Technology

Software

143 investable US stocks · data to Saturday, October 24, 2026

Acquirer's Multiple percentile today70th percentile

Cheaper than in 65% of quarters since 1999Its usual range since 1999 is the 62nd to 80th percentile (the middle 80% of quarters), with a median of the 74th. Lower is cheaper: the 10th percentile is cheaper than 90% of the investable US market; the 50th is the middle.

Is it cheap because returns are depressed?

The industry is in its usual range on the multiple, and returns on assets are in their usual range. Free cash flow yield is high (higher than in 79% of quarters). A low multiple can be warranted when returns on assets are low, and a high one when they are high, so the multiple reads best next to returns and free cash flow, each against the industry's own history.

Over- or under-earning?

Over-earning

Return on assets ranks at the 57th percentile of investable US stocks, against a median of the 34th and a low of the 18th since 1999. That is well above its usual level, so it may be over-earning, and today's multiple is likely too low on a normalized basis. If earnings normalize, the multiple would likely stay about where it is: from the 70th percentile today (dearer than 70% of investable US stocks), around the 72nd, judging by where it sat in past quarters when returns were at their usual level. If returns fell to their low, it would be around the 79th (dearer than 79% of investable US stocks).

Percentile	Today	Returns normal	Returns at low
Return on assets (higher is better)	57th	34th (median)	18th (low)
Acquirer's Multiple (lower is cheaper)	70th	72nd	79th

Software's return on assets as a percentile, quarterly since 1999. The shaded band is its usual range; the dashed line its median.

Percentiles among investable US stocks. Return on assets is operating income over total assets, trailing 12 months. The last two columns show where it sat in past quarters when returns were within 7.5 points of their median (36 quarters) and of their low (31). The past, not a forecast.

Against its own history

Each chart is the industry's median stock as a percentile of all investable US stocks, quarterly since 1999. For the Acquirer's Multiple and debt to equity, lower is better. The shaded band is its usual range (the middle 80% of quarters); the dashed line is its long-run median; the dot is today. Green shading marks the better end of each scale and red the worse, and today's dot takes the colour of where it sits.

Acquirer's MultipleUsual rangePercentile of enterprise value ÷ operating income: lower is cheaper. Cheaper than in 65% of quarters since 1999.

Free cash flow yieldHigher than usualPercentile of free cash flow yield: higher is a bigger yield. Higher than in 79% of quarters since 1999.

Shareholder yieldNear its highestDividends plus buybacks, as a percentile: higher is a bigger yield. Higher than in 98% of quarters since 1999.

Dividend yieldUsual rangePercentile of dividend yield: higher is a bigger yield. Lower than in 59% of quarters since 1999.

Return on assets, 5-yrUsual rangePercentile of five-year return on assets: higher is better. Lower than in 55% of quarters since 1999.

Debt to equityMore debt than usualPercentile of debt to equity: lower is less debt. More indebted than in 80% of quarters since 1999.

Company sizeNear its largestPercentile of market cap: higher is larger. Larger than in 95% of quarters since 1999.

Software stocks in the screens today

In today's screens, cheapest first. ● marks one of a screen's 30 tracked picks.

Stock	Screen	Acquirer's Multiple	FCF yield	Shareholder yield

5 more stocks for account holders. Sign up free or log in

Other Technology industries

Commercial Electronics cheaper than 95%Technology Consulting Services cheaper than 84%Communications Equipment cheaper than 66%Internet and Data Services dearer than 55%Electronic Components dearer than 72%Manufacturing Equipment and Services dearer than 75%Semiconductor Manufacturing dearer than 76%Semiconductor Equipment and Services dearer than 80%Information Technology Distribution dearer than 86%Computer Hardware and Storage dearer than 98%

Quarterly since 1999 from point-in-time data. Each quarter, every investable US stock (price above $3, market cap above $75M, average daily trading above $850,000, no OTC, ADRs or MLPs) is placed in a percentile (0-100) against all the others on each metric. An industry's value is the median percentile of its stocks. Industries follow FactSet's RBICS classification. Percentiles describe the past; they are not investment advice or a forecast.