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U.K. (FTSE) Software Industry Analysis

UpdatedJan 26, 2026
DataAggregated Company Financials
Companies49
  • 7D0.4%
  • 3M-8.8%
  • 1Y-17.8%
  • YTD0.2%

The Software is pretty flat in the last 7 days, but Cerillion has stood out, gaining 6.5%. Unfortunately though, the industry is down 18% over the past 12 months. 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
Tue, 27 Jan 2026UK£15.3bUK£4.5bUK£430.7m33x35.5x3.4x
Thu, 25 Dec 2025UK£15.7bUK£4.5bUK£422.0m33x37.1x3.5x
Sat, 22 Nov 2025UK£16.0bUK£4.5bUK£446.3m29.8x35.8x3.6x
Mon, 20 Oct 2025UK£16.2bUK£4.4bUK£436.4m30.1x37.2x3.7x
Wed, 17 Sep 2025UK£16.1bUK£4.4bUK£439.1m32.7x36.6x3.7x
Fri, 15 Aug 2025UK£16.0bUK£4.4bUK£435.0m35.3x36.8x3.7x
Sun, 13 Jul 2025UK£17.9bUK£4.5bUK£395.0m35.9x45.3x4x
Tue, 10 Jun 2025UK£18.9bUK£4.7bUK£404.2m34.5x46.8x4.1x
Thu, 08 May 2025UK£18.9bUK£4.8bUK£374.2m31.3x50.5x4x
Sat, 05 Apr 2025UK£17.4bUK£4.8bUK£373.3m27.1x46.6x3.7x
Mon, 03 Mar 2025UK£18.9bUK£4.8bUK£306.8m32.2x61.5x3.9x
Wed, 29 Jan 2025UK£19.8bUK£4.8bUK£305.9m30.8x64.6x4.1x
Fri, 27 Dec 2024UK£19.7bUK£4.8bUK£303.3m34.2x64.9x4.1x
Sun, 24 Nov 2024UK£19.7bUK£4.8bUK£324.1m35.8x60.8x4.1x
Tue, 22 Oct 2024UK£16.9bUK£4.7bUK£208.8m32.8x81.1x3.6x
Thu, 19 Sep 2024UK£20.7bUK£5.2bUK£277.8m36.5x74.5x4x
Sat, 17 Aug 2024UK£21.1bUK£5.2bUK£258.0m37.6x81.7x4x
Mon, 15 Jul 2024UK£21.6bUK£5.3bUK£259.7m38.9x83.1x4.1x
Wed, 12 Jun 2024UK£21.5bUK£5.3bUK£140.4m40.5x153.4x4.1x
Fri, 10 May 2024UK£22.9bUK£5.2bUK£107.4m37.5x213x4.4x
Sun, 07 Apr 2024UK£21.6bUK£5.2bUK£84.7m37.9x255.2x4.1x
Tue, 05 Mar 2024UK£21.3bUK£5.2bUK£60.3m36.3x353.2x4.1x
Thu, 01 Feb 2024UK£42.7bUK£10.2bUK£70.8m38.3x602.7x4.2x
Sat, 30 Dec 2023UK£42.5bUK£10.1bUK£71.1m36.6x597.7x4.2x
Mon, 27 Nov 2023UK£41.1bUK£10.2bUK£137.2m32.2x300x4x
Wed, 25 Oct 2023UK£39.2bUK£10.1bUK£130.0m31.2x301.4x3.9x
Fri, 22 Sep 2023UK£40.9bUK£10.1bUK£131.9m33x310.3x4.1x
Sun, 20 Aug 2023UK£39.5bUK£10.0bUK£100.9m33x391.8x4x
Tue, 18 Jul 2023UK£40.9bUK£10.5bUK£128.7m35.5x317.8x3.9x
Thu, 15 Jun 2023UK£41.0bUK£10.5bUK£252.1m38.1x162.6x3.9x
Sat, 13 May 2023UK£39.9bUK£10.7bUK£110.0m36x362.6x3.7x
Mon, 10 Apr 2023UK£39.2bUK£10.6bUK£289.6m37x135.4x3.7x
Wed, 08 Mar 2023UK£39.8bUK£10.4bUK£301.4m35.8x132.1x3.8x
Fri, 03 Feb 2023UK£39.9bUK£10.3bUK£296.1m33.8x134.9x3.9x
Price to Earnings Ratio

134.9x


Total Market Cap: UK£39.9bTotal Earnings: UK£296.1mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 180.5x202420252026
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 12% 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-0.15%
Tech1.02%
Software0.36%
Application Software0.37%
Systems Software-0.086%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 107x.
    • 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
SGE Sage GroupUK£10.430.7%
+UK£60.0m		-21.3%PE26.6x
CER CerillionUK£17.1011.8%
+UK£53.1m		6.9%PE30.4x
GBG GB GroupUK£2.455.2%
+UK£28.3m		-28.9%PE63.9x
ALFA Alfa Financial Software HoldingsUK£2.142.9%
+UK£17.8m		5.2%PE21.4x
ADVT AdvancedAdvTUK£1.805.9%
+UK£13.7m		22.0%PE41.4x

Latest News

ALFA
UK£2.14
Alfa Financial Software Holdings
7D
2.9%
1Y
5.2%
SGE
UK£10.43
Sage Group
7D
0.7%
1Y
-21.3%

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£17.10
Cerillion
7D
11.8%
1Y
6.9%

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
CNS
UK£0.13
Corero Network Security
7D
-1.9%
1Y
-31.1%

CNS: Future DDoS Contract Wins Will Drive Rerating Potential

Analysts have trimmed their price target for Corero Network Security to approximately £0.14 per share from about £0.19, citing updated assumptions around higher projected revenue growth, a slightly different discount rate, modestly adjusted profit margins, and a lower expected future P/E multiple. What's in the News Reaffirmed guidance for the year ending December 31, 2025, with expected revenue in a range of $24.0m to $25.5m, compared with reported revenue of $24.6m for FY 2024 (Corporate guidance).
AOM
UK£2.70
ActiveOps
7D
7.6%
1Y
159.6%

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).
ADVT
UK£1.80
AdvancedAdvT
7D
5.9%
1Y
22.0%
BTC
UK£0.028
London BTC
7D
-14.1%
1Y
-85.1%
PINE
UK£3.69
Pinewood Technologies Group
7D
3.1%
1Y
9.2%
GBG
UK£2.45
GB Group
7D
5.2%
1Y
-28.9%
INT
UK£1.10
IntelliAM AI
7D
-4.3%
1Y
76.0%
IDOX
UK£0.71
IDOX
7D
-0.3%
1Y
12.3%
RM.
UK£1.10
RM
7D
-0.9%
1Y
-6.0%
APTD
UK£2.90
Aptitude Software Group
7D
-1.5%
1Y
-10.1%
BYIT
UK£3.46
Bytes Technology Group
7D
1.7%
1Y
-21.5%
MBO
UK£0.048
MobilityOne
7D
-32.1%
1Y
111.1%
CRTA
UK£0.22
Cirata
7D
-7.0%
1Y
4.0%