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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedAug 23, 2026
DataAggregated Company Financials
Companies113
  • 7D-2.3%
  • 3M5.5%
  • 1Y-4.7%
  • YTD-2.4%

Over the last 7 days, the Consumer Discretionary industry has dropped 2.3%, driven by a pullback from Compass Group of 3.5%. Overall the industry is down 4.7% in 12 months. Looking forward, earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 23 Aug 2026UK£161.1bUK£200.3bUK£6.4b14.9x25.3x0.8x
Tue, 21 Jul 2026UK£159.6bUK£199.2bUK£6.2b14.2x25.7x0.8x
Thu, 18 Jun 2026UK£159.3bUK£198.8bUK£6.2b13.7x25.9x0.8x
Sat, 16 May 2026UK£151.2bUK£198.3bUK£6.1b12.6x24.7x0.8x
Mon, 13 Apr 2026UK£147.9bUK£195.5bUK£6.0b12.4x24.5x0.8x
Wed, 11 Mar 2026UK£141.9bUK£183.1bUK£5.2b14.1x27.3x0.8x
Fri, 06 Feb 2026UK£146.2bUK£181.2bUK£5.3b14.3x27.4x0.8x
Sun, 04 Jan 2026UK£152.4bUK£185.7bUK£5.2b15.3x29.4x0.8x
Tue, 02 Dec 2025UK£152.2bUK£186.2bUK£5.1b15.2x29.8x0.8x
Thu, 30 Oct 2025UK£158.9bUK£183.5bUK£5.0b15.9x31.8x0.9x
Sat, 27 Sep 2025UK£156.1bUK£184.8bUK£5.0b15.2x31.5x0.8x
Mon, 25 Aug 2025UK£159.7bUK£183.8bUK£4.6b15.5x34.4x0.9x
Wed, 23 Jul 2025UK£163.0bUK£183.9bUK£4.9b15.7x33.4x0.9x
Fri, 20 Jun 2025UK£159.0bUK£184.1bUK£4.9b16.9x32.4x0.9x
Sun, 18 May 2025UK£165.3bUK£183.6bUK£4.8b17.2x34.3x0.9x
Tue, 15 Apr 2025UK£150.7bUK£186.0bUK£4.9b15.7x30.9x0.8x
Thu, 13 Mar 2025UK£154.6bUK£186.8bUK£5.5b14.3x28x0.8x
Sat, 08 Feb 2025UK£163.5bUK£190.9bUK£5.4b15.3x30.4x0.9x
Mon, 06 Jan 2025UK£162.4bUK£190.8bUK£5.4b15.8x30.1x0.9x
Wed, 04 Dec 2024UK£168.0bUK£190.2bUK£5.4b16.1x31.1x0.9x
Fri, 01 Nov 2024UK£170.6bUK£189.8bUK£6.0b16.3x28.3x0.9x
Sun, 29 Sep 2024UK£174.6bUK£188.4bUK£6.2b17.5x28.2x0.9x
Tue, 27 Aug 2024UK£170.9bUK£188.8bUK£6.4b16.8x26.9x0.9x
Thu, 25 Jul 2024UK£164.8bUK£191.4bUK£6.2b15.9x26.6x0.9x
Sat, 22 Jun 2024UK£161.8bUK£193.0bUK£6.4b15.5x25.4x0.8x
Mon, 20 May 2024UK£196.2bUK£202.4bUK£5.0b16.3x39.1x1x
Wed, 17 Apr 2024UK£188.2bUK£205.0bUK£5.4b15.7x35.1x0.9x
Fri, 15 Mar 2024UK£192.9bUK£205.1bUK£6.3b15.4x30.5x0.9x
Sun, 11 Feb 2024UK£192.9bUK£204.0bUK£6.3b14.4x30.5x0.9x
Tue, 09 Jan 2024UK£196.7bUK£224.0bUK£6.6b14.4x29.7x0.9x
Thu, 07 Dec 2023UK£191.9bUK£224.2bUK£6.1b12.9x31.5x0.9x
Sat, 04 Nov 2023UK£187.3bUK£223.7bUK£6.1b12.5x30.7x0.8x
Mon, 02 Oct 2023UK£190.4bUK£223.3bUK£5.8b12.6x32.7x0.9x
Wed, 30 Aug 2023UK£195.5bUK£222.5bUK£6.0b12.4x32.4x0.9x
Price to Earnings Ratio

32.4x


Total Market Cap: UK£195.5bTotal Earnings: UK£6.0bTotal Revenue: UK£222.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30x202420252026
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 25.3x which is lower than its 3-year average PE of 30.0x.
  • The industry is trading close to its 3-year average PS ratio of 0.85x.
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 3.4% 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 Market0.72%
Consumer Discretionary-2.29%
Auto Components1.13%
General Merchandise and Department Stores0.44%
Retail Distributors0.29%
Online Retail and Ecommerce0%0
Consumer Services-0.031%
Auto-1.89%
Leisure-2.33%
Luxury-2.71%
Specialty Stores-3.00%
Hospitality-3.07%
Consumer Durables-3.14%
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 60.4%, 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 60% 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
IHG InterContinental Hotels GroupUS$159.450.4%
+US$88.6m		31.7%PE33x
FRAS Frasers GroupUK£8.241.1%
+UK£38.7m		17.6%PE10.3x
NXT NEXTUK£152.850.2%
+UK£34.2m		25.0%PE19.6x
DOM Domino's Pizza GroupUK£2.064.1%
+UK£31.3m		-0.9%PE13.2x
BME B&M European Value RetailUK£2.361.3%
+UK£30.2m		-1.7%PE14.5x

Latest News

GAW
UK£186.60
Games Workshop Group
7D
-2.4%
1Y
17.4%
IHG
US$159.45
InterContinental Hotels Group
7D
0.4%
1Y
31.7%
TRN
UK£1.98
Trainline
7D
-22.4%
1Y
-27.9%
Narrative Update • Aug 20

TRN: Fair Outlook Balances Leadership Transition With Execution And Margin Risks

Analysts have reduced their Trainline price target from £2.20 to £1.85, citing a lower fair value estimate, a higher discount rate and more cautious assumptions on revenue growth, profit margins and future P/E multiples. Analyst Commentary Recent commentary on Trainline highlights a mix of views, although the latest price target moves lean more cautious.
FRAS
UK£8.24
Frasers Group
7D
1.1%
1Y
17.6%
NXT
UK£152.85
NEXT
7D
0.2%
1Y
25.0%
Narrative Update • Aug 19

NXT: FY26 Guidance And Tighter Ratings Spectrum Will Shape Cash Returns

Next plc's fair value estimate has moved from £152.01 to £159.89, reflecting higher analyst price targets around £14,040 to £16,800 and updated assumptions on revenue growth, discount rate, and future P/E. Analyst Commentary Recent research coverage on Next plc has centred on refined price targets and rating changes, which feed directly into how investors may think about valuation and execution risk from here.
CPG
US$30.93
Compass Group
7D
-3.5%
1Y
-12.7%
Narrative Update • Aug 18

CPG: Updated Fair Value And P/E Framework Will Guide Future Returns

Analysts have lifted their fair value estimate for Compass Group to $32.00, with the modest change supported by updated assumptions on discount rate, revenue growth, profit margin and future P/E, even as one recent price target moved slightly lower to $40.00 from $40.50. What’s in the News for Compass Group No recent Compass Group specific news stories or key developments were provided in the available sources up to 17 Aug 2026.
BTRW
UK£3.12
Barratt Redrow
7D
-4.3%
1Y
-17.6%
Narrative Update • Aug 18

BTRW: Lower Margin Assumptions Will Pressure Returns Despite Ongoing Share Buyback

The updated analyst price target for Barratt Redrow reflects a modest reduction in fair value estimates to £2.55 from £4.00. Analysts are incorporating more cautious assumptions on revenue growth and profit margins, while still highlighting sector opportunities and maintaining supportive ratings across several recent research notes.
WOSG
UK£6.80
Watches of Switzerland Group
7D
-7.6%
1Y
103.2%
Narrative Update • Aug 17

WOSG: Raised Earnings Conviction And U.S. Expansion Will Face Richer Valuation Ceiling

The analyst fair value estimate for Watches of Switzerland Group has been raised from £4.30 to £7.25. The updated view reflects higher Street price targets in the £6.50 to £8.50 range and increased analyst focus on U.S. luxury demand, brand mix and earnings potential.
RNK
UK£1.11
Rank Group
7D
5.7%
1Y
-18.3%
ENT
UK£5.38
Entain
7D
-3.5%
1Y
-39.0%
PSN
UK£11.52
Persimmon
7D
-3.0%
1Y
2.0%
JD.
UK£0.85
JD Sports Fashion
7D
-8.5%
1Y
-9.4%
DOM
UK£2.06
Domino's Pizza Group
7D
4.1%
1Y
-0.9%
PTEC
UK£3.92
Playtech
7D
2.5%
1Y
-7.4%
Narrative Update • Jul 24

PTEC: Higher Forward P/E Assumptions Will Pressure Overvalued Shares

The analyst price target for Playtech has been raised, with the updated fair value estimate moving from £2.15 to £2.88 per share, as analysts point to adjusted assumptions on revenue growth, discount rate, profit margin and future P/E in light of recent target increases from several banks. Analyst Commentary Recent Street research on Playtech shows a split in opinion, with several firms lifting their price targets but expressing different levels of conviction on where the stock should trade.
BME
UK£2.36
B&M European Value Retail
7D
1.3%
1Y
-1.7%
Narrative Update • Jul 07

BME: Bearish Ratings And Consumer Weakness Will Pressure Future Returns

The analyst price target for B&M European Value Retail has increased to £2.00 from £1.80, with analysts citing updated views reflected in modestly adjusted fair value, revenue growth, margin and future P/E assumptions. Analyst Commentary Recent research on B&M European Value Retail shows a mix of views, with several bearish analysts highlighting valuation risks and execution challenges despite upward revisions to some price targets.
THG
UK£0.34
THG
7D
4.7%
1Y
7.8%