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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedApr 12, 2026
DataAggregated Company Financials
Companies114
  • 7D1.2%
  • 3M-12.1%
  • 1Y-7.5%
  • YTD-10.2%

The Consumer Discretionary industry is up 1.2% in the last week, with InterContinental Hotels Group up 4.6%. During this same period, the Compass Group underperformed, falling 5.5%. However, the industry is down 7.5% over the past year. Earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Fri, 28 Jul 2023UK£202.6bUK£214.2bUK£6.4b12.8x31.8x0.9x
Sun, 25 Jun 2023UK£196.7bUK£214.6bUK£6.2b13.1x31.9x0.9x
Tue, 23 May 2023UK£209.2bUK£213.5bUK£6.3b13.4x33.1x1x
Thu, 20 Apr 2023UK£202.1bUK£208.1bUK£6.7b12.9x30.2x1x
Price to Earnings Ratio

30.2x


Total Market Cap: UK£202.1bTotal Earnings: UK£6.7bTotal Revenue: UK£208.1bTotal 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 24.5x 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 0.87x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have declined 5.1% per year over the last three years,
  • Revenues have also declined 2.1% 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 Market1.87%
Consumer Discretionary1.18%
Auto9.58%
Leisure7.70%
Specialty Stores6.37%
Auto Components5.80%
Luxury5.22%
Consumer Durables3.80%
General Merchandise and Department Stores2.84%
Retail Distributors2.33%
Online Retail and Ecommerce0%0
Consumer Services-0.69%
Hospitality-3.13%
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 24.1%, which is higher than its past year's earnings decline of 8.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 70% 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$140.454.6%
+US$923.0m		39.6%PE27.7x
NXT NEXTUK£134.203.6%
+UK£538.9m		16.1%PE17.3x
GAW Games Workshop GroupUK£190.157.7%
+UK£451.1m		38.2%PE30.4x
KGF KingfisherUK£3.088.9%
+UK£424.3m		23.5%PE21.1x
BKG Berkeley Group HoldingsUK£34.488.8%
+UK£256.7m		-7.4%PE8.9x

Latest News

BME
UK£1.75
B&M European Value Retail
7D
-5.2%
1Y
-39.0%
EVOK
UK£0.30
Evoke
7D
-2.8%
1Y
-35.5%

EVOK: Future Upside Will Depend On Executing Debt Reduction And Asset Review

Analysts have adjusted their price target on Evoke to £0.34, reflecting a reassessment of fair value, discount rate, and long term assumptions following recent research updates and downgrades on the stock. Analyst Commentary Bullish Takeaways Bullish analysts view the revised £0.34 target as aligned with their assessment of fair value, suggesting the current share price already reflects a cautious set of assumptions.
IHG
US$140.45
InterContinental Hotels Group
7D
4.6%
1Y
39.6%

IHG: Future Returns Will Hinge On AI Delivery And Capital Returns

Analysts have nudged their fair value estimate for InterContinental Hotels Group slightly lower to $146.48 from $146.69 as they update price targets higher, citing expectations for steady mid term earnings, modest RevPAR and unit growth, and growing benefits from AI initiatives, while still flagging a finely balanced risk reward profile. Analyst Commentary Recent research paints a mixed picture for InterContinental Hotels Group, with several firms lifting price targets while keeping ratings broadly neutral to cautious.
CPG
US$27.57
Compass Group
7D
-5.5%
1Y
-15.3%

CPG: Premium P/E And Margins Will Support Upside After Mixed Rating Moves

Analysts have lifted their price target on Compass Group from about $28.62 to roughly $38.60, citing updated fair value assumptions, a slightly higher discount rate, and modest tweaks to revenue growth, profit margin, and future P/E expectations following recent research moves, including an upgrade and a separate target cut. Analyst Commentary Recent research points to a mixed but constructive view on Compass Group, with one upgrade and a separate price target cut feeding into the latest fair value work.
JD.
UK£0.75
JD Sports Fashion
7D
6.6%
1Y
4.2%

Is Now The Time To Put JD Sports Fashion (LON:JD.) On Your Watchlist?

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BKG
UK£34.48
Berkeley Group Holdings
7D
8.8%
1Y
-7.4%

BKG: Higher Future P/E And Recent Upgrades Will Shape Returns

Analysts have trimmed their average fair value estimate for Berkeley Group Holdings from about £43.00 to about £39.30, citing updated assumptions around discount rates, revenue growth, profit margins, and a higher future P/E multiple after a mix of recent target cuts and upgrades across the Street. Analyst Commentary Recent Street research around Berkeley Group Holdings reflects a mix of fresh target cuts and upgrades, with several major houses adjusting both ratings and price targets in quick succession.
GAW
UK£190.15
Games Workshop Group
7D
7.7%
1Y
38.2%
PSON
UK£9.97
Pearson
7D
-1.2%
1Y
-14.0%

PSON: AI Partnerships And Buybacks Will Support Future Cash Flow Resilience

Analysts have trimmed Pearson's average price target, with recent cuts to about £13.90 and £11.20 per share. These changes reflect closer alignment of valuation multiples with media peers and slightly softer outer year revenue assumptions, even as profit forecasts stay broadly intact.
NXT
UK£134.20
NEXT
7D
3.6%
1Y
16.1%

NXT: Future Cash Returns Will Depend On Sustained Margin And Discount Rate Support

Analysts have nudged their price target on NEXT higher to £18,000 from £17,800. This reflects updated views on discount rates, long term margins and P/E assumptions, alongside a modestly revised fair value estimate.
WTB
UK£24.99
Whitbread
7D
4.2%
1Y
0.4%

WTB: Share Buybacks And P E Framework Will Support Future Earnings Power

The analyst price target for Whitbread has been trimmed by £0.06 per share, as analysts factor in a slightly higher discount rate, more cautious assumptions on revenue growth and profit margins, and a higher future P/E multiple following a series of recent price target adjustments and a downgrade across the Street. Analyst Commentary Recent Street research on Whitbread has been mixed, with several price target adjustments and at least one downgrade, but there are still some clear pockets of optimism that matter for valuation and execution expectations.
ENT
UK£5.34
Entain
7D
-7.4%
1Y
-0.5%
BRBY
UK£11.57
Burberry Group
7D
6.1%
1Y
71.2%

BRBY: Royal Heritage Capsule And Reset Expectations Will Support Future Repricing

Burberry Group’s updated analyst price target has edged lower by about £0.17. This reflects a slightly lower fair value estimate alongside modest tweaks to discount rate, revenue growth, profit margin and future P/E assumptions, as analysts weigh recent mixed research moves including a price target cut at Deutsche Bank, an upgrade at Barclays and a target increase at Citi.
ATG
UK£3.33
Auction Technology Group
7D
-1.6%
1Y
-43.3%

ATG: Takeover Interest And Confirmed Guidance Will Support Upside Potential

Analysts have trimmed their price target on Auction Technology Group to £5.14. They link this move to slightly lower assumed discount rates and a modestly reduced future P/E multiple in their models.
KGF
UK£3.08
Kingfisher
7D
8.9%
1Y
23.5%

KGF: Higher Fair Value Views Will Reflect AI Partnership Execution Potential

Analysts have lifted Kingfisher's fair value estimate, reflected in higher price targets, such as the move to £3.30 from £2.95, supported by updated assumptions on discount rate, profit margins and future P/E levels. Analyst Commentary Bullish Takeaways Bullish analysts see the move to a £3.30 price target as consistent with updated assumptions on P/E and margins, suggesting the current share price does not fully reflect their revised fair value work.
VCP
UK£0.38
Victoria
7D
-7.3%
1Y
-53.7%
THW
UK£0.88
Daniel Thwaites
7D
-5.4%
1Y
15.1%