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U.K. (FTSE) Software Industry Analysis

UpdatedMar 15, 2026
DataAggregated Company Financials
Companies49
  • 7D-2.0%
  • 3M-19.3%
  • 1Y-26.1%
  • YTD-17.0%

Over the last 7 days, the Software industry has dropped 2.0%, driven by a pullback from Alfa Financial Software Holdings of 12%. However, the industry is down 26% over the past 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
Sun, 15 Mar 2026UK£12.5bUK£4.5bUK£431.5m29x29.1x2.8x
Tue, 10 Feb 2026UK£13.3bUK£4.5bUK£429.8m31.6x30.9x3x
Thu, 08 Jan 2026UK£15.7bUK£4.5bUK£430.5m33.2x36.4x3.5x
Sat, 06 Dec 2025UK£15.6bUK£4.5bUK£421.5m33.6x37x3.5x
Mon, 03 Nov 2025UK£16.6bUK£4.4bUK£435.5m31.1x38x3.8x
Wed, 01 Oct 2025UK£16.2bUK£4.4bUK£439.8m30.7x36.8x3.7x
Fri, 29 Aug 2025UK£16.1bUK£4.4bUK£436.5m37.5x36.8x3.7x
Sun, 27 Jul 2025UK£17.7bUK£4.4bUK£424.4m35.1x41.8x4x
Tue, 24 Jun 2025UK£18.9bUK£4.7bUK£402.2m36.7x46.9x4x
Thu, 22 May 2025UK£18.7bUK£4.9bUK£400.6m33.2x46.7x3.9x
Sat, 19 Apr 2025UK£17.4bUK£4.8bUK£373.3m26.9x46.5x3.6x
Mon, 17 Mar 2025UK£17.9bUK£4.8bUK£312.9m30.1x57.3x3.8x
Wed, 12 Feb 2025UK£19.7bUK£4.8bUK£306.3m32.9x64.4x4.1x
Fri, 10 Jan 2025UK£19.6bUK£4.8bUK£304.6m30.7x64.4x4.1x
Sun, 08 Dec 2024UK£20.1bUK£4.8bUK£320.5m36x62.8x4.2x
Tue, 05 Nov 2024UK£16.6bUK£4.7bUK£207.4m35.7x80.2x3.6x
Thu, 03 Oct 2024UK£16.6bUK£4.7bUK£202.2m32.2x82.2x3.6x
Sat, 31 Aug 2024UK£21.0bUK£5.2bUK£267.5m38.5x78.6x4.1x
Mon, 29 Jul 2024UK£21.8bUK£5.3bUK£256.0m40.6x85.2x4.2x
Wed, 26 Jun 2024UK£22.0bUK£5.3bUK£266.9m39.8x82.2x4.1x
Fri, 24 May 2024UK£22.0bUK£5.3bUK£166.2m37.5x132.4x4.2x
Sun, 21 Apr 2024UK£20.8bUK£5.2bUK£91.5m37.9x227x4x
Tue, 19 Mar 2024UK£21.6bUK£5.2bUK£69.4m36.3x311.2x4.2x
Thu, 15 Feb 2024UK£20.9bUK£5.2bUK£65.8m37.1x317.9x4x
Sat, 13 Jan 2024UK£42.4bUK£10.1bUK£71.1m37x596.5x4.2x
Mon, 11 Dec 2023UK£42.1bUK£10.2bUK£72.1m33.1x584.2x4.1x
Wed, 08 Nov 2023UK£39.8bUK£10.1bUK£125.9m32.7x315.9x3.9x
Fri, 06 Oct 2023UK£40.0bUK£10.1bUK£128.7m33.7x310.7x4x
Sun, 03 Sep 2023UK£40.1bUK£10.0bUK£102.2m34x392.9x4x
Tue, 01 Aug 2023UK£40.7bUK£10.6bUK£125.1m33.6x325.4x3.9x
Thu, 29 Jun 2023UK£40.6bUK£10.6bUK£126.1m35.2x322x3.8x
Sat, 27 May 2023UK£40.2bUK£10.6bUK£50.0m35.2x804.5x3.8x
Mon, 24 Apr 2023UK£39.8bUK£10.6bUK£292.8m37.6x135.9x3.8x
Wed, 22 Mar 2023UK£39.2bUK£10.6bUK£311.5m32.5x125.8x3.7x
Price to Earnings Ratio

125.8x


Total Market Cap: UK£39.2bTotal Earnings: UK£311.5mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 176.2x202420252026
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 29.1x which is lower than its 3-year average PE of 176x.
  • 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 Market-0.58%
Tech-1.58%
Software-2.04%
Systems Software-1.49%
Application Software-2.04%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 74.1x.
    • 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
ADVT AdvancedAdvTUK£1.653.1%
+UK£6.4m		6.5%PE37.9x
NET NetcallUK£1.011.5%
+UK£2.6m		-12.6%PE71.7x
IDOX IDOXUK£0.710.6%
+UK£1.8m		21.6%PE53.2x
CTAI CatenaiUK£0.003145.2%
+UK£1.4m		60.5%PS299.5x
TAP Tap Global GroupUK£0.0157.4%
+UK£744.6k		-12.1%PS3.1x

Latest News

ALFA
UK£1.73
Alfa Financial Software Holdings
7D
-12.2%
1Y
-23.3%
DOTD
UK£0.51
dotdigital Group
7D
-10.5%
1Y
-31.2%
NET
UK£1.01
Netcall
7D
1.5%
1Y
-12.6%
TRAC
UK£0.026
t42 IoT Tracking Solutions
7D
44.4%
1Y
23.8%
ALT
UK£0.23
Altitude Group
7D
2.2%
1Y
0%
PINE
UK£2.57
Pinewood Technologies Group
7D
-9.2%
1Y
-24.4%

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SGE
UK£8.40
Sage Group
7D
-0.4%
1Y
-29.9%

SGE: Upgrades And Execution Will Shape Future Upside Potential

Analysts have nudged their blended price target for Sage Group to £1,425, up £25, citing what they see as attractively priced growth and slight tweaks to assumptions around the discount rate, revenue growth, margins and future P/E. Analyst Commentary Recent research points to what some analysts see as attractively priced growth for Sage Group at current share levels, with price targets such as £1,425 being cited as consistent with this view.
BYIT
UK£3.05
Bytes Technology Group
7D
-3.5%
1Y
-26.7%

BYIT: Capital Light Cash Generation Will Underpin Recovery Beyond 2026

Analysts have trimmed their price target on Bytes Technology Group to £4.00. This is a modest reset that reflects slightly lower fair value estimates and an extended recovery timeline, even as they continue to highlight the appeal of capital light, cash generative models.
GBG
UK£2.04
GB Group
7D
-1.9%
1Y
-32.2%

GBG: Index Additions Will Support Confidence In Future Earnings Potential

Analysts have trimmed their price target on GB Group by £0.40. This reflects updated assumptions that include a higher discount rate, revised revenue growth and profit margin expectations, and a lower future P/E multiple.
IDOX
UK£0.71
IDOX
7D
0.6%
1Y
21.6%
ADVT
UK£1.65
AdvancedAdvT
7D
3.1%
1Y
6.5%
ELCO
UK£1.23
Eleco
7D
-8.2%
1Y
-7.2%
TAP
UK£0.015
Tap Global Group
7D
7.4%
1Y
-12.1%
CER
UK£13.00
Cerillion
7D
-6.5%
1Y
-11.3%

Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up

Jan 20
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INT
UK£0.93
IntelliAM AI
7D
2.8%
1Y
48.0%
CTAI
UK£0.0031
Catenai
7D
45.2%
1Y
60.5%