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U.K. (FTSE) Tech Sector Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies114
  • 7D0.03%
  • 3M-3.8%
  • 1Y2.8%
  • YTD-2.5%

Over the last 7 days, the Tech industry has remained flat, although notably Computacenter declined by 3.9%. In line with that, the industry has also been flat over the past 12 months. As for the next few years, earnings are expected to grow by 18% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 16 Mar 2026UK£43.5bUK£23.7bUK£994.9m29x43.7x1.8x
Wed, 11 Feb 2026UK£43.5bUK£22.3bUK£1.0b30.9x43.1x2x
Fri, 09 Jan 2026UK£46.2bUK£22.3bUK£1.0b29.8x46x2.1x
Sun, 07 Dec 2025UK£47.8bUK£22.6bUK£861.6m28.2x55.4x2.1x
Tue, 04 Nov 2025UK£52.3bUK£23.6bUK£899.8m29.7x58.2x2.2x
Thu, 02 Oct 2025UK£52.5bUK£23.5bUK£925.8m30.7x56.7x2.2x
Sat, 30 Aug 2025UK£50.7bUK£22.7bUK£1.1b29.7x48.3x2.2x
Mon, 28 Jul 2025UK£52.2bUK£22.7bUK£1.2b31.1x43x2.3x
Wed, 25 Jun 2025UK£53.0bUK£23.0bUK£1.2b31.4x42.6x2.3x
Fri, 23 May 2025UK£50.0bUK£23.1bUK£1.3b27.8x39.6x2.2x
Sun, 20 Apr 2025UK£45.6bUK£23.0bUK£1.3b23.2x36.1x2x
Tue, 18 Mar 2025UK£47.8bUK£22.5bUK£1.2b23.1x39.6x2.1x
Thu, 13 Feb 2025UK£52.6bUK£22.6bUK£1.2b27.2x42.5x2.3x
Sat, 11 Jan 2025UK£50.0bUK£22.6bUK£1.2b27.3x40.5x2.2x
Mon, 09 Dec 2024UK£51.5bUK£22.6bUK£1.3b29x40.8x2.3x
Wed, 06 Nov 2024UK£46.7bUK£22.4bUK£1.1b26.4x40.9x2.1x
Fri, 04 Oct 2024UK£49.3bUK£22.9bUK£1.1b26.9x44.6x2.2x
Sun, 01 Sep 2024UK£56.0bUK£23.9bUK£1.3b27.5x43.8x2.3x
Tue, 30 Jul 2024UK£56.8bUK£24.2bUK£1.2b27.9x48.5x2.3x
Thu, 27 Jun 2024UK£57.7bUK£24.3bUK£1.2b27.9x49.1x2.4x
Sat, 25 May 2024UK£55.4bUK£23.9bUK£1.1b30.3x52x2.3x
Mon, 22 Apr 2024UK£50.9bUK£24.1bUK£959.0m27.4x53x2.1x
Wed, 20 Mar 2024UK£53.2bUK£24.3bUK£860.8m29.1x61.8x2.2x
Fri, 16 Feb 2024UK£52.5bUK£24.4bUK£908.2m28.8x57.8x2.1x
Sun, 14 Jan 2024UK£72.9bUK£31.4bUK£947.1m26.3x77x2.3x
Tue, 12 Dec 2023UK£72.1bUK£31.4bUK£952.1m27.1x75.7x2.3x
Thu, 09 Nov 2023UK£68.3bUK£31.9bUK£1.0b27.4x67.7x2.1x
Sat, 07 Oct 2023UK£69.6bUK£31.9bUK£989.1m26.3x70.3x2.2x
Mon, 04 Sep 2023UK£71.2bUK£30.8bUK£1.0b28.5x70.2x2.3x
Wed, 02 Aug 2023UK£72.9bUK£31.3bUK£1.1b29.4x67.7x2.3x
Fri, 30 Jun 2023UK£73.5bUK£31.2bUK£1.1b27.3x68.5x2.4x
Sun, 28 May 2023UK£73.4bUK£31.0bUK£954.2m30.7x77x2.4x
Tue, 25 Apr 2023UK£73.0bUK£30.8bUK£1.3b30.9x56.9x2.4x
Thu, 23 Mar 2023UK£71.4bUK£31.5bUK£1.3b29x54.6x2.3x
Price to Earnings Ratio

54.6x


Total Market Cap: UK£71.4bTotal Earnings: UK£1.3bTotal Revenue: UK£31.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Tech Sector Price to Earnings3Y Average 53.4x202420252026
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 43.7x which is lower than its 3-year average PE of 53.4x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have declined 8.7% per year over the last three years,
  • Revenues have also declined 9.1% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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

GB Market-0.10%
Tech0.03%
Semiconductors9.87%
Communications4.09%
Electronic Equipment and Components1.55%
Software-1.43%
Tech Hardware-2.10%
IT-2.14%
Industry PE
  • Investors are most optimistic about the Tech Hardware industry which is trading above its 3-year average PE ratio of 1kx.
    • Analysts are expecting annual earnings growth of 21.1%, which is higher than its past year's earnings decline of 29.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 34% over the next 5 years.
  • This is better than its past earnings decline of 4.1% per year.
  • In contrast, the Semiconductors industry is expected to see its earnings decline by 40% 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
HLMA HalmaUK£38.381.0%
+UK£143.5m		42.7%PE41.8x
RSW RenishawUK£38.852.1%
+UK£58.2m		39.7%PE38.1x
IQE IQEUK£0.2321.1%
+UK£39.4m		76.9%PS2.3x
SGE Sage GroupUK£8.460.5%
+UK£27.8m		-29.0%PE21.2x
FTC FiltronicUK£1.863.6%
+UK£14.3m		72.6%PE41x

Latest News

ALFA
UK£1.63
Alfa Financial Software Holdings
7D
-17.4%
1Y
-27.9%
CCC
UK£29.78
Computacenter
7D
-5.5%
1Y
27.6%
KNOS
UK£7.58
Kainos Group
7D
-4.9%
1Y
7.7%
OXIG
UK£25.00
Oxford Instruments
7D
0.6%
1Y
31.3%

OXIG: Higher Fair Value And Raised Broker Levels Will Support Repricing

Analysts have lifted their fair value estimate for Oxford Instruments from £27.00 to £30.00, reflecting updated assumptions around revenue growth, profit margins and a slightly higher discount rate. This follows recent price target increases from £2,675 at Deutsche Bank and a further £400 uplift highlighted in recent Street research.
HLMA
UK£38.38
Halma
7D
1.0%
1Y
42.7%

HLMA: Stable Assumptions And Lower Risk Will Support Premium Future P/E

Analysts have increased their price target on Halma by £4.50, citing updated assumptions on discount rates, profit margins and future P/E levels. Analyst Commentary Bullish Takeaways Bullish analysts link the £4.50 price target uplift to revised discount rate assumptions, suggesting they see Halma's cash flows as less risky than before, which supports a higher valuation multiple.
RSW
UK£38.85
Renishaw
7D
2.1%
1Y
39.7%

RSW: Future Spectroscopy Collaboration Will Support Stronger Long Term Earnings Multiple

Analysts have lifted their price target on Renishaw from £43.00 to £47.50, reflecting updated assumptions on revenue growth, margins, and the future P/E they see as appropriate for the shares. What's in the News Renishaw has issued earnings guidance for FY2026, indicating expected full year revenue in a range of £740m to £780m.
PINE
UK£2.50
Pinewood Technologies Group
7D
-7.2%
1Y
-26.5%

AI Powered Auto Retail Platform Will Transform Global Dealer Relationships Over The Next Decade

Catalysts About Pinewood Technologies Group Pinewood Technologies Group provides automotive retail software and AI driven tools for dealer groups and manufacturers across multiple regions. What are the underlying business or industry changes driving this perspective?
NCC
UK£1.20
NCC Group
7D
-8.6%
1Y
-11.9%
MIDW
UK£1.58
Midwich Group
7D
-14.1%
1Y
-30.4%
SGE
UK£8.46
Sage Group
7D
0.5%
1Y
-29.0%

SGE: Upgrades And Execution Will Shape Future Upside Potential

Analysts have nudged their blended price target for Sage Group to £1,425, up £25, citing what they see as attractively priced growth and slight tweaks to assumptions around the discount rate, revenue growth, margins and future P/E. Analyst Commentary Recent research points to what some analysts see as attractively priced growth for Sage Group at current share levels, with price targets such as £1,425 being cited as consistent with this view.
BYIT
UK£2.99
Bytes Technology Group
7D
-5.3%
1Y
-27.9%

BYIT: Capital Light Cash Generation Will Underpin Recovery Beyond 2026

Analysts have trimmed their price target on Bytes Technology Group to £4.00. This is a modest reset that reflects slightly lower fair value estimates and an extended recovery timeline, even as they continue to highlight the appeal of capital light, cash generative models.
SEE
UK£0.034
Seeing Machines
7D
7.3%
1Y
28.8%

SEE: Higher Future P/E Assumptions Will Drive Repricing Over Time

Analysts have raised their price target on Seeing Machines to £0.08 from £0.06, citing updated assumptions that combine a higher fair value estimate with changes to the discount rate, revenue growth, profit margin expectations and a significantly higher future P/E multiple. Analyst Commentary Analysts updating their valuation work on Seeing Machines are focusing less on short term trading and more on how the company might execute against its longer term assumptions on growth, profitability and the multiple investors may be willing to pay for that profile.
SWC
UK£0.33
Smarter Web
7D
10.1%
1Y
n/a
FTC
UK£1.86
Filtronic
7D
3.6%
1Y
72.6%
CER
UK£12.50
Cerillion
7D
-7.4%
1Y
-13.2%

Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up

Jan 20
Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up
IQE
UK£0.23
IQE
7D
21.1%
1Y
76.9%