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U.S. Software Industry Analysis

UpdatedFeb 27, 2024
DataAggregated Company Financials
Companies437
  • 7D1.2%
  • 3M9.5%
  • 1Y59.2%
  • YTD9.3%

In the last week, the Software industry is up 1.2%, with Microsoft up 1.2%. During this same period, the Palo Alto Networks underperformed, falling 17%. In the last 12 months, the industry was up 59%. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 27 Feb 2024US$5.3tUS$466.3bUS$93.2b43.7x57.2x11.4x
Thu, 25 Jan 2024US$5.4tUS$486.2bUS$82.2b44.5x65.8x11.1x
Sat, 23 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Mon, 20 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x61.5x10.2x
Wed, 18 Oct 2023US$4.6tUS$477.3bUS$73.7b43.3x62.1x9.6x
Fri, 15 Sep 2023US$4.6tUS$479.6bUS$72.7b45.6x63.7x9.7x
Sun, 13 Aug 2023US$4.4tUS$473.0bUS$70.1b45.8x63x9.3x
Tue, 11 Jul 2023US$4.5tUS$460.7bUS$60.4b47.8x73.9x9.7x
Thu, 08 Jun 2023US$4.4tUS$459.9bUS$62.0b42.2x71.1x9.6x
Sat, 06 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Mon, 03 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.5x8.7x
Wed, 01 Mar 2023US$3.5tUS$440.1bUS$58.9b42.3x59.1x7.9x
Fri, 27 Jan 2023US$3.5tUS$436.2bUS$58.0b42.4x59.8x8x
Sun, 25 Dec 2022US$3.2tUS$434.3bUS$60.3b41.7x53.7x7.5x
Tue, 22 Nov 2022US$3.3tUS$430.3bUS$62.3b44.6x52.8x7.7x
Thu, 20 Oct 2022US$3.2tUS$412.8bUS$64.3b38.4x49.8x7.7x
Sat, 17 Sep 2022US$3.4tUS$413.7bUS$64.8b39.8x52.6x8.2x
Mon, 15 Aug 2022US$4.1tUS$409.9bUS$67.8b49.7x60.5x10x
Wed, 13 Jul 2022US$3.5tUS$408.7bUS$67.9b36.1x51.8x8.6x
Fri, 10 Jun 2022US$3.7tUS$409.6bUS$68.1b41.3x54.8x9.1x
Sun, 08 May 2022US$3.8tUS$404.7bUS$68.2b38.3x55x9.3x
Tue, 05 Apr 2022US$4.6tUS$394.7bUS$68.2b38.4x67x11.6x
Thu, 03 Mar 2022US$4.4tUS$394.5bUS$69.7b40.3x63.4x11.2x
Sat, 29 Jan 2022US$4.5tUS$400.1bUS$73.3b40.8x61.2x11.2x
Mon, 27 Dec 2021US$5.1tUS$388.1bUS$71.2b47.4x72.1x13.2x
Wed, 24 Nov 2021US$5.3tUS$386.6bUS$72.1b46.1x73.5x13.7x
Fri, 22 Oct 2021US$5.3tUS$372.0bUS$67.3b57.2x78.5x14.2x
Sun, 19 Sep 2021US$5.1tUS$370.6bUS$69.5b55.9x72.7x13.6x
Tue, 17 Aug 2021US$4.8tUS$368.8bUS$69.6b47.5x69.2x13.1x
Tue, 01 Jun 2021US$4.1tUS$345.3bUS$69.0b48x59.4x11.9x
Fri, 05 Mar 2021US$4.1tUS$367.5bUS$75.6b49.3x54.3x11.2x
Price to Earnings Ratio

54.3x


Total Market Cap: US$4.1tTotal Earnings: US$75.6bTotal Revenue: US$367.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 61.4x202220232024
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 57.2x which is lower than its 3-year average PE of 61.4x.
  • The 3-year average PS ratio of 10.3x is lower than the industry's current PS ratio of 11.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 7.2% per year over the last three years.
  • Revenues for these companies have grown 8.3% 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 Market1.81%
Tech3.21%
Software1.24%
Application Software2.68%
Systems Software0.52%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 159x.
    • Analysts are expecting annual earnings growth of 24.6%, which is higher than its past year's earnings growth of 14.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 37.8x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 14% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 13% 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
MSFT MicrosoftUS$407.491.2%
+US$34.9b
63.4%PE36.7x
CRM SalesforceUS$300.394.9%
+US$13.6b
83.6%PE112.2x
ADBE AdobeUS$560.483.4%
+US$8.4b
73.0%PE46.7x
ORCL OracleUS$110.972.3%
+US$6.9b
27.0%PE30.1x
NOW ServiceNowUS$779.663.6%
+US$5.5b
80.4%PE92.3x
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