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Japanese (NIKKEI) Software Industry Analysis

UpdatedAug 20, 2026
DataAggregated Company Financials
Companies182
  • 7D-1.9%
  • 3M9.1%
  • 1Y-20.8%
  • YTD-8.4%

The Software is pretty flat in the last 7 days, but freee K.K has stood out, gaining 23%. Unfortunately though, the industry is down 22% over the past 12 months. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

Has the Japanese Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 20 Aug 2026JP¥7.2tJP¥2.7tJP¥325.9b17x22.2x2.7x
Sat, 18 Jul 2026JP¥6.8tJP¥2.6tJP¥305.5b17.2x22.4x2.6x
Mon, 15 Jun 2026JP¥6.4tJP¥2.6tJP¥301.2b16.1x21.2x2.4x
Wed, 13 May 2026JP¥6.4tJP¥2.6tJP¥286.8b16.9x22.5x2.5x
Fri, 10 Apr 2026JP¥6.3tJP¥2.5tJP¥278.7b17.4x22.7x2.5x
Sun, 08 Mar 2026JP¥6.6tJP¥2.5tJP¥270.0b17.9x24.5x2.6x
Tue, 03 Feb 2026JP¥7.1tJP¥2.5tJP¥265.4b19.2x26.8x2.9x
Thu, 01 Jan 2026JP¥8.0tJP¥2.4tJP¥255.6b20.3x31.2x3.3x
Sat, 29 Nov 2025JP¥8.3tJP¥2.4tJP¥252.5b19.9x32.8x3.4x
Mon, 27 Oct 2025JP¥8.6tJP¥2.4tJP¥236.2b22x36.6x3.6x
Wed, 24 Sep 2025JP¥9.2tJP¥2.4tJP¥234.9b21.9x39.2x3.9x
Fri, 22 Aug 2025JP¥9.0tJP¥2.4tJP¥232.8b21.7x38.8x3.8x
Sun, 20 Jul 2025JP¥8.9tJP¥2.3tJP¥225.1b20.5x39.4x3.8x
Tue, 17 Jun 2025JP¥9.1tJP¥2.3tJP¥232.5b20.9x39.1x3.9x
Thu, 15 May 2025JP¥8.8tJP¥2.3tJP¥227.6b21x38.6x3.9x
Sat, 12 Apr 2025JP¥8.1tJP¥2.2tJP¥227.1b18.7x35.8x3.6x
Mon, 10 Mar 2025JP¥8.0tJP¥2.2tJP¥225.4b19.5x35.6x3.6x
Wed, 05 Feb 2025JP¥8.6tJP¥2.5tJP¥219.7b21.3x39.4x3.5x
Fri, 03 Jan 2025JP¥8.7tJP¥2.5tJP¥220.8b22.6x39.4x3.5x
Sun, 01 Dec 2024JP¥8.6tJP¥2.5tJP¥220.0b22x39x3.5x
Tue, 29 Oct 2024JP¥8.3tJP¥2.4tJP¥205.1b22.2x40.7x3.4x
Thu, 26 Sep 2024JP¥8.4tJP¥2.4tJP¥202.8b22.9x41.6x3.5x
Sat, 24 Aug 2024JP¥8.2tJP¥2.4tJP¥203.7b21.3x40.1x3.4x
Mon, 22 Jul 2024JP¥7.9tJP¥2.4tJP¥189.0b23.2x42.1x3.3x
Wed, 19 Jun 2024JP¥7.4tJP¥2.4tJP¥187.1b22.2x39.7x3.1x
Fri, 17 May 2024JP¥7.7tJP¥2.4tJP¥178.0b22.1x43.2x3.3x
Sun, 14 Apr 2024JP¥7.8tJP¥2.3tJP¥167.7b23x46.3x3.3x
Tue, 12 Mar 2024JP¥7.9tJP¥2.3tJP¥164.0b23.8x48.3x3.4x
Thu, 08 Feb 2024JP¥7.8tJP¥2.3tJP¥166.9b23.7x46.6x3.4x
Sat, 06 Jan 2024JP¥7.4tJP¥2.3tJP¥162.4b21.9x45.8x3.2x
Mon, 04 Dec 2023JP¥7.7tJP¥2.3tJP¥162.6b22.5x47.4x3.4x
Wed, 01 Nov 2023JP¥6.7tJP¥2.2tJP¥175.3b22.3x38.2x3x
Fri, 29 Sep 2023JP¥7.0tJP¥2.2tJP¥172.5b24.7x40.7x3.1x
Sun, 27 Aug 2023JP¥7.0tJP¥2.2tJP¥171.9b23.6x40.5x3.1x
Price to Earnings Ratio

40.5x


Total Market Cap: JP¥7.0tTotal Earnings: JP¥171.9bTotal Revenue: JP¥2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 36.8x202420252026
Current Industry PE
  • Investors are pessimistic on the Japanese 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 22.5x which is lower than its 3-year average PE of 36.9x.
  • The 3-year average PS ratio of 3.3x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 23% per year over the last three years.
  • Revenues for these companies have grown 6.3% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Japanese Tech industry?

JP Market-2.79%
Tech-3.65%
Software-1.91%
Application Software1.80%
Systems Software-7.92%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 46.0x.
    • Analysts are expecting annual earnings growth of 18.6%, which is higher than its past year's earnings growth of 16.7% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 30.0x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 19% 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 9.5% 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
4478 freee K.KJP¥3.47k23.2%
+JP¥38.8b		1.0%PE190.9x
4180 Appier GroupJP¥1.27k29.6%
+JP¥29.7b		-17.6%PE38.7x
3763 Pro-ShipJP¥2.30k21.3%
+JP¥10.4b		36.9%PE24.2x
5027 AnyMind GroupJP¥754.0026.1%
+JP¥9.3b		7.3%PE35.5x
4674 CrescoJP¥2.02k8.8%
+JP¥6.5b		15.3%PE15x

Latest News

4704
JP¥5,614.00
Trend Micro
7D
-19.4%
1Y
-29.8%
3905
JP¥1,657.00
Datasection
7D
-10.9%
1Y
-45.1%
4443
JP¥2,024.00
Sansan
7D
2.1%
1Y
6.1%
3763
JP¥2,304.00
Pro-Ship
7D
21.3%
1Y
36.9%
5027
JP¥754.00
AnyMind Group
7D
26.1%
1Y
7.3%
4478
JP¥3,465.00
freee K.K
7D
23.2%
1Y
1.0%
Analysis Article • Aug 16

freee K.K. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

The investors in freee K.K. 's ( TSE:4478 ) will be rubbing their hands together with glee today, after the share price...
4180
JP¥1,274.00
Appier Group
7D
29.6%
1Y
-17.6%
4776
JP¥2,923.00
Cybozu
7D
4.0%
1Y
-27.9%
4071
JP¥2,210.00
Plus Alpha ConsultingLtd
7D
-7.2%
1Y
-9.8%
4258
JP¥4,265.00
AMIYA
7D
-11.9%
1Y
11.6%
3687
JP¥2,078.00
Fixstars
7D
-6.4%
1Y
6.7%
4674
JP¥2,018.00
Cresco
7D
8.8%
1Y
15.3%
2326
JP¥4,440.00
Digital Arts
7D
-8.3%
1Y
-41.4%
4733
JP¥8,131.00
OBIC Business Consultants
7D
1.0%
1Y
-6.5%
4716
JP¥9,081.00
Oracle Corporation Japan
7D
-3.0%
1Y
-42.9%
Narrative Update • Jul 24

4716: Future Returns Will Balance Higher Payouts With Moderating Profitability

Analysts have reset their fair value estimate for Oracle Corporation Japan from ¥13,000 to ¥8,700, reflecting updated assumptions around revenue growth, profit margins, and a lower future P/E multiple. What’s in the News for Oracle Corporation Japan Oracle Corporation Japan announced a special dividend of ¥660 per share for the fiscal year ended May 31, 2026, with dividend payments scheduled to commence on August 10, 2026.
3692
JP¥4,630.00
FFRI Security
7D
-14.3%
1Y
-30.4%