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U.K. (FTSE) Software Industry Analysis

UpdatedAug 26, 2025
DataAggregated Company Financials
Companies49
  • 7D0.5%
  • 3M-9.8%
  • 1Y1.9%
  • YTD-11.5%

The Software industry has been flat over the last week, but Cerillion has lost 3.4%. Furthermore, the industry has been flat for the past year as well. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 26 Aug 2025UK£16.2bUK£4.4bUK£437.4m37.3x37.1x3.7x
Thu, 24 Jul 2025UK£17.6bUK£4.4bUK£424.1m35.1x41.5x4x
Sat, 21 Jun 2025UK£18.7bUK£4.7bUK£401.5m36.5x46.6x4x
Mon, 19 May 2025UK£18.9bUK£4.9bUK£401.3m33.5x47x3.9x
Wed, 16 Apr 2025UK£17.5bUK£4.8bUK£373.1m26.8x46.8x3.7x
Fri, 14 Mar 2025UK£17.8bUK£4.8bUK£312.9m30.7x57x3.7x
Sun, 09 Feb 2025UK£19.8bUK£4.8bUK£306.3m32.9x64.5x4.1x
Tue, 07 Jan 2025UK£19.7bUK£4.8bUK£305.5m31.3x64.5x4.1x
Thu, 05 Dec 2024UK£20.0bUK£4.8bUK£320.4m36.1x62.3x4.2x
Sat, 02 Nov 2024UK£16.7bUK£4.7bUK£207.3m35.6x80.6x3.6x
Mon, 30 Sep 2024UK£20.7bUK£5.1bUK£286.0m34.4x72.4x4.1x
Wed, 28 Aug 2024UK£21.0bUK£5.2bUK£245.3m38.3x85.5x4x
Fri, 26 Jul 2024UK£21.5bUK£5.3bUK£260.0m40x82.9x4.1x
Sun, 23 Jun 2024UK£22.0bUK£5.3bUK£267.0m40.7x82.4x4.1x
Tue, 21 May 2024UK£21.9bUK£5.3bUK£164.2m38.2x133.5x4.1x
Thu, 18 Apr 2024UK£20.6bUK£5.2bUK£91.3m37.9x225.8x3.9x
Sat, 16 Mar 2024UK£21.7bUK£5.2bUK£69.4m35.9x313.4x4.2x
Mon, 12 Feb 2024UK£21.2bUK£5.2bUK£65.8m37.3x321.9x4.1x
Wed, 10 Jan 2024UK£42.0bUK£10.1bUK£71.1m37.3x590.2x4.1x
Fri, 08 Dec 2023UK£41.8bUK£10.2bUK£72.0m33.3x580.3x4.1x
Sun, 05 Nov 2023UK£39.6bUK£10.1bUK£125.9m32.7x314.3x3.9x
Tue, 03 Oct 2023UK£40.4bUK£10.1bUK£128.7m34.3x313.9x4x
Thu, 31 Aug 2023UK£40.1bUK£10.0bUK£101.5m33.8x395x4x
Sat, 29 Jul 2023UK£40.7bUK£10.6bUK£125.8m35.2x323.7x3.9x
Mon, 26 Jun 2023UK£40.9bUK£10.6bUK£126.4m38.8x323.2x3.9x
Wed, 24 May 2023UK£40.5bUK£10.9bUK£60.2m35.7x673x3.7x
Fri, 21 Apr 2023UK£39.7bUK£10.6bUK£293.4m37.6x135.2x3.7x
Sun, 19 Mar 2023UK£39.0bUK£10.4bUK£300.1m32.1x130x3.7x
Tue, 14 Feb 2023UK£39.6bUK£10.3bUK£296.4m34.7x133.7x3.8x
Thu, 12 Jan 2023UK£39.5bUK£10.3bUK£298.3m32.7x132.5x3.8x
Sat, 10 Dec 2022UK£39.2bUK£10.3bUK£317.1m34.4x123.6x3.8x
Mon, 07 Nov 2022UK£38.2bUK£10.3bUK£339.6m42.1x112.5x3.7x
Wed, 05 Oct 2022UK£38.7bUK£10.2bUK£343.4m35.2x112.7x3.8x
Fri, 02 Sep 2022UK£38.6bUK£9.8bUK£215.1m47.8x179.5x3.9x
Price to Earnings Ratio

179.5x


Total Market Cap: UK£38.6bTotal Earnings: UK£215.1mTotal Revenue: UK£9.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 198.3x202320242025
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 198x.
  • The industry is trading close to its 3-year average PS ratio of 4.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 27% 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 Market0.74%
Tech1.15%
Software0.53%
Application Software0.55%
Systems Software-1.42%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 191x.
    • Analysts expect its future annual earnings growth (15.5%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 16% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings decline by 17% 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£11.010.5%
+UK£47.4m		10.5%PE30.1x
BYIT Bytes Technology GroupUK£4.034.7%
+UK£43.4m		-15.3%PE17.8x
ALFA Alfa Financial Software HoldingsUK£2.252.5%
+UK£16.3m		14.4%PE26x
APTD Aptitude Software GroupUK£2.835.6%
+UK£8.4m		-17.3%PE36.3x
AOM ActiveOpsUK£1.746.1%
+UK£7.1m		25.6%PE112.5x

Latest News

BYIT
UK£4.03
Bytes Technology Group
7D
4.7%
1Y
-15.3%
ALFA
UK£2.25
Alfa Financial Software Holdings
7D
2.5%
1Y
14.4%
GBG
UK£2.18
GB Group
7D
-0.5%
1Y
-35.3%
PEB
UK£0.17
Pebble Beach Systems Group
7D
13.3%
1Y
38.8%
QTX
UK£2.66
Quartix Technologies
7D
-3.6%
1Y
45.8%
SGE
UK£11.01
Sage Group
7D
0.5%
1Y
10.5%

The Sage Group plc's (LON:SGE) Price In Tune With Earnings

Aug 20
The Sage Group plc's (LON:SGE) Price In Tune With Earnings
ARB
UK£0.018
Argo Blockchain
7D
-21.7%
1Y
-82.0%

Lacklustre Performance Is Driving Argo Blockchain plc's (LON:ARB) 37% Price Drop

Aug 17
Lacklustre Performance Is Driving Argo Blockchain plc's (LON:ARB) 37% Price Drop
APTD
UK£2.83
Aptitude Software Group
7D
5.6%
1Y
-17.3%
PINE
UK£5.22
Pinewood Technologies Group
7D
-1.5%
1Y
49.1%
NET
UK£1.21
Netcall
7D
1.3%
1Y
33.0%
ADVT
UK£2.00
AdvancedAdvT
7D
-2.4%
1Y
53.8%
RM.
UK£1.00
RM
7D
-4.8%
1Y
22.3%
SAAS
UK£1.28
Microlise Group
7D
4.1%
1Y
-1.2%

Even With A 28% Surge, Cautious Investors Are Not Rewarding Microlise Group plc's (LON:SAAS) Performance Completely

Jul 17
Even With A 28% Surge, Cautious Investors Are Not Rewarding Microlise Group plc's (LON:SAAS) Performance Completely
AOM
UK£1.74
ActiveOps
7D
6.1%
1Y
25.6%
IDOX
UK£0.59
IDOX
7D
-1.3%
1Y
-2.6%
CER
UK£14.15
Cerillion
7D
-3.4%
1Y
-25.9%