Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedAug 06, 2026
DataAggregated Company Financials
Companies114
  • 7D0.4%
  • 3M11.3%
  • 1Y-4.3%
  • YTD1.0%

In the last week, the Consumer Discretionary industry is flat overall, with Pearson standing out by going down 4.9%. Unfortunately though, the industry is down 4.3% over the past 12 months. 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
Fri, 07 Aug 2026UK£167.1bUK£200.0bUK£6.3b15x26.6x0.8x
Sun, 05 Jul 2026UK£160.4bUK£198.8bUK£6.3b14.1x25.5x0.8x
Tue, 02 Jun 2026UK£157.2bUK£198.6bUK£6.2b14.3x25.2x0.8x
Thu, 30 Apr 2026UK£145.7bUK£195.5bUK£6.1b11.9x24x0.7x
Sat, 28 Mar 2026UK£129.2bUK£183.7bUK£5.3b11.6x24.6x0.7x
Mon, 23 Feb 2026UK£149.6bUK£181.8bUK£5.4b14.6x27.9x0.8x
Wed, 21 Jan 2026UK£149.4bUK£185.7bUK£5.2b14.8x28.8x0.8x
Fri, 19 Dec 2025UK£154.8bUK£186.0bUK£5.2b15.3x29.8x0.8x
Sun, 16 Nov 2025UK£151.6bUK£184.7bUK£4.9b15.8x31x0.8x
Tue, 14 Oct 2025UK£154.7bUK£182.9bUK£5.0b15.4x31.1x0.8x
Thu, 11 Sep 2025UK£153.5bUK£182.4bUK£4.9b15.2x31.6x0.8x
Sat, 09 Aug 2025UK£158.1bUK£183.7bUK£4.7b15.8x33.3x0.9x
Mon, 07 Jul 2025UK£160.8bUK£183.9bUK£4.9b16.1x32.8x0.9x
Wed, 04 Jun 2025UK£161.7bUK£183.8bUK£4.9b16.8x32.9x0.9x
Fri, 02 May 2025UK£158.5bUK£182.4bUK£4.8b16x33x0.9x
Sun, 30 Mar 2025UK£152.4bUK£186.6bUK£4.9b16.3x31.2x0.8x
Tue, 25 Feb 2025UK£161.1bUK£189.7bUK£5.4b15.1x30.1x0.8x
Thu, 23 Jan 2025UK£161.2bUK£191.3bUK£5.4b15.3x29.7x0.8x
Sat, 21 Dec 2024UK£164.0bUK£190.4bUK£5.4b16.5x30.4x0.9x
Mon, 18 Nov 2024UK£165.0bUK£190.0bUK£5.6b16.4x29.4x0.9x
Wed, 16 Oct 2024UK£169.7bUK£189.2bUK£6.0b17.6x28.4x0.9x
Fri, 13 Sep 2024UK£172.0bUK£189.1bUK£6.3b16x27.2x0.9x
Sun, 11 Aug 2024UK£165.8bUK£192.1bUK£6.6b15.7x25.2x0.9x
Tue, 09 Jul 2024UK£161.3bUK£191.8bUK£6.3b16.1x25.4x0.8x
Thu, 06 Jun 2024UK£191.6bUK£202.3bUK£5.4b15.7x35.6x0.9x
Sat, 04 May 2024UK£190.6bUK£200.7bUK£5.3b16.4x36.2x0.9x
Mon, 01 Apr 2024UK£195.5bUK£205.0bUK£5.0b15.6x38.8x1x
Wed, 28 Feb 2024UK£192.5bUK£204.0bUK£6.3b15x30.5x0.9x
Fri, 26 Jan 2024UK£196.9bUK£223.5bUK£6.6b14.5x30x0.9x
Sun, 24 Dec 2023UK£200.2bUK£224.0bUK£6.6b14.1x30.2x0.9x
Tue, 21 Nov 2023UK£189.7bUK£224.0bUK£6.1b12.5x31.2x0.8x
Thu, 19 Oct 2023UK£183.7bUK£223.4bUK£5.9b12.1x31x0.8x
Sat, 16 Sep 2023UK£198.0bUK£222.3bUK£6.1b12.6x32.4x0.9x
Mon, 14 Aug 2023UK£198.8bUK£217.7bUK£6.1b12.2x32.7x0.9x
Price to Earnings Ratio

32.7x


Total Market Cap: UK£198.8bTotal Earnings: UK£6.1bTotal Revenue: UK£217.7bTotal 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 26.6x 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 2.8% 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 Market0.33%
Consumer Discretionary0.42%
General Merchandise and Department Stores2.88%
Consumer Durables2.60%
Luxury1.75%
Auto Components1.04%
Specialty Stores0.63%
Hospitality0.15%
Online Retail and Ecommerce0%0
Retail Distributors-1.07%
Leisure-4.14%
Auto-4.47%
Consumer Services-5.53%
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 58.5%, which is higher than its past year's earnings decline of 24.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 59% 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 GroupUS$32.401.4%
+US$782.1m		-8.6%PE27.3x
NXT NEXTUK£157.153.1%
+UK£542.2m		33.3%PE20.2x
BTRW Barratt RedrowUK£3.208.4%
+UK£344.8m		-15.1%PE20.7x
KGF KingfisherUK£3.255.0%
+UK£253.4m		18.0%PE21.8x
PSN PersimmonUK£11.564.0%
+UK£142.9m		1.1%PE13x

Latest News

GRG
UK£19.25
Greggs
7D
-5.3%
1Y
18.7%
Narrative Update • Aug 05

GRG: Refined Expectations And Cost Efficiency Constraints Will Shape Balanced Forward Returns

Analysts have lifted their fair value estimate for Greggs to about £17.77 per share from roughly £17.01, citing updated price targets that balance higher Street forecasts, including a new £2,210 target alongside a £1,960 target, with views that future cost savings may be less accessible after the recent share price move. Analyst Commentary Recent research on Greggs shows a split in opinion on how much upside is left in the share price following the recent rally.
NXT
UK£157.15
NEXT
7D
3.1%
1Y
33.3%
Narrative Update • Aug 05

NXT: Upgraded Rating And FY26 Guidance Will Shape Future Cash Returns

Analysts have raised their fair value estimate for Next to £152.01 from £147.00, reflecting updated assumptions on revenue growth, profitability and future P/E multiples following a recent upgrade to Buy with a £140.00 price target from Investec. What’s in the News for NEXT NEXT issued revised earnings guidance for the full year 2026/27, with expected full price sales of £6.0b, compared with £5.9b, according to the company’s guidance update.
IHG
US$158.75
InterContinental Hotels Group
7D
-1.4%
1Y
28.9%
CPG
US$32.40
Compass Group
7D
1.4%
1Y
-8.6%
PSON
UK£12.29
Pearson
7D
-4.9%
1Y
13.2%
BTRW
UK£3.20
Barratt Redrow
7D
8.4%
1Y
-15.1%
Narrative Update • Aug 04

BTRW: Capital Returns And Balance Sheet Strength Will Underpin Future Upside

Barratt Redrow's analyst price targets have edged lower, with a modest reduction in fair value from £4.38 to £4.10 as analysts factor in slightly lower profit margin assumptions and trim targets across the sector, while largely maintaining constructive ratings on the stock. Analyst Commentary Recent research on Barratt Redrow points to a more cautious set of price targets, but with several Bullish analysts still seeing appeal in the stock at current valuation levels.
INCH
UK£8.27
Inchcape
7D
-3.3%
1Y
27.2%
Analysis Article • Aug 04

There May Be Some Bright Spots In Inchcape's (LON:INCH) Earnings

Soft earnings didn't appear to concern Inchcape plc's ( LON:INCH ) shareholders over the last week. We did some...
BWY
UK£20.98
Bellway
7D
4.1%
1Y
-14.8%
CURY
UK£1.61
Currys
7D
-4.3%
1Y
42.5%
COA
UK£0.85
Coats Group
7D
5.6%
1Y
17.9%
GAW
UK£189.40
Games Workshop Group
7D
-2.5%
1Y
19.7%
ENT
UK£5.37
Entain
7D
-2.4%
1Y
-46.1%
PTEC
UK£3.63
Playtech
7D
-6.3%
1Y
-16.7%
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.
PSN
UK£11.56
Persimmon
7D
4.0%
1Y
1.1%
Narrative Update • Jul 08

PSN: Biggleswade Site And 2026 Completions Should Support Premium Earnings Multiple

Persimmon's analyst price target has been trimmed, with recent moves from banks such as Berenberg, Citi, JPMorgan and Morgan Stanley collectively pointing to a reset in fair value to about £16.94 from £18.00. This reflects analysts moderating revenue growth and valuation multiples while allowing for slightly stronger profit margins.
KGF
UK£3.25
Kingfisher
7D
5.0%
1Y
18.0%
Narrative Update • Jul 07

KGF: Execution And Leadership Uncertainty Will Pressure Future Share Returns

Kingfisher's analyst price target has been trimmed by £0.10. This reflects modestly lower fair value assumptions and revenue growth expectations, partly balanced by slightly firmer profit margin and P/E inputs cited by recent analysts.
BME
UK£2.34
B&M European Value Retail
7D
4.0%
1Y
5.4%
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.