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Canadian (TSX) Application Software Industry Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies72
  • 7D-3.2%
  • 3M-24.0%
  • 1Y-37.2%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 3.2%, driven by Constellation Software declining 2.5%. Meanwhile, Aduro Clean Technologies actually outperformed within the industry, gaining 8.3% in the last week. Overall the industry is down 37% in 12 months. Looking forward, earnings are forecast to grow by 25% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 29 Jan 2026CA$98.0bCA$24.8bCA$122.6m39.2x799.1x3.9x
Sat, 27 Dec 2025CA$116.6bCA$25.0bCA$136.7m38.7x853.1x4.7x
Mon, 24 Nov 2025CA$114.9bCA$25.6bCA$133.4m48.2x861.2x4.5x
Wed, 22 Oct 2025CA$130.6bCA$24.6bCA$234.8m56.1x556.1x5.3x
Fri, 19 Sep 2025CA$146.2bCA$24.3bCA$238.1m60.4x614x6x
Sun, 17 Aug 2025CA$147.9bCA$24.3bCA$229.6m47x644x6.1x
Tue, 15 Jul 2025CA$160.0bCA$23.3bCA$166.0m41.8x964x6.9x
Thu, 12 Jun 2025CA$156.8bCA$23.2bCA$172.0m39.6x911.8x6.8x
Sat, 10 May 2025CA$165.1bCA$23.0bCA$990.7m30.3x166.7x7.2x
Mon, 07 Apr 2025CA$139.2bCA$23.3bCA$483.9m25.3x287.7x6x
Wed, 05 Mar 2025CA$153.3bCA$23.1b-CA$2,122,286,637.3926.7x-72.2x6.6x
Fri, 31 Jan 2025CA$153.0bCA$22.9b-CA$2,187,937,421.1824.8x-69.9x6.7x
Sun, 29 Dec 2024CA$149.1bCA$22.8b-CA$2,176,313,352.3025.5x-68.5x6.5x
Tue, 26 Nov 2024CA$151.0bCA$22.2b-CA$2,140,185,146.6628x-70.5x6.8x
Thu, 24 Oct 2024CA$142.6bCA$21.2b-CA$2,308,798,196.0422.4x-61.8x6.7x
Sat, 21 Sep 2024CA$142.6bCA$20.9b-CA$2,269,114,929.9223.3x-62.8x6.8x
Mon, 19 Aug 2024CA$138.1bCA$21.1b-CA$2,278,363,993.2032x-60.6x6.6x
Wed, 17 Jul 2024CA$138.4bCA$20.2b-CA$3,155,245,156.7144.4x-43.9x6.8x
Fri, 14 Jun 2024CA$127.9bCA$20.2b-CA$3,142,887,515.2936.8x-40.7x6.3x
Sun, 12 May 2024CA$126.6bCA$20.0b-CA$3,279,078,660.6835.5x-38.6x6.3x
Tue, 09 Apr 2024CA$124.8bCA$19.3b-CA$3,946,092,987.0921.8x-31.6x6.5x
Thu, 07 Mar 2024CA$118.8bCA$18.6b-CA$3,935,977,017.4724.6x-30.2x6.4x
Sat, 03 Feb 2024CA$122.8bCA$18.4b-CA$3,166,866,643.0026.2x-38.8x6.7x
Mon, 01 Jan 2024CA$111.6bCA$18.3b-CA$3,229,732,753.0026.8x-34.6x6.1x
Wed, 29 Nov 2023CA$107.1bCA$18.7b-CA$3,371,139,659.0044.3x-31.8x5.7x
Fri, 27 Oct 2023CA$92.1bCA$18.1b-CA$3,418,229,127.0042.6x-26.9x5.1x
Sun, 24 Sep 2023CA$93.6bCA$17.7b-CA$3,355,721,451.0041.2x-27.9x5.3x
Tue, 22 Aug 2023CA$95.1bCA$17.8b-CA$3,356,633,103.0042.8x-28.3x5.3x
Thu, 20 Jul 2023CA$100.4bCA$16.6b-CA$3,082,567,139.0063.5x-32.6x6x
Sat, 17 Jun 2023CA$96.0bCA$16.7b-CA$2,963,001,768.0061.6x-32.4x5.8x
Mon, 15 May 2023CA$91.4bCA$16.1b-CA$2,216,864,602.0052x-41.2x5.7x
Wed, 12 Apr 2023CA$92.7bCA$15.7b-CA$2,324,414,371.0031.2x-39.9x5.9x
Fri, 10 Mar 2023CA$85.1bCA$15.4b-CA$2,394,427,895.0029.9x-35.5x5.5x
Sun, 05 Feb 2023CA$85.6bCA$14.9b-CA$516,660,007.0023.9x-165.7x5.7x
Price to Earnings Ratio

-165.7x


Total Market Cap: CA$85.6bTotal Earnings: -CA$516,660,007.00Total Revenue: CA$14.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Application Software Industry Price to Earnings3Y Average 168.9x202420252026
Current Industry PE
  • Investors are optimistic on the Canadian Application Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 799x which is higher than its 3-year average PE of 169x.
  • The 3-year average PS ratio of 6.1x is higher than the industry's current PS ratio of 3.9x.
Past Earnings Growth
  • Total earnings for the Application Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 19% per year.
  • This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.

Industry Comparison

How does Canadian Application Software compare with similar industries?

CA Market1.18%
Tech0.22%
Software-3.36%
Application Software-3.23%
Systems Software-6.27%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
ACT Aduro Clean TechnologiesCA$19.998.3%
+CA$51.2m		142.6%PS2179.2x
LSPD Lightspeed CommerceCA$15.551.8%
+CA$36.7m		-25.5%PS1.3x
URAI Inturai VenturesCA$0.4053.8%
+CA$15.5m		433.3%n/a
ENGH Enghouse SystemsCA$18.691.1%
+CA$10.9m		-32.2%PE13.9x
CMG Computer Modelling GroupCA$5.052.6%
+CA$10.6m		-51.3%PE19.9x

Latest News

LMN
CA$22.72
Lumine Group
7D
-5.3%
1Y
-40.2%
RAIL
CA$0.39
Railtown AI Technologies
7D
13.2%
1Y
-8.3%
DSG
CA$108.17
Descartes Systems Group
7D
-4.3%
1Y
-35.3%

DSG: Freight Slowdown And Share Buyback Will Shape Bullish Upside Potential

Analysts have modestly adjusted their price targets on Descartes Systems Group, with recent cuts such as Barclays trimming its target to $105 from $106 and Wolfe Research moving to $102 from $112. These changes reflect mixed views on transport cycle data and shipment volumes, along with expectations for steadier software demand into 2026.
LSPD
CA$15.55
Lightspeed Commerce
7D
1.8%
1Y
-25.5%

LSPD: Sector Reset And Legal Overhang Will Likely Constrain Future Upside

Analysts have trimmed their 12 month price target on Lightspeed Commerce to $14 from $15, citing updated sector assumptions and a refreshed outlook for software stocks into 2026. Analyst Commentary Bearish analysts cutting the 12 month price target to $14 are signaling a more guarded stance on Lightspeed Commerce, even as they see room for software stocks to re-rate into 2026.
BITF
CA$3.55
Bitfarms
7D
-5.3%
1Y
71.5%

BITF: Delayed Market Structure Rules Will Support Future AI And HPC Expansion

Analysts have reduced their Bitfarms price target to about US$8.48, reflecting slightly higher assumed discount rates and a marginally richer forward P/E multiple as they factor in ongoing uncertainty around potential delays in crypto related market structure legislation. Analyst Commentary Bullish Takeaways Bullish analysts see the updated US$8.48 target as still reflecting upside potential if crypto related legislation eventually provides clearer market structure, which could support higher sustained earnings to justify a richer P/E multiple.
HIVE
CA$4.01
HIVE Digital Technologies
7D
-9.7%
1Y
-3.8%
ENGH
CA$18.69
Enghouse Systems
7D
1.1%
1Y
-32.2%

ENGH: Acquisition Pipeline And Buybacks Will Support Future Upside Potential

Analysts have kept their price target for Enghouse Systems broadly steady at about $22.00 per share, citing only minor tweaks to inputs such as discount rate, revenue growth, profit margin, and expected future P/E in their valuation work. What's in the News Management plans to pursue acquisitions, with the CEO indicating that the company sees acquisition opportunities that it expects to provide a return on invested capital, and is looking to expand its acquisition team to support this focus (company comments).
NCI
CA$1.31
NTG Clarity Networks
7D
9.2%
1Y
-28.0%

NCI: Recurring Contracts And 2025 Revenue Guidance Will Support Further Upside

Analysts have kept their price target for NTG Clarity Networks effectively unchanged at $3.23, citing stable assumptions around the discount rate, revenue growth, profit margin and future P/E that support their existing view of the stock's potential value. What's in the News Received new and renewal purchase orders and contract extensions totaling about C$11.8 million from existing and new customers, described as part of normal course activity (Client Announcements).
CSU
CA$2,640.06
Constellation Software
7D
-2.5%
1Y
-44.1%
CMG
CA$5.05
Computer Modelling Group
7D
2.6%
1Y
-51.3%
CVO
CA$6.84
Coveo Solutions
7D
1.6%
1Y
8.4%

CVO: AI Adoption Wins And Buybacks Will Support Future Upside

Analysts have trimmed their average price targets for Coveo Solutions to a range of about C$9 to C$11, down from prior levels near C$11.50 to C$13, citing updated views on fair value, discount rates, growth expectations and profit margins that are reflected in slightly adjusted revenue growth, profit margin and future P/E assumptions. Analyst Commentary Recent research updates show that while price targets for Coveo Solutions have been reduced, some bullish analysts still see room for upside relative to current levels, reflecting continued confidence in the company’s ability to execute on its plan.
ACT
CA$19.99
Aduro Clean Technologies
7D
8.3%
1Y
142.6%
KXS
CA$144.46
Kinaxis
7D
-3.1%
1Y
-15.0%
TOI
CA$105.69
Topicus.com
7D
-6.9%
1Y
-20.0%

Some Investors May Be Worried About Topicus.com's (CVE:TOI) Returns On Capital

Dec 20
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ABXX
CA$46.00
Abaxx Technologies
7D
-3.5%
1Y
307.8%
URAI
CA$0.40
Inturai Ventures
7D
53.8%
1Y
433.3%