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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedJun 08, 2026
DataAggregated Company Financials
Companies114
  • 7D1.9%
  • 3M1.5%
  • 1Y-11.9%
  • YTD-5.3%

The Consumer Discretionary is pretty flat in the last 7 days, but InterContinental Hotels Group has stood out, gaining 5.0%. As for the longer term, the industry has declined 12% in the last year. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

Has the U.K. Consumer Discretionary Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 08 Jun 2026UK£157.7bUK£198.7bUK£6.1b13.7x25.7x0.8x
Wed, 06 May 2026UK£146.3bUK£195.6bUK£6.0b12x24.2x0.7x
Fri, 03 Apr 2026UK£147.2bUK£195.5bUK£6.0b11.7x24.5x0.8x
Sun, 01 Mar 2026UK£151.2bUK£181.9bUK£5.1b15.7x29.4x0.8x
Tue, 27 Jan 2026UK£149.8bUK£185.1bUK£5.2b14.1x28.9x0.8x
Thu, 25 Dec 2025UK£152.3bUK£185.5bUK£5.2b15x29.4x0.8x
Sat, 22 Nov 2025UK£151.1bUK£184.9bUK£4.9b15.6x30.7x0.8x
Mon, 20 Oct 2025UK£154.9bUK£182.9bUK£5.0b16.5x31.1x0.8x
Wed, 17 Sep 2025UK£153.9bUK£182.0bUK£4.8b15x32.1x0.8x
Fri, 15 Aug 2025UK£156.8bUK£183.7bUK£4.6b15.5x33.9x0.9x
Sun, 13 Jul 2025UK£160.4bUK£184.3bUK£4.9b15.8x32.7x0.9x
Tue, 10 Jun 2025UK£161.7bUK£183.7bUK£4.9b16.9x33.2x0.9x
Thu, 08 May 2025UK£161.6bUK£182.3bUK£4.8b16.9x33.4x0.9x
Sat, 05 Apr 2025UK£146.3bUK£186.9bUK£4.9b15.3x29.9x0.8x
Mon, 03 Mar 2025UK£160.3bUK£189.9bUK£5.3b14.6x30.3x0.8x
Wed, 29 Jan 2025UK£160.9bUK£190.8bUK£5.4b15.4x29.6x0.8x
Fri, 27 Dec 2024UK£163.9bUK£190.6bUK£5.4b15.9x30.4x0.9x
Sun, 24 Nov 2024UK£164.9bUK£190.1bUK£5.7b15.9x29.1x0.9x
Tue, 22 Oct 2024UK£170.6bUK£189.5bUK£5.9b17.5x28.9x0.9x
Thu, 19 Sep 2024UK£174.1bUK£188.6bUK£6.3b16.9x27.7x0.9x
Sat, 17 Aug 2024UK£169.9bUK£191.4bUK£6.5b16.1x26x0.9x
Mon, 15 Jul 2024UK£164.0bUK£191.4bUK£6.3b16.2x26x0.9x
Wed, 12 Jun 2024UK£188.4bUK£202.7bUK£5.4b15.7x34.6x0.9x
Fri, 10 May 2024UK£193.8bUK£200.6bUK£5.2b16.6x37.3x1x
Sun, 07 Apr 2024UK£189.0bUK£205.0bUK£5.1b15.1x37.4x0.9x
Tue, 05 Mar 2024UK£191.2bUK£203.4bUK£6.2b15.1x30.7x0.9x
Thu, 01 Feb 2024UK£198.7bUK£223.5bUK£6.6b14.4x30.3x0.9x
Sat, 30 Dec 2023UK£200.3bUK£224.0bUK£6.6b14.1x30.2x0.9x
Mon, 27 Nov 2023UK£188.6bUK£223.6bUK£6.2b12.2x30.3x0.8x
Wed, 25 Oct 2023UK£180.8bUK£223.7bUK£6.0b11.9x30.2x0.8x
Fri, 22 Sep 2023UK£195.3bUK£223.0bUK£5.8b12.8x33.5x0.9x
Sun, 20 Aug 2023UK£191.3bUK£222.2bUK£6.0b12.2x31.7x0.9x
Tue, 18 Jul 2023UK£198.1bUK£214.1bUK£6.3b12.7x31.6x0.9x
Thu, 15 Jun 2023UK£200.5bUK£214.2bUK£6.2b13.5x32.2x0.9x
Price to Earnings Ratio

32.2x


Total Market Cap: UK£200.5bTotal Earnings: UK£6.2bTotal Revenue: UK£214.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.4x202420252026
Current Industry PE
  • Investors are pessimistic on the British Consumer Discretionary industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 25.7x which is lower than its 3-year average PE of 30.4x.
  • The industry is trading close to its 3-year average PS ratio of 0.86x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 2.5% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

Which industries have driven the changes within the U.K. Consumer Discretionary sector?

GB Market-0.10%
Consumer Discretionary1.86%
General Merchandise and Department Stores6.94%
Hospitality2.82%
Consumer Durables1.96%
Specialty Stores0.34%
Online Retail and Ecommerce0%0
Consumer Services-0.01%
Auto Components-0.46%
Retail Distributors-1.41%
Luxury-4.31%
Leisure-4.38%
Auto-7.51%
Industry PE
  • Investors are most optimistic about the Auto Components industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 82.1%, which is higher than its past year's earnings decline of 24.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto Components industry, expecting annual earnings growth of 82% over the next 5 years.
  • This is better than its past earnings decline of 24% per year.
  • In contrast, the Leisure industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
CPG Compass GroupUS$32.814.0%
+US$2.1b		-6.1%PE27.6x
IHG InterContinental Hotels GroupUS$161.805.6%
+US$1.3b		40.0%PE31.8x
NXT NEXTUK£136.255.6%
+UK£827.6m		6.1%PE17.5x
BME B&M European Value RetailUK£2.0723.2%
+UK£392.0m		-25.1%PE12.7x
PSON PearsonUK£11.602.6%
+UK£177.6m		6.3%PE20.8x

Latest News

CPG
US$32.81
Compass Group
7D
4.0%
1Y
-6.1%
Narrative Update • Jun 05

CPG: BNP Upgrade And Premium P/E Will Support Future Upside

Narrative Update on Compass Group Analysts have adjusted their price target on Compass Group to $38.28, supported by an updated view on the stock's discount rate and forward P/E assumptions in light of recent research upgrades such as the move by BNP Paribas. What's in the News Compass Group is participating in the Kiertis pilot in Espoo, Finland, which tests reusable, deposit based takeaway food containers and a related return system in grocery and food service settings.
IHG
US$161.80
InterContinental Hotels Group
7D
5.6%
1Y
40.0%
Narrative Update • Jun 05

IHG: Future Returns Will Rely On Operational Efficiencies And Disciplined Capital Allocation

Analysts have raised their price target on InterContinental Hotels Group stock to $154 from $141. The updated fair value of $153.48 reflects views on slightly adjusted discount rate inputs, a modestly lower revenue growth outlook, a small uptick in profit margin expectations, and a higher assumed future P/E.
NXT
UK£136.25
NEXT
7D
5.6%
1Y
6.1%
Narrative Update • Jun 05

NXT: Future Cash Returns Will Reflect Mixed Rating Shifts And Execution Risks

Analysts have trimmed their fair value estimate for NEXT slightly to about £147 from roughly £148, reflecting modest changes in the discount rate, revenue growth, profit margin and future P/E assumptions following mixed recent research, including an upgrade with a £14,000 price target and a separate price target cut. Analyst Commentary Bullish Takeaways Bullish analysts see the recent upgrade and £14,000 price target as support for the view that NEXT can justify a premium valuation multiple relative to the fair value estimate, assuming the company executes consistently on revenue and margin plans.
BME
UK£2.07
B&M European Value Retail
7D
23.2%
1Y
-25.1%
INCH
UK£8.21
Inchcape
7D
-1.0%
1Y
20.3%
Narrative Update • Jun 04

INCH: Active Buybacks And Bolt On Deals Will Support Future Upside

Analysts now see Inchcape's fair value at £12.74, up from £11.20. This reflects updated assumptions for the discount rate, revenue growth, profit margins and future P/E, even as some have recently trimmed their separate published price targets, such as the £0.56 reduction cited by Citi.
WOSG
UK£7.01
Watches of Switzerland Group
7D
-2.2%
1Y
59.8%
New Narrative • Jun 04

A Compelling Compounder at a Retailer's Multiple

### Executive Summary Watches of Switzerland Group (LSE: WOSG) is not a retailer. It is the dominant distributor of scarce luxury goods in the world's largest and fastest-growing luxury watch market, with a nascent high-margin jewellery distribution business that the market has not yet begun to price correctly.
BOWL
UK£2.82
Hollywood Bowl Group
7D
-5.5%
1Y
8.3%
Analysis Article • Jun 04

We Like The Quality Of Hollywood Bowl Group's (LON:BOWL) Earnings

Investors signalled that they were pleased with Hollywood Bowl Group plc's ( LON:BOWL ) most recent earnings report...
ENT
UK£5.55
Entain
7D
-1.3%
1Y
-25.9%
Narrative Update • Jun 01

ENT: Rumored Takeover Interest And Dividend Policy Will Drive Future Repricing

Analysts have trimmed their average price targets for Entain by a few pounds, with recent changes including cuts from £1,055 to £1,028 and from £1,150 to £1,100. These revisions reflect updated views on growth, margins and appropriate P/E levels, while still indicating potential upside in the stock.
KGF
UK£2.84
Kingfisher
7D
2.9%
1Y
3.5%
Narrative Update • Jun 01

KGF: Future Returns Will Balance Mixed Street Views And AI Execution

Analysts have trimmed the Kingfisher price target to £2.955 from £3.10, reflecting updated views on fair value, discount rates, and earnings potential after recent mixed moves in Street targets from Berenberg, Jefferies, Deutsche Bank, and Barclays. Analyst Commentary Recent Street research on Kingfisher has been mixed, with some analysts raising targets and others trimming them.
PETS
UK£1.83
Pets at Home Group
7D
-5.0%
1Y
-29.5%
GAW
UK£189.80
Games Workshop Group
7D
-3.5%
1Y
17.8%
Analysis Article • May 30

Is It Too Late To Consider Buying Games Workshop Group PLC (LON:GAW)?

Games Workshop Group PLC ( LON:GAW ), might not be a large cap stock, but it saw a double-digit share price rise of...
PSON
UK£11.60
Pearson
7D
2.6%
1Y
6.3%
BTRW
UK£2.60
Barratt Redrow
7D
3.0%
1Y
-42.3%
BRBY
UK£11.06
Burberry Group
7D
-5.1%
1Y
2.8%
Narrative Update • May 26

BRBY: Royal Heritage Capsule And Brand Repositioning Will Support Future Repricing

Burberry Group's analyst price target has been updated from about £13.36 to around £13.00, reflecting mixed recent research. Some analysts highlight an improved revenue mix and early progress in the brand repositioning, while others point to macro uncertainty and view the share pullback as a potential entry point.
AML
UK£0.41
Aston Martin Lagonda Global Holdings
7D
-9.1%
1Y
-50.0%
BKG
UK£34.90
Berkeley Group Holdings
7D
3.9%
1Y
-16.7%
Narrative Update • May 16

BKG: Execution On Development Pipeline Will Drive Returns Despite Mixed Ratings

Analysts have trimmed their average price target for Berkeley Group Holdings to about £38.25 from roughly £38.83, reflecting slightly softer assumptions for revenue growth, profit margins and future P/E, despite a marginally lower discount rate and a mix of recent downgrades and upgrades across the Street. Analyst Commentary Recent Street research around Berkeley Group Holdings is mixed, with several downgrades and price target cuts alongside some upgrades.