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U.K. (FTSE) Software Industry Analysis

UpdatedFeb 16, 2026
DataAggregated Company Financials
Companies49
  • 7D-3.6%
  • 3M-17.9%
  • 1Y-31.1%
  • YTD-15.2%

Over the last 7 days, the Software industry has dropped 3.6%, driven by a pullback from Sage Group of 3.9%. However, the industry is down 31% over the past year. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 16 Feb 2026UK£12.8bUK£4.5bUK£432.4m31.2x29.7x2.9x
Wed, 14 Jan 2026UK£16.0bUK£4.5bUK£430.4m33.1x37.1x3.6x
Fri, 12 Dec 2025UK£15.6bUK£4.5bUK£421.9m33.3x37.1x3.5x
Sun, 09 Nov 2025UK£16.0bUK£4.4bUK£430.6m35.2x37.1x3.6x
Tue, 07 Oct 2025UK£16.3bUK£4.4bUK£438.9m30.7x37.1x3.7x
Thu, 04 Sep 2025UK£16.0bUK£4.4bUK£433.6m37.6x36.9x3.7x
Sat, 02 Aug 2025UK£17.1bUK£4.4bUK£430.2m34.5x39.8x3.9x
Mon, 30 Jun 2025UK£18.7bUK£4.7bUK£388.6m37.3x48.1x4x
Wed, 28 May 2025UK£18.7bUK£4.8bUK£400.8m32.4x46.7x3.9x
Fri, 25 Apr 2025UK£17.5bUK£4.8bUK£371.8m30.3x47.1x3.7x
Sun, 23 Mar 2025UK£17.8bUK£4.7bUK£363.4m29.9x49.1x3.8x
Tue, 18 Feb 2025UK£19.8bUK£4.8bUK£307.0m32.2x64.5x4.1x
Thu, 16 Jan 2025UK£19.4bUK£4.8bUK£304.3m30x63.8x4.1x
Sat, 14 Dec 2024UK£19.9bUK£4.8bUK£320.0m37.1x62.1x4.2x
Mon, 11 Nov 2024UK£17.3bUK£4.7bUK£206.3m36.3x83.7x3.7x
Wed, 09 Oct 2024UK£16.5bUK£4.7bUK£199.0m31.4x82.9x3.5x
Fri, 06 Sep 2024UK£20.7bUK£5.2bUK£267.5m37.7x77.3x4x
Sun, 04 Aug 2024UK£21.4bUK£5.3bUK£256.4m39.6x83.7x4.1x
Tue, 02 Jul 2024UK£21.8bUK£5.3bUK£260.8m39x83.7x4.1x
Thu, 30 May 2024UK£21.8bUK£5.3bUK£163.3m39.6x133.3x4.1x
Sat, 27 Apr 2024UK£22.2bUK£5.2bUK£89.6m38.3x247.4x4.2x
Mon, 25 Mar 2024UK£21.7bUK£5.2bUK£70.0m36.7x310.8x4.2x
Wed, 21 Feb 2024UK£20.9bUK£5.2bUK£65.8m36.1x317.9x4x
Fri, 19 Jan 2024UK£42.4bUK£10.1bUK£71.1m38.7x595.7x4.2x
Sun, 17 Dec 2023UK£42.2bUK£10.1bUK£72.2m35.4x585x4.2x
Tue, 14 Nov 2023UK£39.8bUK£10.1bUK£126.9m31.7x313.6x3.9x
Thu, 12 Oct 2023UK£40.1bUK£10.1bUK£129.6m31.3x309.7x4x
Sat, 09 Sep 2023UK£40.9bUK£10.0bUK£143.1m34.8x286x4.1x
Mon, 07 Aug 2023UK£39.8bUK£10.0bUK£94.3m34.5x422.4x4x
Wed, 05 Jul 2023UK£41.1bUK£10.6bUK£127.9m35.6x321.7x3.9x
Fri, 02 Jun 2023UK£40.7bUK£10.6bUK£39.5m36.2x1029.9x3.8x
Sun, 30 Apr 2023UK£40.1bUK£10.7bUK£109.8m36.4x364.8x3.7x
Tue, 28 Mar 2023UK£39.1bUK£10.6bUK£310.6m33.2x126x3.7x
Thu, 23 Feb 2023UK£39.5bUK£10.3bUK£297.3m34.4x132.9x3.8x
Price to Earnings Ratio

132.9x


Total Market Cap: UK£39.5bTotal Earnings: UK£297.3mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 178.7x202420252026
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 29.7x which is lower than its 3-year average PE of 179x.
  • 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 Market0.59%
Tech1.98%
Software-3.55%
Systems Software-0.083%
Application Software-3.58%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 92.5x.
    • Analysts are expecting annual earnings growth of 16.8%, 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 17% 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
PEB Pebble Beach Systems GroupUK£0.209.5%
+UK£2.2m		161.3%PS2.1x
TRCS TracsisUK£3.251.6%
+UK£1.5m		-9.0%PE186x
ESYS essensysUK£0.1813.8%
+UK£1.5m		-50.0%PS0.6x
CRTA CirataUK£0.195.5%
+UK£1.2m		-4.9%PS3.4x
IGP Intercede GroupUK£1.241.6%
+UK£1.2m		-30.8%PE20.5x

Latest News

PINE
UK£2.94
Pinewood Technologies Group
7D
-35.1%
1Y
-13.3%
GBG
UK£2.01
GB Group
7D
-7.8%
1Y
-44.6%
ALT
UK£0.24
Altitude Group
7D
5.3%
1Y
-9.4%
ALFA
UK£1.83
Alfa Financial Software Holdings
7D
-6.5%
1Y
-25.0%
AOM
UK£2.73
ActiveOps
7D
0.4%
1Y
167.6%

AOM: Scalable Model And Decision Intelligence Will Support £100 Million ARR

Analysts have left their price target for ActiveOps unchanged at £3.17, citing only small tweaks to assumptions on discount rate, revenue growth, profit margin and future P/E, rather than any shift in their core view of the company. Valuation Changes Fair Value: Fair value estimate remains unchanged at £3.17 per share.
SAAS
UK£0.81
Microlise Group
7D
-5.3%
1Y
-28.9%

SAAS: High P/E And 2025 Guidance Will Support Future Returns

Analysts have trimmed their fair value estimate for Microlise Group from £1.54 to £1.46, citing slightly higher discount rate assumptions and a lower future P/E multiple in their updated model. What's in the News Microlise Group issued earnings guidance for fiscal 2025, giving you a clearer view of what management currently expects.
TRCS
UK£3.25
Tracsis
7D
1.6%
1Y
-9.0%

TRCS: M&A Pipeline And Buybacks Will Support Future Share Upside

Analysts have nudged their price target on Tracsis higher to £6.18, a small adjustment that reflects updated assumptions on the discount rate and future P/E while keeping fair value estimates broadly unchanged. What's in the News Management reiterated that mergers and acquisitions remain a key part of Tracsis's growth plans, with a focus on disciplined bolt on deals that are fully integrated into a single group structure.
SGE
UK£7.88
Sage Group
7D
-6.2%
1Y
-40.5%
RM.
UK£1.02
RM
7D
1.0%
1Y
-6.8%
PEB
UK£0.20
Pebble Beach Systems Group
7D
9.5%
1Y
161.3%
ESYS
UK£0.18
essensys
7D
13.8%
1Y
-50.0%

essensys plc's (LON:ESYS) Prospects Need A Boost To Lift Shares

Jan 24
essensys plc's (LON:ESYS) Prospects Need A Boost To Lift Shares
ADVT
UK£1.55
AdvancedAdvT
7D
-7.5%
1Y
6.9%
IGP
UK£1.24
Intercede Group
7D
1.6%
1Y
-30.8%
DOTD
UK£0.61
dotdigital Group
7D
-7.3%
1Y
-33.6%
BYIT
UK£2.86
Bytes Technology Group
7D
-4.2%
1Y
-36.7%
CRTA
UK£0.19
Cirata
7D
5.5%
1Y
-4.9%