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U.K. (FTSE) Software Industry Analysis

UpdatedJan 01, 2026
DataAggregated Company Financials
Companies49
  • 7D0.2%
  • 3M-3.7%
  • 1Y-14.2%
  • YTD-14.5%

The Software industry has stayed flat over the last week. As for the longer term, the industry has declined 14% in the last year. Looking forward, 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
Thu, 01 Jan 2026UK£15.7bUK£4.5bUK£422.0m32.1x37.2x3.5x
Sat, 29 Nov 2025UK£15.8bUK£4.5bUK£447.0m33.2x35.4x3.5x
Mon, 27 Oct 2025UK£16.7bUK£4.4bUK£435.5m31.2x38.4x3.8x
Wed, 24 Sep 2025UK£16.4bUK£4.4bUK£439.5m33.1x37.3x3.8x
Fri, 22 Aug 2025UK£16.2bUK£4.4bUK£437.3m37.1x37.1x3.7x
Sun, 20 Jul 2025UK£18.2bUK£4.5bUK£397.4m35.2x45.8x4.1x
Tue, 17 Jun 2025UK£19.0bUK£4.7bUK£405.7m35x46.9x4.1x
Thu, 15 May 2025UK£19.2bUK£4.8bUK£377.1m33.1x50.9x4x
Sat, 12 Apr 2025UK£16.9bUK£4.8bUK£372.3m27.6x45.3x3.5x
Mon, 10 Mar 2025UK£18.4bUK£4.8bUK£312.9m31.6x58.8x3.9x
Wed, 05 Feb 2025UK£19.9bUK£4.8bUK£306.5m31.2x64.8x4.1x
Fri, 03 Jan 2025UK£19.6bUK£4.8bUK£304.9m31x64.1x4.1x
Sun, 01 Dec 2024UK£20.0bUK£4.8bUK£322.7m35.4x62.1x4.2x
Tue, 29 Oct 2024UK£16.7bUK£4.7bUK£208.7m32x80x3.6x
Thu, 26 Sep 2024UK£20.5bUK£5.1bUK£286.0m37.1x71.8x4x
Sat, 24 Aug 2024UK£20.9bUK£5.2bUK£245.3m38.3x85x4x
Mon, 22 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.1x84.1x4.1x
Wed, 19 Jun 2024UK£21.9bUK£5.3bUK£264.3m42.1x82.7x4.1x
Fri, 17 May 2024UK£21.8bUK£5.2bUK£108.4m38.2x201.4x4.2x
Sun, 14 Apr 2024UK£21.2bUK£5.2bUK£89.4m38x237.1x4.1x
Tue, 12 Mar 2024UK£21.7bUK£5.2bUK£102.1m36x212.3x4.2x
Thu, 08 Feb 2024UK£21.0bUK£5.2bUK£65.8m37.3x318.4x4x
Sat, 06 Jan 2024UK£41.8bUK£10.1bUK£71.1m36.1x588.1x4.1x
Mon, 04 Dec 2023UK£41.8bUK£10.1bUK£72.2m33.1x579.3x4.1x
Wed, 01 Nov 2023UK£40.4bUK£10.1bUK£126.7m32.7x318.6x4x
Fri, 29 Sep 2023UK£40.3bUK£10.1bUK£130.8m38.2x308.3x4x
Sun, 27 Aug 2023UK£39.6bUK£10.0bUK£101.0m33.8x392.5x4x
Tue, 25 Jul 2023UK£41.4bUK£10.6bUK£128.3m35.3x323.1x3.9x
Thu, 22 Jun 2023UK£41.0bUK£10.6bUK£129.1m38x318x3.9x
Sat, 20 May 2023UK£40.4bUK£10.9bUK£60.0m35.3x673.6x3.7x
Mon, 17 Apr 2023UK£39.5bUK£10.6bUK£290.3m37.6x136.2x3.7x
Wed, 15 Mar 2023UK£39.4bUK£10.4bUK£298.3m32.2x132.2x3.8x
Fri, 10 Feb 2023UK£39.6bUK£10.3bUK£296.5m33.2x133.7x3.8x
Sun, 08 Jan 2023UK£39.5bUK£10.4bUK£297.9m33x132.5x3.8x
Price to Earnings Ratio

132.5x


Total Market Cap: UK£39.5bTotal Earnings: UK£297.9mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 182.8x202420252026
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 37.2x which is lower than its 3-year average PE of 183x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 12% 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 Market0.74%
Tech0.074%
Software0.20%
Application Software0.20%
Systems Software-0.39%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 124x.
    • Analysts are expecting annual earnings growth of 15.9%, 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 58% 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£10.830.3%
+UK£33.2m		-14.9%PE27.8x
CER CerillionUK£12.201.7%
+UK£5.9m		-30.3%PE21.7x
AOM ActiveOpsUK£2.312.7%
+UK£4.3m		111.9%PS4.5x
ADVT AdvancedAdvTUK£1.731.5%
+UK£3.4m		9.5%PE39.7x
PINE Pinewood Technologies GroupUK£3.580.7%
+UK£2.9m		-0.3%PE66.3x

Latest News

SGE
UK£10.83
Sage Group
7D
0.3%
1Y
-14.9%

Does Sage Group (LON:SGE) Have A Healthy Balance Sheet?

Dec 29
Does Sage Group (LON:SGE) Have A Healthy Balance Sheet?
AOM
UK£2.31
ActiveOps
7D
2.7%
1Y
111.9%

AOM: Scalable Model Will Deliver 25% Margins On Expanding Recurring Revenue

Analysts have modestly reaffirmed their valuation on ActiveOps with no material change to the implied price target, citing only marginal adjustments to the discount rate, long term revenue growth, profit margin and forward P E assumptions. What's in the News ActiveOps is hosting an Analyst and Investor Day to demonstrate how its Decision Intelligence platform is transforming service operations management, highlighting strategy to scale growth with enterprise customers and partners, accelerate R&D, and leverage its scalable operating model (Key Developments).
TRCS
UK£3.03
Tracsis
7D
-3.2%
1Y
-39.5%

TRCS: Expanded M&A Pipeline Will Drive Long-Term Dividend-Supported Upside

Analysts have trimmed their price target on Tracsis from £9.74 to £7.01, citing a higher implied discount rate and more conservative valuation multiples, even as they modestly increase their long term assumptions for revenue growth and profit margins. What's in the News Tracsis leadership reaffirmed that mergers and acquisitions remain a core pillar of the company’s long term growth strategy, highlighting an active pipeline and a disciplined, bolt on focus after a 3.5 year pause in deal making (Final Results Investor Presentation) Management stated that all future acquisitions will be fully integrated into a single Tracsis operating model, aiming to use M&A to supplement and support organic growth across the business (Final Results Investor Presentation) The Board recommended a final dividend of 1.4 pence per share for the year ended 31 July 2025, bringing the total dividend to 2.6 pence per share, in line with its progressive dividend policy, subject to shareholder approval (Company announcement) Valuation Changes The fair value estimate narrowed from £9.74 to £7.01, falling significantly to reflect a more conservative valuation framework.
CER
UK£12.20
Cerillion
7D
1.7%
1Y
-30.3%

Cerillion (LON:CER) Is Increasing Its Dividend To £0.106

Dec 24
Cerillion (LON:CER) Is Increasing Its Dividend To £0.106
PINE
UK£3.58
Pinewood Technologies Group
7D
0.7%
1Y
-0.3%
SATS
UK£0.0028
Satsuma Technology
7D
-46.7%
1Y
-76.7%
DOTD
UK£0.68
dotdigital Group
7D
0.9%
1Y
-22.1%
ADVT
UK£1.73
AdvancedAdvT
7D
1.5%
1Y
9.5%
IGP
UK£1.21
Intercede Group
7D
-1.2%
1Y
-31.6%
IDOX
UK£0.69
IDOX
7D
-0.3%
1Y
7.5%
ELCO
UK£1.26
Eleco
7D
-5.6%
1Y
-14.6%
APTD
UK£2.94
Aptitude Software Group
7D
1.4%
1Y
-13.5%
BYIT
UK£3.59
Bytes Technology Group
7D
-1.2%
1Y
-15.1%
GETB
UK£0.81
GetBusy
7D
6.5%
1Y
41.7%
SKL
UK£0.68
Skillcast Group
7D
-5.6%
1Y
60.7%
BGO
UK£0.88
Bango
7D
-2.8%
1Y
-6.9%