Narrative Update • Jun 04
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- 7D6.2%
- 3M25.6%
- 1Y21.8%
- YTD23.8%
In the last week, the IT industry is up 8.9%, with Megaport leading the way, up 19%. Meanwhile, Adisyn actually underperformed within the industry, shrinking 13% in the last week. This takes the industry's 12 month performance to a gain of 21%. Looking forward, earnings are forecast to decline by 2.7% per year.
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 |
|---|---|---|---|---|---|---|
| Sat, 06 Jun 2026 | AU$19.9b | AU$3.0b | -AU$124,014,381.20 | 35.7x | -160.9x | 6.6x |
| Mon, 04 May 2026 | AU$14.9b | AU$3.0b | -AU$124,447,870.20 | 41.2x | -120.1x | 4.9x |
| Wed, 01 Apr 2026 | AU$12.2b | AU$3.1b | -AU$126,002,839.06 | 39.8x | -97.1x | 4x |
| Fri, 27 Feb 2026 | AU$15.0b | AU$2.9b | -AU$114,685,879.60 | 40.4x | -130.5x | 5.1x |
| Sun, 25 Jan 2026 | AU$15.3b | AU$2.9b | -AU$98,706,469.60 | 46.9x | -155.5x | 5.3x |
| Tue, 23 Dec 2025 | AU$14.8b | AU$2.9b | -AU$100,167,615.50 | 42.2x | -147.9x | 5.1x |
| Thu, 20 Nov 2025 | AU$15.0b | AU$2.9b | -AU$100,922,932.40 | 40.6x | -148.7x | 5.2x |
| Sat, 18 Oct 2025 | AU$16.9b | AU$2.9b | -AU$101,011,160.30 | 39.6x | -167.7x | 5.8x |
| Mon, 15 Sep 2025 | AU$17.9b | AU$2.9b | -AU$82,553,377.60 | 38.9x | -216.2x | 6.2x |
| Wed, 13 Aug 2025 | AU$16.0b | AU$2.8b | -AU$87,929,108.90 | 33.3x | -182.3x | 5.7x |
| Fri, 11 Jul 2025 | AU$14.8b | AU$2.8b | -AU$89,594,947.80 | 36.7x | -165.2x | 5.3x |
| Sun, 08 Jun 2025 | AU$14.6b | AU$2.8b | -AU$89,915,091.80 | 39.6x | -162.2x | 5.2x |
| Tue, 06 May 2025 | AU$13.7b | AU$2.8b | -AU$89,979,120.60 | 43.3x | -152.4x | 4.9x |
| Thu, 03 Apr 2025 | AU$13.0b | AU$2.8b | -AU$90,865,519.30 | 34.9x | -143.6x | 4.7x |
| Sat, 01 Mar 2025 | AU$14.5b | AU$2.8b | -AU$90,052,547.80 | 39.8x | -161.5x | 5.2x |
| Mon, 27 Jan 2025 | AU$16.2b | AU$2.6b | -AU$188,930,806.00 | 78.9x | -86x | 6.2x |
| Wed, 25 Dec 2024 | AU$15.6b | AU$2.6b | -AU$190,605,436.10 | 73.8x | -82x | 5.9x |
| Fri, 22 Nov 2024 | AU$16.6b | AU$2.6b | -AU$184,314,008.10 | 69.1x | -90.3x | 6.4x |
| Sun, 20 Oct 2024 | AU$16.7b | AU$2.6b | -AU$180,400,369.80 | 66.9x | -92.8x | 6.4x |
| Tue, 17 Sep 2024 | AU$16.2b | AU$2.6b | -AU$170,492,222.30 | 64.5x | -94.9x | 6.2x |
| Thu, 15 Aug 2024 | AU$16.2b | AU$4.4b | -AU$215,932,511.50 | 39.2x | -74.9x | 3.7x |
| Sat, 13 Jul 2024 | AU$16.9b | AU$4.4b | -AU$212,260,254.60 | 36.8x | -79.7x | 3.9x |
| Mon, 10 Jun 2024 | AU$15.3b | AU$4.4b | -AU$217,361,267.40 | 35.2x | -70.4x | 3.5x |
| Wed, 08 May 2024 | AU$15.2b | AU$4.4b | -AU$216,723,640.80 | 34.5x | -69.9x | 3.5x |
| Fri, 05 Apr 2024 | AU$15.0b | AU$4.4b | -AU$216,534,714.40 | 41.1x | -69.2x | 3.4x |
| Sun, 03 Mar 2024 | AU$14.9b | AU$4.4b | -AU$218,754,599.60 | 42.2x | -68x | 3.4x |
| Tue, 30 Jan 2024 | AU$12.5b | AU$4.4b | -AU$455,245,510.00 | 36.1x | -27.4x | 2.8x |
| Thu, 28 Dec 2023 | AU$12.1b | AU$4.4b | -AU$440,666,509.00 | 33.9x | -27.4x | 2.7x |
| Sat, 25 Nov 2023 | AU$11.7b | AU$4.4b | -AU$456,992,806.00 | 32.3x | -25.6x | 2.6x |
| Mon, 23 Oct 2023 | AU$11.4b | AU$4.5b | -AU$471,618,244.00 | 29x | -24.2x | 2.5x |
| Wed, 20 Sep 2023 | AU$11.7b | AU$4.5b | -AU$461,689,562.00 | 29.4x | -25.3x | 2.6x |
| Fri, 18 Aug 2023 | AU$12.2b | AU$4.3b | -AU$467,166,075.00 | 24.2x | -26.2x | 2.9x |
| Sun, 16 Jul 2023 | AU$10.3b | AU$3.9b | -AU$454,216,274.00 | 18.8x | -22.6x | 2.6x |
| Tue, 13 Jun 2023 | AU$9.2b | AU$3.9b | -AU$458,395,440.00 | 18.6x | -20.1x | 2.4x |
Price to Earnings Ratio
-20.1x
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 4.5x is lower than the industry's current PS ratio of 6.6x.
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 8.3% 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 | -1.23% | |
| Tech | 6.28% | |
| IT | 6.24% | |
| Internet Services and Infrastructure | 6.74% | |
| IT Consulting | 2.21% | |
| Data Processing Services | 0.98% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 38.7x.
- Analysts are expecting annual earnings growth of 24.9%, which is higher than its past year's earnings growth of 12.2% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings growth rate of 12% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings decline by 6.0% 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$18.48 | 19.1% +AU$524.9m | 34.4% | PS12.8x | |
| NXT NEXTDC | AU$15.86 | 4.1% +AU$470.9m | 20.3% | PS26.6x | |
| MAQ Macquarie Technology Group | AU$77.87 | 4.2% +AU$81.7m | 24.2% | PE60.4x | |
| DTL Data#3 | AU$9.51 | 5.4% +AU$76.0m | 28.3% | PE30.1x | |
| DXN DXN | AU$0.17 | 775.0% +AU$48.7m | 280.4% | PS5x |
