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U.K. (FTSE) Software Industry Analysis

UpdatedApr 01, 2026
DataAggregated Company Financials
Companies49
  • 7D3.6%
  • 3M-21.5%
  • 1Y-29.6%
  • YTD-19.6%

The Software industry is up 3.6% in the last week, with Sage Group up 4.1%. Meanwhile, Pinewood Technologies Group actually underperformed within the industry, shrinking 11% in the last week. In the past year, the industry is down 30%. 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
Wed, 01 Apr 2026UK£12.1bUK£4.5bUK£433.8m26.6x27.9x2.7x
Fri, 27 Feb 2026UK£12.9bUK£4.5bUK£432.1m31.4x29.8x2.9x
Sun, 25 Jan 2026UK£15.3bUK£4.5bUK£430.7m33x35.5x3.4x
Tue, 23 Dec 2025UK£15.8bUK£4.5bUK£422.0m32.9x37.4x3.5x
Thu, 20 Nov 2025UK£15.8bUK£4.4bUK£423.2m30.4x37.2x3.6x
Sat, 18 Oct 2025UK£16.2bUK£4.4bUK£436.4m30.1x37.2x3.7x
Mon, 15 Sep 2025UK£16.1bUK£4.4bUK£439.5m37.6x36.7x3.7x
Wed, 13 Aug 2025UK£16.1bUK£4.3bUK£430.3m35.7x37.4x3.7x
Fri, 11 Jul 2025UK£17.9bUK£4.5bUK£395.1m35.9x45.4x4x
Sun, 08 Jun 2025UK£19.0bUK£4.7bUK£404.2m34.7x47x4.1x
Tue, 06 May 2025UK£18.8bUK£4.8bUK£374.2m31x50.4x4x
Thu, 03 Apr 2025UK£18.2bUK£4.8bUK£373.6m28.5x48.8x3.8x
Sat, 01 Mar 2025UK£19.0bUK£4.8bUK£306.8m32.2x61.8x4x
Mon, 27 Jan 2025UK£19.8bUK£4.8bUK£306.1m30.2x64.8x4.1x
Wed, 25 Dec 2024UK£19.7bUK£4.8bUK£303.3m34.2x64.9x4.1x
Fri, 22 Nov 2024UK£19.5bUK£4.8bUK£324.3m35x60x4.1x
Sun, 20 Oct 2024UK£17.1bUK£4.7bUK£209.0m33x81.7x3.7x
Tue, 17 Sep 2024UK£20.8bUK£5.2bUK£277.7m36.7x74.9x4x
Thu, 15 Aug 2024UK£21.1bUK£5.3bUK£258.1m38.1x81.9x4x
Sat, 13 Jul 2024UK£21.6bUK£5.3bUK£259.7m38.9x83.1x4.1x
Mon, 10 Jun 2024UK£21.8bUK£5.3bUK£140.4m40.7x155.1x4.1x
Wed, 08 May 2024UK£22.7bUK£5.2bUK£107.4m37.5x211.1x4.3x
Fri, 05 Apr 2024UK£21.6bUK£5.2bUK£84.7m37.8x255.4x4.1x
Sun, 03 Mar 2024UK£21.4bUK£5.2bUK£66.0m36.4x324.1x4.2x
Tue, 30 Jan 2024UK£42.6bUK£10.2bUK£70.9m38.5x601.1x4.2x
Thu, 28 Dec 2023UK£42.6bUK£10.1bUK£72.2m36.5x590.2x4.2x
Sat, 25 Nov 2023UK£41.1bUK£10.2bUK£137.2m32.2x300x4x
Mon, 23 Oct 2023UK£39.2bUK£10.1bUK£130.0m30.9x301.7x3.9x
Wed, 20 Sep 2023UK£40.8bUK£10.0bUK£132.8m37.8x307.4x4.1x
Fri, 18 Aug 2023UK£39.6bUK£10.0bUK£97.8m34.3x404.7x4x
Sun, 16 Jul 2023UK£40.9bUK£10.5bUK£128.8m35.5x317.6x3.9x
Tue, 13 Jun 2023UK£40.8bUK£10.6bUK£251.7m37.4x162.3x3.9x
Thu, 11 May 2023UK£39.9bUK£10.7bUK£109.8m36.8x363.9x3.7x
Sat, 08 Apr 2023UK£39.2bUK£10.6bUK£289.7m37x135.4x3.7x
Price to Earnings Ratio

135.4x


Total Market Cap: UK£39.2bTotal Earnings: UK£289.7mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 174.6x202420252026
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 27.9x which is lower than its 3-year average PE of 175x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 14% per year over the last three years.
  • Meanwhile revenues for these companies have declined 25% 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 Market1.99%
Tech2.18%
Software3.56%
Application Software3.58%
Systems Software0.59%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 61.5x.
    • Analysts are expecting annual earnings growth of 15.3%, which is higher than its past year's earnings growth of 8.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 91% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 15% 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£8.384.1%
+UK£306.3m		-31.5%PE20.9x
CER CerillionUK£12.8527.9%
+UK£82.7m		-16.6%PE22.8x
BYIT Bytes Technology GroupUK£2.769.0%
+UK£53.9m		-43.0%PE12.2x
GBG GB GroupUK£2.015.1%
+UK£21.6m		-31.3%PE51.7x
NET NetcallUK£1.025.7%
+UK£9.5m		-3.3%PE72.1x

Latest News

CER
UK£12.85
Cerillion
7D
27.9%
1Y
-16.6%
ACSO
UK£2.48
accesso Technology Group
7D
1.6%
1Y
-44.5%
AOM
UK£1.72
ActiveOps
7D
-5.0%
1Y
89.0%

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

Analysts have kept their fair value estimate for ActiveOps steady at £3.17, with only marginal tweaks to the discount rate, revenue growth, profit margin and future P/E assumptions supporting a largely unchanged price target outlook. Valuation Changes Fair Value: Held steady at £3.17, with no change to the headline estimate.
DOTD
UK£0.46
dotdigital Group
7D
4.0%
1Y
-32.0%
PINE
UK£2.09
Pinewood Technologies Group
7D
-11.3%
1Y
-36.6%

PINE: AI Execution And Broken Deal Dislocation Will Drive Future Upside

Analysts have trimmed their fair value estimate for Pinewood Technologies Group, with the implied analyst price target moving from about £7.59 to around £6.54 as they adopt a lower comparator-based multiple, while still describing material upside potential following the recent £5.50 target and Buy rating from Jefferies. Analyst Commentary Recent commentary has focused on how the broken deal backdrop and AI concerns intersect with Pinewood Technologies Group’s growth plans and current valuation.
SAAS
UK£0.54
Microlise Group
7D
-4.4%
1Y
-50.9%

SAAS: Recurring Revenue And Premium P/E Will Support Future Upside

Microlise Group's analyst price target has been reaffirmed at £1.46, with analysts pointing to unchanged fair value and very small tweaks to the discount rate, revenue growth, profit margin and future P/E assumptions as the basis for maintaining their view. What's in the News Microlise Group issued new guidance for total Group revenue for the year ended 31 December 2025 at £84.0 million, described as in line with revised market expectations (Key Developments).
GETB
UK£0.66
GetBusy
7D
10.0%
1Y
26.9%
BYIT
UK£2.76
Bytes Technology Group
7D
9.0%
1Y
-43.0%
SGE
UK£8.38
Sage Group
7D
4.1%
1Y
-31.5%

SGE: Cloud Partnerships And Buybacks Will Support Durable Long Term Upside

Analysts have trimmed the Sage Group fair value estimate from about £16.20 to roughly £15.22, citing lower price targets such as Citi's move to £11.50 per share, alongside more supportive views from other firms that still regard the company's growth outlook as attractively priced at current levels. Analyst Commentary Recent research shows a mixed but generally constructive tone around Sage Group, with some trimming of upside targets alongside fresh upgrades that point to confidence in the current share price as an entry point.
GBG
UK£2.01
GB Group
7D
5.1%
1Y
-31.3%

GBG: Index Additions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £4.50. This reflects small refinements to assumptions around discount rate, revenue growth, profit margin and future P/E that leave their overall valuation view broadly unchanged.
ALFA
UK£1.45
Alfa Financial Software Holdings
7D
-1.6%
1Y
-33.3%
NET
UK£1.02
Netcall
7D
5.7%
1Y
-3.3%
SATS
UK£0.0019
Satsuma Technology
7D
-9.3%
1Y
-66.2%
APTD
UK£2.13
Aptitude Software Group
7D
-3.2%
1Y
-28.3%
TAP
UK£0.011
Tap Global Group
7D
-23.3%
1Y
-23.3%
BGO
UK£0.63
Bango
7D
-7.4%
1Y
-19.4%