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U.K. (FTSE) IT Industry Analysis

UpdatedMay 12, 2025
DataAggregated Company Financials
Companies19
  • 7D3.7%
  • 3M7.9%
  • 1Y-2.6%
  • YTD9.1%

Over the last 7 days, the IT industry has risen 3.7%, driven by gains from Softcat of 5.0%. Meanwhile, 1Spatial actually underperformed within the industry, shrinking 6.9% in the last week. The industry has been flat over the past 12 months despite the gain this week. Earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

Has the U.K. IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 12 May 2025UK£8.7bUK£9.6bUK£329.2m20.1x26.4x0.9x
Wed, 09 Apr 2025UK£7.5bUK£9.6bUK£330.5m20.4x22.7x0.8x
Fri, 07 Mar 2025UK£7.9bUK£9.0bUK£333.4m22.9x23.8x0.9x
Sun, 02 Feb 2025UK£8.2bUK£9.0bUK£332.0m23.3x24.7x0.9x
Tue, 31 Dec 2024UK£8.0bUK£9.0bUK£337.2m25.7x23.7x0.9x
Thu, 28 Nov 2024UK£8.3bUK£9.0bUK£334.3m28.2x24.9x0.9x
Sat, 26 Oct 2024UK£8.7bUK£9.0bUK£322.5m24.2x27.1x1x
Mon, 23 Sep 2024UK£10.8bUK£9.7bUK£293.5m24.9x36.7x1.1x
Wed, 21 Aug 2024UK£11.5bUK£10.1bUK£361.1m28.3x32x1.1x
Fri, 19 Jul 2024UK£11.5bUK£10.2bUK£385.5m27.8x29.8x1.1x
Sun, 16 Jun 2024UK£11.6bUK£10.2bUK£381.2m26.6x30.5x1.1x
Tue, 14 May 2024UK£10.3bUK£10.2bUK£374.0m27.9x27.4x1x
Thu, 11 Apr 2024UK£10.4bUK£10.4bUK£355.2m28.7x29.3x1x
Sat, 09 Mar 2024UK£10.7bUK£10.8bUK£359.4m25.6x29.7x1x
Mon, 05 Feb 2024UK£11.3bUK£12.8bUK£367.2m24.9x30.8x0.9x
Wed, 03 Jan 2024UK£10.8bUK£12.8bUK£376.6m24x28.6x0.8x
Fri, 01 Dec 2023UK£10.4bUK£13.4bUK£389.6m24.4x26.7x0.8x
Sun, 29 Oct 2023UK£10.2bUK£13.4bUK£375.6m25.2x27.1x0.8x
Tue, 26 Sep 2023UK£11.2bUK£13.4bUK£389.1m26.4x28.7x0.8x
Thu, 24 Aug 2023UK£10.6bUK£12.5bUK£406.6m26.8x26x0.8x
Sat, 22 Jul 2023UK£11.4bUK£12.5bUK£400.4m27x28.6x0.9x
Mon, 19 Jun 2023UK£11.6bUK£12.5bUK£425.3m26.4x27.2x0.9x
Wed, 17 May 2023UK£11.5bUK£12.5bUK£420.5m26.7x27.5x0.9x
Fri, 14 Apr 2023UK£11.8bUK£12.4bUK£422.6m26.9x27.9x0.9x
Sun, 12 Mar 2023UK£36.7bUK£22.3bUK£2.0b27.3x18x1.7x
Tue, 07 Feb 2023UK£38.0bUK£21.9bUK£1.8b28.2x20.9x1.7x
Thu, 05 Jan 2023UK£36.6bUK£21.9bUK£1.8b27.8x20.4x1.7x
Sat, 03 Dec 2022UK£39.3bUK£21.6bUK£1.8b32.5x22.5x1.8x
Mon, 31 Oct 2022UK£35.2bUK£21.6bUK£1.8b27.4x19.9x1.6x
Wed, 28 Sep 2022UK£34.4bUK£21.7bUK£1.7b24.9x20.6x1.6x
Fri, 26 Aug 2022UK£33.3bUK£20.6bUK£1.7b28.7x20.1x1.6x
Sun, 24 Jul 2022UK£29.7bUK£20.4bUK£1.8b30.1x16.6x1.5x
Tue, 21 Jun 2022UK£19.4bUK£18.1bUK£805.8m31.2x24x1.1x
Thu, 19 May 2022UK£19.8bUK£17.9bUK£788.5m32.4x25.1x1.1x
Price to Earnings Ratio

25.1x


Total Market Cap: UK£19.8bTotal Earnings: UK£788.5mTotal Revenue: UK£17.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 34.1x202320242025
Current Industry PE
  • Investors are pessimistic on the British IT 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 26.4x which is lower than its 3-year average PE of 34.1x.
  • The 3-year average PS ratio of 1.6x is higher than the industry's current PS ratio of 0.91x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 25% per year over the last three years,
  • Revenues have also declined 19% 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 industry?

GB Market-0.29%
Tech2.79%
IT3.75%
Data Processing Services5.10%
IT Consulting3.83%
Internet Services and Infrastructure2.16%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 28.0x.
    • Analysts are expecting annual earnings growth of 12.3%, which is higher than its past year's earnings decline of 13.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 48% over the next 5 years.
  • However this is lower than its past earnings growth rate of 122% per year.
  • In contrast, the Data Processing Services industry is expected to see its earnings grow by 4.4% 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
SCT SoftcatUK£18.005.0%
+UK£169.5m		13.3%PE28.6x
KNOS Kainos GroupUK£8.046.4%
+UK£58.1m		-21.0%PE19x
CCC ComputacenterUK£25.542.2%
+UK£56.6m		-3.3%PE15.7x
SWC Smarter WebUK£0.22363.2%
+UK£25.3m		n/aPE-64x
NCC NCC GroupUK£1.512.9%
+UK£12.9m		11.4%PS1.4x
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-1.8%

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