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

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 102x which is higher than its 3-year average PE of 38.1x. The 3-year average PS ratio of 10.0x is higher than the industry's current PS ratio of 5.1x.

Which industries have driven the changes within the Australian Tech industry?

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 23.9%, which is higher than its past year's earnings growth of 10.5% per year.

Australian (ASX) Software Industry Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Mon, 27 Jul 2026	AU$46.5b	AU$9.1b	AU$453.3m	18.3x	102.5x	5.1x
Wed, 24 Jun 2026	AU$46.4b	AU$9.0b	AU$636.0m	23.5x	73x	5.2x
Fri, 22 May 2026	AU$51.6b	AU$8.9b	AU$626.8m	23.8x	82.3x	5.8x
Sun, 19 Apr 2026	AU$57.1b	AU$8.4b	AU$724.3m	24.6x	78.8x	6.8x
Tue, 17 Mar 2026	AU$55.0b	AU$8.6b	AU$736.0m	22.2x	74.7x	6.4x
Thu, 12 Feb 2026	AU$59.5b	AU$8.0b	AU$600.1m	34.6x	99.2x	7.4x
Sat, 10 Jan 2026	AU$73.7b	AU$8.2b	AU$652.1m	35.1x	113x	9x
Mon, 08 Dec 2025	AU$79.8b	AU$8.2b	AU$655.7m	34.4x	121.7x	9.7x
Wed, 05 Nov 2025	AU$89.4b	AU$8.1b	AU$636.0m	36.1x	140.6x	11x
Fri, 03 Oct 2025	AU$100.7b	AU$8.1b	AU$635.8m	34.9x	158.4x	12.4x
Sun, 31 Aug 2025	AU$102.5b	AU$8.2b	AU$623.2m	29.3x	164.4x	12.5x
Tue, 29 Jul 2025	AU$107.4b	AU$8.0b	AU$547.2m	74.6x	196.4x	13.5x
Thu, 26 Jun 2025	AU$101.2b	AU$8.0b	AU$538.7m	75.7x	187.8x	12.6x
Sat, 24 May 2025	AU$96.2b	AU$8.0b	AU$539.7m	95x	178.2x	12x
Mon, 21 Apr 2025	AU$78.5b	AU$7.9b	AU$418.4m	61.3x	187.7x	9.9x
Wed, 19 Mar 2025	AU$80.8b	AU$7.9b	AU$414.9m	58.6x	194.7x	10.3x
Fri, 14 Feb 2025	AU$101.5b	AU$7.7b	AU$341.5m	54.7x	297.3x	13.2x
Sun, 12 Jan 2025	AU$99.2b	AU$7.7b	AU$278.1m	70.4x	356.6x	12.9x
Tue, 10 Dec 2024	AU$103.2b	AU$7.7b	AU$285.6m	64.2x	361.4x	13.5x
Thu, 07 Nov 2024	AU$93.4b	AU$7.4b	AU$209.2m	63.8x	446.3x	12.6x
Sat, 05 Oct 2024	AU$92.7b	AU$7.4b	AU$214.9m	66.5x	431.1x	12.6x
Mon, 02 Sep 2024	AU$86.6b	AU$7.5b	AU$200.9m	67.8x	431.1x	11.5x
Wed, 31 Jul 2024	AU$84.0b	AU$7.7b	-AU$90,152,886.54	62.5x	-931.7x	10.9x
Fri, 28 Jun 2024	AU$85.0b	AU$7.8b	-AU$93,112,154.54	60.9x	-912.5x	10.9x
Sun, 26 May 2024	AU$83.6b	AU$7.8b	-AU$97,316,708.32	61.3x	-859x	10.7x
Tue, 23 Apr 2024	AU$76.4b	AU$7.6b	-AU$369,339,416.33	63.2x	-206.9x	10x
Thu, 21 Mar 2024	AU$81.3b	AU$7.6b	-AU$389,606,863.17	61x	-208.6x	10.6x
Sat, 17 Feb 2024	AU$73.1b	AU$7.6b	-AU$763,620,151.71	52.5x	-95.7x	9.6x
Mon, 15 Jan 2024	AU$68.5b	AU$8.4b	-AU$1,047,986,363.00	59.6x	-65.3x	8.2x
Wed, 13 Dec 2023	AU$66.7b	AU$8.4b	-AU$1,048,305,463.00	59.9x	-63.7x	7.9x
Fri, 10 Nov 2023	AU$62.4b	AU$8.3b	-AU$1,103,582,557.00	55.3x	-56.5x	7.5x
Sun, 08 Oct 2023	AU$64.2b	AU$8.1b	-AU$1,112,128,807.00	57.8x	-57.7x	7.9x
Tue, 05 Sep 2023	AU$70.4b	AU$8.1b	-AU$1,117,049,240.00	62.6x	-63x	8.7x
Thu, 03 Aug 2023	AU$74.8b	AU$7.7b	-AU$892,810,850.00	51.7x	-83.7x	9.7x


AU Market	-0.36%
Tech	-6.86%
Software	-10.53%
Application Software	-10.06%
Systems Software	-31.31%

Company	Last Price	7D	1Y	Valuation
CAT Catapult Sports	AU$3.52	5.1% +AU$53.4m	-45.0%	PS5.5x
IOV Ion Video	AU$0.46	35.3% +AU$15.9m	360.0%	PS92.1x
IRE Iress	AU$6.59	0.5% +AU$5.6m	-14.6%	PE15.5x
DCC DigitalX	AU$0.027	12.5% +AU$4.5m	-72.4%	PS7.9x
SNS SenSen Networks	AU$0.031	19.2% +AU$4.1m	3.3%	PE13.8x

Announcement • Jul 08

Xero Announces New Ai-Powered Features Within Its Agentic Platform Jax

Xero announced new AI-powered features within its agentic platform JAX that make it easier for small businesses and accountants and bookkeepers to keep their books clean, automate time-consuming financial workflows, and stay on top of cash flow. Also showcased were recently introduced integrations with Microsoft 365 and Anthropic which bring Xero financial intelligence and data into the everyday tools small businesses and accountants already use. JAX, Xero’s agentic platform, simplifies end-to-end bookkeeping, automates routine tasks and proactively manages cash flow for millions of small businesses and accountants. Book health starts with data health, and Xero is making the entire end-to-end journey from preparing books to filing taxes happen seamlessly in one unified platform with the following innovations: Xero Partner Hub is evolving to bring live book health, work status, and month-end readiness into a single view connected directly to tax and advisory. This will allow practices to seamlessly manage their entire portfolio's books-to-tax compliance workflow in one centralized place. Smart Document Capture is where the journey starts. JAX reads source documents and automatically extracts relevant data and information directly into Xero. Over the coming months, Xero will introduce capabilities to extract data from bank statements, auto-create transactions, and check VAT. Auto Bank Reconciliation powered by JAX automates one of the most time consuming manual tasks in bookkeeping by matching transactions to bank feeds automatically, in real-time. It will soon automate complex cases, such as splitting a single payment across sales and fees. Document chasing is coming soon where JAX will automatically identify transactions missing a receipt, so you don’t have to search through files to determine what’s missing. Xero is also bringing stress-free compliance to customers, expanding on its current UK offerings which include Partnership Tax, Incorporated Accounts Production, and Making Tax Digital for Income Tax, to bring Corporation Tax directly into the platform later this year. Because Xero's compliance engines run natively on live, transaction-level data, the active ledger minimizes errors, speeds up reviews, and maintains absolute traceability from receipt to return. Xero has also introduced new native capabilities and third-party integrations that securely connect Xero data with apps and tools small businesses and accountants and bookkeepers use every day to remove operational complexity and turn fragmented tasks into streamlined, automated financial workflows. To help businesses and practices turn manual financial tasks into durable, scalable workflows, Xero introduced XeroForce, a natural language custom AI agent builder powered by Xero OS. Without writing code, accountants and small businesses can use simple prompts to build custom AI agents that connect Xero to the third-party apps they already use. Through advanced integrations with Anthropic’s Claude and Microsoft 365 Copilot, Xero is orchestrating workflows wherever a small business or accountant works. These integrations allow customers to securely access and query their live Xero financial data directly from their everyday productivity suites. As small businesses scale, their financial operations naturally become more complex, often forcing them to outgrow their favorite tools. Xero is changing that trajectory with Xero Ultra, bringing enterprise-style financial control and reporting, without the enterprise-style cost, disruption or implementation burden — on the Xero platform finance teams and their advisors already know and trust. Cash flow is critical for any business and it all starts with getting paid. Xero Payments is already helping customers end more months cash flow positive and new JAX innovations introduced aim to automate even more of the payments flow to further improve cash flow for businesses. Payment Follow Ups: JAX will analyze a customer’s unique payment history and automatically execute tailored collection plans. Whether consolidating multiple invoices, sending perfectly timed nudges, or pivoting to SMS for non-responsive clients, JAX dynamically adapts to payment behavior to secure faster payouts. Bill Protection: JAX will automatically inspect every bill before payment, flagging unusual amounts, altered bank details, or unfamiliar suppliers, catching anomalies that manual reviews might miss. Cash Flow Actions: JAX actively builds preventative plans and can suggest delaying non-critical bills, protecting payroll, and bridging remaining gaps. Because everything lives on the same ledger, businesses can review, adjust, and execute the plan without leaving Xero. All of the features announced sit within the AI-native Xero OS, which gives small businesses and accountants the financial control and clarity they need in one unified platform.

Announcement • Jun 23

BrainChip Holdings Ltd. Unveils Akida Communication Reference Platform for RF Signal Classification

BrainChip Holdings Ltd. announced the Akida Communication Reference Platform, a physical development platform for RF signal classification using BrainChip’s Akida AKD1500 neuromorphic processor. The platform is a critical tool for defense contractors and government agencies who need real-time, on-device signal intelligence at the edge but are constrained by power budgets, thermal limits and SWaP-C requirements that GPU- and FPGA-based solutions cannot meet. The Akida Communications Reference Platform is designed to fuel the exploding demand for on-device signal intelligence worldwide and is a key component of extending BrainChip's core ‘Always-On AI at the Edge’ strategy to RF at the edge. The platform provides fully on-device processing for personnel operating in environments where they cannot rely on wired power, large and/or heavy form-factors and cloud server connections for signal classification. Powered by BrainChip’s Akida AKD1500 chip, the platform delivers sub-watt continuous inference versus multi-watt power consumed by competitive FPGA or GPU-based edge AI modules. Rule-based digital signal processing (DSP) systems are challenged to adapt to novel or adversarial modulated signals. The Akida model classifies more than 20 modulation types in real time while consuming sub-watt inference power, with an accuracy of greater than 85% accuracy at a signal-to-noise ratio of 30 decibels. As new wireless emitter threats emerge, the platform can capture data of unrecognized waveforms to retrain the model to recognize them, extending the operational utility of the platform to adapt in the field. This closes a gap left by DSP classifier algorithms that are difficult to adapt, power-hungry and too large for deployment in unmanned aerial vehicles (UAVs), handheld SIGINT devices or satellite terminals. Available for evaluation and partner integration, the platform can be used as a hardware reference design kit intended for defense contractors, government agencies, SDR vendors and edge AI system integrators who want to evaluate or prototype neuromorphic AI-based RF signal classification. The platform, which provides real-time threat detection in battery-powered devices, integrates with software-defined radio (SDR) front ends, such as the USRP B205mini or the EPIQ Sidekiq using a host system such as the Raspberry Pi 5 computer. Engineering and product teams can use it to develop custom intelligence, surveillance and reconnaissance functions and SIGINT applications.

Australian (ASX) Software Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

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New minor risk - Profitability

Xero Announces New Ai-Powered Features Within Its Agentic Platform Jax

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BrainChip Holdings Ltd. Unveils Akida Communication Reference Platform for RF Signal Classification

New major risk - Shareholder dilution

New minor risk - Share price stability