French (CAC) IT Industry Analysis

Industry Valuation and Performance

Has the French IT Industry valuation changed over the past few years?

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 24.6x which is higher than its 3-year average PE of 19.8x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: The earnings for companies in the IT industry have remained mostly flat over the last three years, while revenues for these companies have grown 8.5% 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 and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the French IT industry?

Industry PE: Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 18.3x. This is likely because analysts are expecting annual earnings growth of 26%, which is higher than its past year's earnings decline of 4.7% per year. Meanwhile, investors are most pessimistic about the IT Consulting industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 20.5x.

Forecasted Growth: Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 54% over the next 5 years. This is better than its past earnings decline of 19% per year. Meanwhile, the IT Consulting 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?