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U.K. (FTSE) Software Industry Analysis

UpdatedFeb 28, 2026
DataAggregated Company Financials
Companies49
  • 7D-0.04%
  • 3M-18.3%
  • 1Y-28.8%
  • YTD-15.9%

The Software industry has been flat over the last week, but Pinewood Technologies Group has lost 6.9%. As for the longer term, the industry has declined 29% in the last year. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 28 Feb 2026UK£12.7bUK£4.5bUK£432.0m30.6x29.5x2.8x
Mon, 26 Jan 2026UK£15.3bUK£4.5bUK£430.7m33x35.5x3.4x
Wed, 24 Dec 2025UK£15.7bUK£4.5bUK£422.0m32.8x37.2x3.5x
Fri, 21 Nov 2025UK£16.3bUK£4.5bUK£446.2m31.2x36.5x3.6x
Sun, 19 Oct 2025UK£16.2bUK£4.4bUK£436.4m30.1x37.2x3.7x
Tue, 16 Sep 2025UK£16.0bUK£4.4bUK£440.3m37.6x36.4x3.7x
Thu, 14 Aug 2025UK£16.1bUK£4.4bUK£435.1m35.3x37x3.7x
Sat, 12 Jul 2025UK£17.9bUK£4.5bUK£395.1m35.9x45.4x4x
Mon, 09 Jun 2025UK£19.0bUK£4.7bUK£404.2m34.7x47x4.1x
Wed, 07 May 2025UK£18.7bUK£4.7bUK£374.3m30.7x49.9x3.9x
Fri, 04 Apr 2025UK£17.9bUK£4.8bUK£373.8m27.6x47.8x3.8x
Sun, 02 Mar 2025UK£18.9bUK£4.8bUK£306.8m32.2x61.5x3.9x
Tue, 28 Jan 2025UK£19.8bUK£4.8bUK£306.0m30.3x64.8x4.1x
Thu, 26 Dec 2024UK£19.7bUK£4.8bUK£303.4m34.2x64.8x4.1x
Sat, 23 Nov 2024UK£19.7bUK£4.8bUK£324.1m35.8x60.9x4.1x
Mon, 21 Oct 2024UK£17.1bUK£4.7bUK£209.0m33x81.7x3.7x
Wed, 18 Sep 2024UK£20.9bUK£5.2bUK£277.9m36.3x75.1x4x
Fri, 16 Aug 2024UK£21.3bUK£5.3bUK£258.1m37.9x82.4x4x
Sun, 14 Jul 2024UK£21.6bUK£5.3bUK£259.7m38.9x83.1x4.1x
Tue, 11 Jun 2024UK£21.8bUK£5.3bUK£140.4m40.7x155.1x4.1x
Thu, 09 May 2024UK£22.8bUK£5.3bUK£107.5m37.5x211.7x4.3x
Sat, 06 Apr 2024UK£21.6bUK£5.2bUK£84.7m37.9x255.3x4.1x
Mon, 04 Mar 2024UK£21.4bUK£5.2bUK£66.0m36.4x324.1x4.2x
Wed, 31 Jan 2024UK£42.9bUK£10.2bUK£70.8m38.7x606.4x4.2x
Fri, 29 Dec 2023UK£42.6bUK£10.1bUK£72.2m36.6x589.9x4.2x
Sun, 26 Nov 2023UK£41.1bUK£10.2bUK£137.2m32.2x300x4x
Tue, 24 Oct 2023UK£39.2bUK£10.1bUK£130.0m30.9x301.5x3.9x
Thu, 21 Sep 2023UK£41.0bUK£10.0bUK£132.7m37.8x309x4.1x
Sat, 19 Aug 2023UK£39.5bUK£10.0bUK£100.9m33x391.8x4x
Mon, 17 Jul 2023UK£40.9bUK£10.5bUK£128.8m35.5x317.6x3.9x
Wed, 14 Jun 2023UK£41.0bUK£10.5bUK£252.1m37.7x162.5x3.9x
Fri, 12 May 2023UK£40.0bUK£10.7bUK£110.0m36.6x363.5x3.7x
Sun, 09 Apr 2023UK£39.2bUK£10.6bUK£289.6m37x135.4x3.7x
Tue, 07 Mar 2023UK£39.9bUK£10.3bUK£300.9m35.7x132.5x3.9x
Price to Earnings Ratio

132.5x


Total Market Cap: UK£39.9bTotal Earnings: UK£300.9mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 177.6x202420252026
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 29.5x which is lower than its 3-year average PE of 178x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 2.8x.
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 Market1.91%
Tech2.78%
Software-0.035%
Application Software-0.027%
Systems Software-1.06%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 83.7x.
    • 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 62% 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
SGE Sage GroupUK£8.220.3%
+UK£24.1m		-35.0%PE20.7x
BYIT Bytes Technology GroupUK£3.032.2%
+UK£15.6m		-27.7%PE13.4x
TRCS TracsisUK£3.7015.6%
+UK£14.9m		4.2%PE211.8x
ALFA Alfa Financial Software HoldingsUK£1.931.6%
+UK£8.9m		-19.4%PE19.3x
GBG GB GroupUK£2.041.8%
+UK£7.6m		-36.5%PE52.7x

Latest News

TRCS
UK£3.70
Tracsis
7D
15.6%
1Y
4.2%
DOTD
UK£0.58
dotdigital Group
7D
-2.7%
1Y
-24.4%
APTD
UK£2.31
Aptitude Software Group
7D
-3.8%
1Y
-26.7%
PULS
UK£0.47
Pulsar Group
7D
3.3%
1Y
0%
PINE
UK£2.92
Pinewood Technologies Group
7D
-6.9%
1Y
-19.5%

AI-Focused Dealership Systems Face Execution Risks Yet May Ultimately Reward Patience

Catalysts About Pinewood Technologies Group Pinewood Technologies Group provides automotive retail software and AI driven tools to dealer groups across multiple regions, including the U.K., Europe, Japan, South Africa and North America. What are the underlying business or industry changes driving this perspective?
SATS
UK£0.002
Satsuma Technology
7D
-18.4%
1Y
-75.0%
SGE
UK£8.22
Sage Group
7D
0.3%
1Y
-35.0%

SGE: Embedded Banking Partnerships Will Support Further Share Price Upside

The analyst price target for Sage Group has been adjusted to £1,250 from £1,350, as analysts refine fair value, discount rate, growth, margin and P/E assumptions in light of recent mixed research that includes both upgrades and a reduced target. Analyst Commentary Recent research on Sage Group reflects a mix of optimism on growth prospects and caution on valuation and execution, which helps explain the adjustment in the consensus price target.
PEB
UK£0.20
Pebble Beach Systems Group
7D
7.9%
1Y
164.5%
GBG
UK£2.04
GB Group
7D
1.8%
1Y
-36.5%
ALFA
UK£1.93
Alfa Financial Software Holdings
7D
1.6%
1Y
-19.4%
OMG
UK£0.50
Oxford Metrics
7D
-10.1%
1Y
-10.7%
ACSO
UK£2.74
accesso Technology Group
7D
-4.2%
1Y
-42.2%
NET
UK£1.14
Netcall
7D
-4.2%
1Y
-0.9%
BGO
UK£0.80
Bango
7D
3.2%
1Y
-9.6%
IGP
UK£1.09
Intercede Group
7D
-9.9%
1Y
-29.4%
BYIT
UK£3.03
Bytes Technology Group
7D
2.2%
1Y
-27.7%