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U.K. (FTSE) Software Industry Analysis

UpdatedFeb 03, 2026
DataAggregated Company Financials
Companies50
  • 7D-3.9%
  • 3M-10.2%
  • 1Y-21.1%
  • YTD-2.4%

Over the last 7 days, the Software industry has dropped 3.9%, driven by a pullback from Sage Group of 7.4%. Meanwhile, Pinewood Technologies Group actually outperformed within the industry, gaining 29% in the last week. However, the industry is down 21% over the past year. Looking forward, 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
Tue, 03 Feb 2026UK£14.9bUK£4.5bUK£430.0m33.4x34.6x3.3x
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
Price to Earnings Ratio

133.7x


Total Market Cap: UK£39.6bTotal Earnings: UK£296.5mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 179.9x202420252026
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 34.6x which is lower than its 3-year average PE of 180x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.3x.
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 Market1.41%
Tech-1.89%
Software-3.90%
Application Software-3.90%
Systems Software-4.86%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 102x.
    • Analysts are expecting annual earnings growth of 16.5%, 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 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
PINE Pinewood Technologies GroupUK£4.7531.1%
+UK£129.5m		39.6%PE87.8x
ZOO ZOO Digital GroupUK£0.1448.6%
+UK£4.4m		-50.0%PS0.4x
OMG Oxford MetricsUK£0.585.4%
+UK£3.4m		18.3%PS1.5x
BGO BangoUK£0.825.1%
+UK£3.1m		-17.2%PS1.6x
SKL Skillcast GroupUK£0.782.0%
+UK£1.3m		82.4%PE63.8x

Latest News

SGE
UK£8.71
Sage Group
7D
-12.0%
1Y
-35.0%

Subdued Growth No Barrier To The Sage Group plc's (LON:SGE) Price

Feb 02
Subdued Growth No Barrier To The Sage Group plc's (LON:SGE) Price
PINE
UK£4.75
Pinewood Technologies Group
7D
31.1%
1Y
39.6%

PINE: Higher Future P E Assumptions Will Support Stronger Share Price

Analysts have lifted their price target for Pinewood Technologies Group to £7.25 from £7.00, reflecting updated assumptions around fair value, revenue growth, profit margins and future P/E expectations. Analyst Commentary Analysts lifting the price target to £7.25 signals updated thinking on how Pinewood Technologies Group might balance growth, margins and valuation from here.
ALFA
UK£2.04
Alfa Financial Software Holdings
7D
-4.2%
1Y
-8.1%
SATS
UK£0.0031
Satsuma Technology
7D
3.3%
1Y
-69.0%
PEB
UK£0.20
Pebble Beach Systems Group
7D
4.0%
1Y
129.4%
QTX
UK£2.96
Quartix Technologies
7D
-5.4%
1Y
71.6%

QTX: Shares Will Rise On Unified Dividend Policy And Payout Visibility

Analysts have modestly lifted their price target for Quartix Technologies to £3.60 from £3.60, reflecting slightly adjusted assumptions around the discount rate, revenue growth and profit margin, while keeping the fair value estimate steady. What's in the News The Board plans to consolidate Quartix Technologies' separate ordinary and supplementary dividends into a single ordinary dividend, with details to be set out in the upcoming annual report (Key Developments).
SAAS
UK£0.87
Microlise Group
7D
-6.5%
1Y
-28.7%

SAAS: High P/E And Stable Profitability Will Support Future Returns

Analysts have nudged their fair value estimate for Microlise Group from £1.52 to about £1.54, reflecting updated assumptions on the discount rate, revenue growth, profit margins, and a forward P/E that now sits closer to 71x. What's in the News Microlise Group issued earnings guidance for fiscal 2025, setting revenue expectations below current market forecasts.
BGO
UK£0.82
Bango
7D
5.1%
1Y
-17.2%
CER
UK£16.85
Cerillion
7D
-3.4%
1Y
2.7%

Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up

Jan 20
Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up
SKL
UK£0.78
Skillcast Group
7D
2.0%
1Y
82.4%

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

Jan 15
The Price Is Right For Skillcast Group plc (LON:SKL)
OMG
UK£0.58
Oxford Metrics
7D
5.4%
1Y
18.3%
GBG
UK£2.27
GB Group
7D
-5.4%
1Y
-34.5%
ZOO
UK£0.14
ZOO Digital Group
7D
48.6%
1Y
-50.0%
SYME
UK£0.000044
Supply@ME Capital
7D
46.7%
1Y
57.1%
APTD
UK£2.46
Aptitude Software Group
7D
-12.1%
1Y
-22.5%
BYIT
UK£3.21
Bytes Technology Group
7D
-5.7%
1Y
-30.7%