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U.K. (FTSE) Software Industry Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies49
  • 7D2.9%
  • 3M-5.2%
  • 1Y-13.2%
  • YTD2.9%

The Software industry is up 2.9% in the last week, with Sage Group up 3.1%. In the same time, accesso Technology Group was down 14%. In contrast, the industry has lost 13% 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
Sun, 11 Jan 2026UK£15.7bUK£4.5bUK£430.4m33x36.5x3.5x
Tue, 09 Dec 2025UK£15.5bUK£4.5bUK£421.5m33.4x36.9x3.5x
Thu, 06 Nov 2025UK£16.6bUK£4.4bUK£430.4m35.2x38.6x3.8x
Sat, 04 Oct 2025UK£17.2bUK£4.4bUK£439.9m31x39x3.9x
Mon, 01 Sep 2025UK£16.1bUK£4.4bUK£436.5m37.7x36.8x3.7x
Wed, 30 Jul 2025UK£17.7bUK£4.4bUK£428.0m35.8x41.3x4x
Fri, 27 Jun 2025UK£18.6bUK£4.7bUK£392.4m35.7x47.4x4x
Sun, 25 May 2025UK£18.6bUK£4.8bUK£400.8m32.4x46.4x3.8x
Tue, 22 Apr 2025UK£17.3bUK£4.8bUK£373.4m26.9x46.3x3.6x
Thu, 20 Mar 2025UK£17.8bUK£4.7bUK£366.4m28.5x48.5x3.7x
Sat, 15 Feb 2025UK£19.7bUK£4.8bUK£306.9m32.4x64.2x4.1x
Mon, 13 Jan 2025UK£19.3bUK£4.8bUK£301.4m30.5x64.1x4.1x
Wed, 11 Dec 2024UK£19.9bUK£4.8bUK£320.6m36.2x62.2x4.2x
Fri, 08 Nov 2024UK£17.2bUK£4.7bUK£206.5m36.4x83.4x3.7x
Sun, 06 Oct 2024UK£16.5bUK£4.7bUK£199.1m31.6x82.7x3.5x
Tue, 03 Sep 2024UK£21.1bUK£5.2bUK£267.4m38.2x78.8x4.1x
Thu, 01 Aug 2024UK£22.0bUK£5.3bUK£256.4m40.6x85.8x4.2x
Sat, 29 Jun 2024UK£22.0bUK£5.3bUK£260.4m39.8x84.4x4.1x
Mon, 27 May 2024UK£21.8bUK£5.3bUK£163.2m38.4x133.6x4.1x
Wed, 24 Apr 2024UK£21.3bUK£5.2bUK£92.0m36.5x231.6x4.1x
Fri, 22 Mar 2024UK£22.0bUK£5.2bUK£72.3m36.7x304.3x4.2x
Sun, 18 Feb 2024UK£21.0bUK£5.2bUK£65.8m37.3x320x4.1x
Tue, 16 Jan 2024UK£42.3bUK£10.1bUK£71.1m36.6x594.4x4.2x
Thu, 14 Dec 2023UK£42.4bUK£10.2bUK£72.1m33.1x587.8x4.2x
Sat, 11 Nov 2023UK£39.9bUK£10.1bUK£126.9m31.9x314x3.9x
Mon, 09 Oct 2023UK£40.2bUK£10.1bUK£128.7m36.3x312x4x
Wed, 06 Sep 2023UK£40.2bUK£10.0bUK£102.2m34x393.2x4x
Fri, 04 Aug 2023UK£39.7bUK£10.0bUK£94.1m33.9x422.2x4x
Sun, 02 Jul 2023UK£41.1bUK£10.6bUK£125.5m37.2x328x3.9x
Tue, 30 May 2023UK£40.2bUK£10.6bUK£39.2m35.2x1024.7x3.8x
Thu, 27 Apr 2023UK£39.7bUK£10.6bUK£291.1m37x136.5x3.8x
Sat, 25 Mar 2023UK£39.1bUK£10.6bUK£310.8m32.5x126x3.7x
Mon, 20 Feb 2023UK£39.6bUK£10.3bUK£296.6m35.1x133.5x3.8x
Wed, 18 Jan 2023UK£39.3bUK£10.3bUK£300.4m33x130.7x3.8x
Price to Earnings Ratio

130.7x


Total Market Cap: UK£39.3bTotal Earnings: UK£300.4mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 181.9x202420252026
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 36.5x which is lower than its 3-year average PE of 182x.
  • 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 Market1.88%
Tech3.92%
Software2.90%
Application Software2.91%
Systems Software1.58%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 117x.
    • Analysts are expecting annual earnings growth of 15.8%, 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
SGE Sage GroupUK£10.833.1%
+UK£288.3m		-15.4%PE27.7x
CER CerillionUK£14.3016.7%
+UK£60.5m		-9.5%PE25.4x
BYIT Bytes Technology GroupUK£3.694.9%
+UK£40.7m		-11.6%PE16.3x
QTX Quartix TechnologiesUK£3.0812.0%
+UK£16.0m		102.6%PE28.3x
ALFA Alfa Financial Software HoldingsUK£2.131.9%
+UK£11.8m		3.6%PE21.3x

Latest News

QTX
UK£3.08
Quartix Technologies
7D
12.0%
1Y
102.6%

The Price Is Right For Quartix Technologies plc (LON:QTX)

Jan 10
The Price Is Right For Quartix Technologies plc (LON:QTX)
CER
UK£14.30
Cerillion
7D
16.7%
1Y
-9.5%
TRCS
UK£3.03
Tracsis
7D
-2.4%
1Y
-32.6%

TRCS: M&A Pipeline And Progressive Dividend Policy Will Support Future Upside

Analysts have kept their fair value estimate for Tracsis broadly unchanged, with only minor tweaks to inputs such as the discount rate and future P/E. As a result, the latest price target in £ terms is effectively stable compared with the prior figure.
KRM
UK£0.37
KRM22
7D
-6.3%
1Y
34.5%
SGE
UK£10.83
Sage Group
7D
3.1%
1Y
-15.4%

Sage Group's (LON:SGE) Shareholders Will Receive A Bigger Dividend Than Last Year

Jan 07
Sage Group's (LON:SGE) Shareholders Will Receive A Bigger Dividend Than Last Year
ADVT
UK£1.69
AdvancedAdvT
7D
-2.0%
1Y
14.6%
ACSO
UK£2.81
accesso Technology Group
7D
-13.5%
1Y
-43.8%

When Should You Buy accesso Technology Group plc (LON:ACSO)?

Jan 06
When Should You Buy accesso Technology Group plc (LON:ACSO)?
TAP
UK£0.017
Tap Global Group
7D
-17.5%
1Y
-41.1%
IGP
UK£1.26
Intercede Group
7D
-1.9%
1Y
-32.1%
DOTD
UK£0.64
dotdigital Group
7D
-5.9%
1Y
-18.7%
ALFA
UK£2.13
Alfa Financial Software Holdings
7D
1.9%
1Y
3.6%
NET
UK£1.16
Netcall
7D
5.0%
1Y
7.4%
GBG
UK£2.48
GB Group
7D
1.2%
1Y
-26.6%
IDOX
UK£0.71
IDOX
7D
2.9%
1Y
14.5%
BYIT
UK£3.69
Bytes Technology Group
7D
4.9%
1Y
-11.6%
CRTA
UK£0.20
Cirata
7D
-7.1%
1Y
-11.0%