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U.K. (FTSE) Software Industry Analysis

UpdatedNov 23, 2025
DataAggregated Company Financials
Companies49
  • 7D-2.4%
  • 3M-4.4%
  • 1Y-16.5%
  • YTD-15.5%

Over the last 7 days, the Software industry has dropped 2.4%, driven by declines in Bytes Technology Group and Cerillion of 4.9% and 8.4%, respectively. Overall the industry is down 17% in 12 months. Earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

Has the U.K. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Thu, 09 Mar 2023UK£39.7bUK£10.4bUK£301.2m35.5x132x3.8x
Sat, 04 Feb 2023UK£40.1bUK£10.3bUK£296.6m34x135.1x3.9x
Mon, 02 Jan 2023UK£38.9bUK£10.3bUK£296.7m34.2x131.2x3.8x
Wed, 30 Nov 2022UK£39.6bUK£10.3bUK£324.5m33.6x122.1x3.8x
Price to Earnings Ratio

122.1x


Total Market Cap: UK£39.6bTotal Earnings: UK£324.5mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 186x202320242025
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 35.8x which is lower than its 3-year average PE of 186x.
  • The industry is trading close to its 3-year average PS ratio of 3.9x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 11% 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 Market-1.68%
Tech-0.061%
Software-2.38%
Systems Software-1.53%
Application Software-2.39%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 143x.
    • Analysts are expecting annual earnings growth of 14.4%, which is higher than its past year's earnings growth of 10.0% 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 14% 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£10.65-2.3%
UK£275.0m		-17.2%PE28.8x
SAAS Microlise GroupUK£1.409.0%
+UK£13.3m		28.0%PS1.9x
TRCS TracsisUK£3.4013.3%
+UK£11.9m		-40.4%PE194.5x
QTX Quartix TechnologiesUK£2.767.0%
+UK£8.7m		51.2%PE25.4x
BGO BangoUK£0.9810.7%
+UK£7.3m		-2.5%PS1.8x

Latest News

TRCS
UK£3.40
Tracsis
7D
13.3%
1Y
-40.4%
SGE
UK£10.65
Sage Group
7D
-2.3%
1Y
-17.2%

The Sage Group plc (LON:SGE) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Nov 22
The Sage Group plc (LON:SGE) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year
NET
UK£1.14
Netcall
7D
-7.3%
1Y
14.6%
SAAS
UK£1.40
Microlise Group
7D
9.0%
1Y
28.0%

Fewer Investors Than Expected Jumping On Microlise Group plc (LON:SAAS)

Nov 20
Fewer Investors Than Expected Jumping On Microlise Group plc (LON:SAAS)
QTX
UK£2.76
Quartix Technologies
7D
7.0%
1Y
51.2%
ELCO
UK£1.34
Eleco
7D
-11.9%
1Y
-4.3%
AOM
UK£2.31
ActiveOps
7D
-5.7%
1Y
99.1%

AOM: Revenue Expansion Will Drive Increased Profitability And Efficiency By 2026

Analysts have raised their price target for ActiveOps from £2.50 to approximately £2.87 per share. They cite improved revenue growth forecasts, higher expected profit margins, and a lower future price-to-earnings ratio as key contributors to the update.
ALFA
UK£2.20
Alfa Financial Software Holdings
7D
-2.0%
1Y
0.9%
APTD
UK£2.85
Aptitude Software Group
7D
1.4%
1Y
-14.9%
PINE
UK£3.43
Pinewood Technologies Group
7D
1.2%
1Y
0.9%
BYIT
UK£3.38
Bytes Technology Group
7D
-4.9%
1Y
-25.6%
CER
UK£13.55
Cerillion
7D
-8.4%
1Y
-26.8%
ADVT
UK£1.78
AdvancedAdvT
7D
-4.1%
1Y
29.1%
GBG
UK£2.30
GB Group
7D
-2.8%
1Y
-38.0%
BGO
UK£0.98
Bango
7D
10.7%
1Y
-2.5%
PULS
UK£0.35
Pulsar Group
7D
2.9%
1Y
-39.8%