German (DAX) Tech Sector Analysis

Sector Valuation and Performance

Has the German Tech Sector valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Thu, 23 Jan 2025	€388.8b	€78.7b	€5.5b	19x	70.2x	4.9x
Sat, 21 Dec 2024	€358.8b	€78.9b	€5.5b	19.2x	64.9x	4.5x
Mon, 18 Nov 2024	€335.7b	€79.3b	€5.6b	19.3x	59.6x	4.2x
Wed, 16 Oct 2024	€328.4b	€78.4b	€5.8b	19x	56.4x	4.2x
Fri, 13 Sep 2024	€313.6b	€78.4b	€5.8b	18.6x	53.8x	4x
Sun, 11 Aug 2024	€307.8b	€79.5b	€5.8b	18.9x	52.7x	3.9x
Tue, 09 Jul 2024	€311.0b	€78.1b	€6.5b	19.7x	48x	4x
Thu, 06 Jun 2024	€296.2b	€78.6b	€6.3b	19.2x	47.3x	3.8x
Sat, 04 May 2024	€288.5b	€79.5b	€6.9b	17.2x	41.6x	3.6x
Mon, 01 Apr 2024	€303.3b	€78.8b	€8.1b	19.4x	37.6x	3.9x
Wed, 28 Feb 2024	€301.6b	€78.1b	€8.3b	18.5x	36.2x	3.9x
Fri, 26 Jan 2024	€288.6b	€79.7b	€8.4b	20.3x	34.4x	3.6x
Sun, 24 Dec 2023	€264.3b	€80.5b	€6.7b	20.1x	39.6x	3.3x
Tue, 21 Nov 2023	€260.5b	€80.3b	€6.7b	19.7x	38.9x	3.2x
Thu, 19 Oct 2023	€230.7b	€79.3b	€6.2b	20.2x	37x	2.9x
Sat, 16 Sep 2023	€243.0b	€79.4b	€6.3b	20.8x	38.8x	3.1x
Mon, 14 Aug 2023	€242.5b	€79.2b	€6.3b	19x	38.5x	3.1x
Wed, 12 Jul 2023	€243.6b	€77.5b	€6.0b	21.4x	40.6x	3.1x
Fri, 09 Jun 2023	€245.7b	€77.7b	€6.3b	21.7x	38.9x	3.2x
Sun, 07 May 2023	€239.4b	€77.2b	€6.3b	23.6x	37.7x	3.1x
Tue, 04 Apr 2023	€235.8b	€75.4b	€6.6b	25x	35.6x	3.1x
Thu, 02 Mar 2023	€219.8b	€74.9b	€6.6b	24.9x	33.3x	2.9x
Sat, 28 Jan 2023	€217.8b	€73.5b	€7.3b	25.8x	29.8x	3x
Mon, 26 Dec 2022	€196.6b	€73.4b	€7.3b	23.3x	26.9x	2.7x
Wed, 23 Nov 2022	€206.0b	€73.2b	€7.3b	22.8x	28.2x	2.8x
Fri, 21 Oct 2022	€180.0b	€70.3b	€7.7b	20.5x	23.3x	2.6x
Sun, 18 Sep 2022	€173.7b	€70.1b	€7.7b	21.1x	22.6x	2.5x
Tue, 16 Aug 2022	€197.4b	€69.8b	€7.4b	23.4x	26.7x	2.8x
Thu, 14 Jul 2022	€178.7b	€67.4b	€8.1b	21.7x	22.1x	2.7x
Sat, 11 Jun 2022	€192.1b	€67.4b	€7.9b	24.9x	24.4x	2.9x
Mon, 09 May 2022	€197.7b	€66.2b	€7.6b	23.4x	26.1x	3x
Wed, 06 Apr 2022	€220.9b	€65.0b	€7.8b	25.9x	28.3x	3.4x
Fri, 04 Mar 2022	€214.8b	€66.4b	€7.8b	25.4x	27.4x	3.2x
Sun, 30 Jan 2022	€236.4b	€65.1b	€8.1b	28.5x	29.3x	3.6x

Price to Earnings Ratio

29.3x

Sun, 30 Jan 2022

Current Industry PE

Investors are optimistic on the German Information Technology industry, and appear confident in long term growth rates.

The industry is trading at a PE ratio of 70.2x which is higher than its 3-year average PE of 37.9x.

The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 4.9x.

Past Earnings Growth

The earnings for companies in the Information Technology industry have declined 12% per year over the last three years.
Meanwhile revenues for these companies have grown 6.5% per year.
This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the German Tech sector?


DE Market	2.27%
Tech	3.49%
Software	3.74%
Semiconductors	2.56%
IT	2.07%
Tech Hardware	0.55%
Electronic Equipment and Components	0.15%
Communications	-0.013%

Industry PE

Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio of 62.3x.

Analysts are expecting annual earnings growth of 40.5%, which is higher than its past year's earnings growth of 10.6% per year.

Forecasted Growth

Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 106% over the next 5 years.
This is better than its past earnings decline of 29% per year.

In contrast, the IT industry is expected to see its earnings grow by 13% per year over the next few years.

German (DAX) Tech Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

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