U.K. (FTSE) Financials Sector Analysis

Sector Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Mon, 03 Aug 2026	UK£793.5b	UK£330.7b	UK£61.8b	11.3x	12.8x	2.4x
Wed, 01 Jul 2026	UK£748.6b	UK£314.1b	UK£60.6b	11.4x	12.4x	2.4x
Fri, 29 May 2026	UK£720.4b	UK£312.4b	UK£60.0b	11.9x	12x	2.3x
Sun, 26 Apr 2026	UK£709.3b	UK£310.5b	UK£61.4b	12.1x	11.5x	2.3x
Tue, 24 Mar 2026	UK£651.1b	UK£312.4b	UK£61.4b	11.5x	10.6x	2.1x
Thu, 19 Feb 2026	UK£721.5b	UK£270.8b	UK£55.8b	12.9x	12.9x	2.7x
Sat, 17 Jan 2026	UK£717.9b	UK£269.2b	UK£54.5b	13.4x	13.2x	2.7x
Mon, 15 Dec 2025	UK£661.5b	UK£269.3b	UK£54.4b	12.2x	12.2x	2.5x
Wed, 12 Nov 2025	UK£676.5b	UK£268.6b	UK£53.8b	12.8x	12.6x	2.5x
Fri, 10 Oct 2025	UK£637.7b	UK£264.9b	UK£54.5b	12.5x	11.7x	2.4x
Sun, 07 Sep 2025	UK£613.8b	UK£267.6b	UK£53.7b	11.9x	11.4x	2.3x
Tue, 05 Aug 2025	UK£618.1b	UK£265.6b	UK£52.4b	12.7x	11.8x	2.3x
Thu, 03 Jul 2025	UK£587.2b	UK£271.7b	UK£51.7b	12x	11.4x	2.2x
Sat, 31 May 2025	UK£594.6b	UK£277.3b	UK£50.9b	11.9x	11.7x	2.1x
Mon, 28 Apr 2025	UK£568.3b	UK£279.3b	UK£52.1b	10.5x	10.9x	2x
Wed, 26 Mar 2025	UK£583.0b	UK£280.6b	UK£52.1b	10.5x	11.2x	2.1x
Fri, 21 Feb 2025	UK£594.7b	UK£301.1b	UK£55.0b	10.6x	10.8x	2x
Sun, 19 Jan 2025	UK£565.0b	UK£300.4b	UK£54.5b	10.5x	10.4x	1.9x
Tue, 17 Dec 2024	UK£543.4b	UK£296.7b	UK£53.3b	11.3x	10.2x	1.8x
Thu, 14 Nov 2024	UK£511.9b	UK£296.4b	UK£53.2b	10.8x	9.6x	1.7x
Sat, 12 Oct 2024	UK£470.5b	UK£269.4b	UK£46.9b	11.6x	10x	1.7x
Mon, 09 Sep 2024	UK£460.4b	UK£265.7b	UK£47.3b	11.3x	9.7x	1.7x
Wed, 07 Aug 2024	UK£433.9b	UK£251.8b	UK£47.6b	11.4x	9.1x	1.7x
Fri, 05 Jul 2024	UK£455.7b	UK£241.0b	UK£47.1b	11.7x	9.7x	1.9x
Sun, 02 Jun 2024	UK£457.2b	UK£241.0b	UK£47.3b	13x	9.7x	1.9x
Tue, 30 Apr 2024	UK£441.8b	UK£242.1b	UK£48.3b	12.2x	9.2x	1.8x
Thu, 28 Mar 2024	UK£461.8b	UK£264.0b	UK£53.2b	12.5x	8.7x	1.7x
Sat, 24 Feb 2024	UK£410.6b	UK£197.6b	UK£49.6b	12x	8.3x	2.1x
Mon, 22 Jan 2024	UK£384.6b	UK£188.2b	UK£51.5b	12.8x	7.5x	2x
Wed, 20 Dec 2023	UK£400.2b	UK£187.8b	UK£51.3b	12.8x	7.8x	2.1x
Fri, 17 Nov 2023	UK£382.9b	UK£188.9b	UK£52.0b	11.8x	7.4x	2x
Sun, 15 Oct 2023	UK£391.5b	UK£183.3b	UK£48.5b	12x	8.1x	2.1x
Tue, 12 Sep 2023	UK£380.9b	UK£180.8b	UK£47.8b	13.2x	8x	2.1x
Thu, 10 Aug 2023	UK£391.5b	UK£178.5b	UK£47.3b	12.5x	8.3x	2.2x

Current Industry PE

Investors are optimistic on the British Financials industry, and appear confident in long term growth rates.

The industry is trading at a PE ratio of 12.8x which is higher than its 3-year average PE of 10.3x.

The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.4x.

Past Earnings Growth

The earnings for companies in the Financials industry have grown 9.4% per year over the last three years.
Revenues for these companies have grown 23% per year.
This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.K. Financials sector?


GB Market	0.74%
Financials	0.29%
Insurance	1.45%
Banks	0.81%
Diversified Financial	0.41%
Mortgage Finance	0%	0
Capital Markets	-2.06%
Consumer Finance	-5.56%

Industry PE

Investors are most optimistic about the Insurance industry, which is trading close to its 3-year average PE ratio of 16.5x.

Analysts are expecting annual earnings growth of 9.7%, which is lower than the prior year's growth of 21.2% per year.

Investors are most pessimistic about the Consumer Finance industry, which is trading below its 3-year average of 23.2x.

Forecasted Growth

Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 18% over the next 5 years.
This is better than its past earnings growth rate of 1.8% per year.

In contrast, the Insurance industry is expected to see its earnings grow by 9.7% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company	Last Price	7D	1Y	Valuation
HSBA HSBC Holdings	UK£15.76	1.5% +UK£4.0b	71.7%	PB1.9x
NWG NatWest Group	UK£7.06	4.4% +UK£2.4b	38.0%	PB1.3x
STAN Standard Chartered	UK£21.88	2.4% +UK£1.1b	61.5%	PB1.2x
III 3i Group	UK£28.64	3.8% +UK£1.0b	-30.7%	PE5.4x
LLOY Lloyds Banking Group	UK£1.15	1.1% +UK£814.2m	51.4%	PB1.4x

IG Group Holdings plc (LSE:IGG) agreed to acquire Underdog Sports Holdings, Inc. from Jeremy Levine and Brandon Stakenborg and others for $1.3 billion.

IG Group Holdings plc (LSE:IGG) agreed to acquire Underdog Sports Holdings, Inc. from Jeremy Levine and Brandon Stakenborg and others for $1.3 billion on July 30, 2026. Under the terms of the acquisition, the upfront equity value payable on completion will be settled by: (i) issuing approximately 24.1 million new IG ordinary shares; and (ii) a payment in cash of approximately $380 million, subject to adjustments based on cash, debt and working capital. In addition, IG will repay Underdog's existing debt at completion, expected to be $162 million. Furthermore, Underdog will receive an earnout payment of approximately $200 million, subject to 2026 net gaming revenue3 targets and conditional on achievement of positive 2026 EBITDA for Underdog. The payment of the cash consideration payable will be funded using the bridge facility commitment of up to $950 million with Barclays Bank PLC and Goldman Sachs International. FoThe transaction reflects TEV/Revenue multiple of 2.4x. For the period ending June 30, 2026, Underdog Sports Holdings, Inc. reported total revenue of $466 million. As of June 30, 2026, Underdog Sports Holdings, Inc. reported total assets of $177.8 million and net liabilities of $104.8 million. Following the transaction, Underdog will operate as a commercially standalone business, with its own brand, management team and operational platform. The transaction is subject to relevant regulatory approvals and the expiration of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in the United States, consummation of due diligence investigation and definitive agreement. The IG Group Board unanimously supports the transaction which it believes to be in the best interests of IG shareholders. The expected completion of the transaction is in late 2026 or early 2027. The acquisition is expected to be broadly neutral to adjusted EPS in year one, double-digit per cent accretive by year three. John Salter and Garrett Gomes of The Raine Group, Arif Vohra, Neal West, and Will Stroud of Barclays Bank PLC, and Bertie Whitehead, Ronan Breen, and Tom Macdonald of Goldman Sachs International acted s financial advisors and corporate brokers to IG Group Holdings plc.

U.K. (FTSE) Financials Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

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