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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedJul 24, 2026
DataAggregated Company Financials
Companies114
  • 7D-2.2%
  • 3M3.7%
  • 1Y-9.4%
  • YTD-5.2%

Over the last 7 days, the Consumer Discretionary industry has dropped 2.2%, driven by Compass Group declining 2.5%. Meanwhile, B&M European Value Retail actually outperformed within the industry, gaining 6.1% in the last week. However, the industry is down 9.4% over the past 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
Fri, 24 Jul 2026UK£156.8bUK£199.2bUK£6.2b14x25.3x0.8x
Sun, 21 Jun 2026UK£157.0bUK£198.8bUK£6.2b13.7x25.4x0.8x
Tue, 19 May 2026UK£153.4bUK£198.3bUK£6.2b12.9x24.9x0.8x
Thu, 16 Apr 2026UK£148.3bUK£195.5bUK£6.0b12.6x24.6x0.8x
Sat, 14 Mar 2026UK£139.5bUK£183.6bUK£5.2b13.5x26.7x0.8x
Mon, 09 Feb 2026UK£145.5bUK£181.1bUK£5.3b14.4x27.3x0.8x
Wed, 07 Jan 2026UK£153.3bUK£185.6bUK£5.2b15.2x29.6x0.8x
Fri, 05 Dec 2025UK£152.4bUK£185.9bUK£5.1b15.4x29.7x0.8x
Sun, 02 Nov 2025UK£156.1bUK£183.6bUK£4.9b15.8x32x0.9x
Tue, 30 Sep 2025UK£157.3bUK£184.7bUK£5.0b15.3x31.7x0.9x
Thu, 28 Aug 2025UK£157.3bUK£182.5bUK£4.9b15.5x32.2x0.9x
Sat, 26 Jul 2025UK£163.5bUK£184.1bUK£4.9b15.7x33.4x0.9x
Mon, 23 Jun 2025UK£159.3bUK£184.1bUK£4.9b16.8x32.4x0.9x
Wed, 21 May 2025UK£167.4bUK£183.3bUK£4.8b17.2x34.8x0.9x
Fri, 18 Apr 2025UK£153.3bUK£183.0bUK£4.8b15.8x32x0.8x
Sun, 16 Mar 2025UK£154.1bUK£187.0bUK£5.5b14.4x28.1x0.8x
Tue, 11 Feb 2025UK£164.6bUK£191.0bUK£5.4b15.3x30.6x0.9x
Thu, 09 Jan 2025UK£160.0bUK£191.0bUK£5.4b15.6x29.6x0.8x
Sat, 07 Dec 2024UK£170.1bUK£189.9bUK£5.4b16.1x31.7x0.9x
Mon, 04 Nov 2024UK£168.0bUK£189.7bUK£6.0b16.3x27.9x0.9x
Wed, 02 Oct 2024UK£171.4bUK£188.9bUK£6.2b17x27.5x0.9x
Fri, 30 Aug 2024UK£168.7bUK£188.9bUK£6.4b16.4x26.5x0.9x
Sun, 28 Jul 2024UK£168.2bUK£191.5bUK£6.2b16.1x27.2x0.9x
Tue, 25 Jun 2024UK£160.7bUK£193.0bUK£6.4b15.5x25.2x0.8x
Thu, 23 May 2024UK£195.0bUK£202.5bUK£5.0b15.8x38.8x1x
Sat, 20 Apr 2024UK£185.7bUK£204.7bUK£5.3b15.5x34.8x0.9x
Mon, 18 Mar 2024UK£191.9bUK£205.1bUK£6.3b15.3x30.4x0.9x
Wed, 14 Feb 2024UK£189.5bUK£204.0bUK£6.3b14.2x30x0.9x
Fri, 12 Jan 2024UK£192.5bUK£224.0bUK£6.6b14x29x0.9x
Sun, 10 Dec 2023UK£192.8bUK£224.3bUK£6.1b13.5x31.6x0.9x
Tue, 07 Nov 2023UK£185.5bUK£223.7bUK£6.1b12.2x30.4x0.8x
Thu, 05 Oct 2023UK£187.9bUK£223.5bUK£5.8b12x32.4x0.8x
Sat, 02 Sep 2023UK£195.6bUK£222.5bUK£6.1b12.6x32.2x0.9x
Mon, 31 Jul 2023UK£204.1bUK£216.4bUK£6.5b13x31.2x0.9x
Price to Earnings Ratio

31.2x


Total Market Cap: UK£204.1bTotal Earnings: UK£6.5bTotal Revenue: UK£216.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.1x202420252026
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 30.1x.
  • 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 2.7% 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 Market0.59%
Consumer Discretionary-2.20%
Auto Components2.39%
Retail Distributors1.64%
Online Retail and Ecommerce0%0
Auto-0.86%
General Merchandise and Department Stores-1.45%
Specialty Stores-1.72%
Consumer Durables-2.02%
Leisure-2.06%
Hospitality-2.41%
Consumer Services-3.60%
Luxury-5.52%
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 77.3%, 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 77% 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
BME B&M European Value RetailUK£2.126.1%
+UK£122.6m		-9.0%PE13x
INCH InchcapeUK£8.101.8%
+UK£48.1m		0.2%PE10.4x
WTB WhitbreadUK£23.920.5%
+UK£20.1m		-26.2%PE18.8x
FRAS Frasers GroupUK£7.520.5%
+UK£15.1m		8.4%PE9.4x
DFS DFS FurnitureUK£1.404.5%
+UK£13.9m		-19.6%PE9.2x

Latest News

WOSG
UK£6.99
Watches of Switzerland Group
7D
-12.8%
1Y
94.9%
WTB
UK£23.92
Whitbread
7D
0.5%
1Y
-26.2%
PSON
UK£12.05
Pearson
7D
-3.6%
1Y
14.6%
Narrative Update • Jul 22

PSON: AI Partnerships And Execution Progress Will Support Balanced Future Returns

The analyst price target for Pearson in this update edges higher to reflect a fair value move to about £12.24, as analysts factor in slightly adjusted assumptions for discount rate, revenue growth, profit margin and future P/E. Recent research broadly maintains a Neutral or Equal Weight stance, with price targets clustered between about £13.35 and £14.20.
CPG
US$30.46
Compass Group
7D
-2.5%
1Y
-14.7%
Narrative Update • Jul 20

CPG: Revised Fair Value And P/E Assumptions Will Shape Returns

Analysts have lifted their price target on Compass Group from $28.57 to $31.00, citing updated assumptions for fair value, discount rate, revenue, profit margin, and future P/E that modestly adjust the risk and return profile investors may want to consider. What’s in the News for Compass Group No recent Compass Group company specific news items were identified in the provided sources, so the updated price target currently reflects analyst model adjustments rather than newly disclosed events.
IHG
US$153.35
InterContinental Hotels Group
7D
-3.9%
1Y
31.2%
Narrative Update • Jul 20

IHG: RevPAR Momentum And Net Unit Growth Will Face Multiple Compression Risk

InterContinental Hotels Group's updated fair value estimate has moved from $104.18 to $108.00 as analysts factor in higher Street price targets, with supporting commentary pointing to stronger RevPAR trends, improving net unit growth momentum, and a reduced valuation gap to U.S. peers. Analyst Commentary Recent Street research on InterContinental Hotels Group highlights a mix of optimism on growth drivers such as RevPAR trends and net unit growth, alongside a more measured tone on valuation, particularly when compared with U.S. peers like Hilton and Marriott.
FRAS
UK£7.52
Frasers Group
7D
0.5%
1Y
8.4%
GAW
UK£198.60
Games Workshop Group
7D
-2.1%
1Y
27.3%
Analysis Article • Jul 17

Do Games Workshop Group's (LON:GAW) Earnings Warrant Your Attention?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...
BRBY
UK£10.38
Burberry Group
7D
-7.4%
1Y
-22.3%
GYM
UK£2.07
Gym Group
7D
3.0%
1Y
36.2%
Narrative Update • Jul 10

GYM: Refurbishment Rollout And Cash-Funded Expansion Will Shape Fairly Valued Outlook

Analysts have raised their price target for Gym Group from £1.55 to £2.05, citing updated assumptions on revenue growth, profit margins and future P/E as the main factors behind the change. What's in the News for Gym Group Gym Group has outlined a rollout plan that includes a scalable, cost-effective design format for refurbishing its mature estate within existing maintenance capital expenditure budgets.
CURY
UK£1.63
Currys
7D
0.5%
1Y
40.0%
CRN
UK£2.11
Cairn Homes
7D
0.7%
1Y
10.6%
BME
UK£2.12
B&M European Value Retail
7D
6.1%
1Y
-9.0%
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.
NXT
UK£146.70
NEXT
7D
-2.2%
1Y
21.5%
ENT
UK£5.48
Entain
7D
-3.6%
1Y
-44.3%
INCH
UK£8.10
Inchcape
7D
1.8%
1Y
0.2%
Narrative Update • Jun 19

INCH: Bolt On Deals And P/E Reset Will Shape Balanced Stock Outlook

Analysts have adjusted their fair value estimate for Inchcape to £8.15 from £8.00, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E, alongside recent Street research that includes a £0.56 reduction in the price target cited by Citi. What’s in the News for Inchcape Inchcape highlighted acquisitions as a key lever for delivering shareholder value, with management describing an active pipeline of bolt on deals under review, source: Inchcape 2026 First Quarter Results call.
DFS
UK£1.40
DFS Furniture
7D
4.5%
1Y
-19.6%