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U.K. (FTSE) Software Industry Analysis

UpdatedJun 07, 2025
DataAggregated Company Financials
Companies53
  • 7D2.5%
  • 3M5.3%
  • 1Y10.6%
  • YTD0.5%

The Software industry is up 2.5% in the last week, with Sage Group up 2.6%. This takes the industry's 12 month performance to a gain of 11%. 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
Sat, 07 Jun 2025UK£19.0bUK£4.7bUK£400.4m34.7x47.4x4.1x
Mon, 05 May 2025UK£18.8bUK£4.8bUK£374.1m31x50.4x4x
Wed, 02 Apr 2025UK£18.2bUK£4.8bUK£373.5m29.5x48.6x3.8x
Fri, 28 Feb 2025UK£19.0bUK£4.8bUK£307.3m32.6x61.7x4x
Sun, 26 Jan 2025UK£19.8bUK£4.8bUK£306.1m30.2x64.8x4.1x
Tue, 24 Dec 2024UK£19.6bUK£4.8bUK£303.3m34.3x64.5x4.1x
Thu, 21 Nov 2024UK£19.5bUK£4.7bUK£272.7m35.4x71.4x4.2x
Sat, 19 Oct 2024UK£17.1bUK£4.7bUK£209.0m33x81.7x3.7x
Mon, 16 Sep 2024UK£20.9bUK£5.2bUK£278.0m36.1x75.3x4.1x
Wed, 14 Aug 2024UK£21.1bUK£5.3bUK£258.0m38x81.7x4x
Fri, 12 Jul 2024UK£21.5bUK£5.3bUK£259.7m38.9x82.7x4.1x
Sun, 09 Jun 2024UK£21.8bUK£5.3bUK£140.4m40.7x155.1x4.1x
Tue, 07 May 2024UK£22.6bUK£5.2bUK£107.2m37.5x210.9x4.3x
Thu, 04 Apr 2024UK£21.7bUK£5.2bUK£77.8m38x278.6x4.1x
Sat, 02 Mar 2024UK£21.4bUK£5.2bUK£66.0m36.4x324.1x4.2x
Mon, 29 Jan 2024UK£42.6bUK£10.2bUK£70.9m38.1x601.3x4.2x
Wed, 27 Dec 2023UK£42.4bUK£10.1bUK£72.1m36.9x588.2x4.2x
Fri, 24 Nov 2023UK£41.4bUK£10.1bUK£134.2m32.3x308.9x4.1x
Sun, 22 Oct 2023UK£39.2bUK£10.1bUK£130.0m30.9x301.7x3.9x
Tue, 19 Sep 2023UK£40.9bUK£10.0bUK£134.1m35.1x304.8x4.1x
Thu, 17 Aug 2023UK£39.9bUK£10.0bUK£97.7m35.1x407.9x4x
Sat, 15 Jul 2023UK£40.9bUK£10.5bUK£128.8m35.6x317.6x3.9x
Mon, 12 Jun 2023UK£40.7bUK£10.5bUK£251.5m37.7x161.7x3.9x
Wed, 10 May 2023UK£40.0bUK£10.7bUK£109.8m36.3x364x3.7x
Fri, 07 Apr 2023UK£39.2bUK£10.6bUK£288.7m37x135.8x3.7x
Sun, 05 Mar 2023UK£39.8bUK£10.3bUK£300.9m35.7x132.3x3.8x
Tue, 31 Jan 2023UK£39.3bUK£10.3bUK£302.5m33x129.9x3.8x
Thu, 29 Dec 2022UK£38.7bUK£10.4bUK£295.5m33.8x131.1x3.7x
Sat, 26 Nov 2022UK£40.1bUK£10.3bUK£325.1m36.4x123.4x3.9x
Mon, 24 Oct 2022UK£37.8bUK£10.3bUK£340.6m36.7x111.1x3.7x
Wed, 21 Sep 2022UK£39.1bUK£10.1bUK£340.1m48.5x114.9x3.9x
Fri, 19 Aug 2022UK£37.1bUK£9.6bUK£246.3m50.6x150.8x3.9x
Sun, 17 Jul 2022UK£32.6bUK£9.6bUK£295.9m42x110.1x3.4x
Tue, 14 Jun 2022UK£32.4bUK£9.6bUK£149.6m42.3x216.6x3.4x
Price to Earnings Ratio

216.6x


Total Market Cap: UK£32.4bTotal Earnings: UK£149.6mTotal Revenue: UK£9.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 205.3x202320242025
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 47.4x which is lower than its 3-year average PE of 205x.
  • The industry is trading close to its 3-year average PS ratio of 4.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 39% per year over the last three years.
  • Meanwhile revenues for these companies have declined 21% 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 Market0.59%
Tech1.78%
Software2.49%
Application Software2.54%
Systems Software-2.46%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 196x.
    • Analysts are expecting annual earnings growth of 15.6%, which is lower than the prior year's growth of 17.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 28% 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£12.512.6%
+UK£283.7m		18.0%PE34.7x
PINE Pinewood Technologies GroupUK£4.4513.5%
+UK£53.3m		15.0%PE71.9x
BYIT Bytes Technology GroupUK£5.331.5%
+UK£19.5m		-1.5%PE23.4x
ALFA Alfa Financial Software HoldingsUK£2.452.5%
+UK£17.8m		34.6%PE28.4x
ADVT AdvancedAdvTUK£1.707.9%
+UK£16.7m		15.6%PE31.8x
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Latest News

BGO

UK£0.88

Bango

7D

-4.9%

1Y

-34.3%

PINE

UK£4.45

Pinewood Technologies Group

7D

13.5%

1Y

15.0%

RM.

UK£1.11

RM

7D

12.7%

1Y

35.4%

4GBL

UK£0.12

4GLOBAL

7D

-47.7%

1Y

-78.1%

SGE

UK£12.51

Sage Group

7D

2.6%

1Y

18.0%

PR1

UK£0.022

Pri0r1ty Intelligence Group

7D

-37.1%

1Y

n/a

CYK

UK£0.023

Cykel AI Development

7D

-13.9%

1Y

n/a

BYIT

UK£5.33

Bytes Technology Group

7D

1.5%

1Y

-1.5%

APTD

UK£3.06

Aptitude Software Group

7D

8.1%

1Y

-14.3%

IDOX

UK£0.59

IDOX

7D

4.6%

1Y

-10.1%

QTX

UK£2.54

Quartix Technologies

7D

-2.7%

1Y

58.8%

author-image

Customer Acquisition And Cost Reduction Will Strengthen Market Position

Strategic focus on key markets and investment in sales aims to drive recurring revenue and improve operational efficiency without increasing customer attrition.

ADVT

UK£1.70

AdvancedAdvT

7D

7.9%

1Y

15.6%

DOTD

UK£0.81

dotdigital Group

7D

-1.9%

1Y

-12.3%

Earnings Not Telling The Story For dotdigital Group Plc (LON:DOTD) After Shares Rise 26%

May 07
Earnings Not Telling The Story For dotdigital Group Plc (LON:DOTD) After Shares Rise 26%

ALFA

UK£2.45

Alfa Financial Software Holdings

7D

2.5%

1Y

34.6%

GBG

UK£2.73

GB Group

7D

-0.7%

1Y

-20.6%

CRTA

UK£0.29

Cirata

7D

-8.9%

1Y

-56.1%