Is There An Opportunity With Life360, Inc.'s (ASX:360) 32% Undervaluation?
Jan 11
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Australian (ASX) Software Industry Analysis
UpdatedJan 31, 2025
DataAggregated Company Financials
Companies72
- 7D1.9%
- 3M10.2%
- 1Y68.8%
- YTD1.7%
In the last week, the Software industry is up 1.9%, with Xero up 6.2%. In the same time, Nuix was down 17%. This means that the industry has gained 69% over the past year. Earnings are forecast to grow by 28% annually.
Industry Valuation and Performance
Has the Australian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 01 Feb 2025 | AU$100.3b | AU$7.6b | AU$288.2m | 71x | 348x | 13.1x |
| Mon, 30 Dec 2024 | AU$98.2b | AU$7.7b | AU$272.3m | 67.3x | 360.5x | 12.7x |
| Wed, 27 Nov 2024 | AU$99.7b | AU$7.7b | AU$277.1m | 64.9x | 359.7x | 13x |
| Fri, 25 Oct 2024 | AU$83.5b | AU$7.4b | AU$211.0m | 66x | 395.7x | 11.3x |
| Sun, 22 Sep 2024 | AU$93.0b | AU$7.4b | AU$200.3m | 67.9x | 464.1x | 12.5x |
| Tue, 20 Aug 2024 | AU$77.4b | AU$7.3b | -AU$104,717,136.66 | 62.2x | -738.8x | 10.6x |
| Thu, 18 Jul 2024 | AU$87.1b | AU$7.7b | -AU$96,045,747.55 | 61x | -907.2x | 11.3x |
| Sat, 15 Jun 2024 | AU$82.7b | AU$7.8b | -AU$91,614,845.79 | 59.8x | -902.9x | 10.6x |
| Mon, 13 May 2024 | AU$81.6b | AU$7.6b | -AU$316,527,083.59 | 61.3x | -257.8x | 10.8x |
| Wed, 10 Apr 2024 | AU$79.5b | AU$7.6b | -AU$383,949,828.08 | 65.5x | -207x | 10.5x |
| Fri, 08 Mar 2024 | AU$81.0b | AU$7.7b | -AU$402,304,631.67 | 61.1x | -201.3x | 10.5x |
| Sun, 04 Feb 2024 | AU$70.6b | AU$8.4b | -AU$1,049,046,024.00 | 61.1x | -67.3x | 8.4x |
| Tue, 02 Jan 2024 | AU$70.1b | AU$8.4b | -AU$1,046,756,541.00 | 60x | -66.9x | 8.4x |
| Thu, 30 Nov 2023 | AU$64.3b | AU$8.4b | -AU$1,049,910,549.00 | 58x | -61.3x | 7.7x |
| Sat, 28 Oct 2023 | AU$60.4b | AU$8.1b | -AU$1,118,553,552.00 | 54.4x | -54x | 7.5x |
| Mon, 25 Sep 2023 | AU$66.4b | AU$8.1b | -AU$1,117,449,857.00 | 59.9x | -59.5x | 8.2x |
| Wed, 23 Aug 2023 | AU$72.4b | AU$7.9b | -AU$1,008,318,502.00 | 52.5x | -71.8x | 9.2x |
| Fri, 21 Jul 2023 | AU$73.4b | AU$7.7b | -AU$887,241,696.00 | 48x | -82.8x | 9.6x |
| Sun, 18 Jun 2023 | AU$70.3b | AU$7.7b | -AU$895,287,775.00 | 49.5x | -78.5x | 9.2x |
| Tue, 16 May 2023 | AU$63.0b | AU$7.5b | -AU$877,091,298.00 | 45.9x | -71.8x | 8.4x |
| Thu, 13 Apr 2023 | AU$60.9b | AU$7.5b | -AU$872,406,277.00 | 44.1x | -69.8x | 8.1x |
| Sat, 11 Mar 2023 | AU$59.1b | AU$7.5b | -AU$877,846,243.00 | 46x | -67.3x | 7.9x |
| Mon, 06 Feb 2023 | AU$60.0b | AU$7.1b | -AU$708,203,228.00 | 55.2x | -84.7x | 8.4x |
| Wed, 04 Jan 2023 | AU$52.5b | AU$7.1b | -AU$713,815,213.00 | 49.1x | -73.5x | 7.4x |
| Fri, 02 Dec 2022 | AU$56.8b | AU$7.1b | -AU$726,040,549.00 | 54.7x | -78.2x | 8x |
| Sun, 30 Oct 2022 | AU$54.4b | AU$6.9b | -AU$711,815,473.00 | 47.4x | -76.5x | 7.9x |
| Tue, 27 Sep 2022 | AU$53.6b | AU$6.8b | -AU$661,061,574.00 | 46.5x | -81x | 7.8x |
| Thu, 25 Aug 2022 | AU$59.1b | AU$6.6b | -AU$544,727,371.00 | 39.2x | -108.6x | 8.9x |
| Sat, 23 Jul 2022 | AU$55.5b | AU$6.4b | -AU$465,904,230.00 | 26.1x | -119.2x | 8.7x |
| Mon, 20 Jun 2022 | AU$44.5b | AU$6.4b | -AU$457,900,647.00 | 26.7x | -97.1x | 6.9x |
| Wed, 18 May 2022 | AU$50.9b | AU$6.3b | -AU$432,612,328.00 | 25.7x | -117.7x | 8.1x |
| Fri, 15 Apr 2022 | AU$58.6b | AU$6.1b | -AU$436,765,500.00 | 31.8x | -134.1x | 9.5x |
| Sun, 13 Mar 2022 | AU$56.3b | AU$6.2b | -AU$441,221,893.00 | 31.6x | -127.6x | 9x |
| Tue, 08 Feb 2022 | AU$61.4b | AU$5.7b | -AU$148,758,080.00 | 42.8x | -412.7x | 10.7x |
Price to Earnings Ratio
-412.7x
Current Industry PE
- Investors are optimistic on the Australian Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 348x which is higher than its 3-year average PE of -85.0x.
- The 3-year average PS ratio of 9.4x is lower than the industry's current PS ratio of 13.1x.
Past Earnings Growth
- Total earnings for the Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 10% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Tech industry?
| AU Market | 1.28% | |
| Tech | 0.81% | |
| Software | 1.93% | |
| Systems Software | 13.34% | |
| Application Software | 1.86% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 1kx.
- Analysts are expecting annual earnings growth of 27.5%, which is higher than its past year's earnings growth of 6.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 62% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 27% 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 |
