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U.S. Software Industry Analysis

UpdatedDec 08, 2022
DataAggregated Company Financials
Companies477
  • 7D-5.1%
  • 3M-9.5%
  • 1Y-36.9%
  • YTD-35.1%

Over the last 7 days, the Software industry has dropped 5.1%, driven by a pullback from Microsoft of 4.2%. The industry has fallen 37% in the last year. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 08 Dec 2022US$3.3tUS$433.6bUS$61.0b43.4x54x7.6x
Sat, 05 Nov 2022US$3.0tUS$421.6bUS$62.7b38.8x47.8x7.1x
Mon, 03 Oct 2022US$3.2tUS$412.2bUS$64.7b38.9x49.2x7.7x
Wed, 31 Aug 2022US$3.6tUS$412.2bUS$65.2b45x55.9x8.8x
Fri, 29 Jul 2022US$3.7tUS$414.9bUS$68.2b40.2x54.4x8.9x
Sun, 26 Jun 2022US$3.8tUS$408.8bUS$67.7b39.3x55.4x9.2x
Tue, 24 May 2022US$3.6tUS$406.9bUS$68.6b41.1x52.7x8.9x
Thu, 21 Apr 2022US$4.1tUS$392.7bUS$67.9b41.6x60.8x10.5x
Sat, 19 Mar 2022US$4.4tUS$396.4bUS$69.0b39.4x63.5x11.1x
Mon, 14 Feb 2022US$4.5tUS$404.1bUS$73.1b39.5x61.8x11.2x
Wed, 12 Jan 2022US$4.8tUS$389.2bUS$71.0b45.5x67.3x12.3x
Fri, 10 Dec 2021US$5.1tUS$386.9bUS$72.7b45.3x70.2x13.2x
Sun, 07 Nov 2021US$5.5tUS$383.0bUS$72.0b54x75.8x14.2x
Tue, 05 Oct 2021US$4.8tUS$372.5bUS$67.9b52.9x70.1x12.8x
Thu, 02 Sep 2021US$5.1tUS$369.1bUS$69.5b47.9x72.9x13.7x
Sat, 31 Jul 2021US$4.7tUS$368.2bUS$69.6b50.7x68x12.9x
Tue, 04 May 2021US$4.4tUS$384.4bUS$82.0b47.8x53.1x11.3x
Fri, 05 Feb 2021US$4.1tUS$366.7bUS$73.7b48.1x55.6x11.2x
Mon, 09 Nov 2020US$3.5tUS$349.0bUS$67.8b41.2x51x9.9x
Sun, 02 Aug 2020US$3.3tUS$336.2bUS$63.9b47.9x51.6x9.8x
Wed, 06 May 2020US$2.7tUS$326.0bUS$67.5b36.7x40.4x8.4x
Sat, 08 Feb 2020US$2.8tUS$322.1bUS$67.3b44.8x41.9x8.8x
Price to Earnings Ratio

39.7x


Total Market Cap: US$2.6tTotal Earnings: US$66.5bTotal Revenue: US$320.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.4x20212022
Current Industry PE
  • Investors are relatively neutral on the American Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 55.4x.
  • The 3-year average PS ratio of 10.4x is higher than the industry's current PS ratio of 7.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have declined 2.8% per year over the last three years.
  • Meanwhile revenues for these companies have grown 11% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market-3.73%
Tech-4.73%
Software-5.12%
Systems Software-4.24%
Application Software-6.66%
Industry PE
  • Investors are most optimistic about the Systems Software industry, which is trading close to its 3-year average PE ratio of 34.8x.
    • Analysts are expecting annual earnings growth of 15.7%, which is higher than its past year's earnings decline of 1.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 12% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 16% 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
U Unity SoftwareUS$33.77-14.5%
US$1.7b
-78.1%PS10.8x
IOT SamsaraUS$11.9024.9%
+US$1.3b
n/aPS10.4x
SPLK SplunkUS$83.727.8%
+US$1.1b
-29.9%PS4.1x
SMAR SmartsheetUS$35.9216.9%
+US$686.2m
-53.0%PS6.6x
GTLB GitLabUS$42.788.2%
+US$518.3m
-49.3%PS16.9x
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Latest News

CRM

US$130.48

Salesforce

7D

-18.6%

1Y

-51.0%

ZS

US$114.24

Zscaler

7D

-14.4%

1Y

-63.4%

SPLK

US$83.72

Splunk

7D

7.8%

1Y

-29.9%

SMAR

US$35.92

Smartsheet

7D

16.9%

1Y

-53.0%

ADBE

US$326.68

Adobe

7D

-5.3%

1Y

-50.0%

NTNX

US$30.14

Nutanix

7D

6.7%

1Y

-12.0%

INTU

US$388.65

Intuit

7D

-4.6%

1Y

-42.3%

GTLB

US$42.78

GitLab

7D

8.2%

1Y

-49.3%

ORCL

US$78.78

Oracle

7D

-5.1%

1Y

-11.4%

MSFT

US$244.37

Microsoft

7D

-4.2%

1Y

-27.0%

CDNS

US$160.59

Cadence Design Systems

7D

-6.7%

1Y

-12.8%

NOW

US$388.52

ServiceNow

7D

-6.7%

1Y

-41.6%

YEXT

US$6.37

Yext

7D

19.5%

1Y

-41.5%

TUYA

US$1.61

Tuya

7D

35.3%

1Y

-77.7%