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U.K. (FTSE) Software Industry Analysis

UpdatedMar 10, 2026
DataAggregated Company Financials
Companies49
  • 7D-0.6%
  • 3M-18.2%
  • 1Y-25.9%
  • YTD-15.9%

Last week, the Software industry hasn't moved much but Bytes Technology Group is up 5.6% in that time. As for the longer term, the industry has declined 26% in the last year. 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, 10 Mar 2026UK£12.7bUK£4.5bUK£433.2m29.3x29.4x2.8x
Thu, 05 Feb 2026UK£13.4bUK£4.5bUK£430.0m32.1x31.2x3x
Sat, 03 Jan 2026UK£15.3bUK£4.5bUK£422.0m32.7x36.3x3.4x
Mon, 01 Dec 2025UK£15.8bUK£4.5bUK£421.4m33.2x37.5x3.5x
Wed, 29 Oct 2025UK£16.8bUK£4.4bUK£435.6m30.9x38.6x3.8x
Fri, 26 Sep 2025UK£16.0bUK£4.4bUK£440.6m33.1x36.3x3.7x
Sun, 24 Aug 2025UK£16.2bUK£4.4bUK£437.4m37.3x37.1x3.7x
Tue, 22 Jul 2025UK£18.2bUK£4.5bUK£397.5m35.1x45.8x4.1x
Thu, 19 Jun 2025UK£18.9bUK£4.7bUK£401.5m35.4x47.2x4.1x
Sat, 17 May 2025UK£18.9bUK£4.9bUK£401.3m33.5x47x3.9x
Mon, 14 Apr 2025UK£16.9bUK£4.8bUK£372.3m27.6x45.3x3.5x
Wed, 12 Mar 2025UK£17.8bUK£4.8bUK£312.9m30.3x57x3.7x
Fri, 07 Feb 2025UK£19.8bUK£4.8bUK£306.3m32.5x64.7x4.1x
Sun, 05 Jan 2025UK£19.6bUK£4.8bUK£305.1m30.9x64.1x4.1x
Tue, 03 Dec 2024UK£20.1bUK£4.8bUK£322.3m36.2x62.4x4.2x
Thu, 31 Oct 2024UK£16.8bUK£4.7bUK£207.5m34.2x80.9x3.6x
Sat, 28 Sep 2024UK£20.7bUK£5.1bUK£286.0m34.4x72.4x4.1x
Mon, 26 Aug 2024UK£20.9bUK£5.2bUK£245.3m38.3x85x4x
Wed, 24 Jul 2024UK£21.7bUK£5.3bUK£254.3m39.5x85.2x4.1x
Fri, 21 Jun 2024UK£22.0bUK£5.3bUK£267.0m41.1x82.4x4.1x
Sun, 19 May 2024UK£22.0bUK£5.3bUK£164.2m38.2x134.2x4.2x
Tue, 16 Apr 2024UK£21.1bUK£5.2bUK£90.5m37.9x233.6x4x
Thu, 14 Mar 2024UK£21.8bUK£5.2bUK£102.1m36.2x213.7x4.2x
Sat, 10 Feb 2024UK£21.2bUK£5.2bUK£65.8m37.3x322x4.1x
Mon, 08 Jan 2024UK£41.8bUK£10.1bUK£71.1m36.1x588x4.1x
Wed, 06 Dec 2023UK£41.7bUK£10.1bUK£72.2m33.1x578.4x4.1x
Fri, 03 Nov 2023UK£39.8bUK£10.1bUK£125.9m32.7x315.8x3.9x
Sun, 01 Oct 2023UK£40.4bUK£10.1bUK£130.9m34.4x308.6x4x
Tue, 29 Aug 2023UK£39.6bUK£10.0bUK£101.0m33.8x392.5x4x
Thu, 27 Jul 2023UK£40.6bUK£10.6bUK£123.2m36.7x329.4x3.8x
Sat, 24 Jun 2023UK£40.9bUK£10.6bUK£126.4m38.8x323.3x3.9x
Mon, 22 May 2023UK£40.4bUK£10.9bUK£60.2m35.3x672.3x3.7x
Wed, 19 Apr 2023UK£39.8bUK£10.6bUK£290.3m37.6x137x3.8x
Fri, 17 Mar 2023UK£39.4bUK£10.4bUK£300.1m32.1x131.2x3.8x
Price to Earnings Ratio

131.2x


Total Market Cap: UK£39.4bTotal Earnings: UK£300.1mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 176.6x202420252026
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 29.6x which is lower than its 3-year average PE of 177x.
  • The 3-year average PS ratio of 3.9x 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 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 Market-5.15%
Tech-4.63%
Software-0.65%
Application Software-0.61%
Systems Software-5.28%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 77.4x.
    • 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 62% 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£3.155.6%
+UK£39.7m		-23.2%PE14x
ADVT AdvancedAdvTUK£1.6010.3%
+UK£20.6m		2.6%PE36.8x
ALFA Alfa Financial Software HoldingsUK£1.972.9%
+UK£16.6m		-13.9%PE19.7x
GBG GB GroupUK£2.032.2%
+UK£9.9m		-31.8%PE52.5x
SGE Sage GroupUK£8.420.2%
+UK£8.1m		-31.0%PE21.1x

Latest News

TRCS
UK£3.15
Tracsis
7D
-12.5%
1Y
-11.3%

TRCS: New North American Contract Will Support Long-Term Dividend-Supported Upside

Analysts have revised their fair value price target for Tracsis to £7.01. This reflects updated views on the discount rate, revenue growth, profit margin and a higher assumed future P/E, and these revised inputs are being used to reset expectations around the risk and reward profile of the shares.
SATS
UK£0.0023
Satsuma Technology
7D
6.0%
1Y
-64.6%
BTC
UK£0.021
London BTC
7D
13.2%
1Y
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PINE
UK£2.70
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7D
-9.6%
1Y
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SGE
UK£8.42
Sage Group
7D
0.2%
1Y
-31.0%

SGE: Upgrades And Execution Will Shape Future Upside Potential

Analysts have nudged their blended price target for Sage Group to £1,425, up £25, citing what they see as attractively priced growth and slight tweaks to assumptions around the discount rate, revenue growth, margins and future P/E. Analyst Commentary Recent research points to what some analysts see as attractively priced growth for Sage Group at current share levels, with price targets such as £1,425 being cited as consistent with this view.
BYIT
UK£3.15
Bytes Technology Group
7D
5.6%
1Y
-23.2%

BYIT: Capital Light Cash Generation Will Underpin Recovery Beyond 2026

Analysts have trimmed their price target on Bytes Technology Group to £4.00. This is a modest reset that reflects slightly lower fair value estimates and an extended recovery timeline, even as they continue to highlight the appeal of capital light, cash generative models.
GBG
UK£2.03
GB Group
7D
2.2%
1Y
-31.8%

GBG: Index Additions Will Support Confidence In Future Earnings Potential

Analysts have trimmed their price target on GB Group by £0.40. This reflects updated assumptions that include a higher discount rate, revised revenue growth and profit margin expectations, and a lower future P/E multiple.
AOM
UK£2.13
ActiveOps
7D
-13.1%
1Y
107.8%

AOM: Stable Assumptions Will Support Attractive Upside To £100 Million ARR

Analysts have kept their £3.17 price target for ActiveOps unchanged. They point to their broadly steady assumptions on discount rate, revenue growth, profit margin and future P/E as the key drivers behind this consistent view.
ADVT
UK£1.60
AdvancedAdvT
7D
10.3%
1Y
2.6%
QTX
UK£2.65
Quartix Technologies
7D
-4.3%
1Y
35.2%

QTX: Shares Will Rise As Dividend Shift And Accounting Changes Support Upside

Analysts have made only a marginal adjustment to their Quartix Technologies price target, keeping it effectively unchanged in £ terms. Updated assumptions on the discount rate, revenue growth, profit margin and future P/E remain closely aligned with prior estimates.
ALFA
UK£1.97
Alfa Financial Software Holdings
7D
2.9%
1Y
-13.9%
ELCO
UK£1.31
Eleco
7D
-9.4%
1Y
2.4%
NET
UK£0.98
Netcall
7D
-8.8%
1Y
-14.0%
CER
UK£13.50
Cerillion
7D
-8.8%
1Y
-3.6%

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Jan 20
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SKL
UK£0.57
Skillcast Group
7D
-19.0%
1Y
42.0%

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Jan 15
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MBO
UK£0.072
MobilityOne
7D
38.1%
1Y
291.9%