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U.K. (FTSE) Software Industry Analysis

UpdatedDec 23, 2025
DataAggregated Company Financials
Companies49
  • 7D0.2%
  • 3M-4.2%
  • 1Y-14.2%
  • YTD-14.1%

The Software is pretty flat in the last 7 days, but Bytes Technology Group has stood out, gaining 3.6%. As for the longer term, the industry has declined 14% in the last year. Looking forward, 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
Tue, 23 Dec 2025UK£15.8bUK£4.5bUK£422.0m32.9x37.4x3.5x
Thu, 20 Nov 2025UK£15.8bUK£4.4bUK£423.2m30.4x37.2x3.6x
Sat, 18 Oct 2025UK£16.2bUK£4.4bUK£436.4m30.1x37.2x3.7x
Mon, 15 Sep 2025UK£16.1bUK£4.4bUK£439.5m37.6x36.7x3.7x
Wed, 13 Aug 2025UK£16.1bUK£4.3bUK£430.3m35.7x37.4x3.7x
Fri, 11 Jul 2025UK£17.9bUK£4.5bUK£395.1m35.9x45.4x4x
Sun, 08 Jun 2025UK£19.0bUK£4.7bUK£404.2m34.7x47x4.1x
Tue, 06 May 2025UK£18.8bUK£4.8bUK£374.2m31x50.4x4x
Thu, 03 Apr 2025UK£18.2bUK£4.8bUK£373.6m28.5x48.8x3.8x
Sat, 01 Mar 2025UK£19.0bUK£4.8bUK£306.8m32.2x61.8x4x
Mon, 27 Jan 2025UK£19.8bUK£4.8bUK£306.1m30.2x64.8x4.1x
Wed, 25 Dec 2024UK£19.7bUK£4.8bUK£303.3m34.2x64.9x4.1x
Fri, 22 Nov 2024UK£19.5bUK£4.8bUK£324.3m35x60x4.1x
Sun, 20 Oct 2024UK£17.1bUK£4.7bUK£209.0m33x81.7x3.7x
Tue, 17 Sep 2024UK£20.8bUK£5.2bUK£277.7m36.7x74.9x4x
Thu, 15 Aug 2024UK£21.1bUK£5.3bUK£258.1m38.1x81.9x4x
Sat, 13 Jul 2024UK£21.6bUK£5.3bUK£259.7m38.9x83.1x4.1x
Mon, 10 Jun 2024UK£21.8bUK£5.3bUK£140.4m40.7x155.1x4.1x
Wed, 08 May 2024UK£22.7bUK£5.2bUK£107.4m37.5x211.1x4.3x
Fri, 05 Apr 2024UK£21.6bUK£5.2bUK£84.7m37.8x255.4x4.1x
Sun, 03 Mar 2024UK£21.4bUK£5.2bUK£66.0m36.4x324.1x4.2x
Tue, 30 Jan 2024UK£42.6bUK£10.2bUK£70.9m38.5x601.1x4.2x
Thu, 28 Dec 2023UK£42.6bUK£10.1bUK£72.2m36.5x590.2x4.2x
Sat, 25 Nov 2023UK£41.1bUK£10.2bUK£137.2m32.2x300x4x
Mon, 23 Oct 2023UK£39.2bUK£10.1bUK£130.0m30.9x301.7x3.9x
Wed, 20 Sep 2023UK£40.8bUK£10.0bUK£132.8m37.8x307.4x4.1x
Fri, 18 Aug 2023UK£39.6bUK£10.0bUK£97.8m34.3x404.7x4x
Sun, 16 Jul 2023UK£40.9bUK£10.5bUK£128.8m35.5x317.6x3.9x
Tue, 13 Jun 2023UK£40.8bUK£10.6bUK£251.7m37.4x162.3x3.9x
Thu, 11 May 2023UK£39.9bUK£10.7bUK£109.8m36.8x363.9x3.7x
Sat, 08 Apr 2023UK£39.2bUK£10.6bUK£289.7m37x135.4x3.7x
Mon, 06 Mar 2023UK£39.8bUK£10.3bUK£300.9m35.7x132.3x3.8x
Wed, 01 Feb 2023UK£39.3bUK£10.3bUK£302.0m32.9x130.1x3.8x
Fri, 30 Dec 2022UK£39.0bUK£10.4bUK£296.3m34.4x131.5x3.8x
Price to Earnings Ratio

131.5x


Total Market Cap: UK£39.0bTotal Earnings: UK£296.3mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 183.6x202320242025
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 37.4x which is lower than its 3-year average PE of 184x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.5x.
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 Market1.27%
Tech0.44%
Software0.25%
Application Software0.25%
Systems Software-0.63%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 130x.
    • Analysts are expecting annual earnings growth of 15.9%, 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 58% 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
BYIT Bytes Technology GroupUK£3.603.6%
+UK£29.8m		-14.9%PE15.9x
SGE Sage GroupUK£10.910.3%
+UK£28.5m		-15.4%PE28.1x
ADVT AdvancedAdvTUK£1.754.5%
+UK£10.3m		18.6%PE40.3x
SKL Skillcast GroupUK£0.738.9%
+UK£5.4m		72.9%PE60.4x
PEB Pebble Beach Systems GroupUK£0.2121.7%
+UK£4.7m		106.9%PS2.2x

Latest News

PINE
UK£3.54
Pinewood Technologies Group
7D
-2.7%
1Y
3.7%
BIRD
UK£0.024
Blackbird
7D
-19.0%
1Y
-53.0%
SGE
UK£10.91
Sage Group
7D
0.3%
1Y
-15.4%

SGE: Cloud Transition And Buybacks Will Support Durable Long Term Upside

Analysts now set a modestly higher fair value for Sage Group at approximately £16.20 per share, up from about £16.00. This reflects confidence in its durable growth model and recent earnings delivery, even as they factor in slightly slower revenue growth and margin expectations.
ALFA
UK£2.16
Alfa Financial Software Holdings
7D
-0.9%
1Y
0.5%
TRCS
UK£3.10
Tracsis
7D
4.2%
1Y
-39.2%

TRCS: Future M&A Resumption And Progressive Dividend Policy Are Expected To Support Upside

Analysts have nudged their price target for Tracsis modestly higher to reflect slightly increased discount rate assumptions and a marginally richer future earnings multiple, while maintaining their view that the stock remains fairly valued around £6.18. What's in the News Management reaffirmed that mergers and acquisitions remain a core pillar of Tracsis's growth strategy, with a disciplined, bolt on pipeline intended to supplement organic expansion and be fully integrated into the unified business structure (Key Developments).
QTX
UK£2.70
Quartix Technologies
7D
-3.6%
1Y
77.0%

QTX: Shares Will Benefit From Confident 2025 And 2026 Earnings Guidance

Analysts have nudged their price target on Quartix Technologies slightly higher to reflect incremental improvements in long term growth and profitability expectations, while noting only marginal changes in discount rate and valuation multiples. What's in the News Issued new earnings guidance for 2025 and 2026, indicating expectations to slightly exceed the most recently updated market estimates for full-year revenue and profit (company guidance) Valuation Changes The fair value estimate remains unchanged at 3.6, indicating no revision to the intrinsic value assessment.
SAAS
UK£0.92
Microlise Group
7D
-4.7%
1Y
-9.4%

SAAS: Rising Dividend And Earnings Outlook Will Drive Strong Future Returns

Narrative Update Analysts have trimmed their price target on Microlise Group from approximately £1.68 to £1.52, reflecting slightly higher discount rates, more conservative expectations for revenue growth and profit margins, and a higher projected future P/E multiple. Together, these factors point to a more cautious valuation outlook.
GBG
UK£2.53
GB Group
7D
0.8%
1Y
-26.5%
ADVT
UK£1.75
AdvancedAdvT
7D
4.5%
1Y
18.6%
PEB
UK£0.21
Pebble Beach Systems Group
7D
21.7%
1Y
106.9%

Investors Don't See Light At End Of Pebble Beach Systems Group plc's (LON:PEB) Tunnel

Dec 05
Investors Don't See Light At End Of Pebble Beach Systems Group plc's (LON:PEB) Tunnel
CER
UK£12.10
Cerillion
7D
-2.8%
1Y
-31.6%

Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)

Dec 01
Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)
IDOX
UK£0.68
IDOX
7D
-0.9%
1Y
10.7%
TAP
UK£0.019
Tap Global Group
7D
-13.6%
1Y
-15.6%
RM.
UK£1.13
RM
7D
2.7%
1Y
8.1%
BYIT
UK£3.60
Bytes Technology Group
7D
3.6%
1Y
-14.9%
SKL
UK£0.73
Skillcast Group
7D
8.9%
1Y
72.9%