Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Software Industry Analysis

UpdatedApr 08, 2026
DataAggregated Company Financials
Companies50
  • 7D2.0%
  • 3M-19.9%
  • 1Y-22.5%
  • YTD-18.0%

In the last week, the Software industry is up 2.0%, with Cerillion leading the way with a 8.4% gain. During this same period, the Skillcast Group underperformed, falling 5.2%. However, the industry is down 22% over the past year. Looking forward, earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 09 Apr 2026UK£12.3bUK£4.5bUK£435.8m27.3x28.3x2.7x
Sat, 07 Mar 2026UK£12.8bUK£4.5bUK£433.1m30.2x29.6x2.9x
Mon, 02 Feb 2026UK£14.8bUK£4.5bUK£430.0m33.7x34.4x3.3x
Wed, 31 Dec 2025UK£15.7bUK£4.5bUK£422.0m32.1x37.2x3.5x
Fri, 28 Nov 2025UK£15.8bUK£4.5bUK£448.8m29.8x35.1x3.5x
Sun, 26 Oct 2025UK£16.7bUK£4.4bUK£435.5m31.2x38.4x3.8x
Tue, 23 Sep 2025UK£16.3bUK£4.4bUK£439.5m33.1x37.1x3.7x
Thu, 21 Aug 2025UK£16.3bUK£4.4bUK£437.3m36x37.3x3.7x
Sat, 19 Jul 2025UK£18.2bUK£4.5bUK£397.4m35.2x45.8x4.1x
Mon, 16 Jun 2025UK£18.8bUK£4.7bUK£405.7m34.5x46.4x4x
Wed, 14 May 2025UK£19.2bUK£4.7bUK£374.2m33.1x51.4x4x
Fri, 11 Apr 2025UK£16.9bUK£4.8bUK£372.1m27x45.4x3.5x
Sun, 09 Mar 2025UK£18.4bUK£4.8bUK£312.9m31.6x58.8x3.9x
Tue, 04 Feb 2025UK£20.0bUK£4.8bUK£306.2m31.2x65.4x4.2x
Thu, 02 Jan 2025UK£19.5bUK£4.8bUK£303.3m33.9x64.3x4.1x
Sat, 30 Nov 2024UK£20.0bUK£4.8bUK£322.6m35.4x62.1x4.2x
Mon, 28 Oct 2024UK£16.7bUK£4.7bUK£208.7m33.2x80.2x3.6x
Wed, 25 Sep 2024UK£20.6bUK£5.1bUK£277.8m37.4x74.3x4x
Fri, 23 Aug 2024UK£21.1bUK£5.2bUK£245.4m37.8x85.8x4x
Sun, 21 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.1x84.1x4.1x
Tue, 18 Jun 2024UK£21.7bUK£5.3bUK£264.3m42.3x81.9x4.1x
Thu, 16 May 2024UK£22.9bUK£5.2bUK£108.3m38x211.7x4.4x
Sat, 13 Apr 2024UK£21.2bUK£5.2bUK£89.4m38x237.1x4.1x
Mon, 11 Mar 2024UK£21.5bUK£5.2bUK£102.0m34.7x210.4x4.1x
Wed, 07 Feb 2024UK£20.7bUK£5.2bUK£65.8m37.1x315.1x4x
Fri, 05 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592x4.1x
Sun, 03 Dec 2023UK£41.8bUK£10.1bUK£72.2m33.1x579.3x4.1x
Tue, 31 Oct 2023UK£39.3bUK£10.1bUK£126.7m32.7x310.5x3.9x
Thu, 28 Sep 2023UK£40.6bUK£10.1bUK£130.9m37.7x310.3x4x
Sat, 26 Aug 2023UK£39.6bUK£10.0bUK£100.9m33.8x392.7x4x
Mon, 24 Jul 2023UK£41.6bUK£10.6bUK£128.3m35.2x324.4x3.9x
Wed, 21 Jun 2023UK£41.1bUK£10.6bUK£129.3m37.9x318.1x3.9x
Fri, 19 May 2023UK£40.2bUK£10.9bUK£60.3m35.3x667.5x3.7x
Sun, 16 Apr 2023UK£39.5bUK£10.6bUK£290.3m37.6x136.2x3.7x
Price to Earnings Ratio

136.2x


Total Market Cap: UK£39.5bTotal Earnings: UK£290.3mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 173.8x202420252026
Current Industry PE
  • Investors are pessimistic on the British Software 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 28.3x which is lower than its 3-year average PE of 174x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 14% per year over the last three years.
  • Meanwhile revenues for these companies have declined 25% 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 industry?

GB Market1.65%
Tech1.31%
Software1.96%
Application Software1.99%
Systems Software-1.35%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 52.4x.
    • Analysts are expecting annual earnings growth of 15.4%, which is higher than its past year's earnings growth of 8.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 92% over the next 5 years.
  • In contrast, the Application Software 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
CER CerillionUK£14.258.4%
+UK£32.5m		8.0%PE25.3x
BYIT Bytes Technology GroupUK£2.944.3%
+UK£28.8m		-33.8%PE13x
ALFA Alfa Financial Software HoldingsUK£1.555.6%
+UK£24.3m		-20.6%PE15.3x
GBG GB GroupUK£2.113.3%
+UK£15.5m		-11.8%PE54.3x
AOM ActiveOpsUK£2.007.5%
+UK£10.0m		143.3%PS3.9x

Latest News

APTD
UK£2.29
Aptitude Software Group
7D
7.5%
1Y
-10.9%
ELCO
UK£1.18
Eleco
7D
9.3%
1Y
4.4%
SKL
UK£0.51
Skillcast Group
7D
-5.2%
1Y
44.3%
CRTA
UK£0.13
Cirata
7D
-9.9%
1Y
-27.7%
GBG
UK£2.11
GB Group
7D
3.3%
1Y
-11.8%

GBG: Slightly Improved Assumptions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £X.X, reflecting small adjustments to assumptions around the discount rate, revenue growth, profit margins and future P/E, while keeping estimated fair value broadly unchanged at £4.50. Valuation Changes Fair Value: kept unchanged at £4.50, indicating no shift in the central valuation anchor.
SGE
UK£8.55
Sage Group
7D
0.1%
1Y
-22.4%

SGE: Mixed Research Views And Partnerships Will Shape Future Upside Potential

Analysts have reduced Sage Group's fair value estimate from £9.50 to £9.00. This reflects recent price target revisions from £14.00 to £11.50, along with mixed updates that balance slightly adjusted growth, margin and future P/E assumptions.
BYIT
UK£2.94
Bytes Technology Group
7D
4.3%
1Y
-33.8%

BYIT: Capital Light Cash Generation Will Underpin Extended Recovery Story

Analysts have reduced their fair value estimate for Bytes Technology Group from £6.38 to £4.70. This reflects a lower assumed future P/E and softer projected revenue growth, along with the view that the company’s recovery timeline is taking longer than previously expected.
CER
UK£14.25
Cerillion
7D
8.4%
1Y
8.0%
QTX
UK£2.25
Quartix Technologies
7D
-0.4%
1Y
7.1%

QTX: Shares Will Rise As Dividend Simplification And Audit Progress Support Upside

Analysts have nudged their price target on Quartix Technologies slightly higher to £3.60. The change reflects updated assumptions for discount rates, revenue growth, profit margins and a modestly higher future P/E multiple.
AOM
UK£2.00
ActiveOps
7D
7.5%
1Y
143.3%

AOM: Stable Assumptions Will Support Future Upside To £100 Million ARR

Analysts have kept their fair value estimate for ActiveOps steady at £3.17, with only marginal tweaks to the discount rate, revenue growth, profit margin and future P/E assumptions supporting a largely unchanged price target outlook. Valuation Changes Fair Value: Held steady at £3.17, with no change to the headline estimate.
PINE
UK£2.19
Pinewood Technologies Group
7D
2.6%
1Y
-27.0%

PINE: AI Execution And Broken Deal Dislocation Will Drive Future Upside

Analysts have trimmed their fair value estimate for Pinewood Technologies Group, with the implied analyst price target moving from about £7.59 to around £6.54 as they adopt a lower comparator-based multiple, while still describing material upside potential following the recent £5.50 target and Buy rating from Jefferies. Analyst Commentary Recent commentary has focused on how the broken deal backdrop and AI concerns intersect with Pinewood Technologies Group’s growth plans and current valuation.
ALFA
UK£1.55
Alfa Financial Software Holdings
7D
5.6%
1Y
-20.6%
BTC
UK£0.023
London BTC
7D
-6.1%
1Y
-85.6%
ADVT
UK£1.65
AdvancedAdvT
7D
0%
1Y
17.9%
SORT
UK£0.14
Sorted Group Holdings
7D
-30.0%
1Y
-40.4%
INT
UK£0.88
IntelliAM AI
7D
-2.8%
1Y
40.0%