PSI Software SE's (ETR:PSAN) 28% Price Boost Is Out Of Tune With Revenues
May 03
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German (DAX) Software Industry Analysis
UpdatedMay 05, 2025
DataAggregated Company Financials
Companies41
- 7D6.9%
- 3M-0.4%
- 1Y52.8%
- YTD11.6%
The Software industry is up 8.5% in the last week, with SAP up 8.8%. Meanwhile, Northern Data actually underperformed within the industry, shrinking 13% in the last week. In the last 12 months, the industry was up 53%. Earnings are forecast to grow by 19% 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, 05 May 2025 | €334.6b | €39.7b | €5.9b | 32.4x | 56.3x | 8.4x |
| Wed, 02 Apr 2025 | €313.8b | €38.7b | €3.3b | 26.7x | 94.5x | 8.1x |
| Fri, 28 Feb 2025 | €334.7b | €38.5b | €3.3b | 21.4x | 101.7x | 8.7x |
| Sun, 26 Jan 2025 | €330.2b | €37.4b | €2.9b | 23.3x | 112.3x | 8.8x |
| Tue, 24 Dec 2024 | €295.7b | €37.4b | €2.9b | 22.8x | 100.5x | 7.9x |
| Thu, 21 Nov 2024 | €277.9b | €37.4b | €2.9b | 24.8x | 94.5x | 7.4x |
| Sat, 19 Oct 2024 | €269.0b | €36.6b | €2.8b | 26.7x | 97.7x | 7.4x |
| Mon, 16 Sep 2024 | €253.3b | €36.6b | €2.8b | 26.1x | 92x | 6.9x |
| Wed, 14 Aug 2024 | €244.8b | €37.6b | €2.7b | 26.5x | 91x | 6.5x |
| Fri, 12 Jul 2024 | €235.6b | €36.1b | €2.8b | 23.1x | 84.7x | 6.5x |
| Sun, 09 Jun 2024 | €225.4b | €36.5b | €2.6b | 23.3x | 87.9x | 6.2x |
| Tue, 07 May 2024 | €220.0b | €37.1b | €2.7b | 22.7x | 82.8x | 5.9x |
| Thu, 04 Apr 2024 | €229.0b | €36.5b | €3.9b | 20.3x | 59.4x | 6.3x |
| Sat, 02 Mar 2024 | €223.7b | €36.2b | €4.1b | 20.9x | 55.1x | 6.2x |
| Mon, 29 Jan 2024 | €210.3b | €37.0b | €4.0b | 23.7x | 52.4x | 5.7x |
| Wed, 27 Dec 2023 | €183.8b | €38.0b | €2.3b | 24.5x | 80.7x | 4.8x |
| Fri, 24 Nov 2023 | €188.8b | €38.0b | €2.3b | 26.1x | 83.4x | 5x |
| Sun, 22 Oct 2023 | €164.4b | €37.5b | €2.5b | 25.1x | 64.6x | 4.4x |
| Tue, 19 Sep 2023 | €168.7b | €37.6b | €1.8b | 27.1x | 91.8x | 4.5x |
| Thu, 17 Aug 2023 | €169.5b | €37.6b | €1.8b | 28.6x | 92.1x | 4.5x |
| Sat, 15 Jul 2023 | €173.0b | €37.1b | €1.9b | 31x | 89.6x | 4.7x |
| Mon, 12 Jun 2023 | €167.0b | €37.4b | €2.2b | 31.6x | 74.4x | 4.5x |
| Wed, 10 May 2023 | €164.9b | €37.4b | €2.3b | 29x | 71.9x | 4.4x |
| Fri, 07 Apr 2023 | €157.1b | €36.6b | €2.9b | 27.5x | 54.2x | 4.3x |
| Sun, 05 Mar 2023 | €146.7b | €36.5b | €2.9b | 26.3x | 50.9x | 4x |
| Tue, 31 Jan 2023 | €143.4b | €36.4b | €2.9b | 26.3x | 49.2x | 3.9x |
| Thu, 29 Dec 2022 | €129.8b | €36.0b | €3.8b | 25.2x | 34.3x | 3.6x |
| Sat, 26 Nov 2022 | €136.4b | €35.9b | €3.8b | 26.7x | 35.9x | 3.8x |
| Mon, 24 Oct 2022 | €122.8b | €34.8b | €4.5b | 23.1x | 27.1x | 3.5x |
| Wed, 21 Sep 2022 | €114.8b | €34.7b | €4.5b | 24.7x | 25.4x | 3.3x |
| Fri, 19 Aug 2022 | €128.2b | €34.5b | €4.2b | 27.8x | 30.3x | 3.7x |
| Sun, 17 Jul 2022 | €120.9b | €33.6b | €5.3b | 26.8x | 23x | 3.6x |
| Tue, 14 Jun 2022 | €122.9b | €33.5b | €5.0b | 25.6x | 24.3x | 3.7x |
| Thu, 12 May 2022 | €131.6b | €33.5b | €5.0b | 28.5x | 26.1x | 3.9x |
Price to Earnings Ratio
26.1x
Current Industry PE
- Investors are pessimistic on the German Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 56.3x which is lower than its 3-year average PE of 68.4x.
- The 3-year average PS ratio of 5.4x is lower than the industry's current PS ratio of 8.4x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 5.7% per year over the last three years.
- Revenues for these companies have grown 5.9% 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 German Tech industry?
| DE Market | 2.51% | |
| Tech | 6.01% | |
| Software | 6.92% | |
| Application Software | 6.93% | |
| Systems Software | 2.28% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 66.8x.
- Analysts are expecting annual earnings growth of 19.3%, which is lower than the prior year's growth of 24.4% 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.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 33% over the next 5 years.
- This is better than its past earnings growth rate of 3.8% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 19% 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 | |
|---|---|---|---|---|---|
| SAP SAP | €266.30 | 8.8% +€25.2b | 56.0% | PE54.2x | |
| NEM Nemetschek | €121.60 | 8.3% +€1.1b | 46.1% | PE78.9x | |
| PSAN PSI Software | €31.80 | 16.5% +€69.7m | 40.7% | PS1.8x | |
| TMV TeamViewer | €13.32 | 2.9% +€59.2m | 7.3% | PE17.3x | |
| MUM Mensch und Maschine Software | €57.90 | 4.7% +€43.3m | 0.3% | PE32.4x |