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U.K. (FTSE) Software Industry Analysis

UpdatedJun 28, 2024
DataAggregated Company Financials
Companies61
  • 7D0.2%
  • 3M-2.4%
  • 1Y21.0%
  • YTD4.2%

Over the last 7 days, the Software industry has remained flat. As for the the longer term, the industry is up 21% over the past 12 months. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 29 Jun 2024UK£22.0bUK£5.3bUK£260.4m40.2x84.6x4.1x
Mon, 27 May 2024UK£21.8bUK£5.3bUK£163.2m38.4x133.6x4.1x
Wed, 24 Apr 2024UK£21.3bUK£5.2bUK£92.0m36.5x231.6x4.1x
Fri, 22 Mar 2024UK£22.0bUK£5.2bUK£72.3m36.7x304.3x4.2x
Sun, 18 Feb 2024UK£21.0bUK£5.2bUK£65.8m37.3x320x4.1x
Tue, 16 Jan 2024UK£42.3bUK£10.1bUK£71.1m36.6x594.4x4.2x
Thu, 14 Dec 2023UK£42.4bUK£10.2bUK£72.1m33.1x587.8x4.2x
Sat, 11 Nov 2023UK£39.9bUK£10.1bUK£126.9m31.9x314x3.9x
Mon, 09 Oct 2023UK£40.2bUK£10.1bUK£128.7m36.3x312x4x
Wed, 06 Sep 2023UK£40.2bUK£10.0bUK£102.2m34x393.2x4x
Fri, 04 Aug 2023UK£39.7bUK£10.0bUK£94.1m33.9x422.2x4x
Sun, 02 Jul 2023UK£41.1bUK£10.6bUK£125.5m37.2x328x3.9x
Tue, 30 May 2023UK£40.2bUK£10.6bUK£39.2m35.2x1024.7x3.8x
Thu, 27 Apr 2023UK£39.7bUK£10.6bUK£291.1m37x136.5x3.8x
Sat, 25 Mar 2023UK£39.1bUK£10.6bUK£310.8m32.5x126x3.7x
Mon, 20 Feb 2023UK£39.6bUK£10.3bUK£296.6m35.1x133.5x3.8x
Wed, 18 Jan 2023UK£39.3bUK£10.3bUK£300.4m33x130.7x3.8x
Fri, 16 Dec 2022UK£39.1bUK£10.3bUK£315.6m34.2x123.8x3.8x
Sun, 13 Nov 2022UK£39.5bUK£10.3bUK£351.3m42.8x112.4x3.8x
Tue, 11 Oct 2022UK£1.5tUK£10.4bUK£338.5m37.6x4431.3x144.7x
Thu, 08 Sep 2022UK£39.0bUK£9.8bUK£217.9m47x179x4x
Sat, 06 Aug 2022UK£36.2bUK£9.6bUK£299.6m48.3x120.8x3.8x
Mon, 04 Jul 2022UK£31.7bUK£9.6bUK£293.0m40.2x108.4x3.3x
Wed, 01 Jun 2022UK£33.6bUK£9.3bUK£207.0m40.1x162.4x3.6x
Fri, 29 Apr 2022UK£34.9bUK£9.2bUK£191.7m43.2x182x3.8x
Sun, 27 Mar 2022UK£37.3bUK£9.1bUK£118.6m38.3x314.5x4.1x
Tue, 22 Feb 2022UK£37.4bUK£8.8bUK£25.6m44.3x1457.4x4.2x
Thu, 20 Jan 2022UK£41.8bUK£8.9b-UK£1,229,504,829.0049x-34x4.7x
Sat, 18 Dec 2021UK£43.1bUK£9.0b-UK£1,274,010,129.0051x-33.9x4.8x
Mon, 15 Nov 2021UK£44.0bUK£9.0b-UK£1,310,006,492.0058.9x-33.6x4.9x
Wed, 13 Oct 2021UK£45.1bUK£8.7b-UK£1,234,003,195.0058x-36.6x5.2x
Fri, 10 Sep 2021UK£47.8bUK£8.5b-UK£1,191,891,425.0057.4x-40.1x5.6x
Sun, 08 Aug 2021UK£41.2bUK£8.3b-UK£1,095,385,509.2856.5x-37.6x5x
Price to Earnings Ratio

-35.2x


Total Market Cap: UK£38.6bTotal Earnings: -UK£1,097,244,509.28Total Revenue: UK£8.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 220.6x202220232024
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 84.6x which is lower than its 3-year average PE of 221x.
  • 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-1.02%
Tech-0.54%
Software0.22%
Application Software0.33%
Systems Software-0.30%
Industry PE
  • Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 136x.
    • Analysts are expecting annual earnings growth of 8.1% and investors are willing to pay a premium for that growth.
  • Investors are most pessimistic about the Application Software industry, which is trading below its 3-year average of 165x.
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 8.1% 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£10.890.7%
+UK£74.9m		17.7%PE40.7x
FDP FD TechnologiesUK£14.243.6%
+UK£14.1m		-25.7%PS1.6x
NET NetcallUK£0.926.4%
+UK£9.1m		-9.8%PE28.3x
IGP Intercede GroupUK£1.3413.1%
+UK£9.0m		162.7%PE13x
CER CerillionUK£16.001.6%
+UK£7.4m		23.1%PE33.6x
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Latest News

ALFA

UK£1.86

Alfa Financial Software Holdings

7D

-2.2%

1Y

-4.8%

Earnings Not Telling The Story For Alfa Financial Software Holdings PLC (LON:ALFA)

Jun 26
Earnings Not Telling The Story For Alfa Financial Software Holdings PLC (LON:ALFA)

DARK

UK£5.77

Darktrace

7D

-0.1%

1Y

87.1%

FDP

UK£14.24

FD Technologies

7D

3.6%

1Y

-25.7%

GBG

UK£3.40

GB Group

7D

-0.5%

1Y

48.4%

BYIT

UK£5.55

Bytes Technology Group

7D

-2.7%

1Y

5.1%

Bytes Technology Group (LON:BYIT) Is Paying Out A Larger Dividend Than Last Year

Jun 20
Bytes Technology Group (LON:BYIT) Is Paying Out A Larger Dividend Than Last Year

TRCS

UK£7.25

Tracsis

7D

-7.1%

1Y

-19.4%

IGP

UK£1.34

Intercede Group

7D

13.1%

1Y

162.7%

BGO

UK£1.45

Bango

7D

2.8%

1Y

-17.6%

CRTA

UK£0.61

Cirata

7D

4.7%

1Y

n/a

IDOX

UK£0.61

IDOX

7D

-2.3%

1Y

-10.4%

SGE

UK£10.89

Sage Group

7D

0.7%

1Y

17.7%

PINE

UK£3.56

Pinewood Technologies Group

7D

-4.8%

1Y

0.8%

BIRD

UK£0.048

Blackbird

7D

20.3%

1Y

-26.9%

CER

UK£16.00

Cerillion

7D

1.6%

1Y

23.1%

ACSO

UK£7.28

accesso Technology Group

7D

-2.9%

1Y

-5.3%

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

NET

UK£0.92

Netcall

7D

6.4%

1Y

-9.8%