U.S. Software Industry Analysis
UpdatedAug 12, 2024
DataAggregated Company Financials
Companies399
- 7D3.8%
- 3M-1.7%
- 1Y21.0%
- YTD6.0%
Over the last 7 days, the Software industry has risen 3.8%, driven by gains from Microsoft of 2.8%. Meanwhile, JFrog actually underperformed within the industry, shrinking 22% in the last week. This takes the industry's 12 month performance to a gain of 21%. As for the next few years, earnings are expected to grow by 16% 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 |
|---|---|---|---|---|---|---|
| Mon, 12 Aug 2024 | US$5.6t | US$548.6b | US$121.5b | 34.7x | 46.1x | 10.2x |
| Wed, 10 Jul 2024 | US$6.1t | US$530.5b | US$118.1b | 40.1x | 52x | 11.6x |
| Fri, 07 Jun 2024 | US$5.2t | US$476.6b | US$107.1b | 40.2x | 48.8x | 11x |
| Sun, 05 May 2024 | US$5.2t | US$476.8b | US$103.2b | 42.3x | 50.1x | 10.8x |
| Tue, 02 Apr 2024 | US$5.4t | US$465.9b | US$98.3b | 45.2x | 54.9x | 11.6x |
| Thu, 29 Feb 2024 | US$5.3t | US$466.6b | US$95.1b | 42.8x | 56.1x | 11.4x |
| Sat, 27 Jan 2024 | US$5.5t | US$486.8b | US$82.4b | 47.4x | 66.2x | 11.2x |
| Mon, 25 Dec 2023 | US$5.2t | US$486.1b | US$82.9b | 44.5x | 62.4x | 10.6x |
| Wed, 22 Nov 2023 | US$4.9t | US$482.4b | US$79.9b | 45.4x | 61.5x | 10.2x |
| Fri, 20 Oct 2023 | US$4.5t | US$477.3b | US$73.7b | 42.5x | 61.4x | 9.5x |
| Sun, 17 Sep 2023 | US$4.6t | US$480.1b | US$73.0b | 45.2x | 62.5x | 9.5x |
| Tue, 15 Aug 2023 | US$4.5t | US$473.1b | US$70.1b | 45.3x | 63.7x | 9.4x |
| Thu, 13 Jul 2023 | US$4.5t | US$460.7b | US$60.1b | 49.2x | 75.5x | 9.9x |
| Sat, 10 Jun 2023 | US$4.3t | US$460.1b | US$62.1b | 43.1x | 69.8x | 9.4x |
| Mon, 08 May 2023 | US$4.0t | US$455.5b | US$60.6b | 38.1x | 65.6x | 8.7x |
| Wed, 05 Apr 2023 | US$3.9t | US$453.7b | US$60.6b | 44x | 64.9x | 8.7x |
| Fri, 03 Mar 2023 | US$3.5t | US$441.3b | US$58.9b | 42.7x | 59.9x | 8x |
| Sun, 29 Jan 2023 | US$3.5t | US$435.5b | US$57.9b | 42.5x | 60.2x | 8x |
| Tue, 27 Dec 2022 | US$3.2t | US$434.3b | US$60.3b | 41.7x | 53.7x | 7.5x |
| Thu, 24 Nov 2022 | US$3.4t | US$430.5b | US$62.0b | 45.6x | 54.6x | 7.9x |
| Sat, 22 Oct 2022 | US$3.3t | US$412.8b | US$64.3b | 38.6x | 50.9x | 7.9x |
| Mon, 19 Sep 2022 | US$3.4t | US$413.7b | US$64.8b | 39.8x | 52.6x | 8.2x |
| Wed, 17 Aug 2022 | US$4.1t | US$410.1b | US$66.9b | 47.9x | 61.3x | 10x |
| Fri, 15 Jul 2022 | US$3.5t | US$408.7b | US$67.9b | 35.7x | 51.1x | 8.5x |
| Sun, 12 Jun 2022 | US$3.6t | US$409.7b | US$68.1b | 38.6x | 52.2x | 8.7x |
| Tue, 10 May 2022 | US$3.7t | US$404.7b | US$68.3b | 38.2x | 54.1x | 9.1x |
| Thu, 07 Apr 2022 | US$4.3t | US$394.7b | US$68.2b | 34.6x | 63.3x | 10.9x |
| Sat, 05 Mar 2022 | US$4.2t | US$394.9b | US$69.4b | 40x | 60.6x | 10.7x |
| Mon, 31 Jan 2022 | US$4.6t | US$402.5b | US$72.8b | 40.8x | 62.8x | 11.3x |
| Wed, 29 Dec 2021 | US$5.2t | US$388.3b | US$71.2b | 47.8x | 72.7x | 13.3x |
| Fri, 26 Nov 2021 | US$5.3t | US$387.3b | US$71.9b | 43.9x | 74.1x | 13.8x |
| Sun, 24 Oct 2021 | US$5.3t | US$372.0b | US$67.3b | 57.9x | 78.3x | 14.2x |
| Tue, 21 Sep 2021 | US$5.1t | US$370.6b | US$69.5b | 57.2x | 72.7x | 13.6x |
| Thu, 19 Aug 2021 | US$4.8t | US$368.8b | US$69.6b | 47.3x | 69.7x | 13.1x |
Price to Earnings Ratio
69.7x
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 46.1x which is lower than its 3-year average PE of 60.6x.
- The industry is trading close to its 3-year average PS ratio of 10.2x.
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 | 2.60% | |
| Tech | 2.60% | |
| Software | 3.84% | |
| Application Software | 4.96% | |
| Systems Software | 3.38% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 149x.
- Analysts are expecting annual earnings growth of 20.7%, which is lower than the prior year's growth of 33.5% 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 21% over the next 5 years.
- However this is lower than its past earnings growth rate of 33% 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$406.81 | 3.0% +US$86.7b | 25.5% | PE34.3x | |
| ORCL Oracle | US$132.58 | 3.7% +US$13.0b | 14.7% | PE34.9x | |
| PLTR Palantir Technologies | US$29.38 | 22.0% +US$12.1b | 86.9% | PE162.6x | |
| PANW Palo Alto Networks | US$331.10 | 12.6% +US$12.0b | 51.0% | PE43.8x | |
| CRM Salesforce | US$251.31 | 5.1% +US$11.9b | 18.5% | PE44.5x |
