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Australian (ASX) Software Industry Analysis

UpdatedDec 14, 2025
DataAggregated Company Financials
Companies66
  • 7D-4.8%
  • 3M-24.8%
  • 1Y-24.6%
  • YTD-25.2%

Over the last 7 days, the Software industry has dropped 4.8%, driven by pullbacks in Life360 and Xero of 11% and 5.1%, respectively. On the other hand Echo IQ is actually up 12%. Overall the industry is down 25% in 12 months. As for the next few years, earnings are expected to grow by 25% per annum.

Industry Valuation and Performance

Has the Australian Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 14 Dec 2025AU$76.0bAU$8.2bAU$655.8m35.8x115.8x9.2x
Tue, 11 Nov 2025AU$88.4bAU$8.1bAU$632.6m35.3x139.7x10.9x
Thu, 09 Oct 2025AU$99.1bAU$8.1bAU$635.0m35.2x156x12.2x
Sat, 06 Sep 2025AU$98.0bAU$8.1bAU$641.4m33.4x152.9x12.1x
Mon, 04 Aug 2025AU$105.9bAU$8.0bAU$549.8m75.5x192.6x13.2x
Wed, 02 Jul 2025AU$99.9bAU$8.0bAU$537.5m77.7x185.8x12.5x
Fri, 30 May 2025AU$101.2bAU$8.1bAU$541.6m100.3x186.9x12.6x
Sun, 27 Apr 2025AU$80.7bAU$7.8bAU$485.3m61.1x166.3x10.3x
Tue, 25 Mar 2025AU$80.0bAU$7.9bAU$417.3m59.5x191.7x10.1x
Thu, 20 Feb 2025AU$102.5bAU$7.6bAU$345.8m54.8x296.3x13.4x
Sat, 18 Jan 2025AU$95.0bAU$7.6bAU$287.1m69x331x12.4x
Mon, 16 Dec 2024AU$97.7bAU$7.7bAU$274.6m66.2x355.7x12.7x
Wed, 13 Nov 2024AU$98.9bAU$7.4bAU$209.7m64x471.9x13.4x
Fri, 11 Oct 2024AU$95.5bAU$7.4bAU$211.8m65.1x450.6x12.9x
Sun, 08 Sep 2024AU$87.6bAU$7.5bAU$206.0m66.4x425.4x11.7x
Tue, 06 Aug 2024AU$70.5bAU$7.3b-AU$197,127,619.7860.1x-357.5x9.6x
Thu, 04 Jul 2024AU$84.6bAU$7.8b-AU$94,553,879.1059.4x-894.8x10.9x
Sat, 01 Jun 2024AU$83.7bAU$7.8b-AU$96,861,007.6962.4x-864.1x10.8x
Mon, 29 Apr 2024AU$78.2bAU$7.6b-AU$368,532,763.9063.2x-212.1x10.3x
Wed, 27 Mar 2024AU$81.5bAU$7.6b-AU$389,197,462.2861.3x-209.5x10.7x
Fri, 23 Feb 2024AU$75.1bAU$7.6b-AU$568,515,032.9152.7x-132.1x9.9x
Sun, 21 Jan 2024AU$69.9bAU$8.4b-AU$1,048,307,561.0058.8x-66.6x8.3x
Tue, 19 Dec 2023AU$68.7bAU$8.4b-AU$1,047,449,284.0060.3x-65.6x8.2x
Thu, 16 Nov 2023AU$65.1bAU$8.3b-AU$1,079,586,600.0057.8x-60.3x7.8x
Sat, 14 Oct 2023AU$65.7bAU$8.1b-AU$1,112,269,681.0058x-59.1x8.1x
Mon, 11 Sep 2023AU$69.0bAU$8.1b-AU$1,117,989,757.0060.7x-61.8x8.5x
Wed, 09 Aug 2023AU$74.5bAU$7.7b-AU$893,332,563.0051.5x-83.4x9.6x
Fri, 07 Jul 2023AU$69.5bAU$7.7b-AU$891,449,213.0050.8x-77.9x9x
Sun, 04 Jun 2023AU$68.7bAU$7.7b-AU$898,244,751.0051x-76.5x8.9x
Tue, 02 May 2023AU$61.4bAU$7.5b-AU$873,710,913.0046.8x-70.3x8.2x
Thu, 30 Mar 2023AU$58.5bAU$7.5b-AU$872,018,323.0044.1x-67.1x7.8x
Sat, 25 Feb 2023AU$58.3bAU$7.3b-AU$684,774,149.0054.2x-85.1x8x
Mon, 23 Jan 2023AU$55.7bAU$7.1b-AU$707,459,021.0053.1x-78.7x7.8x
Wed, 21 Dec 2022AU$52.4bAU$7.2b-AU$716,371,883.0050.4x-73.2x7.3x
Price to Earnings Ratio

-73.2x


Total Market Cap: AU$52.4bTotal Earnings: -AU$716,371,883.00Total Revenue: AU$7.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Software Industry Price to Earnings3Y Average 4.1x202320242025
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 116x which is higher than its 3-year average PE of 3.9x.
  • The 3-year average PS ratio of 10.3x is higher than the industry's current PS ratio of 9.2x.
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 4.8% 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 Market0.56%
Tech-3.91%
Software-4.85%
Systems Software1.03%
Application Software-4.91%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 2kx.
    • Analysts are expecting annual earnings growth of 25.0%, which is higher than its past year's earnings growth of 20.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 56% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 25% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
EIQ Echo IQAU$0.2812.2%
+AU$19.5m		12.2%PS1763.4x
IOD IODMAU$0.1722.2%
+AU$18.5m		3.1%PS31.1x
DUG DUG TechnologyAU$2.085.1%
+AU$13.5m		47.5%PS3x
AR9 archTISAU$0.1323.8%
+AU$11.9m		109.7%PS10.2x
ACE AcusensusAU$1.652.3%
+AU$5.3m		42.2%PS3.9x

Latest News

OCL
AU$16.73
Objective
7D
-3.9%
1Y
0.7%

OCL: Index Additions Will Likely Leave Shares Vulnerable To Future De-Rating

Analysts have modestly raised their price target, pointing to improved revenue growth expectations and a slightly higher future valuation multiple, despite a marginal uptick in the discount rate and stable profit margin assumptions. What's in the News Objective Corporation Limited (ASX:OCL) is actively pursuing acquisitions as part of its long standing M&A strategy, targeting deals that align with the strategic mission of each business line (management comments) Objective has been added to the S&P/ASX Small Ordinaries Index, increasing its visibility among small cap investors (index announcement) Objective has also been included in the S&P/ASX 300 Index, signaling broader market recognition and potential benchmark driven demand for the shares (index announcement) Valuation Changes Fair Value has risen slightly from A$8.47 to A$8.98 per share, reflecting higher growth expectations.
WTC
AU$70.97
WiseTech Global
7D
-3.2%
1Y
-41.6%

Is WiseTech Global (ASX:WTC) Using Too Much Debt?

Dec 11
Is WiseTech Global (ASX:WTC) Using Too Much Debt?
XRO
AU$112.84
Xero
7D
-5.1%
1Y
-33.2%

XRO: Stable Margins And Richer Earnings Multiple Will Drive Future Upside

Analysts have modestly raised their price target on Xero, citing slightly higher long term discount rate assumptions and a marginally richer future earnings multiple that together support a refined fair value estimate near $182 per share. Valuation Changes Fair Value: Unchanged at A$182.05 per share, indicating the updated assumptions broadly offset each other in the model.
360
AU$34.83
Life360
7D
-11.5%
1Y
49.0%

360: Index Inclusion Will Drive Future Upside In Family Safety Platform

Analysts have nudged their price target on Life360 slightly higher to approximately $49.81 per share, reflecting modestly increased confidence in the company’s long term growth and profitability profile, despite only incremental adjustments to discount rate and valuation assumptions. What's in the News Raised 2025 consolidated revenue guidance to a range of $474 million to $485 million, up from $462 million to $482 million, with higher targets across subscription, hardware, and other revenue streams (Corporate guidance) Launched Life360 Pet GPS, a dedicated pet tracker integrated into the Life360 app, expanding the platform into a whole family safety super app covering people, pets, and valuables (Product announcement) Introduced new pet safety features including geofencing and escape alerts, shareable pet profiles, and a community powered Pet Finder Network leveraging Life360's global user base (Product announcement) Added as a constituent to the S&P TMI Index, increasing visibility among institutional investors and index funds (Index inclusion) Included in the S&P Global BMI Index, further broadening Life360's presence in global benchmark indices (Index inclusion) Valuation Changes Fair Value: unchanged at A$49.81 per share, reflecting a stable view of intrinsic value despite minor model tweaks.
BVS
AU$2.49
Bravura Solutions
7D
-5.3%
1Y
12.7%
TNE
AU$27.20
Technology One
7D
-5.3%
1Y
-10.9%

TNE: Index Inclusions And Rising Dividends Will Drive Future Upside

Narrative Update on Technology One The analyst price target for Technology One has been revised slightly lower to approximately A$34.87 from about A$35.58, as analysts factor in a marginally higher discount rate that more than offsets modest upgrades to long term revenue growth and profit margin assumptions, alongside a slightly lower future P/E multiple. What's in the News Technology One declared a special dividend of 10.0 cents per share for the six months ended September 30, 2025, highlighting strong cash generation and balance sheet capacity (company announcement).
CAT
AU$4.22
Catapult Sports
7D
-7.7%
1Y
17.5%

CAT: Upcoming Industry Momentum Will Fuel Outperformance Over The Coming Year

Narrative Update on Catapult Sports Analysts have revised their price target for Catapult Sports downward from A$7.97 to A$7.02, citing adjustments for fair value and discount rate. However, they maintain a positive outlook due to expectations of sustainable, above-consensus revenue growth in the sports technology sector.
EIQ
AU$0.28
Echo IQ
7D
12.2%
1Y
12.2%
FCL
AU$2.65
FINEOS Corporation Holdings
7D
-6.0%
1Y
30.5%

A Look At The Intrinsic Value Of FINEOS Corporation Holdings plc (ASX:FCL)

Nov 23
A Look At The Intrinsic Value Of FINEOS Corporation Holdings plc (ASX:FCL)
ACE
AU$1.65
Acusensus
7D
2.3%
1Y
42.2%
DUG
AU$2.08
DUG Technology
7D
5.1%
1Y
47.5%

Some DUG Technology Ltd (ASX:DUG) Shareholders Look For Exit As Shares Take 25% Pounding

Nov 13
Some DUG Technology Ltd (ASX:DUG) Shareholders Look For Exit As Shares Take 25% Pounding
IOD
AU$0.17
IODM
7D
22.2%
1Y
3.1%
CCR
AU$0.27
Credit Clear
7D
3.9%
1Y
-18.5%
AR9
AU$0.13
archTIS
7D
23.8%
1Y
109.7%

Is Now An Opportune Moment To Examine archTIS Limited (ASX:AR9)?

Oct 30
Is Now An Opportune Moment To Examine archTIS Limited (ASX:AR9)?
IFG
AU$0.017
InFocus Group Holdings
7D
112.5%
1Y
-29.2%
VNL
AU$0.09
Vinyl Group
7D
2.3%
1Y
-20.0%