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May 03
Australian (ASX) Software Industry Analysis
UpdatedMay 04, 2024
DataAggregated Company Financials
Companies84
- 7D2.2%
- 3M18.4%
- 1Y35.1%
- YTD18.8%
Over the last 7 days, the Software industry has risen 2.2%, driven by gains from Xero of 4.1%. Meanwhile, BrainChip Holdings actually underperformed within the industry, shrinking 20% in the last week. This means that the industry has gained 35% over the past year. As for the next few years, earnings are expected to grow by 34% per annum.
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 |
|---|---|---|---|---|---|---|
| Sun, 05 May 2024 | AU$79.9b | AU$7.6b | -AU$322,913,652.58 | 63.8x | -247.4x | 10.6x |
| Tue, 02 Apr 2024 | AU$81.5b | AU$7.6b | -AU$387,839,811.55 | 63x | -210.1x | 10.7x |
| Thu, 29 Feb 2024 | AU$78.9b | AU$7.7b | -AU$477,883,230.15 | 56.8x | -165.1x | 10.2x |
| Sat, 27 Jan 2024 | AU$69.7b | AU$8.4b | -AU$1,048,353,753.00 | 60.7x | -66.5x | 8.3x |
| Mon, 25 Dec 2023 | AU$68.8b | AU$8.4b | -AU$1,046,713,887.00 | 60.7x | -65.8x | 8.2x |
| Wed, 22 Nov 2023 | AU$64.4b | AU$8.4b | -AU$1,057,547,168.00 | 57.3x | -60.9x | 7.7x |
| Fri, 20 Oct 2023 | AU$63.2b | AU$8.1b | -AU$1,119,403,421.00 | 58.2x | -56.5x | 7.8x |
| Sun, 17 Sep 2023 | AU$69.5b | AU$8.1b | -AU$1,116,615,884.00 | 60.1x | -62.3x | 8.6x |
| Tue, 15 Aug 2023 | AU$73.5b | AU$7.7b | -AU$892,591,052.00 | 50.9x | -82.3x | 9.5x |
| Thu, 13 Jul 2023 | AU$69.1b | AU$7.7b | -AU$890,051,417.00 | 48x | -77.6x | 9x |
| Sat, 10 Jun 2023 | AU$67.3b | AU$7.7b | -AU$895,238,292.00 | 49.5x | -75.2x | 8.7x |
| Mon, 08 May 2023 | AU$61.4b | AU$7.5b | -AU$876,444,181.00 | 48.9x | -70x | 8.2x |
| Wed, 05 Apr 2023 | AU$61.6b | AU$7.5b | -AU$869,660,235.00 | 45.3x | -70.8x | 8.2x |
| Fri, 03 Mar 2023 | AU$57.4b | AU$7.3b | -AU$694,526,727.00 | 45.9x | -82.6x | 7.9x |
| Sun, 29 Jan 2023 | AU$57.1b | AU$7.1b | -AU$702,507,416.00 | 54.1x | -81.2x | 8.1x |
| Tue, 27 Dec 2022 | AU$52.9b | AU$7.1b | -AU$714,119,932.00 | 50.1x | -74x | 7.4x |
| Thu, 24 Nov 2022 | AU$53.8b | AU$7.1b | -AU$731,867,101.00 | 50x | -73.4x | 7.6x |
| Sat, 22 Oct 2022 | AU$53.9b | AU$6.9b | -AU$713,903,755.00 | 48.1x | -75.4x | 7.8x |
| Mon, 19 Sep 2022 | AU$56.5b | AU$6.8b | -AU$657,290,941.00 | 49.3x | -86x | 8.3x |
| Wed, 17 Aug 2022 | AU$59.1b | AU$6.4b | -AU$467,333,594.00 | 27.3x | -126.5x | 9.3x |
| Fri, 15 Jul 2022 | AU$51.3b | AU$6.4b | -AU$468,740,484.00 | 25.2x | -109.4x | 8x |
| Sun, 12 Jun 2022 | AU$48.8b | AU$6.3b | -AU$432,061,812.00 | 29.4x | -112.9x | 7.7x |
| Tue, 10 May 2022 | AU$50.8b | AU$6.2b | -AU$441,254,293.00 | 27.2x | -115.1x | 8.2x |
| Thu, 07 Apr 2022 | AU$61.5b | AU$6.1b | -AU$431,331,509.00 | 33.2x | -142.6x | 10.1x |
| Sat, 05 Mar 2022 | AU$58.0b | AU$6.2b | -AU$430,752,814.00 | 37.1x | -134.6x | 9.3x |
| Mon, 31 Jan 2022 | AU$59.7b | AU$5.7b | -AU$144,445,070.00 | 40.5x | -413.6x | 10.4x |
| Wed, 29 Dec 2021 | AU$73.3b | AU$5.5b | -AU$151,126,648.00 | 39.6x | -485x | 13.3x |
| Fri, 26 Nov 2021 | AU$71.6b | AU$5.5b | -AU$145,691,496.00 | 46.7x | -491.6x | 13x |
| Sun, 24 Oct 2021 | AU$72.6b | AU$5.5b | -AU$131,957,596.00 | 45.3x | -549.8x | 13.3x |
| Tue, 21 Sep 2021 | AU$69.7b | AU$5.5b | -AU$135,152,607.00 | 44x | -515.6x | 12.7x |
| Thu, 19 Aug 2021 | AU$66.0b | AU$5.4b | -AU$118,915,907.78 | 45.5x | -554.8x | 12.3x |
| Thu, 03 Jun 2021 | AU$56.9b | AU$5.2b | -AU$119,068,098.50 | 35x | -477.5x | 10.9x |
Price to Earnings Ratio
-477.5x
Current Industry PE
- Investors are optimistic on the Australian Software industry, and appear confident in long term growth rates.
- The 3-year average PS ratio of 9.5x is lower than the industry's current PS ratio of 10.6x.
Past Earnings Growth
- The earnings for companies in the Software industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 13% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has caused losses to expand.
Industry Trends
Which industries have driven the changes within the Australian Tech industry?
| AU Market | 0.70% | |
| Tech | 1.81% | |
| Software | 2.21% | |
| Application Software | 2.22% | |
| Systems Software | 1.22% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 70% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 34% 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$125.22 | 4.1% +AU$758.4m | 36.0% | PS13.6x | |
| WTC WiseTech Global | AU$92.27 | 1.8% +AU$549.2m | 35.7% | PE137.9x | |
| 360 Life360 | AU$14.80 | 8.3% +AU$242.4m | 191.9% | PS6.7x | |
| TNE Technology One | AU$16.12 | 2.8% +AU$143.3m | 10.8% | PE51x | |
| ALU Altium | AU$66.00 | 0.9% +AU$79.2m | 79.9% | PE82.6x |
