U.K. (FTSE) Market Analysis & Valuation

Market Valuation and Performance

Has the U.K. Market valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Fri, 12 Aug 2022	UK£2.5t	UK£2.2t	UK£206.3b	14.2x	12.3x	1.1x
Sun, 10 Jul 2022	UK£2.5t	UK£2.2t	UK£189.3b	14.2x	13x	1.1x
Tue, 07 Jun 2022	UK£2.6t	UK£2.2t	UK£190.4b	15.3x	13.8x	1.2x
Thu, 05 May 2022	UK£2.6t	UK£2.1t	UK£176.7b	16x	14.5x	1.2x
Sat, 02 Apr 2022	UK£2.6t	UK£2.1t	UK£197.0b	16.5x	13.3x	1.3x
Mon, 28 Feb 2022	UK£2.6t	UK£1.9t	UK£178.2b	16.9x	14.6x	1.4x
Wed, 26 Jan 2022	UK£2.7t	UK£1.9t	UK£162.8b	18.1x	16.5x	1.4x
Fri, 24 Dec 2021	UK£2.8t	UK£1.9t	UK£164.5b	19.5x	16.9x	1.5x
Sun, 21 Nov 2021	UK£2.8t	UK£1.9t	UK£163.4b	20.6x	16.9x	1.5x
Tue, 19 Oct 2021	UK£2.8t	UK£1.8t	UK£143.8b	21.5x	19.3x	1.5x
Thu, 16 Sep 2021	UK£2.7t	UK£1.8t	UK£139.1b	23.5x	19.6x	1.5x
Sat, 14 Aug 2021	UK£2.8t	UK£1.8t	UK£138.8b	24.9x	20x	1.5x
Wed, 09 Jun 2021	UK£2.7t	UK£1.7t	UK£91.1b	24.8x	29.1x	1.5x
Tue, 02 Mar 2021	UK£2.4t	UK£1.7t	UK£53.6b	22.4x	45x	1.4x
Fri, 04 Dec 2020	UK£2.2t	UK£1.7t	UK£39.0b	22.9x	57.6x	1.3x
Mon, 07 Sep 2020	UK£2.1t	UK£1.8t	UK£46.7b	21x	45.1x	1.2x
Sun, 31 May 2020	UK£2.1t	UK£1.9t	UK£85.6b	17.2x	24.4x	1.1x
Wed, 04 Mar 2020	UK£2.3t	UK£2.1t	UK£130.3b	17.6x	17.3x	1.1x
Sat, 07 Dec 2019	UK£2.5t	UK£2.1t	UK£149.4b	17.6x	16.5x	1.2x
Tue, 10 Sep 2019	UK£2.3t	UK£2.0t	UK£149.2b	16.2x	15.3x	1.2x

Current Market PE

Investors are pessimistic on the British market, indicating that they anticipate earnings will not grow as fast as they have historically.

The market is trading at a PE ratio of 12.3x which is lower than its 3-year average PE of 26.0x.

Past Earnings Growth

The earnings for British listed companies have grown 11% per year over the last three years.
Revenues for these companies have grown 4.4% per year.
This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Sector Trends

Which sectors have driven the changes within the U.K. Market?


GB Market	-0.33%
Financials	2.30%
Materials	1.62%
Tech	0.99%
Telecom	0.30%
Consumer Discretionary	0.16%
Industrials	-0.096%
Real Estate	-0.89%
Consumer Staples	-1.03%
Energy	-1.03%
Utilities	-1.39%
Healthcare	-5.06%

Sector PE

Investors are most optimistic about the Healthcare sector, which is trading close to its 3-year average PE ratio of 35.3x.
This is likely because analysts are expecting annual earnings growth of 23%, which is higher than its past year's earnings growth of 8.6% per year.
Investors are most pessimistic about the Energy sector, which is trading below its 3-year average of 11.5x.

Forecasted Growth

Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 23% over the next 5 years.
This is better than its past earnings growth rate of 8.6% per year.

In contrast, the Materials sector is expected to see its earnings decline by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company	Last Price	7D	1Y	Valuation	Sector
NVTK PAO NOVATEK	US$55.50	n/a US$16.6b	-76.4%	PE2.3x	Energy
SHEL Shell	UK£22.14	3.8% +UK£5.9b	50.6%	PE5.5x	Energy
ENPL En+ Group International	US$9.30	n/a US$4.7b	-8.8%	PE2.2x	Materials
BP. BP	UK£4.28	4.8% +UK£3.5b	39.3%	PS0.5x	Energy
BATS British American Tobacco	UK£33.19	3.1% +UK£2.2b	24.2%	PE13.9x	Consumer Staples

Company

Last Price

Valuation

Sector

NVTK PAO NOVATEK

US$55.50

n/a
US$16.6b

-76.4%

PE2.3x

Energy

SHEL Shell

UK£22.14

3.8%
+UK£5.9b

50.6%

PE5.5x

Energy

ENPL En+ Group International

US$9.30

n/a
US$4.7b

-8.8%

PE2.2x

Materials

BP. BP

UK£4.28

4.8%
+UK£3.5b

39.3%

PS0.5x

Energy

BATS British American Tobacco

UK£33.19

3.1%
+UK£2.2b

24.2%

PE13.9x

Consumer Staples

HUTCHMED (China) Limited and AstraZeneca PLC Announce Preliminary Results from SAVANNAH Phase II Trial

HUTCHMED (China) Limited and AstraZeneca PLC announced that preliminary results from the SAVANNAH Phase II trial showed that TAGRISSO® (osimertinib) plus savolitinib demonstrated an objective response rate ("ORR") of 49% (95% confidence interval ["CI"], 39-59%) in patients with epidermal growth factor receptor-mutated ("EGFRm") non-small cell lung cancer ("NSCLC") with high levels of mesenchymal epithelial transition ("MET") overexpression and/or amplification, defined as IHC90+ and/or FISH10+, whose disease progressed on treatment with TAGRISSO®. The highest ORR was observed in patients with high levels of MET who were not treated with prior chemotherapy (52% [95% CI, 41-63%]). In patients whose tumors did not show high levels of MET, the ORR was 9% (95% CI, 4-18%). These results are being shared at the International Association for the Study of Lung Cancer (IASLC) 2022 World Conference on Lung Cancer (WCLC), taking place on August 6-9, 2022 in Vienna, Austria. Savolitinib, marketed in China under the brand name ORPATHYS®, is an oral, potent and highly selective MET tyrosine kinase inhibitor ("TKI") being jointly developed and commercialized by AstraZeneca and HUTCHMED. While EGFR-targeted therapy can provide a durable survival benefit to patients with EGFRm NSCLC, most will eventually develop resistance to their treatment, with MET being the most common resistance biomarker.1 Among patients screened for enrolment in SAVANNAH, all of whom experienced disease progression on TAGRISSO®, 62% had tumors with MET overexpression and/or amplification, and more than one-third (34%) met the defined high MET level cut-off. In this analysis, patients' MET overexpression and/or amplification levels were determined by two tests: immunohistochemistry ("IHC"), which detects if cancer cells have a particular protein or marker on their surface, and fluorescence in situ hybridization ("FISH"), which detects a specific DNA sequence from cancer cells. All patients in this analysis (n=193) had at least IHC50+ and/or FISH5+, and were treated with savolitinib 300mg once daily added to TAGRISSO® 80mg once daily following disease progression on TAGRISSO® alone. The safety profile of TAGRISSO® plus savolitinib was consistent with the known profiles of the combination and each treatment alone. No new safety signals were identified. Less than half (45%) of patients in this analysis experienced Grade 3 or higher adverse events ("AEs"), with those most frequently reported including pulmonary embolism, dyspnea, decreased neutrophil count and pneumonia. AEs attributable to savolitinib and leading to discontinuation occurred in 13% of patients. The global SAFFRON Phase III trial will further assess the TAGRISSO® plus savolitinib combination versus platinum-based doublet chemotherapy in patients with EGFRm, MET-overexpressed and/or amplified, locally advanced or metastatic NSCLC following TAGRISSO®. Patients are being prospectively selected using the high MET level cut-off identified in SAVANNAH.

U.K. (FTSE) Market Analysis & Valuation

Market Valuation and Performance

Sector Trends

Top Stock Gainers and Losers

Market Insights

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