Estimating The Intrinsic Value Of Bytes Technology Group plc (LON:BYIT)
Dec 13
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U.K. (FTSE) Software Industry Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies55
- 7D-1.7%
- 3M15.0%
- 1Y4.7%
- YTD5.6%
Over the last 7 days, the Software industry has dropped 1.7%, driven by Sage Group declining 1.3%. In contrast, Windward has gained 10%. This takes the industry's 12 month performance to a gain of 4.7%. Earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the U.K. Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 22 Dec 2024 | UK£19.5b | UK£4.8b | UK£319.9m | 33.5x | 61.1x | 4.1x |
| Tue, 19 Nov 2024 | UK£17.7b | UK£4.7b | UK£210.7m | 35.7x | 84x | 3.8x |
| Thu, 17 Oct 2024 | UK£16.7b | UK£4.7b | UK£208.7m | 32.8x | 80x | 3.6x |
| Sat, 14 Sep 2024 | UK£20.9b | UK£5.2b | UK£278.0m | 36.2x | 75.3x | 4.1x |
| Mon, 12 Aug 2024 | UK£20.8b | UK£5.3b | UK£258.2m | 37.2x | 80.7x | 4x |
| Wed, 10 Jul 2024 | UK£21.7b | UK£5.3b | UK£262.9m | 38.1x | 82.6x | 4.1x |
| Fri, 07 Jun 2024 | UK£21.8b | UK£5.3b | UK£163.0m | 41.2x | 133.6x | 4.1x |
| Sun, 05 May 2024 | UK£22.6b | UK£5.2b | UK£107.3m | 37.5x | 210.7x | 4.3x |
| Tue, 02 Apr 2024 | UK£21.9b | UK£5.2b | UK£77.9m | 37.6x | 281.4x | 4.2x |
| Thu, 29 Feb 2024 | UK£21.1b | UK£5.2b | UK£66.0m | 37.2x | 319.3x | 4.1x |
| Sat, 27 Jan 2024 | UK£42.6b | UK£10.2b | UK£70.9m | 38.1x | 601.3x | 4.2x |
| Mon, 25 Dec 2023 | UK£42.4b | UK£10.1b | UK£72.1m | 36.9x | 588.1x | 4.2x |
| Wed, 22 Nov 2023 | UK£40.0b | UK£10.1b | UK£133.4m | 32.7x | 300.1x | 4x |
| Fri, 20 Oct 2023 | UK£39.7b | UK£10.1b | UK£130.0m | 30.9x | 305.6x | 3.9x |
| Sun, 17 Sep 2023 | UK£40.9b | UK£10.0b | UK£137.1m | 34.4x | 298.7x | 4.1x |
| Tue, 15 Aug 2023 | UK£40.0b | UK£10.0b | UK£97.5m | 35.6x | 410.6x | 4x |
| Thu, 13 Jul 2023 | UK£40.8b | UK£10.6b | UK£128.6m | 35.6x | 317.1x | 3.9x |
| Sat, 10 Jun 2023 | UK£40.6b | UK£10.5b | UK£251.5m | 37.7x | 161.5x | 3.9x |
| Mon, 08 May 2023 | UK£40.1b | UK£10.7b | UK£109.7m | 36.1x | 365.6x | 3.8x |
| Wed, 05 Apr 2023 | UK£39.3b | UK£10.6b | UK£299.3m | 35.8x | 131.3x | 3.7x |
| Fri, 03 Mar 2023 | UK£39.6b | UK£10.4b | UK£298.7m | 35.5x | 132.5x | 3.8x |
| Sun, 29 Jan 2023 | UK£39.4b | UK£10.3b | UK£302.7m | 33.1x | 130.2x | 3.8x |
| Tue, 27 Dec 2022 | UK£38.8b | UK£10.4b | UK£296.2m | 33.8x | 131.1x | 3.8x |
| Thu, 24 Nov 2022 | UK£40.2b | UK£10.3b | UK£324.7m | 36x | 123.7x | 3.9x |
| Sat, 22 Oct 2022 | UK£37.8b | UK£10.3b | UK£340.6m | 36.7x | 111.1x | 3.7x |
| Mon, 19 Sep 2022 | UK£39.1b | UK£10.1b | UK£340.3m | 48.6x | 114.8x | 3.9x |
| Wed, 17 Aug 2022 | UK£37.4b | UK£9.6b | UK£246.6m | 50.6x | 151.8x | 3.9x |
| Fri, 15 Jul 2022 | UK£32.0b | UK£9.7b | UK£296.0m | 41.7x | 108.3x | 3.3x |
| Sun, 12 Jun 2022 | UK£33.0b | UK£9.6b | UK£151.6m | 42.1x | 217.8x | 3.5x |
| Tue, 10 May 2022 | UK£33.2b | UK£9.3b | UK£197.8m | 39.6x | 167.7x | 3.6x |
| Thu, 07 Apr 2022 | UK£37.4b | UK£9.1b | UK£158.6m | 37.6x | 235.8x | 4.1x |
| Sat, 05 Mar 2022 | UK£36.7b | UK£9.0b | UK£108.9m | 38.9x | 337x | 4.1x |
| Mon, 31 Jan 2022 | UK£39.7b | UK£8.9b | -UK£1,251,806,697.00 | 47.2x | -31.7x | 4.4x |
| Wed, 29 Dec 2021 | UK£44.4b | UK£8.9b | -UK£1,256,164,107.00 | 52.3x | -35.3x | 5x |
Price to Earnings Ratio
-35.3x
Current Industry PE
- Investors are pessimistic on the British 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 61.1x which is lower than its 3-year average PE of 239x.
- The industry is trading close to its 3-year average PS ratio of 4.1x.
Past Earnings Growth
- Total earnings for the Software industry have gone up over the last three years and the industry is now profitable.
- Revenues have declined 19% per year.
- This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the U.K. Tech industry?
| GB Market | -2.59% | |
| Tech | -1.36% | |
| Software | -1.68% | |
| Application Software | -1.67% | |
| Systems Software | -3.01% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 180x.
- Analysts are expecting annual earnings growth of 15.3%, which is lower than the prior year's growth of 18.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 55% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 15% 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 | |
|---|---|---|---|---|---|
| WNWD Windward | UK£1.35 | 10.2% +UK£11.1m | 61.7% | PS4.6x | |
| IDOX IDOX | UK£0.62 | 2.7% +UK£7.3m | -9.9% | PE51.1x | |
| ZOO ZOO Digital Group | UK£0.35 | 14.5% +UK£4.4m | -46.2% | PS0.9x | |
| APTD Aptitude Software Group | UK£3.40 | 2.1% +UK£3.9m | 20.1% | PE39.4x | |
| RM. RM | UK£1.03 | 4.0% +UK£3.3m | 58.2% | PS0.5x |