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U.S. Software Industry Analysis
UpdatedNov 26, 2024
DataAggregated Company Financials
Companies416
- 7D2.7%
- 3M12.8%
- 1Y25.8%
- YTD23.9%
The Software industry is up 2.7% in the last week, with Microsoft up 0.7%. Meanwhile, Intuit actually underperformed within the industry, shrinking 6.5% in the last week. In the last 12 months, the industry was up 26%. Earnings are forecast to grow by 17% annually.
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 |
|---|---|---|---|---|---|---|
| Tue, 26 Nov 2024 | US$6.5t | US$566.0b | US$127.5b | 42.2x | 51.1x | 11.5x |
| Thu, 24 Oct 2024 | US$6.1t | US$552.0b | US$124.1b | 37.2x | 49.3x | 11.1x |
| Sat, 21 Sep 2024 | US$6.1t | US$552.4b | US$124.0b | 38.4x | 49.2x | 11x |
| Mon, 19 Aug 2024 | US$5.8t | US$548.8b | US$121.5b | 36x | 47.7x | 10.6x |
| Wed, 17 Jul 2024 | US$6.1t | US$530.6b | US$118.4b | 41.7x | 51.1x | 11.4x |
| Fri, 14 Jun 2024 | US$5.8t | US$530.8b | US$117.8b | 39.9x | 48.9x | 10.9x |
| Sun, 12 May 2024 | US$5.2t | US$474.3b | US$104.2b | 43.4x | 50.2x | 11x |
| Tue, 09 Apr 2024 | US$5.4t | US$466.0b | US$98.3b | 43.3x | 54.8x | 11.6x |
| Thu, 07 Mar 2024 | US$5.2t | US$470.0b | US$98.4b | 45x | 53.3x | 11.2x |
| Sat, 03 Feb 2024 | US$5.5t | US$497.2b | US$87.9b | 46x | 63x | 11.1x |
| Mon, 01 Jan 2024 | US$5.2t | US$486.1b | US$82.9b | 47.3x | 62.3x | 10.6x |
| Wed, 29 Nov 2023 | US$5.0t | US$482.7b | US$80.2b | 46.5x | 62.3x | 10.4x |
| Fri, 27 Oct 2023 | US$4.4t | US$484.6b | US$78.9b | 41.4x | 55.8x | 9.1x |
| Sun, 24 Sep 2023 | US$4.4t | US$477.4b | US$73.2b | 45.4x | 60x | 9.2x |
| Tue, 22 Aug 2023 | US$4.3t | US$473.7b | US$70.6b | 43.7x | 61.5x | 9.2x |
| Thu, 20 Jul 2023 | US$4.8t | US$460.7b | US$60.1b | 49.5x | 79.2x | 10.3x |
| Sat, 17 Jun 2023 | US$4.5t | US$460.5b | US$62.3b | 46.8x | 72.7x | 9.8x |
| Mon, 15 May 2023 | US$4.0t | US$456.8b | US$61.1b | 39.2x | 65.4x | 8.7x |
| Wed, 12 Apr 2023 | US$3.9t | US$453.6b | US$60.5b | 43.6x | 63.9x | 8.5x |
| Fri, 10 Mar 2023 | US$3.6t | US$453.5b | US$59.8b | 42.6x | 59.7x | 7.9x |
| Sun, 05 Feb 2023 | US$3.6t | US$436.2b | US$57.8b | 44.8x | 62.6x | 8.3x |
| Tue, 03 Jan 2023 | US$3.3t | US$434.4b | US$60.2b | 42x | 54.2x | 7.5x |
| Thu, 01 Dec 2022 | US$3.5t | US$431.4b | US$61.3b | 44.6x | 56.6x | 8x |
| Sat, 29 Oct 2022 | US$3.3t | US$418.7b | US$61.5b | 39.7x | 53.5x | 7.9x |
| Mon, 26 Sep 2022 | US$3.3t | US$413.7b | US$64.8b | 39.4x | 50.3x | 7.9x |
| Wed, 24 Aug 2022 | US$3.8t | US$410.4b | US$66.3b | 45x | 57.7x | 9.3x |
| Fri, 22 Jul 2022 | US$3.7t | US$408.7b | US$67.9b | 43.7x | 55x | 9.1x |
| Sun, 19 Jun 2022 | US$3.4t | US$409.8b | US$68.1b | 39.4x | 50.2x | 8.3x |
| Tue, 17 May 2022 | US$3.6t | US$405.6b | US$68.4b | 41.4x | 52.7x | 8.9x |
| Thu, 14 Apr 2022 | US$4.2t | US$393.4b | US$68.0b | 35.8x | 61.8x | 10.7x |
| Sat, 12 Mar 2022 | US$4.0t | US$395.7b | US$69.1b | 35.9x | 58x | 10.1x |
| Mon, 07 Feb 2022 | US$4.6t | US$403.0b | US$72.6b | 41x | 63.6x | 11.5x |
| Wed, 05 Jan 2022 | US$5.0t | US$388.8b | US$71.1b | 46.6x | 69.8x | 12.8x |
| Fri, 03 Dec 2021 | US$5.1t | US$385.9b | US$72.9b | 42.9x | 69.4x | 13.1x |
Price to Earnings Ratio
69.4x
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 51.1x which is lower than its 3-year average PE of 58.2x.
- The 3-year average PS ratio of 9.9x is lower than the industry's current PS ratio of 11.5x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 20% 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 Market | 2.16% | |
| Tech | 1.79% | |
| Software | 2.74% | |
| Application Software | 5.63% | |
| Systems Software | 1.34% | |
Industry PE
- Investors are most optimistic about the Application Software industry, which is trading close to its 3-year average PE ratio of 107x.
- Analysts are expecting annual earnings growth of 23.1%, which is lower than the prior year's growth of 34.8% 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 23% over the next 5 years.
- However this is lower than its past earnings growth rate of 35% per year.
- In contrast, the Systems Software industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| MSFT Microsoft | US$418.79 | 0.7% +US$22.5b | 10.6% | PE34.4x | |
| CRM Salesforce | US$339.11 | 5.2% +US$16.1b | 50.9% | PE57.6x | |
| DDOG Datadog | US$156.63 | 24.3% +US$10.4b | 39.9% | PE276.9x | |
| NOW ServiceNow | US$1.05k | 4.7% +US$9.8b | 57.0% | PE162.6x | |
| ADBE Adobe | US$518.73 | 3.8% +US$8.5b | -16.2% | PE42.6x |