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U.K. (FTSE) Healthcare Sector Analysis

UpdatedApr 03, 2026
DataAggregated Company Financials
Companies81
  • 7D7.8%
  • 3M10.9%
  • 1Y28.6%
  • YTD10.9%

In the last week, the Healthcare industry is up 7.8%, with AstraZeneca up 11%. In the last 12 months, the industry was up 29%. Earnings are forecast to grow by 11% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 03 Apr 2026UK£385.0bUK£102.5bUK£16.2b20.6x23.8x3.8x
Sun, 01 Mar 2026UK£396.6bUK£101.2bUK£16.0b23.5x24.8x3.9x
Tue, 27 Jan 2026UK£351.3bUK£99.2bUK£14.8b24.5x23.7x3.5x
Thu, 25 Dec 2025UK£347.0bUK£100.0bUK£14.9b21.9x23.2x3.5x
Sat, 22 Nov 2025UK£350.0bUK£101.6bUK£15.2b23.8x23x3.4x
Mon, 20 Oct 2025UK£323.5bUK£98.5bUK£12.1b25.5x26.8x3.3x
Wed, 17 Sep 2025UK£300.7bUK£100.2bUK£12.0b29x25.1x3x
Fri, 15 Aug 2025UK£304.4bUK£100.6bUK£12.0b29.3x25.4x3x
Sun, 13 Jul 2025UK£282.8bUK£96.9bUK£10.8b32.2x26.2x2.9x
Tue, 10 Jun 2025UK£295.4bUK£96.8bUK£10.7b29.1x27.6x3.1x
Thu, 08 May 2025UK£285.0bUK£98.0bUK£10.9b29.1x26.2x2.9x
Sat, 05 Apr 2025UK£288.1bUK£98.7bUK£9.7b28.7x29.7x2.9x
Mon, 03 Mar 2025UK£313.1bUK£99.8bUK£9.8b29x32.1x3.1x
Wed, 29 Jan 2025UK£261.3bUK£86.5bUK£7.7b30.4x33.9x3x
Fri, 27 Dec 2024UK£245.8bUK£86.1bUK£7.7b31x32.1x2.9x
Sun, 24 Nov 2024UK£247.0bUK£86.1bUK£7.7b27.8x32.2x2.9x
Tue, 22 Oct 2024UK£276.5bUK£82.9bUK£8.9b26.4x31x3.3x
Thu, 19 Sep 2024UK£280.9bUK£82.0bUK£8.8b31x31.8x3.4x
Sat, 17 Aug 2024UK£299.6bUK£82.8bUK£9.0b33.9x33.4x3.6x
Mon, 15 Jul 2024UK£283.2bUK£80.7bUK£9.3b31.9x30.5x3.5x
Wed, 12 Jun 2024UK£288.3bUK£81.6bUK£9.4b30.6x30.7x3.5x
Fri, 10 May 2024UK£295.2bUK£82.4bUK£9.4b33.7x31.3x3.6x
Sun, 07 Apr 2024UK£263.8bUK£81.1bUK£9.6b32.9x27.5x3.3x
Tue, 05 Mar 2024UK£256.3bUK£80.8bUK£9.6b33.3x26.8x3.2x
Thu, 01 Feb 2024UK£272.7bUK£84.1bUK£10.7b38.7x25.6x3.2x
Sat, 30 Dec 2023UK£270.1bUK£83.9bUK£10.6b40.4x25.4x3.2x
Mon, 27 Nov 2023UK£260.9bUK£84.4bUK£10.7b40.8x24.4x3.1x
Wed, 25 Oct 2023UK£262.3bUK£86.1bUK£10.3b39.9x25.5x3x
Fri, 22 Sep 2023UK£279.7bUK£85.6bUK£10.3b40.4x27.2x3.3x
Sun, 20 Aug 2023UK£268.9bUK£83.9bUK£10.1b40.3x26.5x3.2x
Tue, 18 Jul 2023UK£260.5bUK£81.4bUK£7.8b44.2x33.5x3.2x
Thu, 15 Jun 2023UK£283.6bUK£82.7bUK£7.9b47.4x35.9x3.4x
Sat, 13 May 2023UK£296.4bUK£83.5bUK£8.0b49.3x37.2x3.5x
Mon, 10 Apr 2023UK£290.0bUK£84.2bUK£6.9b45x41.9x3.4x
Price to Earnings Ratio

41.9x


Total Market Cap: UK£290.0bTotal Earnings: UK£6.9bTotal Revenue: UK£84.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Healthcare Sector Price to Earnings3Y Average 28.9x202420252026
Current Industry PE
  • Investors are pessimistic on the British Healthcare 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 23.8x which is lower than its 3-year average PE of 28.9x.
  • The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 3.8x.
Past Earnings Growth
  • The earnings for companies in the Healthcare industry have grown 33% per year over the last three years.
  • Revenues for these companies have grown 6.8% 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. Healthcare sector?

GB Market4.41%
Healthcare7.80%
Pharma8.33%
Life Sciences1.72%
Biotech0.35%
Healthcare Services0.15%
Healthtech0.14%
Medical Equipment-0.20%
Industry PE
  • Investors are most optimistic about the Biotech industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 10.9%, which is higher than its past year's earnings decline of 5.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Life Sciences industry, expecting annual earnings growth of 54% over the next 5 years.
  • This is better than its past earnings decline of 70% per year.
  • In contrast, the Pharma industry is expected to see its earnings grow by 10% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
AZN AstraZenecaUK£153.1610.7%
+UK£23.0b		34.4%PE30.7x
GSK GSKUK£21.444.7%
+UK£3.9b		46.3%PE15x
HLN HaleonUK£3.732.2%
+UK£672.2m		-5.5%PE20x
HCM HUTCHMED (China)UK£2.197.9%
+UK£137.6m		-7.2%PE5.4x
SN. Smith & NephewUK£12.081.0%
+UK£102.0m		12.1%PE21.7x

Latest News

AGY
UK£0.10
Allergy Therapeutics
7D
-1.0%
1Y
64.8%
CVSG
UK£11.32
CVS Group
7D
-1.7%
1Y
14.0%

CVSG: Neutral Coverage And Buybacks Will Support Higher Future Price Objective

Analysts have trimmed their fair value estimate for CVS Group from about £16.73 to roughly £16.40. This reflects slightly softer revenue growth assumptions, a modestly higher profit margin outlook and a small adjustment to the future P/E multiple following recent neutral coverage initiation.
HIK
UK£13.08
Hikma Pharmaceuticals
7D
3.6%
1Y
-33.1%

HIK: Buyback Plan And Leadership Changes Will Support Future Re Rating

Hikma Pharmaceuticals' updated fair value estimate has edged down slightly to £19.02 per share from £19.06. This reflects a series of reduced analyst price targets between £1,600 and £2,000, along with their increased focus on management uncertainty, strategic direction, and a more conservative P/E outlook.
AZN
UK£153.16
AstraZeneca
7D
10.7%
1Y
34.4%
GSK
UK£21.44
GSK
7D
4.7%
1Y
46.3%
SN.
UK£12.08
Smith & Nephew
7D
1.0%
1Y
12.1%

SN.: New Product Launches And Capital Returns Will Support Future Margins

Analysts have nudged their price target for Smith & Nephew slightly higher to £14.30 from £14.30, reflecting small adjustments to their fair value estimate, discount rate, revenue growth assumptions, profit margin expectations, and a modestly lower future P/E multiple. What's in the News Launch of ALLEVYN COMPLETE CARE Foam Dressing with a five layer design aimed at both wound management and pressure injury prevention, initially in the US with further international launches planned for 2026 (Product related announcement).
AVCT
UK£0.64
Avacta Group
7D
-7.3%
1Y
88.1%
OXB
UK£5.60
Oxford Biomedica
7D
-2.6%
1Y
106.6%
HCM
UK£2.19
HUTCHMED (China)
7D
7.9%
1Y
-7.2%

HCM: Advancing Late Stage Oncology Pipeline Will Drive Future Reassessment

Analysts have nudged their fair value estimate for HUTCHMED (China) higher to £5.62 from £5.34, citing updated assumptions on discount rate, revenue growth, profit margin and future P/E that have slightly adjusted their overall outlook. What's in the News Initiated a registrational Phase III trial of BTK inhibitor HMPL-760 with R-GemOx in relapsed or refractory diffuse large B-cell lymphoma in China, targeting about 240 patients and using progression free survival and overall survival as primary outcomes (Product-Related Announcement).
NIOX
UK£0.55
NIOX Group
7D
-7.1%
1Y
-26.2%
HLN
UK£3.73
Haleon
7D
2.2%
1Y
-5.5%

HLN: Execution And Cash Returns Will Support Future Re Rating Potential

Haleon's analyst price target has been nudged up from £5.10 to £5.12, reflecting analysts' updated assumptions for slightly higher revenue growth and profit margins, together with recent target increases and rating changes across several research houses. Analyst Commentary Recent Street research on Haleon has been active, with several bullish analysts adjusting their targets and ratings while one major European house turned more cautious.
CREO
UK£0.11
Creo Medical Group
7D
-10.3%
1Y
-9.4%

CREO: Steady Fair Value And Higher Revenue Assumptions Will Support Long Term Upside

Analysts have made a modest upward adjustment to their price target for Creo Medical Group, reflecting fine tuned assumptions around the discount rate, revenue growth and future P/E. Their view of the company’s fair value remains broadly unchanged.
IDHC
US$0.60
Integrated Diagnostics Holdings
7D
9.1%
1Y
57.9%

IDHC: Future Earnings Multiple Will Support Slightly Higher Margin Expectations

Analysts have raised their price target for Integrated Diagnostics Holdings to reflect slightly higher assumptions for revenue growth, profit margin, and future P/E, resulting in a modestly higher implied valuation in dollar terms. Valuation Changes Fair Value: $0.71 remains unchanged, with the updated model keeping the same implied fair value per share as before.
GNS
UK£25.40
Genus
7D
2.0%
1Y
37.6%

GNS: China JV And Gene Editing Progress Will Drive Medium Term Upside

Analysts have nudged their price target on Genus up by £1.00, citing updated fair value and discount rate assumptions along with revised expectations for revenue growth, profit margins and future P/E as the key drivers for the change. Analyst Commentary Bullish Takeaways Bullish analysts see the £1.00 uplift in the price target as aligned with updated fair value work, suggesting that their revised assumptions on revenue growth and margins still support the current valuation framework.
CTEC
UK£2.20
Convatec Group
7D
-2.7%
1Y
-14.8%
SCLP
UK£0.11
Scancell Holdings
7D
-4.3%
1Y
38.0%