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U.K. (FTSE) Tech Sector Analysis

UpdatedDec 17, 2024
DataAggregated Company Financials
Companies126
  • 7D-1.5%
  • 3M5.4%
  • 1Y2.4%
  • YTD2.7%

Over the last 7 days, the Tech industry has dropped 1.5%, driven by Alphawave IP Group declining 27%. Meanwhile, Raspberry Pi Holdings actually outperformed within the industry, gaining 24% in the last week. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 18 Dec 2024UK£51.0bUK£22.6bUK£1.3b28.9x40.6x2.3x
Fri, 15 Nov 2024UK£48.2bUK£22.4bUK£1.1b27.7x42.2x2.2x
Sun, 13 Oct 2024UK£49.0bUK£23.0bUK£1.1b26.4x44.1x2.1x
Tue, 10 Sep 2024UK£53.8bUK£23.4bUK£1.3b26x42.8x2.3x
Thu, 08 Aug 2024UK£55.1bUK£24.1bUK£1.3b27.1x43.5x2.3x
Sat, 06 Jul 2024UK£58.1bUK£24.3bUK£1.2b28.1x49.6x2.4x
Mon, 03 Jun 2024UK£54.3bUK£23.9bUK£1.1b29x51.3x2.3x
Wed, 01 May 2024UK£52.8bUK£23.9bUK£961.5m27.7x54.9x2.2x
Fri, 29 Mar 2024UK£53.9bUK£24.1bUK£886.1m27.9x60.8x2.2x
Sun, 25 Feb 2024UK£53.5bUK£24.4bUK£908.5m30.2x58.9x2.2x
Tue, 23 Jan 2024UK£73.1bUK£31.4bUK£946.4m26.3x77.2x2.3x
Thu, 21 Dec 2023UK£74.2bUK£31.4bUK£952.6m27.9x77.9x2.4x
Sat, 18 Nov 2023UK£69.3bUK£32.0bUK£1.0b27.1x67.9x2.2x
Mon, 16 Oct 2023UK£68.6bUK£32.0bUK£987.0m26.7x69.5x2.1x
Wed, 13 Sep 2023UK£72.2bUK£31.7bUK£1.1b28.3x68.2x2.3x
Fri, 11 Aug 2023UK£71.7bUK£30.7bUK£1.0b28.4x69.3x2.3x
Sun, 09 Jul 2023UK£72.2bUK£31.1bUK£1.1b28.5x67.9x2.3x
Tue, 06 Jun 2023UK£74.5bUK£30.9bUK£955.4m30.9x78x2.4x
Thu, 04 May 2023UK£73.6bUK£31.0bUK£1.1b30.9x67.8x2.4x
Sat, 01 Apr 2023UK£72.6bUK£31.5bUK£1.3b29.6x56.4x2.3x
Mon, 27 Feb 2023UK£97.9bUK£39.9bUK£2.7b29x35.9x2.5x
Wed, 25 Jan 2023UK£96.3bUK£39.7bUK£2.8b29.9x34.6x2.4x
Fri, 23 Dec 2022UK£94.4bUK£39.7bUK£2.7b28.4x34.3x2.4x
Sun, 20 Nov 2022UK£98.5bUK£39.5bUK£2.8b29.3x35.2x2.5x
Tue, 18 Oct 2022UK£90.9bUK£39.3bUK£2.7b28.4x33.5x2.3x
Thu, 15 Sep 2022UK£93.0bUK£38.8bUK£2.7b31.1x34.4x2.4x
Sat, 13 Aug 2022UK£93.6bUK£37.2bUK£2.6b32.5x36.2x2.5x
Mon, 11 Jul 2022UK£82.5bUK£34.9bUK£2.0b29.9x41.5x2.4x
Wed, 08 Jun 2022UK£76.3bUK£34.1bUK£1.9b31.1x40.5x2.2x
Fri, 06 May 2022UK£78.0bUK£34.1bUK£1.9b31.5x41.9x2.3x
Sun, 03 Apr 2022UK£86.5bUK£33.7bUK£1.8b31.8x48x2.6x
Tue, 01 Mar 2022UK£88.3bUK£32.8bUK£1.7b34x51.2x2.7x
Thu, 27 Jan 2022UK£91.2bUK£31.0bUK£279.1m37.6x326.7x2.9x
Sat, 25 Dec 2021UK£102.7bUK£31.0bUK£266.2m41.1x385.7x3.3x
Price to Earnings Ratio

385.7x


Total Market Cap: UK£102.7bTotal Earnings: UK£266.2mTotal Revenue: UK£31.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Tech Sector Price to Earnings3Y Average 70.7x202220232024
Current Industry PE
  • Investors are pessimistic on the British Information Technology 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 40.6x which is lower than its 3-year average PE of 71.0x.
  • The 3-year average PS ratio of 2.7x is higher than the industry's current PS ratio of 2.3x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 68% per year over the last three years.
  • Meanwhile revenues for these companies have declined 10% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

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

GB Market-1.18%
Tech-1.48%
Tech Hardware19.48%
Communications1.46%
Software-0.89%
Electronic Equipment and Components-0.90%
IT-3.78%
Semiconductors-21.51%
Industry PE
  • Investors are most optimistic about the Tech Hardware industry which is trading above its 3-year average PE ratio of 29.5x.
    • Analysts are expecting annual earnings growth of 13.5%, which is lower than the prior year's growth of 124.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 103% over the next 5 years.
  • This is better than its past earnings decline of 71% per year.
  • In contrast, the Electronic Equipment and Components industry is expected to see its earnings grow by 7.4% 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
RPI Raspberry Pi HoldingsUK£5.0119.1%
+UK£154.9m		n/aPE40.1x
SGE Sage GroupUK£13.050.4%
+UK£49.7m		11.3%PE40.1x
SEE Seeing MachinesUK£0.04532.4%
+UK£46.2m		-11.8%PS3.6x
OXIG Oxford InstrumentsUK£21.252.7%
+UK£31.9m		-7.6%PE23.5x
HLMA HalmaUK£27.830.2%
+UK£22.7m		21.4%PE36.7x
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Latest News

CCC

UK£21.50

Computacenter

7D

-5.7%

1Y

-22.6%

SGE

UK£13.05

Sage Group

7D

0.4%

1Y

11.3%

SCT

UK£15.04

Softcat

7D

-3.0%

1Y

12.2%

NCC

UK£1.44

NCC Group

7D

4.8%

1Y

12.1%

BYIT

UK£4.39

Bytes Technology Group

7D

-3.4%

1Y

-26.0%

Estimating The Intrinsic Value Of Bytes Technology Group plc (LON:BYIT)

Dec 13
Estimating The Intrinsic Value Of Bytes Technology Group plc (LON:BYIT)

HLMA

UK£27.83

Halma

7D

0.2%

1Y

21.4%

BTC

UK£0.15

Vinanz

7D

-0.8%

1Y

79.4%

AWE

UK£1.01

Alphawave IP Group

7D

-26.8%

1Y

-19.8%

RPI

UK£5.01

Raspberry Pi Holdings

7D

19.1%

1Y

n/a

RSW

UK£33.45

Renishaw

7D

-1.3%

1Y

-8.6%

FTC

UK£0.77

Filtronic

7D

10.4%

1Y

267.9%

SXS

UK£24.48

Spectris

7D

-7.9%

1Y

-34.7%

Insufficient Growth At Spectris plc (LON:SXS) Hampers Share Price

Dec 05
Insufficient Growth At Spectris plc (LON:SXS) Hampers Share Price

OXIG

UK£21.25

Oxford Instruments

7D

2.7%

1Y

-7.6%

Slowing Rates Of Return At Oxford Instruments (LON:OXIG) Leave Little Room For Excitement

Dec 05
Slowing Rates Of Return At Oxford Instruments (LON:OXIG) Leave Little Room For Excitement

GBG

UK£3.49

GB Group

7D

-4.0%

1Y

30.9%

SEE

UK£0.045

Seeing Machines

7D

32.4%

1Y

-11.8%

ALFA

UK£2.15

Alfa Financial Software Holdings

7D

-7.9%

1Y

49.8%