What Reply S.p.A.'s (BIT:REY) P/E Is Not Telling You
Apr 16
Italian (Borsa Italiana) IT Industry Analysis
UpdatedApr 22, 2024
DataAggregated Company Financials
Companies16
- 7D-3.4%
- 3M-2.2%
- 1Y7.2%
- YTD0.2%
Over the last 7 days, the IT industry has dropped 3.4%, driven by Reply declining 3.1%. On the other hand Digital Value is actually up 6.7%. In the past year, the industry has gained 7.2%. Looking forward, earnings are forecast to grow by 14% annually.
Industry Valuation and Performance
Has the Italian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 23 Apr 2024 | €6.0b | €3.6b | €264.5m | 17.7x | 22.6x | 1.6x |
| Thu, 21 Mar 2024 | €6.4b | €3.6b | €263.4m | 19.7x | 24.3x | 1.8x |
| Sat, 17 Feb 2024 | €6.2b | €3.5b | €268.3m | 23.2x | 23x | 1.8x |
| Mon, 15 Jan 2024 | €6.7b | €3.8b | €264.0m | 23.4x | 25.4x | 1.8x |
| Wed, 13 Dec 2023 | €6.2b | €3.8b | €264.0m | 20.7x | 23.3x | 1.6x |
| Fri, 10 Nov 2023 | €5.7b | €3.8b | €262.6m | 19.4x | 21.7x | 1.5x |
| Sun, 08 Oct 2023 | €5.1b | €3.8b | €262.6m | 17.1x | 19.6x | 1.3x |
| Tue, 05 Sep 2023 | €5.6b | €3.7b | €255.8m | 29.5x | 21.9x | 1.5x |
| Thu, 03 Aug 2023 | €5.8b | €3.5b | €252.8m | 29.9x | 23x | 1.6x |
| Sat, 01 Jul 2023 | €6.0b | €3.5b | €252.8m | 29.7x | 23.8x | 1.7x |
| Mon, 29 May 2023 | €5.9b | €3.5b | €252.8m | 28x | 23.5x | 1.7x |
| Wed, 26 Apr 2023 | €6.0b | €3.5b | €254.4m | 25x | 23.8x | 1.7x |
| Fri, 24 Mar 2023 | €6.4b | €3.5b | €252.1m | 24.7x | 25.5x | 1.8x |
| Sun, 19 Feb 2023 | €17.0b | €7.7b | €298.5m | 25.6x | 57.1x | 2.2x |
| Tue, 17 Jan 2023 | €17.6b | €7.7b | €298.5m | 23.8x | 58.8x | 2.3x |
| Thu, 15 Dec 2022 | €17.0b | €7.7b | €298.5m | 23x | 57x | 2.2x |
| Sat, 12 Nov 2022 | €19.9b | €7.7b | €298.1m | 23.4x | 66.7x | 2.6x |
| Mon, 10 Oct 2022 | €17.5b | €7.7b | €296.4m | 27.6x | 59x | 2.3x |
| Wed, 07 Sep 2022 | €17.4b | €7.6b | €302.6m | 23.2x | 57.5x | 2.3x |
| Fri, 05 Aug 2022 | €18.6b | €7.4b | €298.4m | 24.6x | 62.3x | 2.5x |
| Sun, 03 Jul 2022 | €16.6b | €5.9b | €262.4m | 22.8x | 63.4x | 2.8x |
| Tue, 31 May 2022 | €19.0b | €5.1b | €220.7m | 27.8x | 86x | 3.7x |
| Thu, 28 Apr 2022 | €18.7b | €5.1b | €219.8m | 28.7x | 85.1x | 3.7x |
| Sat, 26 Mar 2022 | €21.6b | €5.1b | €212.0m | 35.9x | 101.7x | 4.3x |
| Mon, 21 Feb 2022 | €23.1b | €3.8b | €299.7m | 34x | 77.1x | 6x |
| Wed, 19 Jan 2022 | €24.9b | €3.8b | €300.4m | 30.9x | 83x | 6.5x |
| Fri, 17 Dec 2021 | €22.4b | €3.8b | €300.4m | 31.3x | 74.7x | 5.9x |
| Sun, 14 Nov 2021 | €24.9b | €3.8b | €298.8m | 31.3x | 83.2x | 6.5x |
| Tue, 12 Oct 2021 | €23.8b | €3.8b | €298.2m | 32.9x | 79.8x | 6.3x |
| Thu, 09 Sep 2021 | €26.6b | €3.7b | €297.5m | 46.4x | 89.4x | 7.2x |
| Sat, 07 Aug 2021 | €24.7b | €3.7b | €297.5m | 40x | 83.1x | 6.7x |
| Fri, 30 Apr 2021 | €15.1b | €3.5b | €273.4m | 33.8x | 55.3x | 4.3x |
Price to Earnings Ratio
55.3x
Current Industry PE
- Investors are pessimistic on the Italian IT 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 22.6x which is lower than its 3-year average PE of 53.0x.
- The 3-year average PS ratio of 3.2x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- Both revenue and earnings for companies in the IT industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the Italian Tech industry?
| IT Market | -0.31% | |
| Tech | -5.39% | |
| IT | -3.36% | |
| Data Processing Services | 0% | |
| Internet Services and Infrastructure | -1.83% | |
| IT Consulting | -3.54% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry even though it's trading below its 3-year average PE ratio of 2kx.
- Analysts expect its future annual earnings growth (30.3%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the IT Consulting industry, which is trading below its 3-year average of 29.1x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 30% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| DGV Digital Value | €54.50 | 6.7% +€33.8m | -14.4% | PE15.8x | |
| NRST Neurosoft Software Production | €0.71 | 10.0% +€1.7m | 1.4% | PE14.3x | |
| XPR Exprivia | €1.72 | 1.5% +€1.2m | 27.8% | PE6x | |
| SPN Spindox | €8.76 | 2.3% +€1.1m | -4.3% | PE105.5x | |
| DHH Dominion Hosting Holding | €15.80 | 1.3% +€978.6k | 1.9% | PE23.2x |