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U.K. (FTSE) Tech Sector Analysis

UpdatedNov 28, 2022
DataAggregated Company Financials
Companies160
  • 7D2.5%
  • 3M11.5%
  • 1Y-17.0%
  • YTD-17.8%

Over the last 7 days, the Tech industry has risen 2.5%, driven by gains from Kaspi.kz of 5.3%. Meanwhile, GB Group actually underperformed within the industry, shrinking 8.3% in the last week. In contrast, the industry has lost 17% in the last 12 months. As for the next few years, earnings are expected to grow by 19% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 28 Nov 2022UK£101.0bUK£39.5bUK£2.8b29.2x36.2x2.6x
Wed, 26 Oct 2022UK£94.5bUK£39.2bUK£2.7b28.9x34.8x2.4x
Fri, 23 Sep 2022UK£92.7bUK£39.1bUK£2.7b30.5x34.2x2.4x
Sun, 21 Aug 2022UK£92.1bUK£37.4bUK£2.6b31.5x35.5x2.5x
Tue, 19 Jul 2022UK£81.1bUK£37.0bUK£2.9b30.5x27.5x2.2x
Thu, 16 Jun 2022UK£72.6bUK£34.6bUK£1.8b30x39.6x2.1x
Sat, 14 May 2022UK£75.3bUK£34.1bUK£1.9b30.6x40.3x2.2x
Mon, 11 Apr 2022UK£86.3bUK£33.7bUK£1.8b30.8x47.5x2.6x
Wed, 09 Mar 2022UK£81.1bUK£32.9bUK£1.8b30x46x2.5x
Fri, 04 Feb 2022UK£91.8bUK£32.7bUK£286.5m36.7x320.4x2.8x
Sun, 02 Jan 2022UK£103.7bUK£31.0bUK£276.8m42.4x374.7x3.4x
Tue, 30 Nov 2021UK£99.5bUK£30.9bUK£219.2m42.6x453.8x3.2x
Thu, 28 Oct 2021UK£103.9bUK£30.5bUK£182.3m45.9x569.8x3.4x
Sat, 25 Sep 2021UK£110.9bUK£29.2bUK£109.6m48.3x1012x3.8x
Mon, 23 Aug 2021UK£103.6bUK£28.5bUK£170.6m47.8x607x3.6x
Sat, 10 Jul 2021UK£85.0bUK£28.0bUK£137.9m45.2x616.4x3x
Fri, 02 Apr 2021UK£80.2bUK£27.5b-UK£553,205,057.3543.7x-145x2.9x
Mon, 04 Jan 2021UK£74.8bUK£23.8b-UK£1,325,085,321.2642.4x-56.4x3.1x
Thu, 08 Oct 2020UK£66.7bUK£23.3b-UK£440,954,532.3634.7x-151.3x2.9x
Wed, 01 Jul 2020UK£61.7bUK£23.5bUK£402.6m29.9x153.3x2.6x
Sat, 04 Apr 2020UK£52.5bUK£23.4bUK£689.7m22.8x76.2x2.2x
Tue, 07 Jan 2020UK£67.8bUK£23.4bUK£1.3b30.3x51.9x2.9x
Price to Earnings Ratio

54.2x


Total Market Cap: UK£65.8bTotal Earnings: UK£1.2bTotal Revenue: UK£23.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Tech Sector Price to Earnings3Y Average 121.7x202020212022
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 36.2x which is lower than its 3-year average PE of 122x.
  • The 3-year average PS ratio of 3.2x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 32% per year over the last three years.
  • Revenues for these companies have grown 20% 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. Tech sector?

GB Market1.33%
Tech2.53%
Tech Hardware6.25%
IT4.09%
Electronic Equipment and Components2.88%
Semiconductors2.76%
Communications1.21%
Software1.04%
Industry PE
  • Investors are most optimistic about the Software industry which is trading above its 3-year average PE ratio of 73.7x.
    • Analysts are expecting annual earnings growth of 19.9%, which is higher than its past year's earnings growth of 3.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Tech Hardware industry, expecting annual earnings growth of 72% over the next 5 years.
  • This is better than its past earnings decline of 40% per year.
  • In contrast, the Electronic Equipment and Components industry is expected to see its earnings grow by 7.9% 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
KSPI Kaspi.kzUS$76.005.3%
+US$725.4m
-40.2%PE12.6x
WISE WiseUK£6.265.6%
+UK£342.2m
-15.6%PE194.8x
HLMA HalmaUK£22.692.0%
+UK£166.2m
-23.7%PE38.3x
KWS Keywords StudiosUK£28.906.6%
+UK£146.3m
9.3%PE55.9x
SGE Sage GroupUK£8.131.6%
+UK£125.9m
5.0%PE31.7x
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Latest News

SGE

UK£8.13

Sage Group

7D

1.6%

1Y

5.0%

BVC

UK£0.28

BATM Advanced Communications

7D

-5.1%

1Y

-65.8%

OXIG

UK£21.85

Oxford Instruments

7D

7.4%

1Y

-3.7%

KSPI

US$76.00

Kaspi.kz

7D

5.3%

1Y

-40.2%

KWS

UK£28.90

Keywords Studios

7D

6.6%

1Y

9.3%

HLMA

UK£22.69

Halma

7D

2.0%

1Y

-23.7%

WPS

UK£0.79

W.A.G payment solutions

7D

-1.5%

1Y

-36.6%

WISE

UK£6.26

Wise

7D

5.6%

1Y

-15.6%

MIDW

UK£4.55

Midwich Group

7D

-4.2%

1Y

-27.1%

GBG

UK£3.49

GB Group

7D

-8.3%

1Y

-53.7%

AWE

UK£1.11

Alphawave IP Group

7D

-1.6%

1Y

-43.6%

AVV

UK£31.91

AVEVA Group

7D

0.9%

1Y

-0.3%