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Japanese (NIKKEI) Software Industry Analysis

UpdatedSep 16, 2025
DataAggregated Company Financials
Companies182
  • 7D2.5%
  • 3M-0.5%
  • 1Y15.5%
  • YTD16.9%

In the last week, the Software industry is up 2.5%, with Oracle Corporation Japan up 7.9%. Meanwhile, Datasection actually underperformed within the industry, shrinking 29% in the last week. This means that the industry has gained 15% over the past year. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Sep 2025JP¥9.1tJP¥2.4tJP¥235.1b21.3x38.9x3.9x
Thu, 14 Aug 2025JP¥9.1tJP¥2.3tJP¥224.9b21x40.4x3.9x
Sat, 12 Jul 2025JP¥8.9tJP¥2.3tJP¥227.7b20.1x39x3.8x
Mon, 09 Jun 2025JP¥9.0tJP¥2.3tJP¥232.4b20.7x38.9x3.9x
Wed, 07 May 2025JP¥8.6tJP¥2.3tJP¥230.6b20.7x37.1x3.8x
Fri, 04 Apr 2025JP¥8.1tJP¥2.2tJP¥222.8b18.8x36.2x3.6x
Sun, 02 Mar 2025JP¥8.2tJP¥2.2tJP¥225.3b19.5x36.2x3.7x
Tue, 28 Jan 2025JP¥8.5tJP¥2.5tJP¥219.8b21.4x38.8x3.4x
Thu, 26 Dec 2024JP¥8.6tJP¥2.5tJP¥221.7b22.3x38.7x3.5x
Sat, 23 Nov 2024JP¥8.4tJP¥2.5tJP¥221.8b23.4x38.1x3.4x
Mon, 21 Oct 2024JP¥8.6tJP¥2.4tJP¥205.0b22x41.8x3.5x
Wed, 18 Sep 2024JP¥8.4tJP¥2.4tJP¥198.2b21.4x42.6x3.6x
Fri, 16 Aug 2024JP¥7.8tJP¥2.4tJP¥196.6b20.2x39.5x3.2x
Sun, 14 Jul 2024JP¥7.9tJP¥2.4tJP¥188.3b22.9x42x3.3x
Tue, 11 Jun 2024JP¥7.4tJP¥2.4tJP¥187.9b22.3x39.1x3.1x
Thu, 09 May 2024JP¥7.7tJP¥2.3tJP¥170.6b22.7x45.3x3.3x
Sat, 06 Apr 2024JP¥7.6tJP¥2.3tJP¥167.6b22.7x45.5x3.3x
Mon, 04 Mar 2024JP¥8.2tJP¥2.3tJP¥163.5b24x50x3.5x
Wed, 31 Jan 2024JP¥7.9tJP¥2.3tJP¥164.5b24.6x48.2x3.4x
Fri, 29 Dec 2023JP¥7.6tJP¥2.3tJP¥162.3b22.7x46.7x3.3x
Sun, 26 Nov 2023JP¥7.6tJP¥2.3tJP¥163.4b22x46.4x3.3x
Tue, 24 Oct 2023JP¥6.5tJP¥2.2tJP¥174.3b22x37.5x2.9x
Thu, 21 Sep 2023JP¥6.9tJP¥2.2tJP¥171.0b24.1x40.3x3.1x
Sat, 19 Aug 2023JP¥6.8tJP¥2.2tJP¥171.9b24x39.4x3x
Mon, 17 Jul 2023JP¥7.4tJP¥2.2tJP¥165.5b24.5x44.4x3.4x
Wed, 14 Jun 2023JP¥7.7tJP¥2.2tJP¥167.3b23.7x46.2x3.6x
Fri, 12 May 2023JP¥7.2tJP¥2.1tJP¥169.7b24.2x42.2x3.4x
Sun, 09 Apr 2023JP¥6.7tJP¥2.1tJP¥170.3b22.6x39.3x3.2x
Tue, 07 Mar 2023JP¥6.7tJP¥2.1tJP¥170.7b23.2x39.5x3.2x
Thu, 02 Feb 2023JP¥6.6tJP¥2.0tJP¥180.1b23.6x36.8x3.3x
Sat, 31 Dec 2022JP¥6.2tJP¥2.0tJP¥183.0b22.1x33.7x3x
Mon, 28 Nov 2022JP¥6.7tJP¥2.0tJP¥181.0b24.3x37.3x3.3x
Wed, 26 Oct 2022JP¥6.3tJP¥2.0tJP¥183.8b23.8x34.4x3.2x
Fri, 23 Sep 2022JP¥6.1tJP¥2.0tJP¥188.3b23.3x32.5x3.1x
Price to Earnings Ratio

32.5x


Total Market Cap: JP¥6.1tTotal Earnings: JP¥188.3bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.3x202320242025
Current Industry PE
  • Investors are relatively neutral on the Japanese Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 40.3x.
  • The 3-year average PS ratio of 3.4x is lower than the industry's current PS ratio of 3.9x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 7.7% per year over the last three years.
  • Revenues for these companies have grown 6.1% 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 Market1.24%
Tech3.87%
Software2.54%
Systems Software5.25%
Application Software0.54%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 57.6x.
    • Analysts are expecting annual earnings growth of 27.0%, which is higher than its past year's earnings growth of 21.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 30.6x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 21% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 11% 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
4716 Oracle Corporation JapanJP¥16.09k5.4%
+JP¥105.2b		15.8%PE34x
4704 Trend MicroJP¥8.34k6.8%
+JP¥69.7b		-5.9%PE35.7x
4733 OBIC Business ConsultantsJP¥9.03k3.5%
+JP¥22.9b		22.1%PE41.6x
4686 JustSystemsJP¥5.10k5.3%
+JP¥16.4b		43.9%PE25.1x
4478 freee K.KJP¥3.53k6.8%
+JP¥13.3b		35.5%PE152.4x

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