An Intrinsic Calculation For Mensch und Maschine Software SE (ETR:MUM) Suggests It's 37% Undervalued
Jun 03
German (DAX) Software Industry Analysis
UpdatedJun 03, 2024
DataAggregated Company Financials
Companies39
- 7D-7.8%
- 3M-4.2%
- 1Y32.5%
- YTD19.4%
Over the last 7 days, the Software industry has dropped 7.8%, driven by SAP declining 8.0%. In the past year, the industry has gained 32%. Earnings are forecast to grow by 33% annually.
Industry Valuation and Performance
Has the German Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 03 Jun 2024 | €211.1b | €36.5b | €2.6b | 22x | 82.5x | 5.8x |
| Wed, 01 May 2024 | €218.1b | €37.1b | €2.7b | 22.1x | 82x | 5.9x |
| Fri, 29 Mar 2024 | €232.4b | €36.5b | €3.9b | 20.5x | 60.3x | 6.4x |
| Sun, 25 Feb 2024 | €219.2b | €36.2b | €4.1b | 20.7x | 54x | 6.1x |
| Tue, 23 Jan 2024 | €199.2b | €38.0b | €2.3b | 24x | 87.4x | 5.2x |
| Thu, 21 Dec 2023 | €185.2b | €38.0b | €2.3b | 25.5x | 81.3x | 4.9x |
| Sat, 18 Nov 2023 | €182.8b | €38.0b | €2.3b | 23.4x | 80.7x | 4.8x |
| Mon, 16 Oct 2023 | €162.6b | €37.6b | €1.8b | 26.8x | 89.8x | 4.3x |
| Wed, 13 Sep 2023 | €168.6b | €37.6b | €1.8b | 27.1x | 91.7x | 4.5x |
| Fri, 11 Aug 2023 | €168.1b | €37.6b | €1.8b | 28.7x | 91.5x | 4.5x |
| Sun, 09 Jul 2023 | €163.3b | €37.2b | €1.9b | 31.2x | 84.6x | 4.4x |
| Tue, 06 Jun 2023 | €167.4b | €37.4b | €2.2b | 30.3x | 74.5x | 4.5x |
| Thu, 04 May 2023 | €165.8b | €37.3b | €2.3b | 29.5x | 72.3x | 4.4x |
| Sat, 01 Apr 2023 | €155.8b | €36.3b | €2.9b | 27.3x | 53.8x | 4.3x |
| Mon, 27 Feb 2023 | €143.7b | €36.6b | €2.9b | 25.7x | 49.8x | 3.9x |
| Wed, 25 Jan 2023 | €142.9b | €36.0b | €3.8b | 26x | 37.4x | 4x |
| Fri, 23 Dec 2022 | €130.9b | €35.9b | €3.8b | 24.9x | 34.4x | 3.6x |
| Sun, 20 Nov 2022 | €135.0b | €35.9b | €3.8b | 26.8x | 35.5x | 3.8x |
| Tue, 18 Oct 2022 | €118.4b | €34.8b | €4.5b | 23x | 26.1x | 3.4x |
| Thu, 15 Sep 2022 | €118.8b | €34.7b | €4.5b | 25.3x | 26.3x | 3.4x |
| Sat, 13 Aug 2022 | €130.7b | €34.5b | €4.2b | 28.3x | 30.9x | 3.8x |
| Mon, 11 Jul 2022 | €124.8b | €33.5b | €5.3b | 25.4x | 23.7x | 3.7x |
| Wed, 08 Jun 2022 | €133.7b | €33.5b | €5.1b | 29.2x | 26.5x | 4x |
| Fri, 06 May 2022 | €135.7b | €33.4b | €5.0b | 28.5x | 27x | 4.1x |
| Sun, 03 Apr 2022 | €144.4b | €32.6b | €5.3b | 28.7x | 27.2x | 4.4x |
| Tue, 01 Mar 2022 | €147.4b | €32.7b | €5.3b | 33.2x | 27.8x | 4.5x |
| Thu, 27 Jan 2022 | €167.1b | €32.3b | €5.8b | 35.3x | 29x | 5.2x |
| Sat, 25 Dec 2021 | €180.8b | €32.2b | €5.8b | 35.7x | 31.2x | 5.6x |
| Mon, 22 Nov 2021 | €185.2b | €32.5b | €5.8b | 35.8x | 32.1x | 5.7x |
| Wed, 20 Oct 2021 | €180.3b | €32.9b | €5.8b | 38x | 30.9x | 5.5x |
| Fri, 17 Sep 2021 | €178.5b | €32.2b | €6.0b | 40.9x | 29.7x | 5.6x |
| Sun, 15 Aug 2021 | €181.9b | €32.1b | €6.0b | 41.2x | 30.3x | 5.7x |
| Thu, 10 Jun 2021 | €165.1b | €32.0b | €5.5b | 34.9x | 29.8x | 5.2x |
Price to Earnings Ratio
29.8x
Current Industry PE
- Investors are optimistic on the German Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 82.5x which is higher than its 3-year average PE of 49.2x.
- The 3-year average PS ratio of 4.7x is lower than the industry's current PS ratio of 5.8x.
Past Earnings Growth
- The earnings for companies in the Software industry have declined 23% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.4% 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 industry?
| DE Market | -1.32% | |
| Tech | -6.58% | |
| Software | -7.77% | |
| Systems Software | -0.34% | |
| Application Software | -7.88% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 79.2%, which is higher than its past year's earnings growth of 23.6% per year.
- Investors are most pessimistic about the Application Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 46.9x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 79% over the next 5 years.
- This is better than its past earnings growth rate of 24% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 32% 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 | |
|---|---|---|---|---|---|
| FAA Fabasoft | €22.60 | 9.7% +€21.8m | 28.0% | PE27.8x | |
| GKS GK Software | €232.00 | 3.6% +€18.2m | n/a | PS3.4x | |
| SOW Software | €35.50 | 0.6% +€14.8m | n/a | PS2.6x | |
| N4G NAGA Group | €0.83 | 8.1% +€3.4m | -45.7% | PS0.9x | |
| CYR cyan | €2.54 | 1.6% +€807.6k | 51.2% | PS10.9x |
