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U.K. (FTSE) Software Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
  • 7D-3.9%
  • 3M-9.8%
  • 1Y14.1%
  • YTD11.4%

Over the last 7 days, the Software industry has dropped 3.9%, driven by a pullback from AVEVA Group of 6.9%. Meanwhile, Blue Prism Group actually outperformed within the industry, gaining 6.0% in the last week. This takes the industry's 12 month performance to a gain of 14%.

Industry Valuation and Performance

Has the U.K. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021UK£42.6bUK£8.9b-UK£1,269,440,265.0049.9x
Tue, 26 Oct 2021UK£45.4bUK£8.7b-UK£1,216,486,334.0059.1x
Thu, 23 Sep 2021UK£49.0bUK£8.7b-UK£1,203,297,992.0056.6x
Sat, 21 Aug 2021UK£42.2bUK£8.3b-UK£1,095,385,509.2858.2x
Sat, 05 Jun 2021UK£37.7bUK£8.2b-UK£1,143,199,516.8151.5x
Tue, 09 Mar 2021UK£35.2bUK£8.2b-UK£1,471,502,433.5147.7x
Mon, 30 Nov 2020UK£32.5bUK£7.9b-UK£1,906,649,267.5352.8x
Thu, 03 Sep 2020UK£32.6bUK£8.0b-UK£1,074,006,765.6638.1x
Sun, 07 Jun 2020UK£29.1bUK£8.2b-UK£530,347,895.1832.3x
Sat, 29 Feb 2020UK£29.2bUK£8.0bUK£64.3m35.7x
Tue, 03 Dec 2019UK£31.6bUK£8.0bUK£396.7m30.9x
Fri, 06 Sep 2019UK£28.5bUK£7.6bUK£281.5m34.8x
Mon, 10 Jun 2019UK£32.0bUK£7.4bUK£318.9m39.6x
Sun, 03 Mar 2019UK£30.0bUK£7.3bUK£598.5m34.8x
Wed, 05 Dec 2018UK£26.7bUK£7.2bUK£856.2m27.2x
PE Ratio


Total Market Cap: UK£26.7bTotal Earnings: UK£856.2mTotal Revenue: UK£7.2b0%0%0%3 Year10 Year

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 49.9x which is higher than its 3-year average PE of 40.1x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: Total earnings for the Software industry have declined over the last three years, with the industry now making a loss overall. But revenues have grown 7.4% 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 U.K. Software industry?

Systems Software-2.66%
Application Software-4.45%

Industry PE: Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 158x. However analysts are expecting annual earnings growth of 25%, which is lower than the prior year's growth of 1,017% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Application Software industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 38.5x.

Forecasted Growth: Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 54% over the next 5 years. This is better than it's past earnings growth rate of 8.5% per year. Meanwhile, the Systems Software industry is expected to see its earnings grow by 25% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

PRSM Blue Prism Group6.0%+UK£70.8m-9.8%PS8.1x
AVST Avast1.1%+UK£66.3m20.7%PE28.7x
DEV Dev Clever Holdings8.5%+UK£15.1m323.8%PS58.9x
ARB Argo Blockchain0.8%+UK£4.7m1,226.7%PE28.7x
ALT Altitude Group15.7%+UK£2.8m76.1%PS2.7x
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