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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 08 Dec 2022 | US$3.3t | US$433.6b | US$61.0b | 43.4x | 54x | 7.6x |
| Sat, 05 Nov 2022 | US$3.0t | US$421.6b | US$62.7b | 38.8x | 47.8x | 7.1x |
| Mon, 03 Oct 2022 | US$3.2t | US$412.2b | US$64.7b | 38.9x | 49.2x | 7.7x |
| Wed, 31 Aug 2022 | US$3.6t | US$412.2b | US$65.2b | 45x | 55.9x | 8.8x |
| Fri, 29 Jul 2022 | US$3.7t | US$414.9b | US$68.2b | 40.2x | 54.4x | 8.9x |
| Sun, 26 Jun 2022 | US$3.8t | US$408.8b | US$67.7b | 39.3x | 55.4x | 9.2x |
| Tue, 24 May 2022 | US$3.6t | US$406.9b | US$68.6b | 41.1x | 52.7x | 8.9x |
| Thu, 21 Apr 2022 | US$4.1t | US$392.7b | US$67.9b | 41.6x | 60.8x | 10.5x |
| Sat, 19 Mar 2022 | US$4.4t | US$396.4b | US$69.0b | 39.4x | 63.5x | 11.1x |
| Mon, 14 Feb 2022 | US$4.5t | US$404.1b | US$73.1b | 39.5x | 61.8x | 11.2x |
| Wed, 12 Jan 2022 | US$4.8t | US$389.2b | US$71.0b | 45.5x | 67.3x | 12.3x |
| Fri, 10 Dec 2021 | US$5.1t | US$386.9b | US$72.7b | 45.3x | 70.2x | 13.2x |
| Sun, 07 Nov 2021 | US$5.5t | US$383.0b | US$72.0b | 54x | 75.8x | 14.2x |
| Tue, 05 Oct 2021 | US$4.8t | US$372.5b | US$67.9b | 52.9x | 70.1x | 12.8x |
| Thu, 02 Sep 2021 | US$5.1t | US$369.1b | US$69.5b | 47.9x | 72.9x | 13.7x |
| Sat, 31 Jul 2021 | US$4.7t | US$368.2b | US$69.6b | 50.7x | 68x | 12.9x |
| Tue, 04 May 2021 | US$4.4t | US$384.4b | US$82.0b | 47.8x | 53.1x | 11.3x |
| Fri, 05 Feb 2021 | US$4.1t | US$366.7b | US$73.7b | 48.1x | 55.6x | 11.2x |
| Mon, 09 Nov 2020 | US$3.5t | US$349.0b | US$67.8b | 41.2x | 51x | 9.9x |
| Sun, 02 Aug 2020 | US$3.3t | US$336.2b | US$63.9b | 47.9x | 51.6x | 9.8x |
| Wed, 06 May 2020 | US$2.7t | US$326.0b | US$67.5b | 36.7x | 40.4x | 8.4x |
| Sat, 08 Feb 2020 | US$2.8t | US$322.1b | US$67.3b | 44.8x | 41.9x | 8.8x |
Price to Earnings Ratio
39.7x
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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| U Unity Software | US$33.77 | -14.5% US$1.7b | -78.1% | PS10.8x | |
| IOT Samsara | US$11.90 | 24.9% +US$1.3b | n/a | PS10.4x | |
| SPLK Splunk | US$83.72 | 7.8% +US$1.1b | -29.9% | PS4.1x | |
| SMAR Smartsheet | US$35.92 | 16.9% +US$686.2m | -53.0% | PS6.6x | |
| GTLB GitLab | US$42.78 | 8.2% +US$518.3m | -49.3% | PS16.9x |
