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U.K. (FTSE) Tech Sector Analysis

UpdatedNov 17, 2024
DataAggregated Company Financials
Companies127
  • 7D0.3%
  • 3M-5.0%
  • 1Y4.9%
  • YTD-4.0%

The Tech industry has stayed flat over the last week. The past year has been better, since the industry has gained 4.9% in that time. Earnings are forecast to grow by 16% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 17 Nov 2024UK£47.6bUK£22.4bUK£1.1b27.1x41.7x2.1x
Tue, 15 Oct 2024UK£49.0bUK£23.0bUK£1.1b26.4x44.1x2.1x
Thu, 12 Sep 2024UK£53.3bUK£23.5bUK£1.3b25.7x42.2x2.3x
Sat, 10 Aug 2024UK£54.9bUK£24.0bUK£1.3b27.1x43.5x2.3x
Mon, 08 Jul 2024UK£58.1bUK£24.3bUK£1.2b28x49.6x2.4x
Wed, 05 Jun 2024UK£54.5bUK£23.9bUK£1.1b29.3x51.4x2.3x
Fri, 03 May 2024UK£53.3bUK£24.0bUK£996.8m27.5x53.4x2.2x
Sun, 31 Mar 2024UK£53.9bUK£24.1bUK£885.4m28x60.9x2.2x
Tue, 27 Feb 2024UK£53.3bUK£24.4bUK£908.8m29.7x58.7x2.2x
Thu, 25 Jan 2024UK£73.1bUK£31.4bUK£946.4m26.4x77.3x2.3x
Sat, 23 Dec 2023UK£74.0bUK£31.4bUK£952.7m27.9x77.7x2.4x
Mon, 20 Nov 2023UK£69.3bUK£32.0bUK£1.0b27.1x67.9x2.2x
Wed, 18 Oct 2023UK£68.6bUK£31.9bUK£987.0m27.2x69.5x2.1x
Fri, 15 Sep 2023UK£72.8bUK£31.7bUK£1.0b28.6x70.4x2.3x
Sun, 13 Aug 2023UK£71.5bUK£30.7bUK£1.0b28.4x69.1x2.3x
Tue, 11 Jul 2023UK£72.2bUK£31.1bUK£1.1b28.2x67.9x2.3x
Thu, 08 Jun 2023UK£74.5bUK£30.9bUK£1.2b30.8x64.6x2.4x
Sat, 06 May 2023UK£73.7bUK£30.9bUK£1.1b30.9x68x2.4x
Mon, 03 Apr 2023UK£72.6bUK£30.8bUK£1.3b29.6x56.3x2.4x
Wed, 01 Mar 2023UK£97.9bUK£39.9bUK£2.7b29.5x35.9x2.5x
Fri, 27 Jan 2023UK£96.4bUK£39.7bUK£2.8b29.7x34.7x2.4x
Sun, 25 Dec 2022UK£94.2bUK£39.7bUK£2.8b28.4x34.2x2.4x
Tue, 22 Nov 2022UK£98.7bUK£39.5bUK£2.8b29.2x35.3x2.5x
Thu, 20 Oct 2022UK£92.8bUK£39.4bUK£2.7b29.1x34.1x2.4x
Sat, 17 Sep 2022UK£92.7bUK£38.9bUK£2.7b30.9x34.4x2.4x
Mon, 15 Aug 2022UK£93.6bUK£37.2bUK£2.6b32.5x36.2x2.5x
Wed, 13 Jul 2022UK£81.8bUK£35.0bUK£2.0b29.9x41.2x2.3x
Fri, 10 Jun 2022UK£76.0bUK£34.3bUK£1.8b31.1x41.4x2.2x
Sun, 08 May 2022UK£76.4bUK£34.1bUK£1.9b31.5x41x2.2x
Tue, 05 Apr 2022UK£87.6bUK£33.7bUK£1.8b31.9x48.6x2.6x
Thu, 03 Mar 2022UK£88.2bUK£32.8bUK£1.7b32.7x51.1x2.7x
Sat, 29 Jan 2022UK£90.8bUK£31.0bUK£270.1m37.1x336.4x2.9x
Mon, 27 Dec 2021UK£102.7bUK£31.0bUK£266.2m41.1x385.7x3.3x
Wed, 24 Nov 2021UK£101.8bUK£30.9bUK£207.1m43.2x491.4x3.3x
Price to Earnings Ratio

491.4x


Total Market Cap: UK£101.8bTotal Earnings: UK£207.1mTotal Revenue: UK£30.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Tech Sector Price to Earnings3Y Average 83.4x202220232024
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 41.7x which is lower than its 3-year average PE of 83.4x.
  • The 3-year average PS ratio of 2.7x is higher than the industry's current PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 77% 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-0.14%
Tech0.34%
Tech Hardware1.94%
Software1.73%
Communications1.63%
IT0.18%
Electronic Equipment and Components-0.92%
Semiconductors-2.86%
Industry PE
  • Investors are most optimistic about the Software industry even though it's trading below its 3-year average PE ratio of 236x.
    • Analysts are expecting annual earnings growth of 19.2%, which is lower than the prior year's growth of 23.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 101% over the next 5 years.
  • This is better than its past earnings decline of 57% 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
SGE Sage GroupUK£10.652.2%
+UK£229.2m		8.1%PE39.7x
KNOS Kainos GroupUK£8.496.8%
+UK£68.0m		-15.7%PE20.5x
TTG TT ElectronicsUK£1.1149.2%
+UK£64.9m		-30.3%PS0.3x
CCC ComputacenterUK£22.022.2%
+UK£50.3m		-19.3%PE13.6x
ALFA Alfa Financial Software HoldingsUK£2.356.8%
+UK£44.3m		52.8%PE31.3x
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ALFA

UK£2.35

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7D

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1Y

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KNOS

UK£8.49

Kainos Group

7D

6.8%

1Y

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Kainos Group (LON:KNOS) Is Due To Pay A Dividend Of £0.093

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HLMA

UK£25.04

Halma

7D

-1.3%

1Y

22.0%

Halma plc (LON:HLMA) Shares Could Be 28% Above Their Intrinsic Value Estimate

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SXS

UK£25.42

Spectris

7D

-1.7%

1Y

-24.9%

SGE

UK£10.65

Sage Group

7D

2.2%

1Y

8.1%

Sage Group's (LON:SGE) Returns Have Hit A Wall

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BIG

UK£1.33

Big Technologies

7D

-7.0%

1Y

-28.4%

SCT

UK£16.20

Softcat

7D

-3.3%

1Y

24.0%

Softcat (LON:SCT) Is Increasing Its Dividend To £0.39

Nov 05
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CCC

UK£22.02

Computacenter

7D

2.2%

1Y

-19.3%

RSW

UK£31.60

Renishaw

7D

-0.6%

1Y

-0.3%

GBG

UK£3.37

GB Group

7D

3.0%

1Y

27.5%

AWE

UK£1.20

Alphawave IP Group

7D

-2.9%

1Y

11.1%

NCC

UK£1.61

NCC Group

7D

4.4%

1Y

44.1%