Analysis Article • 13h
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- 7D-1.2%
- 3M1.2%
- 1Y-45.9%
- YTD-25.7%
Over the last 7 days, the Software industry has dropped 1.2%, driven by a pullback from WiseTech Global of 4.1%. Overall the industry is down 46% in 12 months. Looking forward, earnings are forecast to grow by 25% 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 |
|---|---|---|---|---|---|---|
| Mon, 31 Aug 2026 | AU$56.1b | AU$9.6b | AU$593.5m | 19.8x | 94.5x | 5.8x |
| Wed, 29 Jul 2026 | AU$50.5b | AU$9.1b | AU$453.4m | 19x | 111.4x | 5.5x |
| Fri, 26 Jun 2026 | AU$49.0b | AU$9.0b | AU$639.0m | 23.5x | 76.7x | 5.4x |
| Sun, 24 May 2026 | AU$51.3b | AU$8.9b | AU$626.2m | 22.7x | 82x | 5.8x |
| Tue, 21 Apr 2026 | AU$57.1b | AU$8.4b | AU$725.3m | 25.2x | 78.7x | 6.8x |
| Thu, 19 Mar 2026 | AU$53.5b | AU$8.5b | AU$728.8m | 22.2x | 73.4x | 6.3x |
| Sat, 14 Feb 2026 | AU$51.6b | AU$8.1b | AU$603.3m | 28.2x | 85.5x | 6.4x |
| Mon, 12 Jan 2026 | AU$73.7b | AU$8.2b | AU$652.0m | 35.3x | 113x | 9x |
| Wed, 10 Dec 2025 | AU$78.9b | AU$8.2b | AU$656.3m | 34.4x | 120.2x | 9.6x |
| Fri, 07 Nov 2025 | AU$88.1b | AU$8.1b | AU$635.0m | 35.6x | 138.7x | 10.9x |
| Sun, 05 Oct 2025 | AU$102.2b | AU$8.1b | AU$635.0m | 35.2x | 161x | 12.6x |
| Tue, 02 Sep 2025 | AU$99.4b | AU$8.1b | AU$637.9m | 33.6x | 155.8x | 12.2x |
| Thu, 31 Jul 2025 | AU$107.1b | AU$8.0b | AU$548.8m | 75.1x | 195.2x | 13.4x |
| Sat, 28 Jun 2025 | AU$99.9b | AU$8.0b | AU$537.1m | 77x | 186x | 12.5x |
| Mon, 26 May 2025 | AU$96.2b | AU$8.0b | AU$538.4m | 95x | 178.7x | 12x |
| Wed, 23 Apr 2025 | AU$77.3b | AU$7.9b | AU$419.1m | 60.4x | 184.5x | 9.8x |
| Fri, 21 Mar 2025 | AU$81.6b | AU$7.9b | AU$417.7m | 60.1x | 195.3x | 10.3x |
| Sun, 16 Feb 2025 | AU$102.6b | AU$7.6b | AU$343.5m | 54.9x | 298.6x | 13.4x |
| Tue, 14 Jan 2025 | AU$95.9b | AU$7.7b | AU$277.7m | 68.6x | 345.4x | 12.5x |
| Thu, 12 Dec 2024 | AU$97.6b | AU$7.7b | AU$275.2m | 65.6x | 354.9x | 12.7x |
| Sat, 09 Nov 2024 | AU$96.2b | AU$7.4b | AU$210.4m | 64.2x | 457.1x | 13x |
| Mon, 07 Oct 2024 | AU$92.7b | AU$7.4b | AU$213.6m | 66.1x | 433.9x | 12.6x |
| Wed, 04 Sep 2024 | AU$88.8b | AU$7.5b | AU$195.1m | 67.6x | 455.4x | 11.8x |
| Fri, 02 Aug 2024 | AU$77.9b | AU$7.3b | -AU$195,038,768.96 | 62.5x | -399.5x | 10.7x |
| Sun, 30 Jun 2024 | AU$86.0b | AU$7.8b | -AU$93,619,849.64 | 61.6x | -918.2x | 11.1x |
| Tue, 28 May 2024 | AU$84.3b | AU$7.8b | -AU$97,194,306.86 | 63.1x | -867.2x | 10.8x |
| Thu, 25 Apr 2024 | AU$78.6b | AU$7.6b | -AU$368,825,163.16 | 62.8x | -213.1x | 10.3x |
| Sat, 23 Mar 2024 | AU$82.4b | AU$7.6b | -AU$389,378,034.45 | 61.3x | -211.5x | 10.8x |
| Mon, 19 Feb 2024 | AU$73.1b | AU$7.6b | -AU$763,598,154.71 | 52.5x | -95.7x | 9.6x |
| Wed, 17 Jan 2024 | AU$68.0b | AU$8.4b | -AU$1,048,468,865.00 | 58.6x | -64.9x | 8.1x |
| Fri, 15 Dec 2023 | AU$66.9b | AU$8.4b | -AU$1,047,242,649.00 | 61x | -63.9x | 8x |
| Sun, 12 Nov 2023 | AU$62.3b | AU$8.3b | -AU$1,104,216,079.00 | 55.2x | -56.5x | 7.5x |
| Tue, 10 Oct 2023 | AU$64.0b | AU$8.1b | -AU$1,112,318,201.00 | 56.5x | -57.5x | 7.9x |
| Thu, 07 Sep 2023 | AU$69.5b | AU$8.1b | -AU$1,117,815,608.00 | 61.1x | -62.2x | 8.6x |
Price to Earnings Ratio
-62.2x
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 94.5x which is higher than its 3-year average PE of 44.2x.
- The 3-year average PS ratio of 9.9x is higher than the industry's current PS ratio of 5.8x.
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 6.0% 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 | 0.22% | |
| Tech | -0.70% | |
| Software | -1.17% | |
| Application Software | -1.12% | |
| Systems Software | -4.96% | |
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 24.1%, which is higher than its past year's earnings growth of 8.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 81% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 24% 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 | |
|---|---|---|---|---|---|
| NXL Nuix | AU$2.00 | 4.2% +AU$27.1m | -21.5% | PE41.1x | |
| HSN Hansen Technologies | AU$3.42 | 2.7% +AU$18.3m | -41.0% | PE14.6x | |
| CCR Credit Clear | AU$0.17 | 25.9% +AU$18.0m | -30.6% | PE19.6x | |
| SKK Stakk | AU$0.021 | 16.7% +AU$13.0m | 162.5% | PS25.2x | |
| IRI Integrated Research | AU$0.36 | 24.1% +AU$12.6m | -20.0% | PE53.7x |
