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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedFeb 26, 2026
DataAggregated Company Financials
Companies116
  • 7D0.4%
  • 3M-1.7%
  • 1Y-3.8%
  • YTD-0.9%

Over the last 7 days, the Consumer Discretionary industry has risen 1.3%, driven by gains from Compass Group of 2.1%. However, the industry is down 3.7% over the past year. As for the next few years, earnings are expected to grow by 17% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 26 Feb 2026UK£149.7bUK£181.6bUK£5.4b14.2x27.9x0.8x
Sat, 24 Jan 2026UK£149.9bUK£185.3bUK£5.2b14.1x28.9x0.8x
Mon, 22 Dec 2025UK£153.5bUK£185.9bUK£5.2b15x29.6x0.8x
Wed, 19 Nov 2025UK£149.7bUK£184.8bUK£4.9b15.8x30.5x0.8x
Fri, 17 Oct 2025UK£154.9bUK£182.9bUK£5.0b16.3x31.1x0.8x
Sun, 14 Sep 2025UK£154.6bUK£182.2bUK£4.8b14.9x32.2x0.8x
Tue, 12 Aug 2025UK£156.8bUK£183.7bUK£4.7b15.9x33.1x0.9x
Thu, 10 Jul 2025UK£160.7bUK£184.1bUK£4.9b16.1x32.8x0.9x
Sat, 07 Jun 2025UK£162.1bUK£183.7bUK£4.9b16.9x33.2x0.9x
Mon, 05 May 2025UK£160.0bUK£182.4bUK£4.8b16.2x33.1x0.9x
Wed, 02 Apr 2025UK£151.5bUK£186.7bUK£4.9b16.7x31x0.8x
Fri, 28 Feb 2025UK£160.2bUK£189.7bUK£5.2b14.7x30.8x0.8x
Sun, 26 Jan 2025UK£160.9bUK£190.7bUK£5.4b15.5x29.6x0.8x
Tue, 24 Dec 2024UK£163.7bUK£190.5bUK£5.4b15.9x30.3x0.9x
Thu, 21 Nov 2024UK£162.1bUK£189.8bUK£5.6b16.4x28.7x0.9x
Sat, 19 Oct 2024UK£172.3bUK£189.3bUK£5.9b17.5x29.2x0.9x
Mon, 16 Sep 2024UK£173.0bUK£189.1bUK£6.3b16.1x27.4x0.9x
Wed, 14 Aug 2024UK£166.6bUK£191.8bUK£6.6b16x25.4x0.9x
Fri, 12 Jul 2024UK£162.4bUK£191.6bUK£6.3b16.2x25.7x0.8x
Sun, 09 Jun 2024UK£191.7bUK£202.8bUK£5.5b15.7x35.2x0.9x
Tue, 07 May 2024UK£190.6bUK£200.7bUK£5.3b16.4x36.2x0.9x
Thu, 04 Apr 2024UK£191.8bUK£205.0bUK£5.0b15.2x38x0.9x
Sat, 02 Mar 2024UK£193.0bUK£203.7bUK£6.1b15.3x31.4x0.9x
Mon, 29 Jan 2024UK£198.8bUK£223.5bUK£6.6b14.2x30.3x0.9x
Wed, 27 Dec 2023UK£200.2bUK£224.0bUK£6.6b14.1x30.2x0.9x
Fri, 24 Nov 2023UK£189.3bUK£225.1bUK£6.1b12.2x31.2x0.8x
Sun, 22 Oct 2023UK£179.0bUK£223.7bUK£6.0b11.9x29.9x0.8x
Tue, 19 Sep 2023UK£195.8bUK£222.4bUK£5.9b12.4x32.9x0.9x
Thu, 17 Aug 2023UK£196.1bUK£217.6bUK£6.1b12.5x32.2x0.9x
Sat, 15 Jul 2023UK£199.3bUK£214.1bUK£6.3b12.8x31.9x0.9x
Mon, 12 Jun 2023UK£199.7bUK£214.3bUK£6.2b13.6x32x0.9x
Wed, 10 May 2023UK£205.8bUK£207.9bUK£6.6b12.6x31.1x1x
Fri, 07 Apr 2023UK£195.0bUK£208.1bUK£7.1b12x27.6x0.9x
Sun, 05 Mar 2023UK£199.8bUK£209.7bUK£8.3b12.7x24.2x1x
Price to Earnings Ratio

24.2x


Total Market Cap: UK£199.8bTotal Earnings: UK£8.3bTotal Revenue: UK£209.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.7x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Consumer Discretionary industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio 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 14% per year over the last three years,
  • Revenues have also declined 4.6% 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 Market1.13%
Consumer Discretionary0.35%
Leisure2.36%
General Merchandise and Department Stores1.99%
Auto Components1.78%
Luxury1.43%
Hospitality0.66%
Specialty Stores0.58%
Consumer Services0.53%
Online Retail and Ecommerce0%0
Retail Distributors-0.049%
Consumer Durables-2.05%
Auto-7.38%
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 44.3%, 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
CPG Compass GroupUK£22.252.1%
+UK£765.1m		-19.9%PE27.4x
NXT NEXTUK£132.902.1%
+UK£312.5m		32.1%PE19.4x
GAW Games Workshop GroupUK£174.302.4%
+UK£135.5m		20.8%PE27.9x
PSON PearsonUK£9.462.0%
+UK£108.4m		-28.1%PE13.5x
DEBS boohoo groupUK£0.2116.7%
+UK£88.3m		-23.0%PS0.5x

Latest News

TW.
UK£1.13
Taylor Wimpey
7D
-2.2%
1Y
-1.1%
MEGP
UK£1.25
ME Group International
7D
-13.8%
1Y
-43.3%
COA
UK£0.93
Coats Group
7D
5.1%
1Y
5.9%

COA: Higher Required Return Will Support Attractive Future Earnings Multiple

Analysts have trimmed their price target on Coats Group to reflect a fair value adjustment from £1.19 to £1.16, citing updated assumptions around discount rates, revenue growth, profit margins and a lower future P/E multiple. Valuation Changes Fair Value: trimmed slightly from £1.19 to £1.16.
PSON
UK£9.46
Pearson
7D
2.0%
1Y
-28.1%

PSON: AI Partnerships And Recent Buy Rating Will Support Future Upside

Analysts have fine tuned their Pearson views, with recent Street research showing price targets adjusted around £14.20 and £13.00 as they factor in updated P/E assumptions and reassess how artificial intelligence risks are reflected in the share price. Analyst Commentary Bullish Takeaways Bullish analysts are comfortable maintaining an Overweight stance, even as JPMorgan trims its price target to £14.20 from £14.40, which still implies room for upside based on their current assumptions.
WTB
UK£26.09
Whitbread
7D
-5.4%
1Y
-3.6%

WTB: Future Share Retirements Will Support Earnings Power And P E Multiple

Analysts have nudged their fair value estimate for Whitbread down from about £40.50 to roughly £37.98 per share. This reflects mixed recent price target moves around £2,600 and updated assumptions for growth, margins and future P/E multiples.
DEBS
UK£0.21
boohoo group
7D
16.7%
1Y
-23.0%

DEBS: Equity Raise And Asset Lite Shift Will Support Bullish Outlook

Analysts have adjusted their fair value estimate for boohoo group, maintaining it at £0.24, reflecting updated assumptions for revenue growth, profit margins and a lower future P/E multiple. What's in the News boohoo group plc has completed a follow on equity offering of £40 million, issuing 160,277,779 and 61,944,443 ordinary shares at £0.18 per share under Regulation S with a subsequent direct listing (Key Developments).
CPG
UK£22.25
Compass Group
7D
2.1%
1Y
-19.9%

CPG: Premium P/E Framework Will Reward Execution On Revenue Mix And Margins

Analysts have trimmed their price target on Compass Group by £1.00, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E following recent research such as the latest target change from RBC Capital. Analyst Commentary Bullish Takeaways Bullish analysts view the £1.00 trim to the price target as a fine tuning of valuation inputs rather than a fundamental reset of the Compass Group equity story.
BWY
UK£27.94
Bellway
7D
-2.1%
1Y
20.6%

BWY: Dividend Policy And Margin Outlook Will Support Future Returns

Analysts have nudged their Bellway price target slightly higher to £31.86 from £31.78, reflecting small adjustments to fair value assumptions, the discount rate, revenue growth, profit margin and expected future P/E. What's in the News Shareholders approved new Articles of Association at the AGM held on 27 November 2025, updating Bellway's corporate bylaws (AGM filing).
NXT
UK£132.90
NEXT
7D
2.1%
1Y
32.1%

NXT: Future Cash Returns Will Rely On Elevated Earnings Guidance Execution

Analysts have nudged their average price target for NEXT higher to £18,000, up from £17,800, citing refreshed research that supports their existing positive stance on the shares. Analyst Commentary Bullish Takeaways Bullish analysts see the higher £18,000 price target as a signal that the current share price still leaves room for upside on their models, even after recent strength in the name.
PTEC
UK£3.56
Playtech
7D
4.9%
1Y
-51.6%

PTEC: Core B2B Strength Will Support Higher Fair Value Anchors

Analysts have nudged their fair value estimate for Playtech higher to £4.49, reflecting a slightly lower discount rate and small adjustments to revenue growth, profit margin and future P/E assumptions, in line with a modest price target increase recently cited in Street research. Analyst Commentary Bullish Takeaways Bullish analysts point to the recent price target lift of 5 GBp as support for a slightly higher fair value, which lines up with the updated £4.49 estimate.
PSN
UK£15.22
Persimmon
7D
-1.4%
1Y
29.5%

PSN: Mixed Rating Shifts And Modest Assumption Tweaks Will Shape Share Price Resilience

Analysts have nudged their fair value estimate for Persimmon slightly higher to £16.26, reflecting small adjustments to assumptions on discount rate, revenue growth and future P/E. The revised estimate also factors in recent Street research, including a modest price target increase from Citi and a downgrade from Deutsche Bank.
IHG
US$139.35
InterContinental Hotels Group
7D
-3.9%
1Y
11.7%
KGF
UK£3.65
Kingfisher
7D
1.2%
1Y
43.8%

KGF: Small Discount Rate Shift Will Sustain Bearish Fair Value View

Analysts have nudged their Kingfisher price target slightly higher to £3.11 from £3.09, citing updated assumptions for the discount rate, revenue growth, profit margin and future P/E that leave their fair value view broadly unchanged overall. Valuation Changes Fair Value: The price target fair value has edged up slightly to £3.11 from £3.09, reflecting small tweaks to the model rather than a major shift in view.
BTRW
UK£3.69
Barratt Redrow
7D
-4.3%
1Y
-12.7%

BTRW: Dividend Resilience And Rebased Expectations Will Support Future Upside Potential

The analyst price target for Barratt Redrow has been reduced to £4.71 from £4.88, as analysts factor in updated assumptions on discount rate, revenue growth, profit margin and future P/E in light of recent price target cuts from £4.70 to £4.30 and from £4.55 to £4.30. Analyst Commentary Recent research updates point to a more cautious stance on Barratt Redrow, with price targets being reset closer to £4.30 and ratings trimmed as analysts reassess the risk and reward trade off.
ENT
UK£5.70
Entain
7D
-3.2%
1Y
-23.1%

ENT: Recent Tax Shift And Share Pullback Will Create Opportunity

We trim our Entain fair value estimate from £12.60 to £12.00, reflecting a higher discount rate, slightly lower revenue growth assumptions, and Street research in which several firms have reduced price targets and, in one case, downgraded the rating while still seeing potential value after the recent share price weakness. Analyst Commentary Street research on Entain has been mixed, but there are several clear pockets of optimism that help frame how some investors are thinking about the shares after the recent pullback and tax headlines.
GAW
UK£174.30
Games Workshop Group
7D
2.4%
1Y
20.8%