most pessimistic about the Data Processing Services industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 23.5x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 21% over the next 5 years.
- However this is lower than its past earnings growth rate of 47% per year.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 9.0% 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 | |
|---|---|---|---|---|---|
| MP1 Megaport | AU$18.41 | 12.8% +AU$492.6m | 24.9% | PS13.9x | |
| ATA Atturra | AU$0.40 | 3.9% +AU$5.5m | -48.1% | PS0.4x | |
| FCT FirstWave Cloud Technology | AU$0.008 | 33.3% +AU$4.3m | -50.0% | PS2x | |
| KYP Kinatico | AU$0.13 | 4.0% +AU$2.2m | -58.7% | PE28.2x | |
| ITS Infotrust | AU$0.29 | 3.6% +AU$1.9m | -47.3% | PS0.9x |
