Software Stock

Software EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of Software (SOW.HM) as of Jun 27, 2026 is 19.76.In the previous year, EV/EBIT (Enterprise Value to EBIT) was 21.2 — a change of -6.78% (lower).

EV/EBIT

19.76

YoY

-6.78%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of Software is 2026 19.76 . EV/EBIT (Enterprise Value to EBIT) of Software was 2025 21.2 . It decreases by -6.78% lower compared to the previous year.

The Software EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

PRICE-TO-EBIT
Date
PRICE-TO-EBIT
Jan 1, 2004
776 base
Jan 1, 2005
1,180 base
Jan 1, 2006
1,523 base
Jan 1, 2007
1,146 base
Jan 1, 2008
638 base
Jan 1, 2009
956 base
Jan 1, 2010
1,155 base
Jan 1, 2011
917 base
Jan 1, 2012
1,145 base
Jan 1, 2013
1,043 base
Jan 1, 2014
929 base
Jan 1, 2015
1,026 base
Jan 1, 2016
1,279 base
Jan 1, 2017
1,592 base
Jan 1, 2018
1,042 base
YEARPRICE-TO-EBIT
2026 est 12,98
2025 est -
2024 est 16,08
2023 19,38
2022 13,97
2021 20,38
2020 17,65
2019 11,03
2018 10,42
2017 15,92
2016 12,79
2015 10,26
2014 9,29
2013 10,43
2012 11,45
2011 9,17
2010 11,55
2009 9,56
2008 6,38
2007 11,46
2006 15,23
2005 11,80
2004 7,76
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Software Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides Software's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Software's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Software's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Software grows earnings faster than its peers.

Software Stock analysis

What does Software do? The Software AG is a German company founded in 1969 by Peter Schnell in Darmstadt. Originally, it started as a research project of the Fraunhofer Institute aimed at automating the process control of complex industrial systems. This automated control was also called "software operating system." Schnell recognized the potential of this technology and founded the Software AG to market the system. The business model of the Software AG is focused on helping companies make their business processes more efficient and save costs. The Software AG offers a wide range of solutions for companies of all sizes and industries and has locations in over 70 countries worldwide. The companies within the Software AG are divided into two divisions. The first is business process management or business process management (BPM), a division that focuses on the automation of business processes. In this division, the Software AG offers a range of solutions aimed at improving the efficiency and quality of business processes and thus optimizing the customer experience. The other division includes data management or enterprise architecture management (EAM), a division that focuses on managing and integrating corporate data and information. This division offers solutions for databases, application integration, API management, and analytics. The Software AG's products include the webMethods platform, which is used for connecting applications, data, and devices, as well as the ARIS platform for business process management. These platforms are used by numerous companies worldwide, including Audi, Daimler, BMW, and Siemens. In 2019, Software AG announced its intention to expand its role in the market for the Internet of Things (IoT). The company has already established several partnerships with major brands such as Dell, Nokia, and Bosch to further develop and market its IoT solutions. Software AG's goal is to develop the next generation of IoT platforms and help companies create intelligent and connected systems. Overall, Software AG has an impressive history and a wide range of solutions for companies of all types and sizes. The company takes pride in helping its customers reduce operating costs, increase efficiency, and enhance their competitiveness. Software is one of the most popular companies on Eulerpool.

Frequently Asked Questions about Software stock

EV/EBIT (Enterprise Value to EBIT) of Software amounted to 21.2 19.76

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Valuation — Software

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