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Canadian (TSX) Software Industry Analysis

UpdatedMar 06, 2026
DataAggregated Company Financials
Companies80
  • 7D6.6%
  • 3M-17.4%
  • 1Y-35.5%
  • YTD-14.1%

Over the last 7 days, the Software industry has risen 6.6%, driven by gains from Constellation Software of 7.3%. In the same time, BTQ Technologies was down 16%. In contrast, the industry has lost 35% in the last 12 months. As for the next few years, earnings are expected to grow by 23% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 06 Mar 2026CA$96.8bCA$26.2bCA$60.9m39.6x1588.4x3.7x
Sun, 01 Feb 2026CA$96.1bCA$25.9bCA$120.8m36.2x795.4x3.7x
Tue, 30 Dec 2025CA$121.8bCA$26.0bCA$149.9m49.2x812.6x4.7x
Thu, 27 Nov 2025CA$123.9bCA$26.6bCA$139.5m47.7x888.3x4.7x
Sat, 25 Oct 2025CA$137.1bCA$25.6bCA$255.7m55.9x536.3x5.4x
Mon, 22 Sep 2025CA$154.7bCA$25.3bCA$244.3m60.4x633.2x6.1x
Wed, 20 Aug 2025CA$153.0bCA$25.3bCA$238.6m48x641.3x6x
Fri, 18 Jul 2025CA$168.1bCA$24.3bCA$176.6m55x951.8x6.9x
Sun, 15 Jun 2025CA$159.6bCA$24.1bCA$154.9m42.6x1030.6x6.6x
Tue, 13 May 2025CA$167.6bCA$24.1bCA$965.7m34x173.5x6.9x
Thu, 10 Apr 2025CA$140.5bCA$24.2bCA$447.7m27.4x313.8x5.8x
Sat, 08 Mar 2025CA$157.7bCA$24.4b-CA$120,898,204.2926.4x-1304.1x6.5x
Mon, 03 Feb 2025CA$159.0bCA$24.3b-CA$2,430,394,011.1241.4x-65.4x6.5x
Wed, 01 Jan 2025CA$151.9bCA$24.0b-CA$2,408,266,940.8942.4x-63.1x6.3x
Fri, 29 Nov 2024CA$157.8bCA$23.5b-CA$2,352,357,642.5946.8x-67.1x6.7x
Sun, 27 Oct 2024CA$142.3bCA$22.4b-CA$2,523,868,954.9242.3x-56.4x6.3x
Tue, 24 Sep 2024CA$144.5bCA$22.0b-CA$2,501,950,147.8740.8x-57.7x6.6x
Thu, 22 Aug 2024CA$140.8bCA$22.1b-CA$2,498,323,442.2438.8x-56.4x6.4x
Sat, 20 Jul 2024CA$140.7bCA$21.5b-CA$3,409,058,223.8947x-41.3x6.6x
Mon, 17 Jun 2024CA$131.3bCA$21.7b-CA$3,393,225,124.1540.2x-38.7x6.1x
Wed, 15 May 2024CA$129.6bCA$21.5b-CA$3,523,746,602.6748.9x-36.8x6x
Fri, 12 Apr 2024CA$128.8bCA$20.9b-CA$4,242,321,687.6822.8x-30.4x6.2x
Sun, 10 Mar 2024CA$125.2bCA$20.6b-CA$4,785,941,246.5526.6x-26.2x6.1x
Tue, 06 Feb 2024CA$120.5bCA$19.7b-CA$3,951,748,504.6725.8x-30.5x6.1x
Thu, 04 Jan 2024CA$113.1bCA$19.8b-CA$3,950,643,603.0026.1x-28.6x5.7x
Sat, 02 Dec 2023CA$110.3bCA$19.9b-CA$4,154,026,216.0030.4x-26.6x5.5x
Mon, 30 Oct 2023CA$94.8bCA$19.7b-CA$4,245,098,148.0068.1x-22.3x4.8x
Wed, 27 Sep 2023CA$98.3bCA$19.3b-CA$4,168,194,250.0053.8x-23.6x5.1x
Fri, 25 Aug 2023CA$101.1bCA$19.4b-CA$4,162,018,560.0057.2x-24.3x5.2x
Sun, 23 Jul 2023CA$104.6bCA$18.2b-CA$3,860,894,248.0073.2x-27.1x5.8x
Tue, 20 Jun 2023CA$100.9bCA$17.9b-CA$3,943,966,465.0072.8x-25.6x5.6x
Thu, 18 May 2023CA$98.6bCA$18.0b-CA$3,221,185,101.0064.1x-30.6x5.5x
Sat, 15 Apr 2023CA$97.9bCA$16.9b-CA$3,301,052,564.0049x-29.7x5.8x
Mon, 13 Mar 2023CA$86.7bCA$16.8b-CA$2,571,687,211.0040.7x-33.7x5.2x
Price to Earnings Ratio

-33.7x


Total Market Cap: CA$86.7bTotal Earnings: -CA$2,571,687,211.00Total Revenue: CA$16.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Software Industry Price to Earnings3Y Average 169.7x202420252026
Current Industry PE
  • Investors are optimistic on the Canadian Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 2kx which is higher than its 3-year average PE of 170x.
  • The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 3.7x.
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 16% 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 Canadian Tech industry?

CA Market-2.97%
Tech2.56%
Software6.55%
Application Software6.78%
Systems Software1.50%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 155x.
    • Analysts are expecting annual earnings growth of 22.4%, which is higher than its past year's earnings growth of 12.9% per year.
  • Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 78.5x.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 28% over the next 5 years.
  • However this is lower than its past earnings growth rate of 99% per year.
  • In contrast, the Application Software industry is expected to see its earnings grow by 22% 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
CSU Constellation SoftwareCA$2.80k7.3%
+CA$4.0b
-43.0%PE63.1x
LMN Lumine GroupCA$26.0517.1%
+CA$975.2m
-29.1%PE41.2x
TOI Topicus.comCA$105.9812.1%
+CA$956.7m
-26.3%PE133.3x
DSG Descartes Systems GroupCA$97.895.4%
+CA$434.2m
-32.6%PE39.6x
KXS KinaxisCA$134.644.0%
+CA$143.5m
-14.7%PE38.5x

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