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U.K. (FTSE) Software Industry Analysis

UpdatedJan 25, 2026
DataAggregated Company Financials
Companies49
  • 7D-1.0%
  • 3M-8.3%
  • 1Y-18.1%
  • YTD0.2%

Over the last 7 days, the Software industry has dropped 1.0%, driven by a pullback from Sage Group of 2.4%. On the other hand Cerillion is actually up 7.9%. However, the industry is down 18% 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
Sun, 25 Jan 2026UK£15.3bUK£4.5bUK£430.7m33x35.5x3.4x
Tue, 23 Dec 2025UK£15.8bUK£4.5bUK£422.0m32.9x37.4x3.5x
Thu, 20 Nov 2025UK£15.8bUK£4.4bUK£423.2m30.4x37.2x3.6x
Sat, 18 Oct 2025UK£16.2bUK£4.4bUK£436.4m30.1x37.2x3.7x
Mon, 15 Sep 2025UK£16.1bUK£4.4bUK£439.5m37.6x36.7x3.7x
Wed, 13 Aug 2025UK£16.1bUK£4.3bUK£430.3m35.7x37.4x3.7x
Fri, 11 Jul 2025UK£17.9bUK£4.5bUK£395.1m35.9x45.4x4x
Sun, 08 Jun 2025UK£19.0bUK£4.7bUK£404.2m34.7x47x4.1x
Tue, 06 May 2025UK£18.8bUK£4.8bUK£374.2m31x50.4x4x
Thu, 03 Apr 2025UK£18.2bUK£4.8bUK£373.6m28.5x48.8x3.8x
Sat, 01 Mar 2025UK£19.0bUK£4.8bUK£306.8m32.2x61.8x4x
Mon, 27 Jan 2025UK£19.8bUK£4.8bUK£306.1m30.2x64.8x4.1x
Wed, 25 Dec 2024UK£19.7bUK£4.8bUK£303.3m34.2x64.9x4.1x
Fri, 22 Nov 2024UK£19.5bUK£4.8bUK£324.3m35x60x4.1x
Sun, 20 Oct 2024UK£17.1bUK£4.7bUK£209.0m33x81.7x3.7x
Tue, 17 Sep 2024UK£20.8bUK£5.2bUK£277.7m36.7x74.9x4x
Thu, 15 Aug 2024UK£21.1bUK£5.3bUK£258.1m38.1x81.9x4x
Sat, 13 Jul 2024UK£21.6bUK£5.3bUK£259.7m38.9x83.1x4.1x
Mon, 10 Jun 2024UK£21.8bUK£5.3bUK£140.4m40.7x155.1x4.1x
Wed, 08 May 2024UK£22.7bUK£5.2bUK£107.4m37.5x211.1x4.3x
Fri, 05 Apr 2024UK£21.6bUK£5.2bUK£84.7m37.8x255.4x4.1x
Sun, 03 Mar 2024UK£21.4bUK£5.2bUK£66.0m36.4x324.1x4.2x
Tue, 30 Jan 2024UK£42.6bUK£10.2bUK£70.9m38.5x601.1x4.2x
Thu, 28 Dec 2023UK£42.6bUK£10.1bUK£72.2m36.5x590.2x4.2x
Sat, 25 Nov 2023UK£41.1bUK£10.2bUK£137.2m32.2x300x4x
Mon, 23 Oct 2023UK£39.2bUK£10.1bUK£130.0m30.9x301.7x3.9x
Wed, 20 Sep 2023UK£40.8bUK£10.0bUK£132.8m37.8x307.4x4.1x
Fri, 18 Aug 2023UK£39.6bUK£10.0bUK£97.8m34.3x404.7x4x
Sun, 16 Jul 2023UK£40.9bUK£10.5bUK£128.8m35.5x317.6x3.9x
Tue, 13 Jun 2023UK£40.8bUK£10.6bUK£251.7m37.4x162.3x3.9x
Thu, 11 May 2023UK£39.9bUK£10.7bUK£109.8m36.8x363.9x3.7x
Sat, 08 Apr 2023UK£39.2bUK£10.6bUK£289.7m37x135.4x3.7x
Mon, 06 Mar 2023UK£39.8bUK£10.3bUK£300.9m35.7x132.3x3.8x
Wed, 01 Feb 2023UK£39.3bUK£10.3bUK£302.0m32.9x130.1x3.8x
Price to Earnings Ratio

130.1x


Total Market Cap: UK£39.3bTotal Earnings: UK£302.0mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 180.7x202420252026
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 35.5x which is lower than its 3-year average PE of 181x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 13% 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-0.42%
Tech-0.64%
Software-1.04%
Systems Software-0.72%
Application Software-1.04%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 108x.
    • Analysts are expecting annual earnings growth of 16.0%, 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 61% 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
CER CerillionUK£16.307.9%
+UK£35.4m		2.8%PE29x
PINE Pinewood Technologies GroupUK£3.787.4%
+UK£29.9m		8.9%PE69.9x
AOM ActiveOpsUK£2.7810.8%
+UK£19.3m		167.3%PS5.4x
ADVT AdvancedAdvTUK£1.805.9%
+UK£13.7m		22.0%PE41.4x
NET NetcallUK£1.245.1%
+UK£10.2m		17.5%PE52.2x

Latest News

TRCS
UK£2.90
Tracsis
7D
-3.3%
1Y
-30.6%

TRCS: M&A Execution And Buyback Programme Will Drive Future Upside

Narrative Update on Tracsis Analysts have nudged their price target on Tracsis slightly higher to reflect modest tweaks to the discount rate and forward P/E assumptions. This has resulted in a small uplift in estimated equity value, without a material change to the underlying fair value calculation.
NET
UK£1.24
Netcall
7D
5.1%
1Y
17.5%
ACSO
UK£2.44
accesso Technology Group
7D
-7.6%
1Y
-49.7%

Little Excitement Around accesso Technology Group plc's (LON:ACSO) Earnings As Shares Take 26% Pounding

Jan 21
Little Excitement Around accesso Technology Group plc's (LON:ACSO) Earnings As Shares Take 26% Pounding
SGE
UK£10.29
Sage Group
7D
-2.4%
1Y
-22.6%

SGE: Durable Model And Capital Returns Will Support Further Share Price Upside

Narrative update on Sage Group The updated analyst price target for Sage Group reflects a modest fair value adjustment to £13.02. Analysts point to recent mixed target changes across £12.50 to £14.25 and differing views on growth, valuation and the durability of its model.
CER
UK£16.30
Cerillion
7D
7.9%
1Y
2.8%

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
AOM
UK£2.78
ActiveOps
7D
10.8%
1Y
167.3%

AOM: Scalable Model Will Support £100 Million ARR And Higher Margins

Analysts have maintained their fair value estimate for ActiveOps at £3.17 per share, making only small adjustments to inputs such as the discount rate and future P/E, which they describe as refinements rather than a change in view. What's in the News ActiveOps is holding an analyst and investor day focused on how its Decision Intelligence products are used to manage service operations, with management outlining plans to deepen relationships with enterprise customers across key verticals and expand market presence through partners (Key Developments).
QTX
UK£3.22
Quartix Technologies
7D
3.9%
1Y
81.4%

The Price Is Right For Quartix Technologies plc (LON:QTX)

Jan 10
The Price Is Right For Quartix Technologies plc (LON:QTX)
ADVT
UK£1.80
AdvancedAdvT
7D
5.9%
1Y
22.0%
BTC
UK£0.029
London BTC
7D
-13.2%
1Y
-85.0%
IGP
UK£1.21
Intercede Group
7D
7.1%
1Y
-35.6%
DOTD
UK£0.67
dotdigital Group
7D
3.4%
1Y
-17.5%
PINE
UK£3.78
Pinewood Technologies Group
7D
7.4%
1Y
8.9%
GBG
UK£2.39
GB Group
7D
-0.4%
1Y
-29.9%
APTD
UK£2.87
Aptitude Software Group
7D
-3.0%
1Y
-13.8%
BYIT
UK£3.36
Bytes Technology Group
7D
-4.8%
1Y
-23.5%
MBO
UK£0.055
MobilityOne
7D
-29.0%
1Y
175.0%