Valuation differences in the global software development sector

28.06.2026

The valuation differences between ‘traditional’ software development companies such as Adobe, Oracle, SAP and Microsoft, and software providers specialising in combating cyberattacks such as CrowdStrike, Palo Alto and Datadog, are currently exceptional.

The estimated difference, based on profits for the current year, is around 60 ‘P/E points’. The question is what kind of future investors envisage for the various software developers. At present, the verdict is clear.

In our view, it is precisely the hard-hit companies that offer significant upside potential over the next 12–18 months.