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U.K. (FTSE) Software Industry Analysis

UpdatedMay 23, 2024
DataAggregated Company Financials
Companies61
  • 7D-4.4%
  • 3M1.5%
  • 1Y28.6%
  • YTD4.8%

Over the last 7 days, the Software industry has dropped 5.0%, driven by a pullback from Sage Group of 10%. In contrast, Bytes Technology Group has gained 7.5%. Over the past 12 months, the industry was up 26%. 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
Thu, 23 May 2024UK£21.9bUK£5.3bUK£161.9m38.2x135.5x4.2x
Sat, 20 Apr 2024UK£20.7bUK£5.2bUK£91.3m37.9x226.7x4x
Mon, 18 Mar 2024UK£21.7bUK£5.2bUK£69.4m35.9x313.4x4.2x
Wed, 14 Feb 2024UK£20.8bUK£5.2bUK£65.8m37.1x316.6x4x
Fri, 12 Jan 2024UK£42.3bUK£10.1bUK£71.1m37x594x4.2x
Sun, 10 Dec 2023UK£42.1bUK£10.2bUK£72.1m33.1x584.2x4.1x
Tue, 07 Nov 2023UK£39.4bUK£10.1bUK£125.9m32.7x313.3x3.9x
Thu, 05 Oct 2023UK£40.2bUK£10.1bUK£128.6m33.7x313.1x4x
Sat, 02 Sep 2023UK£40.1bUK£10.0bUK£102.2m34x392.8x4x
Mon, 31 Jul 2023UK£40.7bUK£10.6bUK£124.7m34.3x326.7x3.9x
Wed, 28 Jun 2023UK£40.8bUK£10.6bUK£126.7m36x321.8x3.9x
Fri, 26 May 2023UK£40.2bUK£10.6bUK£50.0m35.2x803.6x3.8x
Sun, 23 Apr 2023UK£39.8bUK£10.6bUK£292.8m37.6x135.9x3.8x
Tue, 21 Mar 2023UK£39.0bUK£10.4bUK£299.7m31.6x130x3.7x
Thu, 16 Feb 2023UK£39.5bUK£10.3bUK£296.7m34.7x133.3x3.8x
Sat, 14 Jan 2023UK£39.6bUK£10.3bUK£299.9m32.7x132x3.8x
Mon, 12 Dec 2022UK£39.2bUK£10.3bUK£317.1m34.4x123.6x3.8x
Wed, 09 Nov 2022UK£38.2bUK£10.3bUK£342.1m41.9x111.7x3.7x
Fri, 07 Oct 2022UK£38.6bUK£10.3bUK£340.9m35.8x113.3x3.7x
Sun, 04 Sep 2022UK£38.7bUK£9.8bUK£218.0m47.4x177.4x4x
Tue, 02 Aug 2022UK£33.6bUK£9.5bUK£299.4m48.6x112.2x3.5x
Thu, 30 Jun 2022UK£32.4bUK£9.5bUK£294.5m40.9x110x3.4x
Sat, 28 May 2022UK£33.6bUK£9.3bUK£207.2m36.1x162.2x3.6x
Mon, 25 Apr 2022UK£36.6bUK£9.0bUK£196.1m39.9x186.5x4.1x
Wed, 23 Mar 2022UK£37.8bUK£9.0bUK£103.0m39.8x366.9x4.2x
Fri, 18 Feb 2022UK£38.3bUK£8.8bUK£29.3m44.4x1307.8x4.3x
Sun, 16 Jan 2022UK£42.0bUK£8.9b-UK£1,224,603,340.0051.2x-34.3x4.7x
Tue, 14 Dec 2021UK£43.2bUK£9.0b-UK£1,278,932,214.0050.1x-33.8x4.8x
Thu, 11 Nov 2021UK£43.9bUK£8.8b-UK£1,240,373,278.0058.6x-35.4x5x
Sat, 09 Oct 2021UK£45.6bUK£8.7b-UK£1,229,700,369.0057.3x-37x5.2x
Mon, 06 Sep 2021UK£48.4bUK£8.5b-UK£1,191,891,425.0057.3x-40.6x5.7x
Wed, 04 Aug 2021UK£41.0bUK£8.3b-UK£1,095,385,509.2856.5x-37.4x4.9x
Price to Earnings Ratio

-33x


Total Market Cap: UK£37.7bTotal Earnings: -UK£1,143,199,516.81Total Revenue: UK£8.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 217.2x202220232024
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 134x which is lower than its 3-year average PE of 217x.
  • 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 Market-0.58%
Tech0.035%
Software-4.36%
Systems Software-0.54%
Application Software-5.20%
Industry PE
  • Investors are most optimistic about the Application Software industry, which is trading close to its 3-year average PE ratio of 161x.
    • Analysts expect its future annual earnings growth (22.0%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 136x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 9.0% 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
BYIT Bytes Technology GroupUK£5.707.5%
+UK£94.9m		28.3%PE31x
GBG GB GroupUK£3.456.0%
+UK£47.9m		20.1%PS3.1x
APTD Aptitude Software GroupUK£3.5713.3%
+UK£24.0m		11.2%PE49.4x
ALFA Alfa Financial Software HoldingsUK£1.733.6%
+UK£17.7m		11.9%PE21.7x
RM. RMUK£1.0420.0%
+UK£14.4m		16.2%PS0.4x
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Latest News

APTD

UK£3.57

Aptitude Software Group

7D

13.3%

1Y

11.2%

There's Reason For Concern Over Aptitude Software Group plc's (LON:APTD) Price

May 22
There's Reason For Concern Over Aptitude Software Group plc's (LON:APTD) Price

RM.

UK£1.04

RM

7D

20.0%

1Y

16.2%

Is RM (LON:RM.) Weighed On By Its Debt Load?

May 21
Is RM (LON:RM.) Weighed On By Its Debt Load?

SGE

UK£10.76

Sage Group

7D

-10.1%

1Y

27.4%

BYIT

UK£5.70

Bytes Technology Group

7D

7.5%

1Y

28.3%

GBG

UK£3.45

GB Group

7D

6.0%

1Y

20.1%

OMG

UK£1.11

Oxford Metrics

7D

-1.8%

1Y

20.1%

CER

UK£15.15

Cerillion

7D

-1.6%

1Y

27.8%

CRTA

UK£0.59

Cirata

7D

-4.7%

1Y

n/a

ZOO

UK£0.58

ZOO Digital Group

7D

-4.9%

1Y

-55.8%

SAAS

UK£1.48

Microlise Group

7D

-4.2%

1Y

20.4%

Microlise Group's (LON:SAAS) Solid Earnings Have Been Accounted For Conservatively

May 14
Microlise Group's (LON:SAAS) Solid Earnings Have Been Accounted For Conservatively

PULS

UK£0.79

Pulsar Group

7D

14.6%

1Y

0.6%

DARK

UK£5.96

Darktrace

7D

-0.4%

1Y

107.1%

DOTD

UK£0.97

dotdigital Group

7D

3.4%

1Y

7.7%

ALFA

UK£1.73

Alfa Financial Software Holdings

7D

3.6%

1Y

11.9%

ACSO

UK£7.56

accesso Technology Group

7D

3.3%

1Y

7.2%

Market Participants Recognise accesso Technology Group plc's (LON:ACSO) Earnings Pushing Shares 26% Higher

May 03
Market Participants Recognise accesso Technology Group plc's (LON:ACSO) Earnings Pushing Shares 26% Higher

KBT

UK£0.94

K3 Business Technology Group

7D

-8.7%

1Y

-21.9%