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U.K. (FTSE) Software Industry Analysis

UpdatedApr 17, 2025
DataAggregated Company Financials
Companies56
  • 7D7.0%
  • 3M-9.0%
  • 1Y-2.2%
  • YTD-8.6%

The Software industry is up 7.0% in the last week, with Sage Group up 6.7%. Meanwhile, Quartix Technologies actually underperformed within the industry, shrinking 5.7% in the last week. The industry has been flat over the past 12 months despite the gain this week. 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
Thu, 17 Apr 2025UK£17.4bUK£4.8bUK£373.1m26.8x46.7x3.7x
Sat, 15 Mar 2025UK£17.9bUK£4.8bUK£312.9m30.1x57.3x3.8x
Mon, 10 Feb 2025UK£19.8bUK£4.8bUK£306.3m32.9x64.5x4.1x
Wed, 08 Jan 2025UK£19.8bUK£4.8bUK£305.4m31.3x64.7x4.1x
Fri, 06 Dec 2024UK£20.0bUK£4.8bUK£320.6m35.5x62.5x4.2x
Sun, 03 Nov 2024UK£16.7bUK£4.7bUK£207.3m35.6x80.6x3.6x
Tue, 01 Oct 2024UK£20.6bUK£5.1bUK£286.0m34x71.9x4x
Thu, 29 Aug 2024UK£20.9bUK£5.2bUK£245.4m38.1x85.4x4x
Sat, 27 Jul 2024UK£21.8bUK£5.3bUK£256.0m40.6x85.2x4.2x
Mon, 24 Jun 2024UK£22.0bUK£5.3bUK£267.0m40.7x82.4x4.1x
Wed, 22 May 2024UK£21.8bUK£5.3bUK£161.9m38.2x134.3x4.1x
Fri, 19 Apr 2024UK£20.7bUK£5.2bUK£91.3m37.9x226.7x4x
Sun, 17 Mar 2024UK£21.7bUK£5.2bUK£69.4m35.9x313.4x4.2x
Tue, 13 Feb 2024UK£21.1bUK£5.2bUK£65.8m37.3x319.9x4.1x
Thu, 11 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.3x591.9x4.1x
Sat, 09 Dec 2023UK£42.1bUK£10.2bUK£72.1m33.1x584.3x4.1x
Mon, 06 Nov 2023UK£39.6bUK£10.1bUK£125.9m32.7x314.3x3.9x
Wed, 04 Oct 2023UK£40.2bUK£10.1bUK£128.7m34.3x312.7x4x
Fri, 01 Sep 2023UK£40.1bUK£10.0bUK£100.7m34.2x398x4x
Sun, 30 Jul 2023UK£40.7bUK£10.6bUK£125.8m35.2x323.9x3.9x
Tue, 27 Jun 2023UK£40.7bUK£10.6bUK£126.7m38.1x321.7x3.9x
Thu, 25 May 2023UK£40.2bUK£10.6bUK£50.0m35.2x803.6x3.8x
Sat, 22 Apr 2023UK£39.8bUK£10.6bUK£292.9m37.6x135.8x3.8x
Mon, 20 Mar 2023UK£39.0bUK£10.4bUK£300.1m32.1x130x3.7x
Wed, 15 Feb 2023UK£39.5bUK£10.3bUK£296.3m34.7x133.5x3.8x
Fri, 13 Jan 2023UK£39.4bUK£10.3bUK£299.1m32.7x131.8x3.8x
Sun, 11 Dec 2022UK£39.2bUK£10.3bUK£317.1m34.4x123.6x3.8x
Tue, 08 Nov 2022UK£38.2bUK£10.3bUK£342.1m41.9x111.7x3.7x
Thu, 06 Oct 2022UK£38.6bUK£10.3bUK£341.8m35.3x112.9x3.7x
Sat, 03 Sep 2022UK£38.7bUK£9.8bUK£218.0m47.4x177.4x4x
Mon, 01 Aug 2022UK£33.5bUK£9.6bUK£299.5m48.3x111.7x3.5x
Wed, 29 Jun 2022UK£32.9bUK£9.5bUK£297.9m41.2x110.3x3.5x
Fri, 27 May 2022UK£32.9bUK£9.3bUK£206.5m35.9x159.5x3.5x
Sun, 24 Apr 2022UK£36.6bUK£9.0bUK£196.1m39.9x186.5x4.1x
Price to Earnings Ratio

186.5x


Total Market Cap: UK£36.6bTotal Earnings: UK£196.1mTotal Revenue: UK£9.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 211.1x202320242025
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 46.7x which is lower than its 3-year average PE of 211x.
  • 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 24% per year over the last three years.
  • Meanwhile revenues for these companies have declined 19% 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 Market7.80%
Tech7.79%
Software6.99%
Systems Software8.20%
Application Software6.98%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 257x.
    • Analysts are expecting annual earnings growth of 15.2%, which is lower than the prior year's growth of 18.0% 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 grow by 9.9% 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£11.722.6%
+UK£291.5m		2.4%PE35.3x
BYIT Bytes Technology GroupUK£4.996.7%
+UK£75.7m		4.4%PE23.2x
FDP FD TechnologiesUK£17.324.5%
+UK£16.4m		48.3%PS1.6x
NET NetcallUK£1.107.8%
+UK£13.3m		20.2%PE35.5x
CNS Corero Network SecurityUK£0.1714.8%
+UK£11.5m		45.8%PE238x
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7D

7.8%

1Y

20.2%

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UK£2.02

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7D

-8.2%

1Y

30.3%

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UK£0.26

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1Y

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CNS

UK£0.17

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14.8%

1Y

45.8%

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GBG

UK£2.57

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7D

1.4%

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2.6%

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TRCS

UK£3.30

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7.3%

1Y

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AOM

UK£0.84

ActiveOps

7D

-1.2%

1Y

-15.9%

SGE

UK£11.72

Sage Group

7D

2.6%

1Y

2.4%

FDP

UK£17.32

FD Technologies

7D

4.5%

1Y

48.3%

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UK£4.99

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