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Japanese (NIKKEI) Software Industry Analysis

UpdatedDec 17, 2025
DataAggregated Company Financials
Companies184
  • 7D-0.7%
  • 3M-13.3%
  • 1Y-0.3%
  • YTD0.9%

The Software industry has been flat over the last week, but Rakus has lost 8.1%. Furthermore, the industry has been flat for the past year as well. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 17 Dec 2025JP¥8.0tJP¥2.4tJP¥254.4b19.5x31.3x3.3x
Fri, 14 Nov 2025JP¥8.5tJP¥2.4tJP¥246.2b22.2x34.5x3.6x
Sun, 12 Oct 2025JP¥8.6tJP¥2.4tJP¥234.8b21.6x36.7x3.6x
Tue, 09 Sep 2025JP¥8.9tJP¥2.4tJP¥236.0b22x37.8x3.8x
Thu, 07 Aug 2025JP¥9.1tJP¥2.3tJP¥223.0b21.5x40.9x3.9x
Sat, 05 Jul 2025JP¥8.8tJP¥2.3tJP¥227.7b20.1x38.8x3.8x
Mon, 02 Jun 2025JP¥8.9tJP¥2.3tJP¥232.1b20.4x38.6x3.8x
Wed, 30 Apr 2025JP¥8.5tJP¥2.3tJP¥230.4b20.7x36.8x3.8x
Fri, 28 Mar 2025JP¥8.5tJP¥2.2tJP¥223.2b19.9x38.1x3.8x
Sun, 23 Feb 2025JP¥8.5tJP¥2.2tJP¥225.3b20.3x37.8x3.8x
Tue, 21 Jan 2025JP¥8.3tJP¥2.5tJP¥219.3b21.1x37.9x3.3x
Thu, 19 Dec 2024JP¥8.6tJP¥2.4tJP¥213.5b22.1x40.2x3.6x
Sat, 16 Nov 2024JP¥8.4tJP¥2.4tJP¥216.7b22.2x38.8x3.4x
Mon, 14 Oct 2024JP¥8.7tJP¥2.4tJP¥205.2b22.2x42.3x3.6x
Wed, 11 Sep 2024JP¥8.4tJP¥2.4tJP¥205.4b21.6x40.8x3.4x
Fri, 09 Aug 2024JP¥7.3tJP¥2.4tJP¥192.1b18.9x37.8x3x
Sun, 07 Jul 2024JP¥7.7tJP¥2.4tJP¥187.1b23x41.2x3.2x
Tue, 04 Jun 2024JP¥7.4tJP¥2.4tJP¥187.9b22.4x39.1x3.1x
Thu, 02 May 2024JP¥7.6tJP¥2.3tJP¥170.5b22.5x44.4x3.3x
Sat, 30 Mar 2024JP¥8.0tJP¥2.3tJP¥167.4b24x47.9x3.5x
Mon, 26 Feb 2024JP¥7.7tJP¥2.3tJP¥163.6b24.1x47.1x3.3x
Wed, 24 Jan 2024JP¥7.9tJP¥2.3tJP¥163.1b23.6x48.7x3.4x
Fri, 22 Dec 2023JP¥7.6tJP¥2.3tJP¥162.3b21.5x46.7x3.3x
Sun, 19 Nov 2023JP¥7.4tJP¥2.3tJP¥164.2b21.2x45.3x3.2x
Tue, 17 Oct 2023JP¥6.9tJP¥2.2tJP¥174.1b22.7x39.5x3.1x
Thu, 14 Sep 2023JP¥7.0tJP¥2.2tJP¥171.0b24.3x40.9x3.1x
Sat, 12 Aug 2023JP¥7.0tJP¥2.2tJP¥166.1b25x42.1x3.2x
Mon, 10 Jul 2023JP¥7.3tJP¥2.2tJP¥167.2b24.5x43.4x3.3x
Wed, 07 Jun 2023JP¥7.6tJP¥2.2tJP¥166.6b24x45.3x3.5x
Fri, 05 May 2023JP¥7.0tJP¥2.1tJP¥169.9b22.2x41.3x3.3x
Sun, 02 Apr 2023JP¥6.8tJP¥2.1tJP¥170.1b23.5x40.2x3.2x
Tue, 28 Feb 2023JP¥6.4tJP¥2.1tJP¥170.7b22.7x37.7x3.1x
Thu, 26 Jan 2023JP¥6.6tJP¥2.0tJP¥181.1b23.7x36.3x3.2x
Sat, 24 Dec 2022JP¥6.0tJP¥2.0tJP¥183.6b21.6x32.9x3x
Price to Earnings Ratio

32.9x


Total Market Cap: JP¥6.0tTotal Earnings: JP¥183.6bTotal Revenue: JP¥2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Software Industry Price to Earnings3Y Average 40.4x202320242025
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 31.8x which is lower than its 3-year average PE of 40.4x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 11% per year over the last three years.
  • Revenues for these companies have grown 6.2% 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-0.40%
Tech-3.26%
Software-0.75%
Systems Software0.29%
Application Software-1.51%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 56.1x.
    • Analysts are expecting annual earnings growth of 25.8%, which is higher than its past year's earnings growth of 22.6% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 31.1x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% 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 10% 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¥13.62k1.9%
+JP¥32.0b		-5.7%PE29x
3994 Money ForwardJP¥4.18k6.7%
+JP¥14.6b		-16.8%PS5x
4443 SansanJP¥1.69k2.4%
+JP¥5.1b		-31.2%PE195.1x
4674 CrescoJP¥1.72k6.5%
+JP¥4.2b		42.9%PE15.1x
4071 Plus Alpha ConsultingLtdJP¥2.41k3.8%
+JP¥3.8b		26.8%PE31.3x

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7D
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1Y
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Is There An Opportunity With Rakus Co., Ltd.'s (TSE:3923) 33% Undervaluation?

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