Header cover image

U.K. (FTSE) IT Industry Analysis

UpdatedAug 17, 2024
DataAggregated Company Financials
Companies21
  • 7D3.2%
  • 3M7.2%
  • 1Y18.3%
  • YTD13.1%

In the last week, the IT industry is up 3.2%, with Softcat up 4.9%. This takes the industry's 12 month performance to a gain of 18%. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 17 Aug 2024UK£11.5bUK£10.1bUK£361.0m28.8x31.9x1.1x
Mon, 15 Jul 2024UK£11.6bUK£10.2bUK£385.5m27.3x30.2x1.1x
Wed, 12 Jun 2024UK£11.6bUK£10.2bUK£380.4m29.4x30.4x1.1x
Fri, 10 May 2024UK£10.2bUK£10.2bUK£374.8m28.2x27.1x1x
Sun, 07 Apr 2024UK£10.4bUK£10.4bUK£355.2m28.4x29.1x1x
Tue, 05 Mar 2024UK£10.8bUK£10.8bUK£359.5m25.6x29.9x1x
Thu, 01 Feb 2024UK£11.3bUK£12.8bUK£367.1m25.7x30.8x0.9x
Sat, 30 Dec 2023UK£10.9bUK£12.8bUK£376.7m24.2x29.1x0.9x
Mon, 27 Nov 2023UK£10.4bUK£13.4bUK£388.8m26.7x26.9x0.8x
Wed, 25 Oct 2023UK£10.6bUK£13.4bUK£371.7m25.2x28.6x0.8x
Fri, 22 Sep 2023UK£11.1bUK£13.4bUK£389.2m26.6x28.5x0.8x
Sun, 20 Aug 2023UK£10.6bUK£12.5bUK£407.0m26.2x25.9x0.8x
Tue, 18 Jul 2023UK£11.0bUK£12.5bUK£400.4m26.6x27.4x0.9x
Thu, 15 Jun 2023UK£11.5bUK£12.5bUK£422.6m26.5x27.2x0.9x
Sat, 13 May 2023UK£11.5bUK£12.4bUK£421.5m26.8x27.3x0.9x
Mon, 10 Apr 2023UK£11.5bUK£12.4bUK£422.4m27x27.2x0.9x
Wed, 08 Mar 2023UK£37.0bUK£22.3bUK£2.1b28.3x17.8x1.7x
Fri, 03 Feb 2023UK£38.3bUK£21.9bUK£1.8b28.2x21.2x1.8x
Sun, 01 Jan 2023UK£36.2bUK£21.8bUK£1.8b27.1x20.4x1.7x
Tue, 29 Nov 2022UK£38.8bUK£21.7bUK£1.8b30.4x22x1.8x
Thu, 27 Oct 2022UK£35.4bUK£21.6bUK£1.8b27.5x20.1x1.6x
Sat, 24 Sep 2022UK£32.8bUK£21.7bUK£1.7b26x19.8x1.5x
Mon, 22 Aug 2022UK£33.0bUK£20.6bUK£1.6b28.7x20.2x1.6x
Wed, 20 Jul 2022UK£27.6bUK£20.4bUK£1.8b28.7x15.4x1.3x
Fri, 17 Jun 2022UK£18.7bUK£18.0bUK£804.8m33.1x23.3x1x
Sun, 15 May 2022UK£19.9bUK£17.9bUK£790.1m33.4x25.2x1.1x
Tue, 12 Apr 2022UK£25.5bUK£17.9bUK£782.6m35x32.6x1.4x
Thu, 10 Mar 2022UK£24.9bUK£17.3bUK£773.1m32.3x32.2x1.4x
Sat, 05 Feb 2022UK£27.3bUK£17.2bUK£770.9m36.3x35.4x1.6x
Mon, 03 Jan 2022UK£30.2bUK£15.5bUK£773.0m41.7x39.1x2x
Wed, 01 Dec 2021UK£29.7bUK£15.4bUK£744.5m42.6x39.9x1.9x
Fri, 29 Oct 2021UK£30.4bUK£15.2bUK£729.1m43.8x41.7x2x
Sun, 26 Sep 2021UK£31.4bUK£13.9bUK£703.3m47.7x44.7x2.3x
Tue, 24 Aug 2021UK£31.5bUK£13.9bUK£661.1m46.7x47.6x2.3x
Price to Earnings Ratio

47.6x


Total Market Cap: UK£31.5bTotal Earnings: UK£661.1mTotal Revenue: UK£13.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. IT Industry Price to Earnings3Y Average 36.9x202220232024
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 31.9x which is lower than its 3-year average PE of 36.9x.
  • The 3-year average PS ratio of 1.8x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 18% per year over the last three years,
  • Revenues have also declined 9.9% 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 Market1.65%
Tech1.59%
IT3.15%
IT Consulting3.18%
Internet Services and Infrastructure2.65%
Data Processing Services-2.30%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 31.0x.
    • Analysts are expecting annual earnings growth of 15.4%, which is higher than its past year's earnings growth of 8.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 53% over the next 5 years.
  • This is better than its past earnings decline of 3.2% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 15% 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£16.374.9%
+UK£151.4m		14.8%PE28.8x
CCC ComputacenterUK£26.763.7%
+UK£98.5m		32.1%PE15.1x
NCC NCC GroupUK£1.585.6%
+UK£26.3m		60.8%PS1.5x
KNOS Kainos GroupUK£10.701.7%
+UK£22.7m		-11.1%PE27.6x
FDM FDM Group (Holdings)UK£4.333.5%
+UK£15.8m		-25.1%PE15.5x
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlansLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & Enterprise
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Latest News

RCN

UK£1.38

Redcentric

7D

-1.4%

1Y

10.2%

RCGH

UK£0.019

RC365 Holding

7D

-2.5%

1Y

-97.4%

ECK

UK£0.46

Eckoh

7D

8.3%

1Y

9.6%

SYS

UK£0.34

SysGroup

7D

-1.5%

1Y

8.1%

KNOS

UK£10.70

Kainos Group

7D

1.7%

1Y

-11.1%

FDM

UK£4.33

FDM Group (Holdings)

7D

3.5%

1Y

-25.1%

CCC

UK£26.76

Computacenter

7D

3.7%

1Y

32.1%

NCC

UK£1.58

NCC Group

7D

5.6%

1Y

60.8%

SPA

UK£0.67

1Spatial

7D

-2.9%

1Y

32.7%

TRD

UK£2.60

Triad Group

7D

-3.7%

1Y

92.6%

GST

UK£0.0058

GSTechnologies

7D

-1.7%

1Y

-15.9%

BKS

UK£2.38

Beeks Financial Cloud Group

7D

9.7%

1Y

142.9%

Beeks Financial Cloud Group plc (LON:BKS) Looks Just Right With A 25% Price Jump

Jul 24
Beeks Financial Cloud Group plc (LON:BKS) Looks Just Right With A 25% Price Jump

TPX

UK£0.46

TPXimpact Holdings

7D

-3.2%

1Y

22.7%

Investors Still Aren't Entirely Convinced By TPXimpact Holdings plc's (LON:TPX) Revenues Despite 29% Price Jump

Jul 19
Investors Still Aren't Entirely Convinced By TPXimpact Holdings plc's (LON:TPX) Revenues Despite 29% Price Jump

ING

UK£1.12

Ingenta

7D

-1.8%

1Y

-8.2%

SCT

UK£16.37

Softcat

7D

4.9%

1Y

14.8%

A Look At The Intrinsic Value Of Softcat plc (LON:SCT)

Jul 13
A Look At The Intrinsic Value Of Softcat plc (LON:SCT)

CLBS

UK£2.98

Celebrus Technologies

7D

7.4%

1Y

56.8%

Celebrus Technologies (LON:CLBS) Is Increasing Its Dividend To £0.0223

Jul 12
Celebrus Technologies (LON:CLBS) Is Increasing Its Dividend To £0.0223