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U.S. Software Industry Analysis

UpdatedFeb 18, 2025
DataAggregated Company Financials
Companies425
  • 7D-0.07%
  • 3M2.1%
  • 1Y14.4%
  • YTD3.6%

The Software is pretty flat in the last 7 days, but AppLovin has stood out, gaining 36%. As for the the longer term, the industry is up 14% over the past 12 months. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

Has the U.S. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 18 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Thu, 16 Jan 2025US$6.2tUS$569.1bUS$129.3b40x48.2x11x
Sat, 14 Dec 2024US$6.8tUS$568.6bUS$128.6b41.7x52.8x11.9x
Mon, 11 Nov 2024US$6.4tUS$567.0bUS$127.1b40.6x50.4x11.3x
Wed, 09 Oct 2024US$5.9tUS$551.7bUS$124.1b39.5x47.4x10.7x
Fri, 06 Sep 2024US$5.7tUS$551.1bUS$122.2b37.5x46.7x10.3x
Sun, 04 Aug 2024US$5.5tUS$541.8bUS$120.2b38.2x45.8x10.2x
Tue, 02 Jul 2024US$6.0tUS$531.0bUS$118.1b41x50.5x11.2x
Thu, 30 May 2024US$5.3tUS$475.0bUS$105.6b40.3x50.6x11.3x
Sat, 27 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Mon, 25 Mar 2024US$5.5tUS$465.8bUS$98.0b45x55.8x11.7x
Wed, 21 Feb 2024US$5.3tUS$465.3bUS$90.9b45.1x57.9x11.3x
Fri, 19 Jan 2024US$5.3tUS$486.2bUS$82.1b45.7x64.6x10.9x
Sun, 17 Dec 2023US$5.1tUS$486.1bUS$82.9b47.3x61.6x10.5x
Tue, 14 Nov 2023US$4.8tUS$482.1bUS$79.1b44.9x61x10x
Thu, 12 Oct 2023US$4.6tUS$477.3bUS$73.7b45.3x62.3x9.6x
Sat, 09 Sep 2023US$4.6tUS$476.3bUS$73.0b44.8x63.2x9.7x
Mon, 07 Aug 2023US$4.5tUS$473.0bUS$68.4b47.4x65.9x9.5x
Wed, 05 Jul 2023US$4.5tUS$460.7bUS$60.4b47.8x74.3x9.7x
Fri, 02 Jun 2023US$4.4tUS$459.3bUS$61.9b42.1x70.5x9.5x
Sun, 30 Apr 2023US$4.0tUS$457.3bUS$62.5b42.2x64.2x8.8x
Tue, 28 Mar 2023US$3.8tUS$453.7bUS$59.8b42.9x63.4x8.4x
Thu, 23 Feb 2023US$3.5tUS$437.7bUS$58.0b43x60.8x8x
Sat, 21 Jan 2023US$3.4tUS$434.5bUS$60.2b42.3x55.7x7.7x
Mon, 19 Dec 2022US$3.3tUS$434.3bUS$60.3b41.9x55x7.6x
Wed, 16 Nov 2022US$3.4tUS$424.9bUS$62.4b45x53.9x7.9x
Fri, 14 Oct 2022US$3.2tUS$412.8bUS$64.3b37.8x49.3x7.7x
Sun, 11 Sep 2022US$3.7tUS$413.1bUS$64.9b42.8x57x8.9x
Tue, 09 Aug 2022US$4.0tUS$411.9bUS$68.4b44.5x58.6x9.7x
Thu, 07 Jul 2022US$3.6tUS$408.6bUS$67.7b36.4x53.9x8.9x
Sat, 04 Jun 2022US$3.8tUS$409.5bUS$67.7b40.6x56x9.3x
Mon, 02 May 2022US$3.9tUS$402.3bUS$68.5b39.9x56.9x9.7x
Wed, 30 Mar 2022US$4.5tUS$394.7bUS$68.5b38.5x65.9x11.4x
Fri, 25 Feb 2022US$4.4tUS$403.3bUS$72.8b36.9x60.1x10.9x
Price to Earnings Ratio

60.1x


Total Market Cap: US$4.4tTotal Earnings: US$72.8bTotal Revenue: US$403.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 56.9x202320242025
Current Industry PE
  • Investors are pessimistic on the American 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 50.6x which is lower than its 3-year average PE of 56.9x.
  • The 3-year average PS ratio of 9.9x is lower than the industry's current PS ratio of 11.2x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 21% per year over the last three years.
  • Revenues for these companies have grown 13% 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 U.S. Tech industry?

US Market0.82%
Tech2.09%
Software-0.069%
Application Software1.48%
Systems Software-0.89%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 23.5%, which is lower than the prior year's growth of 56.9% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 37.7x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 23% over the next 5 years.
  • However this is lower than its past earnings growth rate of 57% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 14% 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
APP AppLovinUS$510.1335.9%
+US$47.5b
789.8%PE110x
PLTR Palantir TechnologiesUS$119.165.8%
+US$14.9b
409.2%PE587.3x
AUR Aurora InnovationUS$10.1945.6%
+US$5.7b
260.1%PB9.5x
CRWD CrowdStrike HoldingsUS$451.744.7%
+US$5.0b
39.6%PE878.1x
MSTR MicroStrategyUS$337.735.7%
+US$4.6b
379.1%PS184.1x
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Latest News

AUR

US$10.19

Aurora Innovation

7D

45.6%

1Y

260.1%

INFA

US$19.75

Informatica

7D

-23.2%

1Y

-38.6%

NOW

US$986.63

ServiceNow

7D

-2.2%

1Y

31.1%

PANW

US$200.03

Palo Alto Networks

7D

2.3%

1Y

9.3%

CRWD

US$451.74

CrowdStrike Holdings

7D

4.7%

1Y

39.6%

DDOG

US$131.01

Datadog

7D

-9.9%

1Y

2.6%

PEGA

US$85.02

Pegasystems

7D

-17.7%

1Y

31.3%

CDNS

US$295.19

Cadence Design Systems

7D

-2.9%

1Y

1.1%

WDAY

US$258.05

Workday

7D

-1.9%

1Y

-14.5%

ORCL

US$174.16

Oracle

7D

-1.7%

1Y

60.6%