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U.K. (FTSE) Software Industry Analysis

UpdatedApr 20, 2026
DataAggregated Company Financials
Companies51
  • 7D8.2%
  • 3M-11.7%
  • 1Y-19.1%
  • YTD-11.5%

The Software industry is up 8.2% in the last week, with Sage Group up 9.5%. However, the industry is down 19% over the past year. 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
Mon, 20 Apr 2026UK£13.3bUK£4.5bUK£409.1m30.3x32.4x2.9x
Wed, 18 Mar 2026UK£12.6bUK£4.5bUK£431.6m28.7x29.2x2.8x
Fri, 13 Feb 2026UK£12.7bUK£4.5bUK£432.3m31.3x29.5x2.8x
Sun, 11 Jan 2026UK£15.7bUK£4.5bUK£430.4m33x36.5x3.5x
Tue, 09 Dec 2025UK£15.5bUK£4.5bUK£421.5m33.4x36.9x3.5x
Thu, 06 Nov 2025UK£16.6bUK£4.4bUK£430.4m35.2x38.6x3.8x
Sat, 04 Oct 2025UK£17.2bUK£4.4bUK£439.9m31x39x3.9x
Mon, 01 Sep 2025UK£16.1bUK£4.4bUK£436.5m37.7x36.8x3.7x
Wed, 30 Jul 2025UK£17.7bUK£4.4bUK£428.0m35.8x41.3x4x
Fri, 27 Jun 2025UK£18.6bUK£4.7bUK£392.4m35.7x47.4x4x
Sun, 25 May 2025UK£18.6bUK£4.8bUK£400.8m32.4x46.4x3.8x
Tue, 22 Apr 2025UK£17.3bUK£4.8bUK£373.4m26.9x46.3x3.6x
Thu, 20 Mar 2025UK£17.8bUK£4.7bUK£366.4m28.5x48.5x3.7x
Sat, 15 Feb 2025UK£19.7bUK£4.8bUK£306.9m32.4x64.2x4.1x
Mon, 13 Jan 2025UK£19.3bUK£4.8bUK£301.4m30.5x64.1x4.1x
Wed, 11 Dec 2024UK£19.9bUK£4.8bUK£320.6m36.2x62.2x4.2x
Fri, 08 Nov 2024UK£17.2bUK£4.7bUK£206.5m36.4x83.4x3.7x
Sun, 06 Oct 2024UK£16.5bUK£4.7bUK£199.1m31.6x82.7x3.5x
Tue, 03 Sep 2024UK£21.1bUK£5.2bUK£267.4m38.2x78.8x4.1x
Thu, 01 Aug 2024UK£22.0bUK£5.3bUK£256.4m40.6x85.8x4.2x
Sat, 29 Jun 2024UK£22.0bUK£5.3bUK£260.4m39.8x84.4x4.1x
Mon, 27 May 2024UK£21.8bUK£5.3bUK£163.2m38.4x133.6x4.1x
Wed, 24 Apr 2024UK£21.3bUK£5.2bUK£92.0m36.5x231.6x4.1x
Fri, 22 Mar 2024UK£22.0bUK£5.2bUK£72.3m36.7x304.3x4.2x
Sun, 18 Feb 2024UK£21.0bUK£5.2bUK£65.8m37.3x320x4.1x
Tue, 16 Jan 2024UK£42.3bUK£10.1bUK£71.1m36.6x594.4x4.2x
Thu, 14 Dec 2023UK£42.4bUK£10.2bUK£72.1m33.1x587.8x4.2x
Sat, 11 Nov 2023UK£39.9bUK£10.1bUK£126.9m31.9x314x3.9x
Mon, 09 Oct 2023UK£40.2bUK£10.1bUK£128.7m36.3x312x4x
Wed, 06 Sep 2023UK£40.2bUK£10.0bUK£102.2m34x393.2x4x
Fri, 04 Aug 2023UK£39.7bUK£10.0bUK£94.1m33.9x422.2x4x
Sun, 02 Jul 2023UK£41.1bUK£10.6bUK£125.5m37.2x328x3.9x
Tue, 30 May 2023UK£40.2bUK£10.6bUK£39.2m35.2x1024.7x3.8x
Thu, 27 Apr 2023UK£39.7bUK£10.6bUK£291.1m37x136.5x3.8x
Price to Earnings Ratio

136.5x


Total Market Cap: UK£39.7bTotal Earnings: UK£291.1mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 172.8x202420252026
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 32.4x which is lower than its 3-year average PE of 173x.
  • The 3-year average PS ratio of 3.8x 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 12% 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 Market1.21%
Tech9.11%
Software8.18%
Application Software8.21%
Systems Software4.76%
Industry PE
  • Investors are most optimistic about the Application Software industry, which is trading close to its 3-year average PE ratio of 31.2x.
    • Analysts are expecting annual earnings growth of 15.4%, 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£8.976.6%
+UK£507.8m		-23.5%PE22.2x
BYIT Bytes Technology GroupUK£3.138.2%
+UK£56.3m		-37.2%PE13.9x
GBG GB GroupUK£2.1710.4%
+UK£47.4m		-15.3%PE55.8x
PINE Pinewood Technologies GroupUK£2.4113.2%
+UK£32.2m		-22.5%PE44.5x
ALFA Alfa Financial Software HoldingsUK£1.596.3%
+UK£27.9m		-23.5%PE15.7x

Latest News

FADL
UK£0.42
Fadel Partners
7D
-10.5%
1Y
-39.3%
GBG
UK£2.17
GB Group
7D
10.4%
1Y
-15.3%

GBG: Refined Assumptions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £X.XX from £X.XX, citing updated assumptions around the discount rate, revenue growth, profit margin and forward P/E that leave their overall fair value view broadly unchanged. Valuation Changes Fair Value: The fair value estimate is unchanged at 4.5, indicating no material shift in the core valuation output.
ACSO
UK£2.73
accesso Technology Group
7D
13.0%
1Y
-35.9%
DOTD
UK£0.48
dotdigital Group
7D
8.4%
1Y
-30.8%

DOTD: Future Margin Delivery And Cash Generation Will Drive Rerating Potential

Analysts have trimmed their price target on dotdigital Group to £0.95, reflecting slightly updated assumptions on revenue growth, profit margins and the future P/E multiple, while keeping fair value broadly unchanged. Analyst Commentary Recent Street research around dotdigital Group highlights a split in sentiment, with some upbeat views contrasted by more cautious voices focused on execution risk and valuation.
APTD
UK£2.22
Aptitude Software Group
7D
-5.5%
1Y
-15.3%

Aptitude Software Group's (LON:APTD) Conservative Accounting Might Explain Soft Earnings

Apr 17
Aptitude Software Group's (LON:APTD) Conservative Accounting Might Explain Soft Earnings
SGE
UK£8.97
Sage Group
7D
6.6%
1Y
-23.5%

SGE: Banking Partnerships And Share Buybacks Will Support Future Share Price Upside

Narrative Update The analyst price target for Sage Group has been reduced by £200, with analysts attributing this change to a lower fair value estimate, a reduced future P/E assumption and updated margin expectations. Analyst Commentary Recent research on Sage Group has focused on recalibrating valuation assumptions rather than making wholesale changes to the fundamental story.
BYIT
UK£3.13
Bytes Technology Group
7D
8.2%
1Y
-37.2%

BYIT: Cost Normalisation Headwinds Will Set Up A Stronger Cash Recovery

Analysts have made a small adjustment to their price target for Bytes Technology Group, citing largely unchanged fair value estimates around £4.70, minor tweaks to the discount rate, revenue growth outlook and profit margin, as well as a steady future P/E assumption near 20.6x. What's in the News Bytes Technology Group issued earnings guidance for 2027, indicating operating profit is expected to be broadly flat as the business absorbs about £4.5m of cost normalisation (Key Developments).
CER
UK£14.15
Cerillion
7D
-1.7%
1Y
6.0%
ALFA
UK£1.59
Alfa Financial Software Holdings
7D
6.3%
1Y
-23.5%
MBO
UK£0.10
MobilityOne
7D
-8.7%
1Y
556.3%
PINE
UK£2.41
Pinewood Technologies Group
7D
13.2%
1Y
-22.5%

PINE: Resumed Coverage And Deal Dislocation Will Drive Future Upside

Narrative Update on Pinewood Technologies Group The analyst price target for Pinewood Technologies has been reset to £5.50. Analysts cite resumed coverage, expectations for significant growth ahead, and a valuation based on a lower comparator multiple that they still see as leaving material upside for the shares.
TAP
UK£0.011
Tap Global Group
7D
-8.0%
1Y
-17.9%
KRM
UK£0.34
KRM22
7D
-2.9%
1Y
28.3%
NET
UK£1.13
Netcall
7D
4.6%
1Y
2.7%
ADVT
UK£1.65
AdvancedAdvT
7D
-2.9%
1Y
10.0%
PULS
UK£0.41
Pulsar Group
7D
-8.0%
1Y
1.3%