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U.K. (FTSE) Software Industry Analysis

UpdatedApr 03, 2026
DataAggregated Company Financials
Companies50
  • 7D4.9%
  • 3M-17.9%
  • 1Y-27.1%
  • YTD-17.9%

Over the last 7 days, the Software industry has risen 4.9%, driven by gains from Sage Group of 5.1%. During this same period, the Quartix Technologies underperformed, falling 5.1%. In contrast, the industry has lost 27% in the last 12 months. 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
Sat, 04 Apr 2026UK£12.4bUK£4.5bUK£431.3m26.4x28.6x2.7x
Mon, 02 Mar 2026UK£12.7bUK£4.5bUK£432.0m30.6x29.5x2.8x
Wed, 28 Jan 2026UK£15.0bUK£4.5bUK£430.8m34.4x34.8x3.3x
Fri, 26 Dec 2025UK£15.7bUK£4.5bUK£422.0m33x37.1x3.5x
Sun, 23 Nov 2025UK£16.0bUK£4.5bUK£446.3m29.8x35.8x3.6x
Tue, 21 Oct 2025UK£16.3bUK£4.4bUK£436.3m29.8x37.3x3.7x
Thu, 18 Sep 2025UK£16.2bUK£4.4bUK£439.1m32.9x37x3.7x
Sat, 16 Aug 2025UK£16.1bUK£4.4bUK£435.0m35.2x37x3.7x
Mon, 14 Jul 2025UK£17.9bUK£4.5bUK£395.0m35.9x45.3x4x
Wed, 11 Jun 2025UK£19.0bUK£4.7bUK£404.1m34.9x46.9x4.1x
Fri, 09 May 2025UK£19.0bUK£4.8bUK£374.1m32.5x50.9x4x
Sun, 06 Apr 2025UK£17.4bUK£4.8bUK£373.3m27.1x46.6x3.7x
Tue, 04 Mar 2025UK£19.1bUK£4.8bUK£307.3m32.3x62x4x
Thu, 30 Jan 2025UK£19.9bUK£4.8bUK£305.7m30.8x65.1x4.2x
Sat, 28 Dec 2024UK£19.6bUK£4.8bUK£303.4m34.3x64.7x4.1x
Mon, 25 Nov 2024UK£19.7bUK£4.8bUK£324.1m35.8x60.8x4.1x
Wed, 23 Oct 2024UK£16.9bUK£4.7bUK£208.8m34.4x81.2x3.6x
Fri, 20 Sep 2024UK£21.1bUK£5.2bUK£277.5m37.6x76x4.1x
Sun, 18 Aug 2024UK£21.1bUK£5.2bUK£258.0m37.6x81.7x4x
Tue, 16 Jul 2024UK£21.5bUK£5.3bUK£259.7m38.4x82.6x4.1x
Thu, 13 Jun 2024UK£21.5bUK£5.3bUK£265.3m40.7x81.2x4.1x
Sat, 11 May 2024UK£22.8bUK£5.2bUK£107.4m38.2x212.8x4.4x
Mon, 08 Apr 2024UK£21.6bUK£5.2bUK£74.6m37.9x289.6x4.1x
Wed, 06 Mar 2024UK£21.1bUK£5.2bUK£60.3m36.1x349.5x4.1x
Fri, 02 Feb 2024UK£42.5bUK£10.2bUK£70.8m38.1x599.8x4.2x
Sun, 31 Dec 2023UK£42.5bUK£10.1bUK£71.1m36.6x597.5x4.2x
Tue, 28 Nov 2023UK£41.4bUK£10.2bUK£137.2m32x301.7x4.1x
Thu, 26 Oct 2023UK£39.2bUK£10.1bUK£122.9m31.8x318.5x3.9x
Sat, 23 Sep 2023UK£41.0bUK£10.1bUK£131.8m33x310.7x4.1x
Mon, 21 Aug 2023UK£39.5bUK£10.0bUK£100.9m33x391.8x4x
Wed, 19 Jul 2023UK£41.5bUK£10.5bUK£128.7m35.4x322.1x3.9x
Fri, 16 Jun 2023UK£40.9bUK£10.5bUK£252.3m38.1x162.2x3.9x
Sun, 14 May 2023UK£39.9bUK£10.7bUK£110.1m36x362.5x3.7x
Tue, 11 Apr 2023UK£39.2bUK£10.6bUK£289.6m37x135.5x3.7x
Price to Earnings Ratio

135.5x


Total Market Cap: UK£39.2bTotal Earnings: UK£289.6mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 174.3x202420252026
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 28.6x which is lower than its 3-year average PE of 174x.
  • 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 Market4.41%
Tech3.93%
Software4.93%
Application Software4.98%
Systems Software-1.93%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 59.4x.
    • Analysts are expecting annual earnings growth of 15.0%, 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 92% 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£8.565.1%
+UK£385.7m		-29.0%PE21.4x
CER CerillionUK£13.0029.4%
+UK£87.1m		-13.9%PE23.1x
BYIT Bytes Technology GroupUK£2.9110.8%
+UK£67.1m		-40.0%PE12.9x
GBG GB GroupUK£2.056.0%
+UK£26.1m		-27.9%PE52.6x
AOM ActiveOpsUK£1.9415.1%
+UK£18.2m		113.2%PS3.7x

Latest News

TRCS
UK£3.10
Tracsis
7D
3.3%
1Y
-3.9%
GBG
UK£2.05
GB Group
7D
6.0%
1Y
-27.9%

GBG: Slightly Improved Assumptions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £X.X, reflecting small adjustments to assumptions around the discount rate, revenue growth, profit margins and future P/E, while keeping estimated fair value broadly unchanged at £4.50. Valuation Changes Fair Value: kept unchanged at £4.50, indicating no shift in the central valuation anchor.
SGE
UK£8.56
Sage Group
7D
5.1%
1Y
-29.0%

SGE: Mixed Research Views And Partnerships Will Shape Future Upside Potential

Analysts have reduced Sage Group's fair value estimate from £9.50 to £9.00. This reflects recent price target revisions from £14.00 to £11.50, along with mixed updates that balance slightly adjusted growth, margin and future P/E assumptions.
BYIT
UK£2.91
Bytes Technology Group
7D
10.8%
1Y
-40.0%

BYIT: Capital Light Cash Generation Will Underpin Extended Recovery Story

Analysts have reduced their fair value estimate for Bytes Technology Group from £6.38 to £4.70. This reflects a lower assumed future P/E and softer projected revenue growth, along with the view that the company’s recovery timeline is taking longer than previously expected.
CRTA
UK£0.13
Cirata
7D
-10.5%
1Y
-30.2%
CER
UK£13.00
Cerillion
7D
29.4%
1Y
-13.9%
QTX
UK£2.23
Quartix Technologies
7D
-5.1%
1Y
15.5%

QTX: Shares Will Rise As Dividend Simplification And Audit Progress Support Upside

Analysts have nudged their price target on Quartix Technologies slightly higher to £3.60. The change reflects updated assumptions for discount rates, revenue growth, profit margins and a modestly higher future P/E multiple.
AOM
UK£1.94
ActiveOps
7D
15.1%
1Y
113.2%

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
3.1%
1Y
-31.5%
PINE
UK£2.11
Pinewood Technologies Group
7D
-1.9%
1Y
-35.3%

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
-7.7%
1Y
-49.1%

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).
NET
UK£1.02
Netcall
7D
6.3%
1Y
0.5%
IDOX
UK£0.70
IDOX
7D
-0.7%
1Y
25.7%
APTD
UK£2.12
Aptitude Software Group
7D
-1.9%
1Y
-25.4%
BGO
UK£0.60
Bango
7D
-4.8%
1Y
-18.4%
SKL
UK£0.53
Skillcast Group
7D
-5.4%
1Y
50.0%

The Price Is Right For Skillcast Group plc (LON:SKL)

Jan 15
The Price Is Right For Skillcast Group plc (LON:SKL)