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U.K. (FTSE) Software Industry Analysis

UpdatedMar 19, 2024
DataAggregated Company Financials
Companies61
  • 7D-0.3%
  • 3M4.8%
  • 1Y27.9%
  • YTD5.6%

The Software is pretty flat in the last 7 days, but Darktrace has stood out, gaining 6.1%. As for the the longer term, the industry is up 28% over the past 12 months. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 19 Mar 2024UK£21.6bUK£5.2bUK£69.4m36.3x311.2x4.2x
Thu, 15 Feb 2024UK£20.9bUK£5.2bUK£65.8m37.1x317.9x4x
Sat, 13 Jan 2024UK£42.4bUK£10.1bUK£71.1m37x596.5x4.2x
Mon, 11 Dec 2023UK£42.1bUK£10.2bUK£72.1m33.1x584.2x4.1x
Wed, 08 Nov 2023UK£39.8bUK£10.1bUK£125.9m32.7x315.9x3.9x
Fri, 06 Oct 2023UK£40.0bUK£10.1bUK£128.7m33.7x310.7x4x
Sun, 03 Sep 2023UK£40.1bUK£10.0bUK£102.2m34x392.9x4x
Tue, 01 Aug 2023UK£40.7bUK£10.6bUK£125.1m33.6x325.4x3.9x
Thu, 29 Jun 2023UK£40.6bUK£10.6bUK£126.1m35.2x322x3.8x
Sat, 27 May 2023UK£40.2bUK£10.6bUK£50.0m35.2x804.5x3.8x
Mon, 24 Apr 2023UK£39.8bUK£10.6bUK£292.8m37.6x135.9x3.8x
Wed, 22 Mar 2023UK£39.2bUK£10.6bUK£311.5m32.5x125.8x3.7x
Fri, 17 Feb 2023UK£39.8bUK£10.3bUK£296.7m34.3x134.2x3.9x
Sun, 15 Jan 2023UK£39.6bUK£10.3bUK£299.8m32.7x132.1x3.8x
Tue, 13 Dec 2022UK£39.3bUK£10.3bUK£316.7m34.4x123.9x3.8x
Thu, 10 Nov 2022UK£39.2bUK£10.3bUK£349.8m41.3x111.9x3.8x
Sat, 08 Oct 2022UK£38.3bUK£10.3bUK£339.9m35x112.6x3.7x
Mon, 05 Sep 2022UK£38.7bUK£9.8bUK£218.0m47.4x177.4x4x
Wed, 03 Aug 2022UK£33.3bUK£9.6bUK£299.4m48.8x111.1x3.5x
Fri, 01 Jul 2022UK£31.8bUK£9.5bUK£294.4m40.7x107.9x3.3x
Sun, 29 May 2022UK£33.6bUK£9.3bUK£207.2m36.1x162.2x3.6x
Tue, 26 Apr 2022UK£35.9bUK£9.1bUK£194.5m38.8x184.5x4x
Thu, 24 Mar 2022UK£37.7bUK£9.1bUK£120.5m38.3x313x4.1x
Sat, 19 Feb 2022UK£37.5bUK£8.9bUK£25.3m44.4x1484.3x4.2x
Mon, 17 Jan 2022UK£42.0bUK£8.9b-UK£1,224,603,340.0051.2x-34.3x4.7x
Wed, 15 Dec 2021UK£42.3bUK£9.0b-UK£1,277,758,329.0049.3x-33.1x4.7x
Fri, 12 Nov 2021UK£44.1bUK£9.0b-UK£1,313,652,183.0058.2x-33.6x4.9x
Sun, 10 Oct 2021UK£45.6bUK£8.7b-UK£1,229,700,369.0057.3x-37x5.2x
Tue, 07 Sep 2021UK£48.3bUK£8.5b-UK£1,191,891,425.0056.8x-40.5x5.7x
Thu, 05 Aug 2021UK£41.3bUK£8.3b-UK£1,095,385,509.2856.8x-37.7x5x
Sun, 09 May 2021UK£38.1bUK£8.2b-UK£1,142,778,016.8150.1x-33.3x4.6x
Price to Earnings Ratio

-25.2x


Total Market Cap: UK£36.9bTotal Earnings: -UK£1,468,036,845.81Total Revenue: UK£8.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 201.8x202220232024
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 311x which is higher than its 3-year average PE of 202x.
  • The industry is trading close to its 3-year average PS ratio of 4.3x.
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 14% 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 Market0.54%
Tech-0.58%
Software-0.27%
Systems Software5.46%
Application Software-1.21%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 136x.
    • Analysts are expecting annual earnings growth of 24.0%, which is higher than its past year's earnings growth of 18.9% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 138x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 19% per year.
  • In contrast, the Systems Software industry is expected to see its earnings decline by 3.0% 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
DARK DarktraceUK£4.636.1%
+UK£171.3m
70.2%PE34.2x
BGO BangoUK£1.0812.5%
+UK£9.2m
-52.2%PS2.8x
SMRT Smartspace SoftwareUK£0.8848.3%
+UK£8.2m
127.3%PS4.7x
IQG IQGeo GroupUK£3.813.5%
+UK£8.0m
90.5%PS6.2x
SAAS Microlise GroupUK£1.414.4%
+UK£7.0m
-7.2%PE110.1x
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Latest News

DARK

UK£4.63

Darktrace

7D

6.1%

1Y

70.2%

IQG

UK£3.81

IQGeo Group

7D

3.5%

1Y

90.5%

SGE

UK£12.21

Sage Group

7D

-0.7%

1Y

66.7%

ALFA

UK£1.66

Alfa Financial Software Holdings

7D

-3.5%

1Y

28.7%

RM.

UK£0.54

RM

7D

-6.9%

1Y

-16.4%

SMRT

UK£0.88

Smartspace Software

7D

48.3%

1Y

127.3%

NET

UK£0.96

Netcall

7D

3.8%

1Y

-4.0%

TRCS

UK£9.20

Tracsis

7D

1.7%

1Y

4.5%

DOTD

UK£0.88

dotdigital Group

7D

-4.1%

1Y

-4.1%

BYIT

UK£5.25

Bytes Technology Group

7D

-8.9%

1Y

42.5%

BGO

UK£1.08

Bango

7D

12.5%

1Y

-52.2%