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U.S. Software Industry Analysis

UpdatedDec 04, 2022
DataAggregated Company Financials
Companies477
  • 7D2.5%
  • 3M-3.1%
  • 1Y-30.6%
  • YTD-31.7%

Over the last 7 days, the Software industry has risen 2.5%, driven by gains from Microsoft of 3.0%. In the same time, Salesforce was down 5.7%. However, the industry is down 31% over the past year. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 04 Dec 2022US$3.5tUS$433.4bUS$61.0b46.2x56.8x8x
Tue, 01 Nov 2022US$3.3tUS$418.7bUS$61.5b39.7x52.9x7.8x
Thu, 29 Sep 2022US$3.3tUS$413.7bUS$64.8b39.7x51.3x8x
Sat, 27 Aug 2022US$3.7tUS$412.3bUS$65.2b46.2x57.1x9x
Mon, 25 Jul 2022US$3.7tUS$408.9bUS$67.9b42.8x54.3x9x
Wed, 22 Jun 2022US$3.5tUS$409.2bUS$68.0b37.2x51.2x8.5x
Fri, 20 May 2022US$3.5tUS$406.5bUS$68.4b41.3x51.3x8.6x
Sun, 17 Apr 2022US$4.1tUS$393.4bUS$68.0b40.3x60.1x10.4x
Tue, 15 Mar 2022US$3.9tUS$391.8bUS$67.8b37.8x57.4x9.9x
Thu, 10 Feb 2022US$4.8tUS$403.3bUS$72.6b41.5x65.7x11.8x
Sat, 08 Jan 2022US$4.7tUS$388.8bUS$71.1b44.2x65.9x12.1x
Mon, 06 Dec 2021US$4.9tUS$386.5bUS$72.9b43.2x67.9x12.8x
Wed, 03 Nov 2021US$5.4tUS$381.3bUS$74.3b52.7x72.1x14.1x
Fri, 01 Oct 2021US$4.8tUS$372.0bUS$67.9b53.5x70.8x12.9x
Sun, 29 Aug 2021US$5.0tUS$368.9bUS$69.5b47.4x72.5x13.7x
Mon, 05 Jul 2021US$4.5tUS$361.0bUS$73.1b49.5x61.9x12.5x
Thu, 08 Apr 2021US$4.1tUS$378.3bUS$81.3b46.9x49.8x10.7x
Sun, 10 Jan 2021US$4.0tUS$359.4bUS$72.0b43.9x55.2x11.1x
Sat, 03 Oct 2020US$3.6tUS$345.7bUS$66.1b43.5x54.3x10.4x
Tue, 07 Jul 2020US$3.2tUS$331.5bUS$65.6b46x48.9x9.7x
Fri, 10 Apr 2020US$2.4tUS$326.8bUS$68.8b30.5x35.1x7.4x
Thu, 02 Jan 2020US$2.6tUS$320.7bUS$66.5b43.2x39.7x8.2x
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 8.0x.
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 Market1.54%
Tech1.54%
Software2.46%
Systems Software2.52%
Application Software2.34%
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
MSFT MicrosoftUS$255.023.0%
+US$56.1b
-21.0%PE27.2x
WDAY WorkdayUS$170.9914.8%
+US$5.8b
-36.0%PS7.4x
U Unity SoftwareUS$40.9414.7%
+US$5.8b
-72.1%PS13.1x
TEAM AtlassianUS$141.0013.6%
+US$4.3b
-59.7%PS12x
INTU IntuitUS$407.923.9%
+US$4.2b
-37.0%PE61x
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Latest News

U

US$40.94

Unity Software

7D

14.7%

1Y

-72.1%

MSFT

US$255.02

Microsoft

7D

3.0%

1Y

-21.0%

ZS

US$128.99

Zscaler

7D

-7.0%

1Y

-58.8%

SNPS

US$348.17

Synopsys

7D

4.7%

1Y

1.0%

AZPN

US$239.99

Aspen Technology

7D

-1.5%

1Y

58.3%

ASAN

US$16.19

Asana

7D

-12.3%

1Y

-75.8%

CRM

US$144.56

Salesforce

7D

-5.7%

1Y

-44.0%

CRWD

US$124.00

CrowdStrike Holdings

7D

-11.5%

1Y

-37.1%

SPLK

US$88.64

Splunk

7D

13.2%

1Y

-22.4%

ESTC

US$56.03

Elastic

7D

-4.8%

1Y

-50.3%

WDAY

US$170.99

Workday

7D

14.8%

1Y

-36.0%

TEAM

US$141.00

Atlassian

7D

13.6%

1Y

-59.7%

INTU

US$407.92

Intuit

7D

3.9%

1Y

-37.0%

S

US$14.78

SentinelOne

7D

-9.4%

1Y

-68.0%