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U.S. Software Industry Analysis

UpdatedJun 15, 2024
DataAggregated Company Financials
Companies410
  • 7D4.0%
  • 3M2.6%
  • 1Y23.1%
  • YTD12.3%

In the last week, the Software industry is up 4.0%, with Microsoft up 4.4%. This takes the industry's 12 month performance to a gain of 23%. Looking forward, earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 15 Jun 2024US$5.8tUS$530.8bUS$117.8b39.8x48.9x10.9x
Mon, 13 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Wed, 10 Apr 2024US$5.4tUS$466.0bUS$98.4b43.4x54.9x11.6x
Fri, 08 Mar 2024US$5.4tUS$470.0bUS$98.4b44.7x54.4x11.4x
Sun, 04 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Tue, 02 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Thu, 30 Nov 2023US$5.0tUS$483.6bUS$80.7b45.4x62.5x10.4x
Sat, 28 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Mon, 25 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Wed, 23 Aug 2023US$4.4tUS$473.8bUS$70.7b43.8x62.6x9.3x
Fri, 21 Jul 2023US$4.6tUS$460.7bUS$60.1b48.5x77.2x10.1x
Sun, 18 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Tue, 16 May 2023US$4.0tUS$456.9bUS$61.1b39.9x65.8x8.8x
Thu, 13 Apr 2023US$3.9tUS$453.6bUS$60.5b43.7x63.9x8.5x
Sat, 11 Mar 2023US$3.5tUS$453.6bUS$60.0b42.3x58.2x7.7x
Mon, 06 Feb 2023US$3.6tUS$436.5bUS$57.8b42.3x62.6x8.3x
Wed, 04 Jan 2023US$3.3tUS$434.4bUS$60.2b41.7x54.1x7.5x
Fri, 02 Dec 2022US$3.5tUS$432.5bUS$61.0b46.8x57.1x8.1x
Sun, 30 Oct 2022US$3.3tUS$418.7bUS$61.5b39.7x53.5x7.9x
Tue, 27 Sep 2022US$3.2tUS$413.7bUS$64.8b39.3x50x7.8x
Thu, 25 Aug 2022US$3.8tUS$410.3bUS$65.8b46x58.3x9.3x
Sat, 23 Jul 2022US$3.7tUS$408.7bUS$67.9b43.7x55x9.1x
Mon, 20 Jun 2022US$3.4tUS$409.8bUS$68.1b39.4x50.2x8.3x
Wed, 18 May 2022US$3.6tUS$405.7bUS$68.4b41.6x52.5x8.9x
Fri, 15 Apr 2022US$4.1tUS$393.4bUS$68.0b34.5x60.1x10.4x
Sun, 13 Mar 2022US$4.0tUS$391.8bUS$67.8b38.3x58.7x10.1x
Tue, 08 Feb 2022US$4.6tUS$403.0bUS$72.6b40.7x63x11.3x
Thu, 06 Jan 2022US$5.0tUS$388.8bUS$71.1b44.8x69.8x12.8x
Sat, 04 Dec 2021US$4.9tUS$386.4bUS$72.9b43.2x67.9x12.8x
Mon, 01 Nov 2021US$5.4tUS$381.3bUS$74.3b53.1x72.5x14.1x
Wed, 29 Sep 2021US$4.8tUS$372.0bUS$67.9b59.9x71x13x
Fri, 27 Aug 2021US$5.0tUS$368.9bUS$69.5b47.4x72.5x13.7x
Sat, 03 Jul 2021US$4.5tUS$361.0bUS$73.1b49.5x61.9x12.5x
Price to Earnings Ratio

61.9x


Total Market Cap: US$4.5tTotal Earnings: US$73.1bTotal Revenue: US$361.0bTotal 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 48.9x which is lower than its 3-year average PE of 61.4x.
  • The industry is trading close to its 3-year average PS ratio of 10.3x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 17% per year over the last three years.
  • Revenues for these companies have grown 14% 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 Market1.21%
Tech6.11%
Software3.95%
Systems Software4.88%
Application Software1.62%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 155x.
    • Analysts are expecting annual earnings growth of 19.5%, which is lower than the prior year's growth of 23.6% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 38.3x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 20% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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$442.574.4%
+US$139.1b
29.3%PE38.2x
ORCL OracleUS$138.139.7%
+US$33.6b
10.1%PE36.3x
ADBE AdobeUS$525.3112.9%
+US$26.8b
6.1%PE49x
CRWD CrowdStrike HoldingsUS$385.4410.4%
+US$8.8b
148.4%PE712.5x
NOW ServiceNowUS$728.584.3%
+US$6.1b
28.8%PE77.6x
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Latest News

MSFT

US$442.57

Microsoft

7D

4.4%

1Y

29.3%

INTU

US$595.70

Intuit

7D

3.8%

1Y

30.9%

MSTR

US$1,495.54

MicroStrategy

7D

-6.3%

1Y

409.7%

ZM

US$57.74

Zoom Video Communications

7D

-8.1%

1Y

-17.6%

CRM

US$231.94

Salesforce

7D

-4.1%

1Y

9.5%

TEAM

US$160.09

Atlassian

7D

-2.0%

1Y

-10.0%

APP

US$77.52

AppLovin

7D

-5.4%

1Y

223.4%

IOT

US$28.07

Samsara

7D

-8.1%

1Y

-2.9%

PANW

US$317.31

Palo Alto Networks

7D

5.1%

1Y

28.7%