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

U.K. (FTSE) Software Industry Analysis

UpdatedApr 22, 2026
DataAggregated Company Financials
Companies51
  • 7D6.4%
  • 3M-11.0%
  • 1Y-19.4%
  • YTD-11.8%

In the last week, the Software industry is up 5.9%, with Sage Group up 8.2%. In contrast, the industry has lost 21% in the last 12 months. 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
Wed, 22 Apr 2026UK£13.2bUK£4.5bUK£409.0m30.2x32.3x2.9x
Fri, 20 Mar 2026UK£12.3bUK£4.5bUK£431.9m28.1x28.5x2.7x
Sun, 15 Feb 2026UK£12.8bUK£4.5bUK£432.4m31.2x29.7x2.9x
Tue, 13 Jan 2026UK£16.0bUK£4.5bUK£430.5m33.2x37.1x3.6x
Thu, 11 Dec 2025UK£15.6bUK£4.5bUK£421.5m33.2x37x3.5x
Sat, 08 Nov 2025UK£16.0bUK£4.4bUK£430.6m35.2x37.1x3.6x
Mon, 06 Oct 2025UK£16.2bUK£4.4bUK£440.5m31x36.8x3.7x
Wed, 03 Sep 2025UK£15.9bUK£4.4bUK£436.3m37.8x36.4x3.6x
Fri, 01 Aug 2025UK£17.4bUK£4.4bUK£430.2m34.8x40.4x4x
Sun, 29 Jun 2025UK£18.7bUK£4.7bUK£388.6m37.3x48.1x4x
Tue, 27 May 2025UK£18.6bUK£4.8bUK£400.8m32.4x46.4x3.8x
Thu, 24 Apr 2025UK£17.6bUK£4.8bUK£371.6m30x47.3x3.7x
Sat, 22 Mar 2025UK£17.8bUK£4.8bUK£392.5m29.8x45.5x3.7x
Mon, 17 Feb 2025UK£19.7bUK£4.8bUK£306.9m32.4x64.3x4.1x
Wed, 15 Jan 2025UK£19.2bUK£4.8bUK£301.2m30.8x63.6x4x
Fri, 13 Dec 2024UK£19.9bUK£4.8bUK£320.5m37x62.1x4.2x
Sun, 10 Nov 2024UK£17.3bUK£4.7bUK£206.3m36.3x83.7x3.7x
Tue, 08 Oct 2024UK£16.5bUK£4.7bUK£199.0m32x83x3.5x
Thu, 05 Sep 2024UK£20.6bUK£5.2bUK£267.6m37.7x77.1x4x
Sat, 03 Aug 2024UK£21.4bUK£5.3bUK£256.4m39.6x83.6x4.1x
Mon, 01 Jul 2024UK£22.0bUK£5.3bUK£260.8m39.8x84.3x4.1x
Wed, 29 May 2024UK£21.8bUK£5.3bUK£163.1m39.8x133.5x4.1x
Fri, 26 Apr 2024UK£21.4bUK£5.2bUK£89.5m37.4x239.5x4.1x
Sun, 24 Mar 2024UK£21.7bUK£5.2bUK£70.0m36.7x310.8x4.2x
Tue, 20 Feb 2024UK£21.0bUK£5.2bUK£65.8m35.9x320x4.1x
Thu, 18 Jan 2024UK£42.2bUK£10.1bUK£71.1m35.7x594.2x4.2x
Sat, 16 Dec 2023UK£42.2bUK£10.1bUK£72.2m35.4x585x4.2x
Mon, 13 Nov 2023UK£39.9bUK£10.1bUK£126.9m31.9x314.1x3.9x
Wed, 11 Oct 2023UK£40.2bUK£10.1bUK£128.7m34.7x311.9x4x
Fri, 08 Sep 2023UK£40.6bUK£10.0bUK£143.1m34.6x283.9x4.1x
Sun, 06 Aug 2023UK£39.8bUK£10.0bUK£94.3m34.5x422.4x4x
Tue, 04 Jul 2023UK£41.0bUK£10.6bUK£126.5m34.8x324.5x3.9x
Thu, 01 Jun 2023UK£40.5bUK£10.6bUK£39.0m35.8x1039.7x3.8x
Sat, 29 Apr 2023UK£40.0bUK£10.7bUK£297.1m36.4x134.8x3.7x
Price to Earnings Ratio

134.8x


Total Market Cap: UK£40.0bTotal Earnings: UK£297.1mTotal Revenue: UK£10.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 172.6x202420252026
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 31.8x which is lower than its 3-year average PE of 173x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 11% per year over the last three years.
  • Meanwhile revenues for these companies have declined 25% 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-0.72%
Tech6.87%
Software6.44%
Application Software6.48%
Systems Software2.26%
Industry PE
  • Investors are most optimistic about the Application Software industry, which is trading close to its 3-year average PE ratio of 28.3x.
    • Analysts are expecting annual earnings growth of 15.5%, which is higher than its past year's earnings growth of 8.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 91% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 15% 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£9.178.2%
+UK£632.1m		-21.4%PE22.7x
GBG GB GroupUK£2.2110.0%
+UK£46.7m		-14.1%PE56.9x
BYIT Bytes Technology GroupUK£3.174.6%
+UK£32.6m		-35.0%PE14x
PINE Pinewood Technologies GroupUK£2.4211.3%
+UK£28.2m		-23.6%PE44.7x
ALFA Alfa Financial Software HoldingsUK£1.624.2%
+UK£19.6m		-21.5%PE16x

Latest News

GETB
UK£0.73
GetBusy
7D
-2.0%
1Y
65.2%
IGP
UK£1.04
Intercede Group
7D
17.5%
1Y
-31.1%
AOM
UK£1.96
ActiveOps
7D
-3.4%
1Y
132.0%
GBG
UK£2.21
GB Group
7D
10.0%
1Y
-14.1%

GBG: Refined Assumptions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £X.XX from £X.XX, citing updated assumptions around the discount rate, revenue growth, profit margin and forward P/E that leave their overall fair value view broadly unchanged. Valuation Changes Fair Value: The fair value estimate is unchanged at 4.5, indicating no material shift in the core valuation output.
DOTD
UK£0.50
dotdigital Group
7D
11.4%
1Y
-33.6%

DOTD: Future Margin Delivery And Cash Generation Will Drive Rerating Potential

Analysts have trimmed their price target on dotdigital Group to £0.95, reflecting slightly updated assumptions on revenue growth, profit margins and the future P/E multiple, while keeping fair value broadly unchanged. Analyst Commentary Recent Street research around dotdigital Group highlights a split in sentiment, with some upbeat views contrasted by more cautious voices focused on execution risk and valuation.
APTD
UK£2.23
Aptitude Software Group
7D
-3.9%
1Y
-20.4%

Aptitude Software Group's (LON:APTD) Conservative Accounting Might Explain Soft Earnings

Apr 17
Aptitude Software Group's (LON:APTD) Conservative Accounting Might Explain Soft Earnings
SGE
UK£9.17
Sage Group
7D
8.2%
1Y
-21.4%

SGE: Banking Partnerships And Share Buybacks Will Support Future Share Price Upside

Narrative Update The analyst price target for Sage Group has been reduced by £200, with analysts attributing this change to a lower fair value estimate, a reduced future P/E assumption and updated margin expectations. Analyst Commentary Recent research on Sage Group has focused on recalibrating valuation assumptions rather than making wholesale changes to the fundamental story.
BYIT
UK£3.17
Bytes Technology Group
7D
4.6%
1Y
-35.0%

BYIT: Cost Normalisation Headwinds Will Set Up A Stronger Cash Recovery

Analysts have made a small adjustment to their price target for Bytes Technology Group, citing largely unchanged fair value estimates around £4.70, minor tweaks to the discount rate, revenue growth outlook and profit margin, as well as a steady future P/E assumption near 20.6x. What's in the News Bytes Technology Group issued earnings guidance for 2027, indicating operating profit is expected to be broadly flat as the business absorbs about £4.5m of cost normalisation (Key Developments).
ALFA
UK£1.62
Alfa Financial Software Holdings
7D
4.2%
1Y
-21.5%
MBO
UK£0.10
MobilityOne
7D
-6.8%
1Y
540.6%
BIRD
UK£0.024
Blackbird
7D
-9.6%
1Y
-44.7%
PINE
UK£2.42
Pinewood Technologies Group
7D
11.3%
1Y
-23.6%

PINE: Resumed Coverage And Deal Dislocation Will Drive Future Upside

Narrative Update on Pinewood Technologies Group The analyst price target for Pinewood Technologies has been reset to £5.50. Analysts cite resumed coverage, expectations for significant growth ahead, and a valuation based on a lower comparator multiple that they still see as leaving material upside for the shares.
BGO
UK£0.74
Bango
7D
19.4%
1Y
-7.5%
RM.
UK£0.97
RM
7D
-0.8%
1Y
-4.0%
ADVT
UK£1.65
AdvancedAdvT
7D
-2.9%
1Y
10.0%
PULS
UK£0.41
Pulsar Group
7D
-8.0%
1Y
2.5%