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

U.K. (FTSE) Software Industry Analysis

UpdatedDec 27, 2025
DataAggregated Company Financials
Companies49
  • 7D-0.2%
  • 3M-1.8%
  • 1Y-15.0%
  • YTD-14.7%

The Software is pretty flat in the last 7 days, but IDOX has stood out, gaining 6.2%. Unfortunately though, the industry is down 15% over the past 12 months. 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
Sat, 27 Dec 2025UK£15.7bUK£4.5bUK£422.0m33x37.1x3.5x
Mon, 24 Nov 2025UK£15.6bUK£4.5bUK£446.3m29.8x35x3.5x
Wed, 22 Oct 2025UK£16.3bUK£4.4bUK£436.3m30.2x37.4x3.7x
Fri, 19 Sep 2025UK£16.4bUK£4.4bUK£439.0m30.6x37.4x3.8x
Sun, 17 Aug 2025UK£16.1bUK£4.4bUK£435.0m35.2x37x3.7x
Tue, 15 Jul 2025UK£18.0bUK£4.5bUK£394.2m35.9x45.7x4x
Thu, 12 Jun 2025UK£19.0bUK£4.7bUK£404.6m34.9x46.9x4.1x
Sat, 10 May 2025UK£19.1bUK£4.7bUK£374.2m32.6x51.1x4x
Mon, 07 Apr 2025UK£17.4bUK£4.8bUK£373.3m27.1x46.6x3.7x
Wed, 05 Mar 2025UK£18.7bUK£4.8bUK£312.9m31.9x59.7x3.9x
Fri, 31 Jan 2025UK£19.8bUK£4.8bUK£305.7m30.6x64.8x4.1x
Sun, 29 Dec 2024UK£19.6bUK£4.8bUK£303.5m34.3x64.7x4.1x
Tue, 26 Nov 2024UK£19.8bUK£4.8bUK£324.2m35.3x61.1x4.1x
Thu, 24 Oct 2024UK£16.9bUK£4.7bUK£208.6m34.4x80.8x3.6x
Sat, 21 Sep 2024UK£20.9bUK£5.2bUK£277.7m37.3x75.2x4.1x
Mon, 19 Aug 2024UK£21.1bUK£5.2bUK£258.0m37.6x81.7x4x
Wed, 17 Jul 2024UK£21.6bUK£5.3bUK£259.7m38x83x4.1x
Fri, 14 Jun 2024UK£21.7bUK£5.3bUK£265.4m40.3x81.9x4.1x
Sun, 12 May 2024UK£22.8bUK£5.2bUK£107.4m38.2x212.8x4.4x
Tue, 09 Apr 2024UK£21.4bUK£5.2bUK£74.6m38.3x286.5x4.1x
Thu, 07 Mar 2024UK£21.3bUK£5.2bUK£60.3m36.4x352.6x4.1x
Sat, 03 Feb 2024UK£42.4bUK£10.2bUK£70.7m37.1x599.8x4.2x
Mon, 01 Jan 2024UK£42.5bUK£10.1bUK£71.1m36.6x597.5x4.2x
Wed, 29 Nov 2023UK£41.4bUK£10.2bUK£137.2m32x301.5x4.1x
Fri, 27 Oct 2023UK£39.1bUK£10.1bUK£126.6m31.6x309x3.9x
Sun, 24 Sep 2023UK£41.0bUK£10.1bUK£131.8m33x310.8x4.1x
Tue, 22 Aug 2023UK£39.5bUK£10.0bUK£100.9m33.1x391.8x4x
Thu, 20 Jul 2023UK£41.9bUK£10.6bUK£128.4m35.1x326.2x4x
Sat, 17 Jun 2023UK£41.3bUK£10.5bUK£129.5m37.5x319x3.9x
Mon, 15 May 2023UK£39.9bUK£10.7bUK£110.1m36x362.5x3.7x
Wed, 12 Apr 2023UK£39.3bUK£10.6bUK£289.7m37.6x135.5x3.7x
Fri, 10 Mar 2023UK£39.8bUK£10.4bUK£298.9m33.2x133.3x3.8x
Sun, 05 Feb 2023UK£40.1bUK£10.3bUK£296.6m34x135.1x3.9x
Tue, 03 Jan 2023UK£38.9bUK£10.4bUK£296.1m34.2x131.4x3.8x
Price to Earnings Ratio

131.4x


Total Market Cap: UK£38.9bTotal Earnings: UK£296.1mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 183.2x20242025
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 37.1x which is lower than its 3-year average PE of 183x.
  • 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 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-0.14%
Tech-0.43%
Software-0.18%
Systems Software1.70%
Application Software-0.19%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 127x.
    • 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
IDOX IDOXUK£0.696.2%
+UK£18.5m		11.3%PE51.1x
GBG GB GroupUK£2.571.2%
+UK£7.1m		-25.3%PE67.2x
DOTD dotdigital GroupUK£0.673.4%
+UK£6.4m		-23.0%PE18.3x
PINE Pinewood Technologies GroupUK£3.561.6%
+UK£6.3m		2.6%PE65.8x
TRCS TracsisUK£3.134.2%
+UK£3.7m		-38.1%PE178.8x

Latest News

TRCS
UK£3.13
Tracsis
7D
4.2%
1Y
-38.1%

TRCS: Expanded M&A Pipeline Will Drive Long-Term Dividend-Supported Upside

Analysts have trimmed their price target on Tracsis from £9.74 to £7.01, citing a higher implied discount rate and more conservative valuation multiples, even as they modestly increase their long term assumptions for revenue growth and profit margins. What's in the News Tracsis leadership reaffirmed that mergers and acquisitions remain a core pillar of the company’s long term growth strategy, highlighting an active pipeline and a disciplined, bolt on focus after a 3.5 year pause in deal making (Final Results Investor Presentation) Management stated that all future acquisitions will be fully integrated into a single Tracsis operating model, aiming to use M&A to supplement and support organic growth across the business (Final Results Investor Presentation) The Board recommended a final dividend of 1.4 pence per share for the year ended 31 July 2025, bringing the total dividend to 2.6 pence per share, in line with its progressive dividend policy, subject to shareholder approval (Company announcement) Valuation Changes The fair value estimate narrowed from £9.74 to £7.01, falling significantly to reflect a more conservative valuation framework.
CER
UK£12.00
Cerillion
7D
-0.8%
1Y
-32.2%

Cerillion (LON:CER) Is Increasing Its Dividend To £0.106

Dec 24
Cerillion (LON:CER) Is Increasing Its Dividend To £0.106
PINE
UK£3.56
Pinewood Technologies Group
7D
1.6%
1Y
2.6%
SGE
UK£10.80
Sage Group
7D
-0.5%
1Y
-16.4%

SGE: Cloud Transition And Buybacks Will Support Durable Long Term Upside

Analysts now set a modestly higher fair value for Sage Group at approximately £16.20 per share, up from about £16.00. This reflects confidence in its durable growth model and recent earnings delivery, even as they factor in slightly slower revenue growth and margin expectations.
DOTD
UK£0.67
dotdigital Group
7D
3.4%
1Y
-23.0%
ALFA
UK£2.12
Alfa Financial Software Holdings
7D
-2.1%
1Y
-1.4%
AOM
UK£2.25
ActiveOps
7D
-1.3%
1Y
106.4%

AOM: Scalable Model Will Drive Margin Expansion Toward Ambitious Recurring Revenue Goal

Analysts have modestly raised their price target on ActiveOps, lifting fair value from £3.12 to £3.17 as they balance slightly higher discount rates and slower expected revenue growth against improving profit margin forecasts and a more reasonable future earnings multiple. What's in the News ActiveOps held an Analyst and Investor Day to demonstrate how its Decision Intelligence platform is reshaping service operations management and to highlight its strategy for deepening enterprise relationships and expanding through partners, alongside accelerated R and D investment and a scalable, profit focused operating model (Key Developments).
OMG
UK£0.48
Oxford Metrics
7D
5.4%
1Y
-11.1%
GBG
UK£2.57
GB Group
7D
1.2%
1Y
-25.3%
ADVT
UK£1.70
AdvancedAdvT
7D
-2.9%
1Y
13.3%
IGP
UK£1.23
Intercede Group
7D
-3.5%
1Y
-26.6%
IDOX
UK£0.69
IDOX
7D
6.2%
1Y
11.3%
RM.
UK£1.13
RM
7D
1.8%
1Y
9.2%
BYIT
UK£3.63
Bytes Technology Group
7D
0.2%
1Y
-14.2%
ACSO
UK£3.31
accesso Technology Group
7D
-4.1%
1Y
-37.5%
SKL
UK£0.71
Skillcast Group
7D
-2.7%
1Y
70.2%