GoDaddy Inc. (NYSE:GDDY) Shares Could Be 28% Below Their Intrinsic Value Estimate
Mar 15
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U.S. IT Industry Analysis
UpdatedMar 16, 2025
DataAggregated Company Financials
Companies108
- 7D-5.1%
- 3M-6.2%
- 1Y5.8%
- YTD-2.1%
Over the last 7 days, the IT industry has dropped 5.1%, driven by declines in Accenture and International Business Machines of 6.8% and 5.0%, respectively. Over the past 12 months, the industry was up 5.6%. As for the next few years, earnings are expected to grow by 13% per annum.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 16 Mar 2025 | US$870.4b | US$240.0b | US$18.7b | 45.8x | 46.6x | 3.6x |
| Tue, 11 Feb 2025 | US$981.1b | US$234.2b | US$16.3b | 51.2x | 60.3x | 4.2x |
| Thu, 09 Jan 2025 | US$869.9b | US$234.0b | US$16.5b | 46.2x | 52.9x | 3.7x |
| Sat, 07 Dec 2024 | US$906.6b | US$233.2b | US$16.4b | 48.2x | 55.4x | 3.9x |
| Mon, 04 Nov 2024 | US$776.2b | US$233.1b | US$15.9b | 45.6x | 48.7x | 3.3x |
| Wed, 02 Oct 2024 | US$802.2b | US$233.8b | US$17.8b | 41x | 45x | 3.4x |
| Fri, 30 Aug 2024 | US$744.4b | US$233.2b | US$17.6b | 34.6x | 42.4x | 3.2x |
| Sun, 28 Jul 2024 | US$743.4b | US$237.1b | US$17.4b | 29.3x | 42.8x | 3.1x |
| Tue, 25 Jun 2024 | US$703.6b | US$237.1b | US$17.2b | 27.7x | 41x | 3x |
| Thu, 23 May 2024 | US$718.2b | US$236.8b | US$17.3b | 25.5x | 41.5x | 3x |
| Sat, 20 Apr 2024 | US$721.5b | US$227.7b | US$13.7b | 24.2x | 52.5x | 3.2x |
| Mon, 18 Mar 2024 | US$798.4b | US$227.7b | US$14.4b | 22.3x | 55.5x | 3.5x |
| Wed, 14 Feb 2024 | US$818.2b | US$227.2b | US$14.4b | 22.7x | 56.8x | 3.6x |
| Fri, 12 Jan 2024 | US$785.0b | US$229.4b | US$12.9b | 20.3x | 60.7x | 3.4x |
| Sun, 10 Dec 2023 | US$759.9b | US$229.0b | US$12.8b | 21.3x | 59.3x | 3.3x |
| Tue, 07 Nov 2023 | US$679.6b | US$228.3b | US$12.1b | 20.1x | 56x | 3x |
| Thu, 05 Oct 2023 | US$661.8b | US$227.2b | US$6.5b | 22.3x | 102.3x | 2.9x |
| Sat, 02 Sep 2023 | US$710.1b | US$226.6b | US$6.8b | 21.9x | 104.4x | 3.1x |
| Mon, 31 Jul 2023 | US$697.6b | US$228.6b | US$6.2b | 23.3x | 112.5x | 3.1x |
| Wed, 28 Jun 2023 | US$668.0b | US$228.6b | US$6.1b | 23.6x | 108.7x | 2.9x |
| Fri, 26 May 2023 | US$636.2b | US$229.1b | US$5.1b | 23.8x | 124.3x | 2.8x |
| Sun, 23 Apr 2023 | US$585.8b | US$225.6b | US$2.7b | 22.4x | 214.9x | 2.6x |
| Tue, 21 Mar 2023 | US$555.6b | US$224.7b | US$2.5b | 22.5x | 226.6x | 2.5x |
| Thu, 16 Feb 2023 | US$2.1t | US$460.3b | US$22.9b | 27.5x | 90.1x | 4.5x |
| Sat, 14 Jan 2023 | US$2.0t | US$458.1b | US$39.1b | 29.2x | 51.2x | 4.4x |
| Mon, 12 Dec 2022 | US$1.9t | US$457.0b | US$39.0b | 28.1x | 49.4x | 4.2x |
| Wed, 09 Nov 2022 | US$1.8t | US$455.1b | US$38.1b | 25.8x | 46.7x | 3.9x |
| Fri, 07 Oct 2022 | US$1.9t | US$449.6b | US$41.7b | 26.4x | 44.5x | 4.1x |
| Sun, 04 Sep 2022 | US$1.9t | US$446.8b | US$41.5b | 28.5x | 46.7x | 4.3x |
| Tue, 02 Aug 2022 | US$2.1t | US$446.9b | US$47.0b | 29.6x | 44x | 4.6x |
| Thu, 30 Jun 2022 | US$1.9t | US$442.3b | US$47.2b | 27.1x | 40.6x | 4.3x |
| Sat, 28 May 2022 | US$2.1t | US$438.5b | US$47.3b | 28.8x | 44.3x | 4.8x |
| Mon, 25 Apr 2022 | US$2.2t | US$432.0b | US$47.6b | 29.8x | 45.6x | 5x |
| Wed, 23 Mar 2022 | US$2.4t | US$429.2b | US$47.2b | 31.4x | 49.9x | 5.5x |
Price to Earnings Ratio
49.9x
Current Industry PE
- Investors are pessimistic on the American 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 45.7x which is lower than its 3-year average PE of 67.3x.
- The industry is trading close to its 3-year average PS ratio of 3.7x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 27% per year over the last three years,
- Revenues have also declined 18% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | -2.19% | |
| Tech | -2.09% | |
| IT | -5.10% | |
| Internet Services and Infrastructure | -4.21% | |
| Data Processing Services | -4.32% | |
| IT Consulting | -5.61% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 18.2%, which is higher than its past year's earnings decline of 7.8% per year.
- Investors are most pessimistic about the Data Processing Services industry, which is trading below its 3-year average of 31.2x.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 18% over the next 5 years.
- This is better than its past earnings decline of 7.8% per year.
- In contrast, the IT Consulting 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| GDDY GoDaddy | US$176.15 | 0.5% +US$123.0m | 50.3% | PE26.6x | |
| VNET VNET Group | US$11.65 | 1.6% +US$48.1m | 547.2% | PE122.9x | |
| BBAI BigBear.ai Holdings | US$3.53 | 5.7% +US$47.8m | 44.7% | PS5.6x | |
| ATGL Alpha Technology Group | US$24.90 | 10.7% +US$39.5m | 553.6% | PS257.9x | |
| FSLY Fastly | US$6.85 | 3.2% +US$29.9m | -45.6% | PS1.8x |
