SaaS Forward P/E Falls Below S&P 500 for First Time in History — iShares Software ETF Down 21% YTD
SaaStr·high signal
Software forward P/E multiples have fallen to 22.7x — below the S&P 500 — a first-ever occurrence that marks the end of software's structural premium. The iShares Software ETF (IGV) is down 21% YTD and roughly 30% from its September 2025 peak, representing ~$2 trillion in market cap erasure. For context, software traded at 84.1x forward P/E during the 2020–2022 ZIRP era, nearly 4x the S&P 500.