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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedFeb 14, 2026
DataAggregated Company Financials
Companies116
  • 7D0.3%
  • 3M-2.9%
  • 1Y-8.7%
  • YTD-3.5%

Over the last 7 days, the Consumer Discretionary industry has remained flat, although notably Compass Group declined by 3.2%. As for the longer term, the industry has declined 8.9% in the last year. 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
Sat, 14 Feb 2026UK£145.9bUK£181.4bUK£5.4b14.2x27.2x0.8x
Mon, 12 Jan 2026UK£155.5bUK£185.8bUK£5.2b15.3x29.9x0.8x
Wed, 10 Dec 2025UK£150.0bUK£186.2bUK£5.2b15.3x28.6x0.8x
Fri, 07 Nov 2025UK£153.2bUK£184.7bUK£4.9b15.3x31.1x0.8x
Sun, 05 Oct 2025UK£156.7bUK£182.5bUK£5.0b15.4x31.4x0.9x
Tue, 02 Sep 2025UK£154.4bUK£182.4bUK£4.9b15.6x31.7x0.8x
Thu, 31 Jul 2025UK£161.1bUK£184.3bUK£4.8b15.9x33.2x0.9x
Sat, 28 Jun 2025UK£163.2bUK£183.5bUK£4.8b16.9x33.8x0.9x
Mon, 26 May 2025UK£164.2bUK£183.7bUK£4.9b17.3x33.4x0.9x
Wed, 23 Apr 2025UK£153.7bUK£182.8bUK£4.8b15.5x32.1x0.8x
Fri, 21 Mar 2025UK£151.2bUK£186.9bUK£5.4b15.2x27.8x0.8x
Sun, 16 Feb 2025UK£165.6bUK£189.9bUK£5.4b15.5x30.9x0.9x
Tue, 14 Jan 2025UK£156.8bUK£190.8bUK£5.4b15.4x28.9x0.8x
Thu, 12 Dec 2024UK£169.7bUK£189.9bUK£5.3b16.2x31.8x0.9x
Sat, 09 Nov 2024UK£166.4bUK£189.4bUK£5.9b16.3x28x0.9x
Mon, 07 Oct 2024UK£170.6bUK£189.6bUK£6.1b17.5x28.2x0.9x
Wed, 04 Sep 2024UK£170.7bUK£189.0bUK£6.4b16.3x26.8x0.9x
Fri, 02 Aug 2024UK£170.8bUK£191.9bUK£6.1b16.5x28x0.9x
Sun, 30 Jun 2024UK£157.9bUK£192.3bUK£6.3b15.9x24.9x0.8x
Tue, 28 May 2024UK£194.2bUK£202.5bUK£5.1b15.7x38.2x1x
Thu, 25 Apr 2024UK£188.0bUK£204.6bUK£5.3b15.6x35.4x0.9x
Sat, 23 Mar 2024UK£194.4bUK£205.0bUK£5.9b15.1x32.9x0.9x
Mon, 19 Feb 2024UK£193.6bUK£204.1bUK£6.3b14.9x30.7x0.9x
Wed, 17 Jan 2024UK£193.9bUK£224.0bUK£6.6b13.9x29.2x0.9x
Fri, 15 Dec 2023UK£197.2bUK£224.3bUK£6.1b14.4x32.3x0.9x
Sun, 12 Nov 2023UK£184.7bUK£223.9bUK£6.1b12.3x30.2x0.8x
Tue, 10 Oct 2023UK£184.3bUK£223.6bUK£5.8b11.8x31.8x0.8x
Thu, 07 Sep 2023UK£192.6bUK£222.0bUK£6.0b12.5x31.9x0.9x
Sat, 05 Aug 2023UK£201.7bUK£216.2bUK£6.5b12.1x31x0.9x
Mon, 03 Jul 2023UK£200.0bUK£214.6bUK£6.2b12.6x32.5x0.9x
Wed, 31 May 2023UK£200.9bUK£214.1bUK£6.3b13.3x31.8x0.9x
Fri, 28 Apr 2023UK£205.3bUK£207.9bUK£6.6b12.5x31x1x
Sun, 26 Mar 2023UK£190.0bUK£207.7bUK£7.0b11.7x27x0.9x
Tue, 21 Feb 2023UK£201.3bUK£207.1bUK£8.2b12.7x24.6x1x
Price to Earnings Ratio

24.6x


Total Market Cap: UK£201.3bTotal 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 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 27.2x which is lower than its 3-year average PE 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 Market0.93%
Consumer Discretionary0.32%
Consumer Durables5.88%
Auto4.71%
Consumer Services2.58%
Luxury2.04%
Specialty Stores0.90%
Retail Distributors0.86%
Online Retail and Ecommerce0%0
General Merchandise and Department Stores-0.87%
Hospitality-2.33%
Auto Components-2.91%
Leisure-3.05%
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 44.6%, 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
IHG InterContinental Hotels GroupUS$146.402.8%
+US$602.9m		10.4%PE29.4x
PSN PersimmonUK£15.207.5%
+UK£341.4m		22.1%PE19x
BWY BellwayUK£28.6810.8%
+UK£326.9m		17.6%PE21.3x
TW. Taylor WimpeyUK£1.178.4%
+UK£318.8m		-0.3%PE48.7x
BKG Berkeley Group HoldingsUK£44.346.2%
+UK£241.4m		17.9%PE11.5x

Latest News

VTY
UK£7.29
Vistry Group
7D
9.3%
1Y
16.4%

Investors Holding Back On Vistry Group PLC (LON:VTY)

Feb 14
Investors Holding Back On Vistry Group PLC (LON:VTY)
TRN
UK£1.96
Trainline
7D
-5.1%
1Y
-44.9%

These 4 Measures Indicate That Trainline (LON:TRN) Is Using Debt Safely

Feb 14
These 4 Measures Indicate That Trainline (LON:TRN) Is Using Debt Safely
GAW
UK£164.90
Games Workshop Group
7D
-3.1%
1Y
13.2%
IHG
US$146.40
InterContinental Hotels Group
7D
2.8%
1Y
10.4%

IHG: Future Returns Will Rely On Buybacks And Conviction List Support

Analysts have trimmed their price target for InterContinental Hotels Group to $145.63 from $148.86, reflecting slightly higher discount rate assumptions, modestly adjusted revenue expectations, and a lower future P/E multiple. The move still points to recent bullish research that includes an addition to a European conviction list and a fresh upgrade from the Street.
BKG
UK£44.34
Berkeley Group Holdings
7D
6.2%
1Y
17.9%

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£9.20
Pearson
7D
2.4%
1Y
-31.5%

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.
BWY
UK£28.68
Bellway
7D
10.8%
1Y
17.6%

BWY: Higher P/E Assumptions And Dividend Policy Will Support Future Returns

Analysts have nudged their fair value estimate for Bellway slightly lower to £31.78 from £31.88, citing small adjustments to the discount rate, revenue growth assumptions, profit margin outlook, and future P/E expectations. What's in the News Shareholders approved the adoption of new Articles of Association at the AGM held on 27 November 2025, updating Bellway's company bylaws and governance framework (AGM, 27 November 2025).
CPG
UK£20.58
Compass Group
7D
-3.2%
1Y
-27.4%

CPG: Premium P/E And Dividend Framework Will Support Long Runway

Narrative Update The updated analyst price target for Compass Group shifts modestly to £28.19 from £28.33, as analysts balance mixed recent price target moves with slight adjustments to growth, margin, and P/E assumptions in their models. Analyst Commentary Recent research updates on Compass Group give you a mixed but useful read on how the Street is thinking about the shares, with one increase and one reduction in price targets feeding into the modest change in the overall average target.
TW.
UK£1.17
Taylor Wimpey
7D
8.4%
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£127.35
NEXT
7D
-1.3%
1Y
27.3%

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.
PSN
UK£15.20
Persimmon
7D
7.5%
1Y
22.1%

PSN: Higher Future P/E Assumptions Will Support Share Price Resilience

Narrative Update on Persimmon Analysts have nudged their fair value estimate for Persimmon higher to £16.23 from £16.14, citing refreshed assumptions on discount rates, revenue growth, profit margins and future P/E that collectively support a slightly richer price target despite a recent downgrade and only a modest target increase of 2 GBp from Citi. Analyst Commentary Recent commentary on Persimmon has been mixed, with one downgrade offset by a small target lift.
GRG
UK£15.62
Greggs
7D
-7.0%
1Y
-26.9%

GRG: Store Expansion And Brand Loyalty Will Support Future Upside Despite Trimmed Assumptions

Analysts have trimmed their price targets for Greggs to around £20.60 to £21.70 per share, reflecting updated assumptions on discount rates, revenue, profit margins and future P/E multiples while still viewing the shares positively overall. Analyst Commentary Recent research updates show that while target prices have been trimmed, several bullish analysts still see room for upside in Greggs shares at current levels.
FRAS
UK£7.00
Frasers Group
7D
-1.5%
1Y
12.7%
KGF
UK£3.63
Kingfisher
7D
4.5%
1Y
42.3%

KGF: Higher Earnings Multiple Will Magnify Risks From Softer Profit Margins

Analysts have revised their Kingfisher price targets, reflecting slightly different assumptions for the discount rate, modestly adjusted expectations for revenue growth and profit margins, and an updated future P/E multiple now estimated at about 13.63x. Valuation Changes Fair Value: Modelled fair value remains unchanged at 2.4, indicating no adjustment to the core valuation output.
JD.
UK£0.79
JD Sports Fashion
7D
-3.0%
1Y
-8.4%

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.
ENT
UK£5.67
Entain
7D
-7.2%
1Y
-23.8%

ENT: Future Upside Will Depend On UK Gaming Tax Headwinds Easing

Analysts have reduced their fair value estimate for Entain from £8.59 to £8.00. This change reflects lower price targets across several firms and a slightly higher discount rate as they factor in UK gaming tax changes and more measured expectations for growth and margins.