Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Software industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Software Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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5 Undervalued Software Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Software industry for Sunday, February 08, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Software industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| BILL Holdings, Inc. | BILL | 3.21 | na | na | 2.5% | 1.29 | 13.2 | B |
| CleanSpark, Inc. | CLSK | 3.63 | na | 25.1 | 1.1% | 1.87 | na | D |
| Exodus Movement, Inc. | EXOD | 2.15 | 3.1 | 2.9 | (9.1%) | 1.04 | na | A |
| Lightspeed Commerce Inc. | LSPD | 1.14 | na | 94.0 | 10.1% | 0.85 | 25.7 | C |
| Opera Limited | OPRA | 1.94 | 14.1 | 11.2 | 5.0% | 1.20 | 47.1 | B |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
BILL Holdings, Inc.’s Value Grade
Value Grade:
| Metric | Score | BILL | Industry Median |
| Price/Sales | 64 | 3.21 | 3.24 |
| Price/Earnings | na | na | 28.5 |
| EV/EBITDA | na | na | 24.7 |
| Shareholder Yield | 28 | 2.5% | (3.8%) |
| Price/Book Value | 34 | 1.29 | 3.13 |
| Price/Free Cash Flow | 32 | 13.2 | 21.5 |
BILL Holdings, Inc. provides financial operations platform for small and midsize businesses worldwide. It provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable businesses to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve back-office efficiency. The company also offers onboarding implementation support, and ongoing support and training services. In addition, the company’s artificial intelligence enabled financial software platform provides connections between suppliers and clients. It serves accounting firms, financial institutions, and software provider companies. The company was formerly known as Bill.com Holdings, Inc. and changed its name to BILL Holdings, Inc. in February 2023. BILL Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
BILL Holdings, Inc. has a Value Score of 66, which is considered to be undervalued.
When you look at BILL Holdings, Inc.’s price-to-sales ratio at 3.21 compared to the industry median at 3.24, this company has a lower price relative to revenue compared to its peers. This could make BILL Holdings, Inc.’s stock more attractive for value investors.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. BILL Holdings, Inc.’s shareholder yield is higher than its industry median ratio of (3.80%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. BILL Holdings, Inc.’s price-to-book ratio is lower than its industry median ratio of 3.13. This could make BILL Holdings, Inc. more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at BILL Holdings, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. BILL Holdings, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 21.50. This could make BILL Holdings, Inc. more attractive because the lower P/FCF ratio indicates that BILL Holdings, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.
CleanSpark, Inc.’s Value Grade
Value Grade:
| Metric | Score | CLSK | Industry Median |
| Price/Sales | 68 | 3.63 | 3.24 |
| Price/Earnings | na | na | 28.5 |
| EV/EBITDA | 82 | 25.1 | 24.7 |
| Shareholder Yield | 36 | 1.1% | (3.8%) |
| Price/Book Value | 48 | 1.87 | 3.13 |
| Price/Free Cash Flow | na | na | 21.5 |
CleanSpark, Inc. operates as a bitcoin mining company in the Americas. The company owns, leases, and operates data centers and power assets. Its infrastructure supports Bitcoin, a digital commodity. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
CleanSpark, Inc. has a Value Score of 33, which is considered to be overvalued.
CleanSpark, Inc.’s price-to-book ratio is higher than its peers. This could make CleanSpark, Inc. less attractive for value investors when compared to the industry median at 3.13.
You can read more about CleanSpark, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Exodus Movement, Inc.’s Value Grade
Value Grade:
| Metric | Score | EXOD | Industry Median |
| Price/Sales | 51 | 2.15 | 3.24 |
| Price/Earnings | 2 | 3.1 | 28.5 |
| EV/EBITDA | 5 | 2.9 | 24.7 |
| Shareholder Yield | 75 | (9.1%) | (3.8%) |
| Price/Book Value | 25 | 1.04 | 3.13 |
| Price/Free Cash Flow | na | na | 21.5 |
Exodus Movement, Inc. operates as a financial technology for blockchain and digital asset industry in the United States. The company develops Exodus Platform, an un-hosted self-custodial platform that provides access to the world of decentralized finance and the power of blockchain. It also offers fiat on and off-ramps to facilitate an exchange for users to buy digital assets with fiat currency through bank transfer, credit or debit card, and Apple Pay; and staking services, which allows users to stake digital assets in their Exodus wallets. The company offers its products directly through the Exodus Platform, including storing, sending, and receiving digital assets through the wallet functionality. Exodus Movement, Inc. was founded in 2015 and is based in Omaha, Nebraska.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Exodus Movement, Inc. has a Value Score of 81, which is considered to be undervalued.
Exodus Movement, Inc.’s price-earnings ratio is 3.1 compared to the industry median at 28.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Exodus Movement, Inc. more attractive for value investors.
Exodus Movement, Inc.’s price-to-book ratio is higher than its peers. This could make Exodus Movement, Inc. less attractive for value investors when compared to the industry median at 3.13.
You can read more about Exodus Movement, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Lightspeed Commerce Inc.’s Value Grade
Value Grade:
| Metric | Score | LSPD | Industry Median |
| Price/Sales | 35 | 1.14 | 3.24 |
| Price/Earnings | na | na | 28.5 |
| EV/EBITDA | 96 | 94.0 | 24.7 |
| Shareholder Yield | 5 | 10.1% | (3.8%) |
| Price/Book Value | 19 | 0.85 | 3.13 |
| Price/Free Cash Flow | 60 | 25.7 | 21.5 |
Lightspeed Commerce Inc. engages in sale of cloud-based software subscriptions and payments solutions for single and multi-location retailers, restaurants, golf course operators, and other businesses. It offers a cloud-based commerce platform that connects suppliers, merchants, and consumers to enable omnichannel experiences and engage with consumers, manage operations, accept payments, and grow business. The company’s cloud platform is designed around interrelated elements, such as omni-channel consumer experience, a comprehensive back-office operations management suite to improve customers’ efficiency and insight, and the facilitation of payments. Its platform functionalities include full omni-channel capabilities, point of sale (POS), product and menu management, kitchen display system (KDS), employee and inventory management comprising ordering, analytics and reporting, multi-location connectivity, order anywhere and curbside pickup functionality, loyalty, and customer management solutions. The company also offers tailored financial solutions, such as Lightspeed Payments and Lightspeed Capital; Lightspeed Restaurant, a unified hospitality commerce offering; Lightspeed Retail, a retail commerce offering; Lightspeed eCommerce; Lightspeed NuORDER integration to order from various brands; and Tee Sheet Lightspeed Golf for golf course operators to manage tee-time schedules, golf retail POS, and food and beverage POS. In addition, it sells hardware, including tablets, customer facing displays, KDS screens, receipt printers, networking hardware, cash drawers, payment terminals, servers, stands, bar-code scanners, and an assortment of accessories, as well as provides installation and implementation services. The company was formerly known as Lightspeed POS Inc. and changed its name to Lightspeed Commerce Inc. in August 2021. Lightspeed Commerce Inc. was incorporated in 2005 and is headquartered in Montreal, Canada.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Lightspeed Commerce Inc. has a Value Score of 59, which is considered to be fairly valued.
Lightspeed Commerce Inc.’s price-to-book ratio is higher than its peers. This could make Lightspeed Commerce Inc. less attractive for value investors when compared to the industry median at 3.13.
You can read more about Lightspeed Commerce Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Opera Limited’s Value Grade
Value Grade:
| Metric | Score | OPRA | Industry Median |
| Price/Sales | 48 | 1.94 | 3.24 |
| Price/Earnings | 30 | 14.1 | 28.5 |
| EV/EBITDA | 42 | 11.2 | 24.7 |
| Shareholder Yield | 15 | 5.0% | (3.8%) |
| Price/Book Value | 30 | 1.20 | 3.13 |
| Price/Free Cash Flow | 79 | 47.1 | 21.5 |
Opera Limited, together with its subsidiaries, provides mobile and PC web browsers and related products and services in Norway and internationally. The company offers mobile browser products, such as Opera Mini, Opera browser for Android and iOS, and Opera GX for PCs and Mobile; PC browsers, including Opera for Computers and Opera GX; Apex Football; Opera VPN Pro; and Opera News, an AI-powered personalized news discovery and aggregation service. It provides browser-based cashback rewards programs; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates Opera Ads, an online advertising platform; and offers Web3 and e-commerce services. Opera Limited was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Co., Ltd.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Opera Limited has a Value Score of 64, which is considered to be undervalued.
Opera Limited’s price-earnings ratio is 14.1 compared to the industry median at 28.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Opera Limited more attractive for value investors.
Opera Limited’s price-to-book ratio is higher than its peers. This could make Opera Limited less attractive for value investors when compared to the industry median at 3.13.
You can read more about Opera Limited’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Software Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Software stocks as well as other industrys.
Choosing Which of the 5 Best Software Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- BILL Holdings, Inc. stock has a Value Grade of B.
- CleanSpark, Inc. stock has a Value Grade of D.
- Exodus Movement, Inc. stock has a Value Grade of A.
- Lightspeed Commerce Inc. stock has a Value Grade of C.
- Opera Limited stock has a Value Grade of B.
Now that you have a bit more background about each of the 5 undervalued stocks in the Software industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Software Stocks
Want to learn more about Software stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 5 Undervalued Software Stocks for Friday, February 06
- Is Adobe Inc. (ADBE) Overvalued?
- Is AppLovin Corporation (APP) Overvalued?
- Is Oracle Corporation (ORCL) Overvalued?
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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