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U.K. (FTSE) Software Industry Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies49
  • 7D-0.2%
  • 3M-9.2%
  • 1Y-19.8%
  • YTD-1.1%

The Software is pretty flat in the last 7 days, but Cerillion has stood out, gaining 13%. As for the longer term, the industry has declined 20% in the last year. 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, 29 Jan 2026UK£15.1bUK£4.5bUK£430.9m34.2x35.1x3.4x
Sat, 27 Dec 2025UK£15.7bUK£4.5bUK£422.0m33x37.1x3.5x
Mon, 24 Nov 2025UK£15.6bUK£4.5bUK£446.3m29.8x35x3.5x
Wed, 22 Oct 2025UK£16.3bUK£4.4bUK£436.3m30.2x37.4x3.7x
Fri, 19 Sep 2025UK£16.4bUK£4.4bUK£439.0m30.6x37.4x3.8x
Sun, 17 Aug 2025UK£16.1bUK£4.4bUK£435.0m35.2x37x3.7x
Tue, 15 Jul 2025UK£18.0bUK£4.5bUK£394.2m35.9x45.7x4x
Thu, 12 Jun 2025UK£19.0bUK£4.7bUK£404.6m34.9x46.9x4.1x
Sat, 10 May 2025UK£19.1bUK£4.7bUK£374.2m32.6x51.1x4x
Mon, 07 Apr 2025UK£17.4bUK£4.8bUK£373.3m27.1x46.6x3.7x
Wed, 05 Mar 2025UK£18.7bUK£4.8bUK£312.9m31.9x59.7x3.9x
Fri, 31 Jan 2025UK£19.8bUK£4.8bUK£305.7m30.6x64.8x4.1x
Sun, 29 Dec 2024UK£19.6bUK£4.8bUK£303.5m34.3x64.7x4.1x
Tue, 26 Nov 2024UK£19.8bUK£4.8bUK£324.2m35.3x61.1x4.1x
Thu, 24 Oct 2024UK£16.9bUK£4.7bUK£208.6m34.4x80.8x3.6x
Sat, 21 Sep 2024UK£20.9bUK£5.2bUK£277.7m37.3x75.2x4.1x
Mon, 19 Aug 2024UK£21.1bUK£5.2bUK£258.0m37.6x81.7x4x
Wed, 17 Jul 2024UK£21.6bUK£5.3bUK£259.7m38x83x4.1x
Fri, 14 Jun 2024UK£21.7bUK£5.3bUK£265.4m40.3x81.9x4.1x
Sun, 12 May 2024UK£22.8bUK£5.2bUK£107.4m38.2x212.8x4.4x
Tue, 09 Apr 2024UK£21.4bUK£5.2bUK£74.6m38.3x286.5x4.1x
Thu, 07 Mar 2024UK£21.3bUK£5.2bUK£60.3m36.4x352.6x4.1x
Sat, 03 Feb 2024UK£42.4bUK£10.2bUK£70.7m37.1x599.8x4.2x
Mon, 01 Jan 2024UK£42.5bUK£10.1bUK£71.1m36.6x597.5x4.2x
Wed, 29 Nov 2023UK£41.4bUK£10.2bUK£137.2m32x301.5x4.1x
Fri, 27 Oct 2023UK£39.1bUK£10.1bUK£126.6m31.6x309x3.9x
Sun, 24 Sep 2023UK£41.0bUK£10.1bUK£131.8m33x310.8x4.1x
Tue, 22 Aug 2023UK£39.5bUK£10.0bUK£100.9m33.1x391.8x4x
Thu, 20 Jul 2023UK£41.9bUK£10.6bUK£128.4m35.1x326.2x4x
Sat, 17 Jun 2023UK£41.3bUK£10.5bUK£129.5m37.5x319x3.9x
Mon, 15 May 2023UK£39.9bUK£10.7bUK£110.1m36x362.5x3.7x
Wed, 12 Apr 2023UK£39.3bUK£10.6bUK£289.7m37.6x135.5x3.7x
Fri, 10 Mar 2023UK£39.8bUK£10.4bUK£298.9m33.2x133.3x3.8x
Sun, 05 Feb 2023UK£40.1bUK£10.3bUK£296.6m34x135.1x3.9x
Price to Earnings Ratio

135.1x


Total Market Cap: UK£40.1bTotal Earnings: UK£296.6mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 180.4x202420252026
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 35.1x 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 3.4x.
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 Market0.52%
Tech-0.11%
Software-0.19%
Application Software-0.14%
Systems Software-6.28%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 105x.
    • Analysts are expecting annual earnings growth of 16.1%, 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
CER CerillionUK£17.5012.9%
+UK£59.0m		9.4%PE31.1x
PINE Pinewood Technologies GroupUK£3.8010.8%
+UK£42.6m		10.3%PE70.3x
GBG GB GroupUK£2.456.1%
+UK£32.7m		-27.7%PE64x
NET NetcallUK£1.3514.4%
+UK£29.0m		24.4%PE56.8x
DOTD dotdigital GroupUK£0.7412.1%
+UK£24.3m		-14.3%PE20.1x

Latest News

SATS
UK£0.003
Satsuma Technology
7D
-16.7%
1Y
-70.0%
NET
UK£1.35
Netcall
7D
14.4%
1Y
24.4%
TRCS
UK£3.65
Tracsis
7D
28.1%
1Y
0%

Tracsis (LON:TRCS) Could Be Struggling To Allocate Capital

Jan 28
Tracsis (LON:TRCS) Could Be Struggling To Allocate Capital
ELCO
UK£1.48
Eleco
7D
14.8%
1Y
1.4%
CNS
UK£0.13
Corero Network Security
7D
-3.8%
1Y
-32.4%

CNS: Latin American DDoS Partnership Will Drive Future Rerating Potential

Analysts have slightly reduced their price target on Corero Network Security, reflecting marginal adjustments to fair value, discount rate and future P/E assumptions rather than any major change in their overall view of the business. What's in the News Corero Network Security entered into a partnership with Auben Networks, its first regional agreement in Argentina, with Auben set to resell Corero's full DDoS protection portfolio, including the SmartWall ONE platform, across Argentina, Chile and neighboring markets (Key Developments).
QTX
UK£3.05
Quartix Technologies
7D
-8.7%
1Y
71.8%

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).
ALFA
UK£2.12
Alfa Financial Software Holdings
7D
2.7%
1Y
2.9%
SGE
UK£9.95
Sage Group
7D
-2.9%
1Y
-25.5%

SGE: Durable Model And Capital Returns Will Support Further Share Price Upside

Narrative update on Sage Group The updated analyst price target for Sage Group reflects a modest fair value adjustment to £13.02. Analysts point to recent mixed target changes across £12.50 to £14.25 and differing views on growth, valuation and the durability of its model.
CER
UK£17.50
Cerillion
7D
12.9%
1Y
9.4%

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
BTC
UK£0.026
London BTC
7D
-17.5%
1Y
-85.9%
DOTD
UK£0.74
dotdigital Group
7D
12.1%
1Y
-14.3%
PINE
UK£3.80
Pinewood Technologies Group
7D
10.8%
1Y
10.3%
GBG
UK£2.45
GB Group
7D
6.1%
1Y
-27.7%
RM.
UK£1.07
RM
7D
-3.6%
1Y
-1.8%
APTD
UK£2.80
Aptitude Software Group
7D
-1.2%
1Y
-12.4%
CRTA
UK£0.20
Cirata
7D
-14.2%
1Y
-5.2%