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U.K. (FTSE) Software Industry Analysis

UpdatedSep 15, 2025
DataAggregated Company Financials
Companies49
  • 7D-0.7%
  • 3M-11.5%
  • 1Y1.4%
  • YTD-12.0%

The Software is pretty flat in the last 7 days, but GB Group has stood out, gaining 7.7%. In line with that, the industry has also been flat over the past 12 months. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

Has the U.K. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Sep 2025UK£16.1bUK£4.4bUK£439.5m37.6x36.7x3.7x
Thu, 14 Aug 2025UK£16.1bUK£4.4bUK£435.1m35.3x37x3.7x
Sat, 12 Jul 2025UK£17.9bUK£4.5bUK£395.1m35.9x45.4x4x
Mon, 09 Jun 2025UK£19.0bUK£4.7bUK£404.2m34.7x47x4.1x
Wed, 07 May 2025UK£18.7bUK£4.7bUK£374.3m30.7x49.9x3.9x
Fri, 04 Apr 2025UK£17.9bUK£4.8bUK£373.8m27.6x47.8x3.8x
Sun, 02 Mar 2025UK£18.9bUK£4.8bUK£306.8m32.2x61.5x3.9x
Tue, 28 Jan 2025UK£19.8bUK£4.8bUK£306.0m30.3x64.8x4.1x
Thu, 26 Dec 2024UK£19.7bUK£4.8bUK£303.4m34.2x64.8x4.1x
Sat, 23 Nov 2024UK£19.7bUK£4.8bUK£324.1m35.8x60.9x4.1x
Mon, 21 Oct 2024UK£17.1bUK£4.7bUK£209.0m33x81.7x3.7x
Wed, 18 Sep 2024UK£20.9bUK£5.2bUK£277.9m36.3x75.1x4x
Fri, 16 Aug 2024UK£21.3bUK£5.3bUK£258.1m37.9x82.4x4x
Sun, 14 Jul 2024UK£21.6bUK£5.3bUK£259.7m38.9x83.1x4.1x
Tue, 11 Jun 2024UK£21.8bUK£5.3bUK£140.4m40.7x155.1x4.1x
Thu, 09 May 2024UK£22.8bUK£5.3bUK£107.5m37.5x211.7x4.3x
Sat, 06 Apr 2024UK£21.6bUK£5.2bUK£84.7m37.9x255.3x4.1x
Mon, 04 Mar 2024UK£21.4bUK£5.2bUK£66.0m36.4x324.1x4.2x
Wed, 31 Jan 2024UK£42.9bUK£10.2bUK£70.8m38.7x606.4x4.2x
Fri, 29 Dec 2023UK£42.6bUK£10.1bUK£72.2m36.6x589.9x4.2x
Sun, 26 Nov 2023UK£41.1bUK£10.2bUK£137.2m32.2x300x4x
Tue, 24 Oct 2023UK£39.2bUK£10.1bUK£130.0m30.9x301.5x3.9x
Thu, 21 Sep 2023UK£41.0bUK£10.0bUK£132.7m37.8x309x4.1x
Sat, 19 Aug 2023UK£39.5bUK£10.0bUK£100.9m33x391.8x4x
Mon, 17 Jul 2023UK£40.9bUK£10.5bUK£128.8m35.5x317.6x3.9x
Wed, 14 Jun 2023UK£41.0bUK£10.5bUK£252.1m37.7x162.5x3.9x
Fri, 12 May 2023UK£40.0bUK£10.7bUK£110.0m36.6x363.5x3.7x
Sun, 09 Apr 2023UK£39.2bUK£10.6bUK£289.6m37x135.4x3.7x
Tue, 07 Mar 2023UK£39.9bUK£10.3bUK£300.9m35.7x132.5x3.9x
Thu, 02 Feb 2023UK£39.4bUK£10.3bUK£302.6m32.7x130.3x3.8x
Sat, 31 Dec 2022UK£38.9bUK£10.4bUK£296.0m34.2x131.4x3.8x
Mon, 28 Nov 2022UK£40.1bUK£10.3bUK£325.1m36.4x123.4x3.9x
Wed, 26 Oct 2022UK£38.5bUK£10.2bUK£344.8m39.3x111.7x3.8x
Fri, 23 Sep 2022UK£39.0bUK£10.1bUK£338.9m47.4x115.1x3.9x
Price to Earnings Ratio

115.1x


Total Market Cap: UK£39.0bTotal Earnings: UK£338.9mTotal Revenue: UK£10.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 196x202320242025
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 36.7x which is lower than its 3-year average PE of 196x.
  • The 3-year average PS ratio of 4.1x is higher than the industry's current PS ratio of 3.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 9.0% 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 Market0.46%
Tech-0.33%
Software-0.73%
Systems Software0.74%
Application Software-0.74%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 185x.
    • Analysts are expecting annual earnings growth of 15.3%, which is lower than the prior year's growth of 18.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 15% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings decline by 6.1% 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
GBG GB GroupUK£2.296.5%
+UK£33.8m		-26.1%PE65.1x
PINE Pinewood Technologies GroupUK£5.585.9%
+UK£31.2m		60.3%PE90.2x
SAAS Microlise GroupUK£1.487.3%
+UK£11.6m		16.6%PS2.2x
BGO BangoUK£1.0310.8%
+UK£7.7m		-7.7%PS2x
TAP Tap Global GroupUK£0.018111.4%
+UK£7.2m		146.7%PS4.4x

Latest News

BGO
UK£1.03
Bango
7D
10.8%
1Y
-7.7%

Bango PLC's (LON:BGO) Shares Climb 34% But Its Business Is Yet to Catch Up

Sep 13
Bango PLC's (LON:BGO) Shares Climb 34% But Its Business Is Yet to Catch Up
GBG
UK£2.29
GB Group
7D
6.5%
1Y
-26.1%

Is There An Opportunity With GB Group plc's (LON:GBG) 39% Undervaluation?

Sep 13
Is There An Opportunity With GB Group plc's (LON:GBG) 39% Undervaluation?
SGE
UK£10.66
Sage Group
7D
-2.2%
1Y
4.7%

Should You Be Adding Sage Group (LON:SGE) To Your Watchlist Today?

Sep 13
Should You Be Adding Sage Group (LON:SGE) To Your Watchlist Today?
SAAS
UK£1.48
Microlise Group
7D
7.3%
1Y
16.6%

Microlise Group (LON:SAAS) Is Finding It Tricky To Allocate Its Capital

Sep 13
Microlise Group (LON:SAAS) Is Finding It Tricky To Allocate Its Capital
ALT
UK£0.28
Altitude Group
7D
25.0%
1Y
-15.4%

Investors Appear Satisfied With Altitude Group plc's (LON:ALT) Prospects As Shares Rocket 35%

Sep 12
Investors Appear Satisfied With Altitude Group plc's (LON:ALT) Prospects As Shares Rocket 35%
GETB
UK£0.67
GetBusy
7D
15.7%
1Y
14.7%
ALFA
UK£2.35
Alfa Financial Software Holdings
7D
-5.6%
1Y
10.9%
NET
UK£1.15
Netcall
7D
2.2%
1Y
30.7%
CYK
UK£0.017
Cykel AI Development
7D
-30.6%
1Y
-70.4%
ELCO
UK£1.59
Eleco
7D
-3.4%
1Y
19.2%
CER
UK£13.80
Cerillion
7D
-5.5%
1Y
-21.1%

Subdued Growth No Barrier To Cerillion Plc's (LON:CER) Price

Aug 28
Subdued Growth No Barrier To Cerillion Plc's (LON:CER) Price
BYIT
UK£4.14
Bytes Technology Group
7D
-1.9%
1Y
-9.6%
TAP
UK£0.018
Tap Global Group
7D
111.4%
1Y
146.7%
PINE
UK£5.58
Pinewood Technologies Group
7D
5.9%
1Y
60.3%
DOTD
UK£0.64
dotdigital Group
7D
-4.2%
1Y
-26.4%
IDOX
UK£0.55
IDOX
7D
-1.8%
1Y
-10.4%