Is GoDaddy Inc. (NYSE:GDDY) Potentially Undervalued?
Aug 12
U.S. IT Industry Analysis
UpdatedAug 13, 2024
DataAggregated Company Financials
Companies101
- 7D5.2%
- 3M3.1%
- 1Y7.9%
- YTD-6.7%
In the last week, the IT industry is up 6.0%, with Shopify up 31%. Meanwhile, EPAM Systems actually underperformed within the industry, shrinking 6.5% in the last week. This means that the industry has gained 9.0% over the past year. As for the next few years, earnings are expected to grow by 14% 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 |
|---|---|---|---|---|---|---|
| Tue, 13 Aug 2024 | US$721.4b | US$232.7b | US$17.5b | 30.6x | 41.2x | 3.1x |
| Thu, 11 Jul 2024 | US$711.2b | US$236.9b | US$17.2b | 26.6x | 41.4x | 3x |
| Sat, 08 Jun 2024 | US$681.1b | US$237.2b | US$17.3b | 26.8x | 39.5x | 2.9x |
| Mon, 06 May 2024 | US$728.5b | US$236.9b | US$16.0b | 23.7x | 45.4x | 3.1x |
| Wed, 03 Apr 2024 | US$777.1b | US$227.8b | US$13.8b | 25.9x | 56.2x | 3.4x |
| Fri, 01 Mar 2024 | US$826.5b | US$227.7b | US$14.3b | 21.3x | 57.7x | 3.6x |
| Sun, 28 Jan 2024 | US$832.2b | US$230.1b | US$13.4b | 23.3x | 62.3x | 3.6x |
| Tue, 26 Dec 2023 | US$791.8b | US$229.5b | US$12.8b | 20.8x | 61.8x | 3.4x |
| Thu, 23 Nov 2023 | US$726.4b | US$228.5b | US$12.7b | 20.7x | 57.2x | 3.2x |
| Sat, 21 Oct 2023 | US$637.1b | US$227.2b | US$6.5b | 18.8x | 98.5x | 2.8x |
| Mon, 18 Sep 2023 | US$689.0b | US$226.6b | US$6.8b | 23.7x | 101.5x | 3x |
| Wed, 16 Aug 2023 | US$661.5b | US$226.0b | US$6.6b | 22x | 100.5x | 2.9x |
| Fri, 14 Jul 2023 | US$703.3b | US$228.7b | US$6.1b | 25.9x | 115.5x | 3.1x |
| Sun, 11 Jun 2023 | US$668.6b | US$228.2b | US$5.9b | 23.1x | 113x | 2.9x |
| Tue, 09 May 2023 | US$609.9b | US$232.6b | US$5.8b | 23.7x | 104.3x | 2.6x |
| Thu, 06 Apr 2023 | US$589.4b | US$225.6b | US$2.4b | 22x | 246.6x | 2.6x |
| Sat, 04 Mar 2023 | US$2.0t | US$463.8b | US$22.5b | 26.6x | 88.3x | 4.3x |
| Mon, 30 Jan 2023 | US$2.0t | US$460.1b | US$40.0b | 27.8x | 51x | 4.4x |
| Wed, 28 Dec 2022 | US$1.9t | US$457.8b | US$39.2b | 28.2x | 47.6x | 4.1x |
| Fri, 25 Nov 2022 | US$1.9t | US$456.1b | US$39.0b | 28.3x | 49.8x | 4.3x |
| Sun, 23 Oct 2022 | US$1.8t | US$450.4b | US$37.4b | 27.8x | 49.1x | 4.1x |
| Tue, 20 Sep 2022 | US$1.9t | US$447.1b | US$41.4b | 27.1x | 46.5x | 4.3x |
| Thu, 18 Aug 2022 | US$2.1t | US$445.5b | US$41.8b | 30.2x | 51.3x | 4.8x |
| Sat, 16 Jul 2022 | US$1.9t | US$441.6b | US$46.9b | 29.1x | 41.3x | 4.4x |
| Mon, 13 Jun 2022 | US$2.0t | US$438.8b | US$46.9b | 27.4x | 41.7x | 4.5x |
| Wed, 11 May 2022 | US$1.9t | US$437.9b | US$47.0b | 27.6x | 41.2x | 4.4x |
| Fri, 08 Apr 2022 | US$2.3t | US$431.0b | US$47.2b | 33.1x | 49.4x | 5.4x |
| Sun, 06 Mar 2022 | US$2.2t | US$424.6b | US$47.2b | 28x | 45.7x | 5.1x |
| Tue, 01 Feb 2022 | US$2.5t | US$417.9b | US$49.8b | 32.8x | 51.1x | 6.1x |
| Thu, 30 Dec 2021 | US$2.8t | US$432.2b | US$48.3b | 38.4x | 57.4x | 6.4x |
| Sat, 27 Nov 2021 | US$2.7t | US$429.0b | US$48.1b | 34.7x | 55.9x | 6.3x |
| Mon, 25 Oct 2021 | US$3.0t | US$396.2b | US$46.2b | 35.1x | 63.9x | 7.5x |
| Wed, 22 Sep 2021 | US$2.8t | US$391.5b | US$46.8b | 34.4x | 60.5x | 7.2x |
| Fri, 20 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 33.5x | 61.7x | 7.3x |
Price to Earnings Ratio
61.7x
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 41.2x which is lower than its 3-year average PE of 68.5x.
- The 3-year average PS ratio of 4.2x is higher than the industry's current PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 28% per year over the last three years,
- Revenues have also declined 16% 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 | 2.92% | |
| Tech | 4.09% | |
| IT | 5.15% | |
| Internet Services and Infrastructure | 14.41% | |
| IT Consulting | 1.51% | |
| Data Processing Services | 0.67% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 34.0x.
- Analysts are expecting annual earnings growth of 10.6%, which is higher than its past year's earnings decline of 8.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 23% over the next 5 years.
- 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 | |
|---|---|---|---|---|---|
| SHOP Shopify | US$68.31 | 30.7% +US$20.7b | 22.0% | PE69.2x | |
| IBM International Business Machines | US$189.48 | 3.4% +US$5.7b | 33.5% | PE20.8x | |
| SNOW Snowflake | US$123.03 | 9.2% +US$3.5b | -19.5% | PS13.7x | |
| GDDY GoDaddy | US$158.46 | 7.9% +US$1.6b | 123.2% | PE12.5x | |
| OKTA Okta | US$92.02 | 11.1% +US$1.5b | 27.3% | PS6.6x |
