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U.K. (FTSE) Software Industry Analysis

UpdatedNov 28, 2022
DataAggregated Company Financials
Companies68
  • 7D1.0%
  • 3M10.3%
  • 1Y-5.9%
  • YTD-7.9%

Over the last 7 days, the Software industry has risen 1.0%, driven by gains from Sage Group of 1.6%. During this same period, the GB Group underperformed, falling 8.3%. In the past year, the industry is down 5.9%. Earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 28 Nov 2022UK£40.1bUK£10.3bUK£325.1m36.4x123.4x3.9x
Wed, 26 Oct 2022UK£38.5bUK£10.2bUK£344.8m39.3x111.7x3.8x
Fri, 23 Sep 2022UK£39.0bUK£10.1bUK£338.9m47.4x115.1x3.9x
Sun, 21 Aug 2022UK£37.1bUK£9.7bUK£245.6m49x151.2x3.8x
Tue, 19 Jul 2022UK£32.6bUK£9.6bUK£295.9m42x110.1x3.4x
Thu, 16 Jun 2022UK£32.7bUK£9.7bUK£151.0m42.1x216.6x3.4x
Sat, 14 May 2022UK£33.6bUK£9.4bUK£203.9m41.8x164.8x3.6x
Mon, 11 Apr 2022UK£37.6bUK£9.1bUK£155.6m38.5x241.9x4.1x
Wed, 09 Mar 2022UK£36.2bUK£9.0bUK£107.3m38.4x337x4x
Fri, 04 Feb 2022UK£39.9bUK£8.9b-UK£1,231,431,833.0048.3x-32.4x4.5x
Sun, 02 Jan 2022UK£44.8bUK£8.9b-UK£1,243,930,972.0050.7x-36x5x
Tue, 30 Nov 2021UK£42.6bUK£8.9b-UK£1,271,108,632.0050.9x-33.6x4.8x
Thu, 28 Oct 2021UK£44.9bUK£8.7b-UK£1,221,489,141.0059.7x-36.8x5.2x
Sat, 25 Sep 2021UK£48.8bUK£8.7b-UK£1,200,837,798.0054x-40.6x5.6x
Mon, 23 Aug 2021UK£42.4bUK£8.3b-UK£1,095,385,509.2858.1x-38.7x5.1x
Sat, 10 Jul 2021UK£38.6bUK£8.3b-UK£1,097,244,509.2851.4x-35.2x4.7x
Fri, 02 Apr 2021UK£36.9bUK£8.2b-UK£1,468,036,845.8146.5x-25.2x4.5x
Mon, 04 Jan 2021UK£34.6bUK£8.3b-UK£1,904,708,252.5141.1x-18.2x4.2x
Thu, 08 Oct 2020UK£30.9bUK£7.9b-UK£1,105,218,115.0348.8x-27.9x3.9x
Wed, 01 Jul 2020UK£29.1bUK£8.2b-UK£347,001,763.1629.9x-83.8x3.6x
Sat, 04 Apr 2020UK£24.8bUK£8.1b-UK£120,417,465.1825x-206.1x3.1x
Tue, 07 Jan 2020UK£32.4bUK£8.1bUK£436.5m37.3x74.2x4x
Price to Earnings Ratio

79.7x


Total Market Cap: UK£31.6bTotal Earnings: UK£396.7mTotal Revenue: UK£8.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 73.7x202020212022
Current Industry PE
  • Investors are optimistic on the British Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 123x which is higher than its 3-year average PE of 73.7x.
  • The industry is trading close to its 3-year average PS ratio of 4.3x.
Past Earnings Growth
  • The earnings for companies in the Software industry have declined 6.4% per year over the last three years.
  • Meanwhile revenues for these companies have grown 8.9% 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. Tech industry?

GB Market1.33%
Tech2.53%
Software1.04%
Application Software1.12%
Systems Software0.87%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 152x.
    • Analysts are expecting annual earnings growth of 22.8%, which is higher than its past year's earnings growth of 3.2% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 232x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is better than its past earnings growth rate of 3.2% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 14% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
SGE Sage GroupUK£8.131.6%
+UK£125.9m
5.0%PE31.7x
AVV AVEVA GroupUK£31.910.9%
+UK£82.3m
-0.3%PS7.7x
KAPE Kape TechnologiesUK£2.527.0%
+UK£69.8m
-37.6%PE22.7x
ACSO accesso Technology GroupUK£8.1021.6%
+UK£59.6m
-3.8%PE17.2x
LTG Learning Technologies GroupUK£1.295.3%
+UK£51.4m
-24.2%PE41.9x
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Latest News

DARK

UK£3.73

Darktrace

7D

1.6%

1Y

-20.8%

SGE

UK£8.13

Sage Group

7D

1.6%

1Y

5.0%

DMTR

UK£0.00045

DeepMatter Group

7D

-62.5%

1Y

-96.2%

ACSO

UK£8.10

accesso Technology Group

7D

21.6%

1Y

-3.8%

DOTD

UK£0.96

dotdigital Group

7D

10.1%

1Y

-44.7%

LTG

UK£1.29

Learning Technologies Group

7D

5.3%

1Y

-24.2%

KAPE

UK£2.52

Kape Technologies

7D

7.0%

1Y

-37.6%

WAND

UK£6.46

WANdisco

7D

5.2%

1Y

120.1%

GBG

UK£3.49

GB Group

7D

-8.3%

1Y

-53.7%

ELCO

UK£0.70

Eleco

7D

-2.1%

1Y

-30.7%

BLTG

UK£1.73

Blancco Technology Group

7D

-4.7%

1Y

-27.4%

ARB

UK£0.068

Argo Blockchain

7D

-10.0%

1Y

-95.0%

AVV

UK£31.91

AVEVA Group

7D

0.9%

1Y

-0.3%

ACC

UK£0.89

Access Intelligence

7D

-3.8%

1Y

-39.6%