Narrative Update • Jun 18
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- 7D-8.8%
- 3M-19.6%
- 1Y-33.0%
- YTD-33.2%
Over the last 7 days, the Software industry has dropped 6.9%, driven by a pullback from TOTVS of 7.0%. The industry has fallen 34% in the last year. Looking forward, earnings are forecast to grow by 20% annually.
Industry Valuation and Performance
Has the Brazilian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 19 Jun 2026 | R$16.0b | R$6.3b | R$844.9m | 18.4x | 19x | 2.5x |
| Sun, 17 May 2026 | R$18.4b | R$6.4b | R$849.4m | 21.1x | 21.6x | 2.9x |
| Tue, 14 Apr 2026 | R$20.6b | R$6.0b | R$807.3m | 24.9x | 25.5x | 3.4x |
| Thu, 12 Mar 2026 | R$22.3b | R$6.0b | R$793.0m | 27.2x | 28.2x | 3.7x |
| Sat, 07 Feb 2026 | R$22.3b | R$6.2b | R$792.9m | 27.4x | 28.1x | 3.6x |
| Mon, 05 Jan 2026 | R$24.3b | R$6.2b | R$792.9m | 29.6x | 30.7x | 3.9x |
| Wed, 03 Dec 2025 | R$26.1b | R$6.2b | R$792.9m | 31.8x | 32.9x | 4.2x |
| Fri, 31 Oct 2025 | R$25.9b | R$6.0b | R$829.6m | 29.9x | 31.2x | 4.4x |
| Sun, 28 Sep 2025 | R$26.7b | R$6.0b | R$829.6m | 30.7x | 32.1x | 4.5x |
| Tue, 26 Aug 2025 | R$25.1b | R$6.0b | R$829.6m | 28.9x | 30.3x | 4.2x |
| Thu, 24 Jul 2025 | R$25.3b | R$5.7b | R$754.7m | 32x | 33.6x | 4.4x |
| Sat, 21 Jun 2025 | R$24.2b | R$5.7b | R$754.7m | 30.5x | 32.1x | 4.2x |
| Mon, 19 May 2025 | R$24.6b | R$5.7b | R$752.1m | 31x | 32.7x | 4.3x |
| Wed, 16 Apr 2025 | R$21.9b | R$5.5b | R$684.8m | 30.2x | 31.9x | 4x |
| Fri, 14 Mar 2025 | R$22.1b | R$6.0b | R$682.0m | 27.7x | 32.4x | 3.7x |
| Sun, 09 Feb 2025 | R$22.2b | R$5.8b | R$614.6m | 30.9x | 36.1x | 3.8x |
| Tue, 07 Jan 2025 | R$17.7b | R$5.8b | R$614.6m | 25.2x | 28.8x | 3x |
| Thu, 05 Dec 2024 | R$18.3b | R$5.8b | R$614.6m | 25x | 29.7x | 3.1x |
| Sat, 02 Nov 2024 | R$19.8b | R$5.6b | R$512.3m | 33.7x | 38.6x | 3.5x |
| Mon, 30 Sep 2024 | R$18.7b | R$5.6b | R$512.3m | 30.8x | 36.6x | 3.3x |
| Wed, 28 Aug 2024 | R$20.3b | R$5.6b | R$512.3m | 34.1x | 39.6x | 3.6x |
| Fri, 26 Jul 2024 | R$18.4b | R$5.4b | R$511.5m | 31.1x | 36x | 3.4x |
| Sun, 23 Jun 2024 | R$19.6b | R$5.4b | R$511.5m | 33.7x | 38.2x | 3.6x |
| Tue, 21 May 2024 | R$19.0b | R$5.4b | R$511.5m | 32.8x | 37.2x | 3.5x |
| Thu, 18 Apr 2024 | R$18.0b | R$5.3b | R$481.7m | 59x | 37.3x | 3.4x |
| Sat, 16 Mar 2024 | R$19.7b | R$5.3b | R$481.6m | 66.1x | 40.9x | 3.7x |
| Mon, 12 Feb 2024 | R$19.5b | R$5.3b | R$488.0m | 32.3x | 39.9x | 3.7x |
| Wed, 10 Jan 2024 | R$23.0b | R$5.8b | R$525.1m | 36.8x | 43.7x | 4x |
| Fri, 08 Dec 2023 | R$24.0b | R$5.8b | R$525.1m | 39.2x | 45.8x | 4.2x |
| Sun, 05 Nov 2023 | R$20.1b | R$5.6b | R$494.0m | 34.7x | 40.7x | 3.6x |
| Tue, 03 Oct 2023 | R$19.8b | R$5.6b | R$494.0m | 34.1x | 40x | 3.5x |
| Thu, 31 Aug 2023 | R$20.9b | R$5.6b | R$494.0m | 35.7x | 42.2x | 3.7x |
| Sat, 29 Jul 2023 | R$21.3b | R$5.4b | R$515.9m | 34.8x | 41.2x | 3.9x |
| Mon, 26 Jun 2023 | R$21.7b | R$5.4b | R$515.9m | 35.5x | 42x | 4x |
Price to Earnings Ratio
42x
Current Industry PE
- There are only 2 companies in the Brazilian Software industry, so there is insufficient data to make an industry-wide assessment of both the PE and PS ratio.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 18% per year over the last three years.
- Revenues for these companies have grown 5.6% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Brazilian Tech industry?
| BR Market | -1.54% | |
| Tech | -6.15% | |
| Software | -8.77% | |
| Application Software | 0.12% | |
| Systems Software | -8.93% | |
Industry PE
- Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 33.5x.
- Analysts expect its future annual earnings growth (19.7%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 20% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Systems Software industry is expected to see its earnings grow by 20% 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 | |
|---|---|---|---|---|---|
| NGRD3 Neogrid Participações | R$34.09 | 0.1% +R$358.2k | 28.6% | PS1.1x |