Dutch (AEX) Tech Sector Analysis

Sector Valuation and Performance

Has the Dutch Tech Sector valuation changed over the past few years?

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 22.4x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Information Technology industry have grown 30% per year over the last three years, and revenues for these companies have grown 25% 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 Dutch Tech sector?

Industry PE: Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 28.7x. However analysts are expecting annual earnings growth of 15%, which is lower than the prior year's growth of 63% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the IT industry, which is trading below its 3-year average of 27.0x.

Forecasted Growth: Analysts are most optimistic on the Software industry, expecting annual earnings growth of 94% over the next 5 years. Meanwhile, the Electronic Equipment and Components industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?