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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedFeb 20, 2026
DataAggregated Company Financials
Companies116
  • 7D2.3%
  • 3M-0.6%
  • 1Y-5.0%
  • YTD-1.5%

The Consumer Discretionary industry is up 2.6% in the last week, with Compass Group up 7.9%. In contrast, the industry has lost 4.7% in the last 12 months. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 20 Feb 2026UK£148.8bUK£181.9bUK£5.4b14.5x27.7x0.8x
Sun, 18 Jan 2026UK£151.6bUK£185.9bUK£5.2b14.9x29.1x0.8x
Tue, 16 Dec 2025UK£150.8bUK£186.0bUK£5.2b15.7x29x0.8x
Thu, 13 Nov 2025UK£154.6bUK£184.7bUK£4.9b15.3x31.4x0.8x
Sat, 11 Oct 2025UK£153.3bUK£182.9bUK£5.0b15.5x30.8x0.8x
Mon, 08 Sep 2025UK£155.6bUK£182.4bUK£4.9b15.5x32x0.9x
Wed, 06 Aug 2025UK£160.5bUK£184.2bUK£4.7b16.1x34.1x0.9x
Fri, 04 Jul 2025UK£162.1bUK£183.9bUK£4.9b16.2x33.1x0.9x
Sun, 01 Jun 2025UK£163.6bUK£183.9bUK£4.9b17.4x33.3x0.9x
Tue, 29 Apr 2025UK£154.5bUK£182.3bUK£4.8b15.9x32x0.8x
Thu, 27 Mar 2025UK£151.0bUK£187.3bUK£5.2b16.9x29.3x0.8x
Sat, 22 Feb 2025UK£162.1bUK£189.7bUK£5.3b15.2x30.3x0.9x
Mon, 20 Jan 2025UK£160.3bUK£191.7bUK£5.5b15.6x29.4x0.8x
Wed, 18 Dec 2024UK£165.4bUK£190.0bUK£5.4b15.6x30.7x0.9x
Fri, 15 Nov 2024UK£165.5bUK£190.0bUK£5.9b16.4x28.2x0.9x
Sun, 13 Oct 2024UK£168.1bUK£189.7bUK£6.1b17.5x27.7x0.9x
Tue, 10 Sep 2024UK£170.6bUK£189.2bUK£6.3b16.4x27x0.9x
Thu, 08 Aug 2024UK£164.9bUK£192.1bUK£6.1b15.8x27x0.9x
Sat, 06 Jul 2024UK£160.7bUK£191.8bUK£6.3b16x25.4x0.8x
Mon, 03 Jun 2024UK£191.5bUK£202.5bUK£5.1b16x37.8x0.9x
Wed, 01 May 2024UK£188.0bUK£200.9bUK£5.2b16.7x36x0.9x
Fri, 29 Mar 2024UK£195.5bUK£205.0bUK£5.0b15.6x38.8x1x
Sun, 25 Feb 2024UK£193.2bUK£204.0bUK£6.3b15.4x30.6x0.9x
Tue, 23 Jan 2024UK£196.1bUK£223.7bUK£6.6b14.1x29.6x0.9x
Thu, 21 Dec 2023UK£201.7bUK£224.0bUK£6.6b14x30.4x0.9x
Sat, 18 Nov 2023UK£189.4bUK£224.0bUK£6.1b12.6x31.1x0.8x
Mon, 16 Oct 2023UK£183.7bUK£223.6bUK£5.8b11.9x31.7x0.8x
Wed, 13 Sep 2023UK£195.4bUK£222.0bUK£6.0b12.3x32.6x0.9x
Fri, 11 Aug 2023UK£201.7bUK£217.8bUK£6.8b12.4x29.8x0.9x
Sun, 09 Jul 2023UK£192.1bUK£213.9bUK£6.3b12.7x30.7x0.9x
Tue, 06 Jun 2023UK£202.5bUK£214.4bUK£6.2b14x32.5x0.9x
Thu, 04 May 2023UK£207.2bUK£208.0bUK£6.6b12.6x31.4x1x
Sat, 01 Apr 2023UK£197.5bUK£208.0bUK£7.1b12.2x28x0.9x
Mon, 27 Feb 2023UK£197.2bUK£207.1bUK£8.2b12.7x24.2x1x
Price to Earnings Ratio

24.2x


Total Market Cap: UK£197.2bTotal Earnings: UK£8.2bTotal Revenue: UK£207.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.7x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Consumer Discretionary industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 30.7x.
  • The industry is trading close to its 3-year average PS ratio of 0.88x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have declined 13% per year over the last three years,
  • Revenues have also declined 4.3% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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

GB Market1.89%
Consumer Discretionary2.34%
Hospitality5.32%
Retail Distributors4.68%
Leisure2.36%
General Merchandise and Department Stores2.20%
Consumer Services2.11%
Auto Components1.52%
Specialty Stores0.87%
Online Retail and Ecommerce0%0
Luxury-0.76%
Consumer Durables-1.52%
Auto-6.44%
Industry PE
  • Investors are most optimistic about the Luxury industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 44.5%, which is higher than its past year's earnings decline of 32.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 73% over the next 5 years.
  • 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 GroupUK£21.957.9%
+UK£2.7b		-21.8%PE26.9x
NXT NEXTUK£129.902.0%
+UK£279.1m		29.4%PE19x
INCH InchcapeUK£8.865.4%
+UK£159.8m		32.2%PE11.3x
SSPG SSP GroupUK£2.039.4%
+UK£135.3m		17.9%PS0.4x
GAW Games Workshop GroupUK£170.502.4%
+UK£132.2m		20.7%PE27.3x

Latest News

IHG
US$142.30
InterContinental Hotels Group
7D
-3.3%
1Y
13.5%
CPG
UK£21.95
Compass Group
7D
7.9%
1Y
-21.8%
BME
UK£1.87
B&M European Value Retail
7D
4.7%
1Y
-35.3%

BME: Higher Fair Value Will Rely On Future Margin Execution

Analysts have lifted their fair value estimate for B&M European Value Retail from £2.06 to £2.15. This reflects updated assumptions around discount rates, revenue growth, profit margins and future P/E multiples following recent research.
INCH
UK£8.86
Inchcape
7D
5.4%
1Y
32.2%

INCH: Future EPS Guidance And Revised P/E Assumptions Will Shape Fair Value View

Analysts have nudged their Inchcape price target slightly higher, from £7.90 to £8.00, citing small adjustments to fair value assumptions, the discount rate, expected revenue growth, profit margins and the future P/E multiple. Valuation Changes Fair Value has been nudged from £7.90 to £8.00 per share, reflecting a small upward revision to the central estimate.
ENT
UK£5.82
Entain
7D
-2.2%
1Y
-21.9%

ENT: Recent Tax Shift And Share Pullback Will Create Opportunity

We trim our Entain fair value estimate from £12.60 to £12.00, reflecting a higher discount rate, slightly lower revenue growth assumptions, and Street research in which several firms have reduced price targets and, in one case, downgraded the rating while still seeing potential value after the recent share price weakness. Analyst Commentary Street research on Entain has been mixed, but there are several clear pockets of optimism that help frame how some investors are thinking about the shares after the recent pullback and tax headlines.
VTY
UK£7.13
Vistry Group
7D
-2.4%
1Y
17.6%

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BTRW
UK£3.77
Barratt Redrow
7D
-4.1%
1Y
-12.0%

Synergy Benefits And Planning Reform Will Support A Stronger Long Term Housing Platform

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GAW
UK£170.50
Games Workshop Group
7D
2.4%
1Y
20.7%
BKG
UK£42.76
Berkeley Group Holdings
7D
-2.5%
1Y
14.0%

BKG: JPMorgan Upgrade And Buybacks Will Support Stable Yet Balanced Future Returns

Analysts have nudged their price target for Berkeley Group Holdings slightly higher to about £42.95, citing updated views on discount rates, long run revenue trends, profit margins, and future P/E assumptions following recent research such as the JPMorgan upgrade. Analyst Commentary Bullish Takeaways Bullish analysts see the revised price target near £42.95 as consistent with their updated P/E assumptions, suggesting the current valuation lines up more closely with their view of the company’s earnings power.
PSON
UK£9.23
Pearson
7D
2.1%
1Y
-32.1%

PSON: AI Partnerships And Fresh Buy Ratings Will Support Future Upside

Narrative Update on Pearson Analysts have trimmed their Pearson price target by £0.20 to £14.20, reflecting slightly higher discount-rate assumptions and fine tuning to margin and P/E inputs, with recent research highlighting a mix of cautious target adjustments and fresh Buy initiations on what some see as an attractive risk/reward setup around AI concerns. Analyst Commentary Recent research on Pearson presents a mix of optimism and caution, with target tweaks and new coverage reflecting different views on how the shares price in AI related risks and execution on growth plans.
CURY
UK£1.55
Currys
7D
4.8%
1Y
56.4%

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Feb 09
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TW.
UK£1.15
Taylor Wimpey
7D
-1.3%
1Y
-0.3%

TW.: Outlet Stability And Maintained 2025 Guidance Will Support Upside Potential

Analysts have trimmed their price targets for Taylor Wimpey by £0.02, reflecting a slightly higher discount rate and slightly lower future P/E assumptions, even though their revenue growth and profit margin expectations remain modestly higher. Analyst Commentary Recent research suggests that, even with slightly lower price targets, some bullish analysts still see room for Taylor Wimpey to execute on its plans and justify valuations that reflect modestly higher expectations for revenue and margins.
NXT
UK£129.90
NEXT
7D
2.0%
1Y
29.4%

NXT: Future Cash Returns Will Rely On Execution And Earnings Resilience

Narrative update Analysts have inched their price targets for NEXT higher, with recent moves from £178.00 to £180.00 and from £123.00 to £139.00, reflecting updated views on the company’s outlook and valuation drivers. Analyst Commentary Recent research updates point to a generally constructive stance on NEXT, with higher price targets framed around the company’s ability to execute and sustain its current positioning.
BRBY
UK£11.75
Burberry Group
7D
-1.8%
1Y
6.3%

BRBY: Future Returns Will Hinge On Fragile China Luxury Recovery Risks

Burberry Group’s analyst fair value estimate has moved from £7.96 to £9.40 as analysts factor in updated assumptions on revenue growth, profit margins and a higher future P/E following recent price target revisions from major banks. Analyst Commentary Recent Street research on Burberry Group points to a mixed set of views, with some firms lifting price targets while others have trimmed their expectations.
JD.
UK£0.78
JD Sports Fashion
7D
-1.5%
1Y
-3.6%

JD.: Recent £100m Buyback Will Support Future Earnings Multiple

Analysts have trimmed their price targets on JD Sports Fashion, with Citi and Deutsche Bank each cutting their views by £0.01 and £0.10 respectively. They now see slightly higher fair value and P/E assumptions, while modestly adjusting their views on growth, margins and discount rates.
SSPG
UK£2.03
SSP Group
7D
9.4%
1Y
17.9%

SSP Group (LON:SSPG) Might Have The Makings Of A Multi-Bagger

Feb 05
SSP Group (LON:SSPG) Might Have The Makings Of A Multi-Bagger