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

U.K. (FTSE) Software Industry Analysis

UpdatedDec 15, 2025
DataAggregated Company Financials
Companies49
  • 7D0.4%
  • 3M-2.9%
  • 1Y-16.3%
  • YTD-15.0%

Last week, the Software industry hasn't moved much but Skillcast Group is up 11% in that time. As for the longer term, the industry has declined 17% in the last year. 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
Mon, 15 Dec 2025UK£15.6bUK£4.5bUK£421.8m33.3x36.9x3.5x
Wed, 12 Nov 2025UK£16.3bUK£4.4bUK£430.6m35.2x37.8x3.7x
Fri, 10 Oct 2025UK£16.3bUK£4.4bUK£437.6m30.8x37.2x3.7x
Sun, 07 Sep 2025UK£16.2bUK£4.4bUK£438.6m37.6x36.9x3.7x
Tue, 05 Aug 2025UK£17.0bUK£4.4bUK£430.3m34.4x39.6x3.9x
Thu, 03 Jul 2025UK£17.8bUK£4.7bUK£392.0m37.1x45.4x3.8x
Sat, 31 May 2025UK£18.6bUK£4.8bUK£400.7m32.5x46.4x3.8x
Mon, 28 Apr 2025UK£17.7bUK£4.8bUK£371.8m30.3x47.5x3.7x
Wed, 26 Mar 2025UK£18.1bUK£4.8bUK£367.9m30.1x49.2x3.8x
Fri, 21 Feb 2025UK£19.5bUK£4.8bUK£307.1m32x63.6x4.1x
Sun, 19 Jan 2025UK£19.7bUK£4.8bUK£304.1m28.7x64.8x4.1x
Tue, 17 Dec 2024UK£19.8bUK£4.8bUK£320.3m37x61.8x4.2x
Thu, 14 Nov 2024UK£17.6bUK£4.7bUK£210.6m35.6x83.4x3.8x
Sat, 12 Oct 2024UK£16.7bUK£4.7bUK£204.0m32.8x81.7x3.6x
Mon, 09 Sep 2024UK£20.5bUK£5.2bUK£276.6m36.8x74.3x4x
Wed, 07 Aug 2024UK£21.0bUK£5.3bUK£256.5m37.8x82x4x
Fri, 05 Jul 2024UK£22.0bUK£5.3bUK£261.6m39.1x84x4.1x
Sun, 02 Jun 2024UK£21.4bUK£5.3bUK£163.1m38.4x131.2x4.1x
Tue, 30 Apr 2024UK£22.1bUK£5.2bUK£89.3m39.6x247.1x4.2x
Thu, 28 Mar 2024UK£21.8bUK£5.2bUK£73.5m37.5x296.8x4.2x
Sat, 24 Feb 2024UK£21.0bUK£5.2bUK£66.0m35.8x318.5x4.1x
Mon, 22 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592.6x4.2x
Wed, 20 Dec 2023UK£42.4bUK£10.1bUK£72.2m36.1x587x4.2x
Fri, 17 Nov 2023UK£39.9bUK£10.1bUK£127.5m32.9x312.8x4x
Sun, 15 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.8x4x
Tue, 12 Sep 2023UK£41.0bUK£10.0bUK£143.1m34.5x286.5x4.1x
Thu, 10 Aug 2023UK£40.0bUK£10.0bUK£94.2m35.8x424.5x4x
Sat, 08 Jul 2023UK£40.6bUK£10.6bUK£129.0m35.7x314.7x3.8x
Mon, 05 Jun 2023UK£40.8bUK£10.6bUK£39.2m36.6x1041.1x3.9x
Wed, 03 May 2023UK£40.0bUK£10.7bUK£110.0m36.4x364x3.7x
Fri, 31 Mar 2023UK£39.4bUK£10.6bUK£293.5m33.1x134.1x3.7x
Sun, 26 Feb 2023UK£39.4bUK£10.3bUK£297.6m34.7x132.5x3.8x
Tue, 24 Jan 2023UK£39.2bUK£10.3bUK£301.7m33x130x3.8x
Thu, 22 Dec 2022UK£39.0bUK£10.4bUK£297.6m34x131.1x3.8x
Price to Earnings Ratio

131.1x


Total Market Cap: UK£39.0bTotal Earnings: UK£297.6mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 184.2x202320242025
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 36.9x which is lower than its 3-year average PE of 184x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 12% per year over the last three years.
  • Meanwhile revenues for these companies have declined 24% 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 Market-0.0071%
Tech-2.48%
Software0.36%
Application Software0.38%
Systems Software-3.81%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 134x.
    • Analysts are expecting annual earnings growth of 15.8%, which is higher than its past year's earnings growth of 7.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 58% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 16% 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
SKL Skillcast GroupUK£0.6810.7%
+UK£5.8m		58.8%PE55.5x
QTX Quartix TechnologiesUK£2.804.5%
+UK£5.8m		69.7%PE25.8x
NET NetcallUK£1.132.7%
+UK£5.0m		10.2%PE46.6x
OMG Oxford MetricsUK£0.479.2%
+UK£4.5m		-19.5%PS1.2x
DOTD dotdigital GroupUK£0.651.9%
+UK£3.7m		-25.1%PE18x

Latest News

DOTD
UK£0.65
dotdigital Group
7D
1.9%
1Y
-25.1%
OMG
UK£0.47
Oxford Metrics
7D
9.2%
1Y
-19.5%
TRCS
UK£3.04
Tracsis
7D
-9.3%
1Y
-43.2%

TRCS: Future M&A Resumption And Progressive Dividend Policy Are Expected To Support Upside

Analysts have nudged their price target for Tracsis modestly higher to reflect slightly increased discount rate assumptions and a marginally richer future earnings multiple, while maintaining their view that the stock remains fairly valued around £6.18. What's in the News Management reaffirmed that mergers and acquisitions remain a core pillar of Tracsis's growth strategy, with a disciplined, bolt on pipeline intended to supplement organic expansion and be fully integrated into the unified business structure (Key Developments).
NET
UK£1.13
Netcall
7D
2.7%
1Y
10.2%
QTX
UK£2.80
Quartix Technologies
7D
4.5%
1Y
69.7%

QTX: Shares Will Benefit From Confident 2025 And 2026 Earnings Guidance

Analysts have nudged their price target on Quartix Technologies slightly higher to reflect incremental improvements in long term growth and profitability expectations, while noting only marginal changes in discount rate and valuation multiples. What's in the News Issued new earnings guidance for 2025 and 2026, indicating expectations to slightly exceed the most recently updated market estimates for full-year revenue and profit (company guidance) Valuation Changes The fair value estimate remains unchanged at 3.6, indicating no revision to the intrinsic value assessment.
SAAS
UK£0.96
Microlise Group
7D
-2.5%
1Y
-5.9%

SAAS: Rising Dividend And Earnings Outlook Will Drive Strong Future Returns

Narrative Update Analysts have trimmed their price target on Microlise Group from approximately £1.68 to £1.52, reflecting slightly higher discount rates, more conservative expectations for revenue growth and profit margins, and a higher projected future P/E multiple. Together, these factors point to a more cautious valuation outlook.
GBG
UK£2.50
GB Group
7D
0.4%
1Y
-30.0%
CER
UK£12.65
Cerillion
7D
-1.9%
1Y
-33.9%

Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)

Dec 01
Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)
BIRD
UK£0.029
Blackbird
7D
11.5%
1Y
-40.5%
TAP
UK£0.021
Tap Global Group
7D
-12.2%
1Y
2.4%
CNS
UK£0.093
Corero Network Security
7D
-4.6%
1Y
-55.1%
RM.
UK£1.11
RM
7D
2.8%
1Y
12.1%
PINE
UK£3.64
Pinewood Technologies Group
7D
-1.8%
1Y
6.1%
BYIT
UK£3.47
Bytes Technology Group
7D
-0.4%
1Y
-21.2%
ACSO
UK£3.39
accesso Technology Group
7D
-5.8%
1Y
-40.9%
SKL
UK£0.68
Skillcast Group
7D
10.7%
1Y
58.8%