Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Application Software Industry Analysis

UpdatedMar 11, 2026
DataAggregated Company Financials
Companies46
  • 7D-1.0%
  • 3M-18.1%
  • 1Y-24.9%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 1.0%, driven by a pullback from Sage Group of 0.7%. Meanwhile, AdvancedAdvT actually outperformed within the industry, gaining 14% in the last week. Overall the industry is down 25% in 12 months. Looking forward, earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 11 Mar 2026UK£12.6bUK£4.4bUK£454.8m29.2x27.7x2.8x
Fri, 06 Feb 2026UK£13.5bUK£4.4bUK£453.3m31.6x29.8x3.1x
Sun, 04 Jan 2026UK£15.2bUK£4.4bUK£457.0m32.7x33.3x3.4x
Tue, 02 Dec 2025UK£15.6bUK£4.4bUK£445.2m33.1x35x3.5x
Thu, 30 Oct 2025UK£16.4bUK£4.3bUK£452.4m31.3x36.3x3.8x
Sat, 27 Sep 2025UK£15.8bUK£4.3bUK£457.3m31.7x34.5x3.7x
Mon, 25 Aug 2025UK£16.1bUK£4.3bUK£449.6m33.2x35.9x3.8x
Wed, 23 Jul 2025UK£18.1bUK£4.4bUK£412.3m33.4x43.9x4.1x
Fri, 20 Jun 2025UK£18.6bUK£4.4bUK£419.4m33.8x44.3x4.3x
Sun, 18 May 2025UK£18.6bUK£4.5bUK£418.4m32.4x44.6x4.1x
Tue, 15 Apr 2025UK£17.0bUK£4.4bUK£389.8m25.9x43.5x3.8x
Thu, 13 Mar 2025UK£17.7bUK£4.5bUK£338.3m29.9x52.4x4x
Sat, 08 Feb 2025UK£19.6bUK£4.5bUK£332.0m31.4x59x4.4x
Mon, 06 Jan 2025UK£19.4bUK£4.5bUK£331.1m30.7x58.5x4.3x
Wed, 04 Dec 2024UK£19.7bUK£4.4bUK£348.1m34.8x56.7x4.4x
Fri, 01 Nov 2024UK£16.6bUK£4.3bUK£235.8m31.7x70.3x3.8x
Sun, 29 Sep 2024UK£16.8bUK£4.3bUK£231.1m32.4x72.7x3.9x
Tue, 27 Aug 2024UK£16.9bUK£4.4bUK£199.1m37.8x84.8x3.8x
Thu, 25 Jul 2024UK£17.4bUK£4.4bUK£211.4m37.8x82.2x3.9x
Sat, 22 Jun 2024UK£18.0bUK£4.5bUK£223.1m40.4x80.8x4x
Mon, 20 May 2024UK£18.0bUK£4.4bUK£120.6m37.1x148.9x4x
Wed, 17 Apr 2024UK£18.0bUK£4.4bUK£45.8m38.1x392.2x4.1x
Fri, 15 Mar 2024UK£18.6bUK£4.3bUK£35.2m36.7x528.8x4.3x
Sun, 11 Feb 2024UK£18.7bUK£4.4bUK£72.2m36.8x258.3x4.3x
Tue, 09 Jan 2024UK£29.8bUK£7.9b-UK£224,715,679.0035.8x-132.5x3.8x
Thu, 07 Dec 2023UK£29.2bUK£7.9b-UK£224,006,203.0033.6x-130.6x3.7x
Sat, 04 Nov 2023UK£27.2bUK£7.8b-UK£169,947,930.0030.8x-159.9x3.5x
Mon, 02 Oct 2023UK£27.6bUK£7.8b-UK£165,059,127.0034.2x-167.5x3.5x
Wed, 30 Aug 2023UK£27.5bUK£7.8b-UK£166,923,045.0028.9x-164.7x3.5x
Fri, 28 Jul 2023UK£27.9bUK£8.4b-UK£147,365,775.0030.5x-189.4x3.3x
Sun, 25 Jun 2023UK£27.8bUK£8.4b-UK£148,501,478.0030.3x-187x3.3x
Tue, 23 May 2023UK£27.6bUK£8.7b-UK£214,176,148.0035.1x-128.9x3.2x
Thu, 20 Apr 2023UK£26.9bUK£8.4bUK£21.7m37.6x1244.2x3.2x
Sat, 18 Mar 2023UK£26.2bUK£8.3bUK£36.9m32.1x709.8x3.1x
Price to Earnings Ratio

709.8x


Total Market Cap: UK£26.2bTotal Earnings: UK£36.9mTotal Revenue: UK£8.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 76.1x202420252026
Current Industry PE
  • Investors are pessimistic on the British Application 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 27.7x which is lower than its 3-year average PE of 76.1x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 131% per year over the last three years.
  • Meanwhile revenues for these companies have declined 19% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Comparison

How does U.K. Application Software compare with similar industries?

GB Market-0.78%
Tech-0.59%
Software-1.04%
Application Software-1.03%
Systems Software-1.99%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
ADVT AdvancedAdvTUK£1.6513.8%
+UK£27.4m		4.8%PE38x
ALFA Alfa Financial Software HoldingsUK£1.942.8%
+UK£15.4m		-14.3%PE19.4x
BYIT Bytes Technology GroupUK£3.090.8%
+UK£5.7m		-24.6%PE13.7x
GBG GB GroupUK£2.010.7%
+UK£2.7m		-31.8%PE51.9x
OMG Oxford MetricsUK£0.493.6%
+UK£1.8m		-5.4%PS1.2x

Latest News

DOTD
UK£0.54
dotdigital Group
7D
-4.3%
1Y
-25.6%
TRCS
UK£3.13
Tracsis
7D
-8.1%
1Y
-10.1%

TRCS: New North American Contract Will Support Long-Term Dividend-Supported Upside

Analysts have revised their fair value price target for Tracsis to £7.01. This reflects updated views on the discount rate, revenue growth, profit margin and a higher assumed future P/E, and these revised inputs are being used to reset expectations around the risk and reward profile of the shares.
BTC
UK£0.022
London BTC
7D
12.8%
1Y
-87.4%
PINE
UK£2.69
Pinewood Technologies Group
7D
-7.4%
1Y
-23.4%

AI Powered Auto Retail Platform Will Transform Global Dealer Relationships Over The Next Decade

Catalysts About Pinewood Technologies Group Pinewood Technologies Group provides automotive retail software and AI driven tools for dealer groups and manufacturers across multiple regions. What are the underlying business or industry changes driving this perspective?
SGE
UK£8.41
Sage Group
7D
-0.7%
1Y
-29.6%

SGE: Upgrades And Execution Will Shape Future Upside Potential

Analysts have nudged their blended price target for Sage Group to £1,425, up £25, citing what they see as attractively priced growth and slight tweaks to assumptions around the discount rate, revenue growth, margins and future P/E. Analyst Commentary Recent research points to what some analysts see as attractively priced growth for Sage Group at current share levels, with price targets such as £1,425 being cited as consistent with this view.
BYIT
UK£3.09
Bytes Technology Group
7D
0.8%
1Y
-24.6%

BYIT: Capital Light Cash Generation Will Underpin Recovery Beyond 2026

Analysts have trimmed their price target on Bytes Technology Group to £4.00. This is a modest reset that reflects slightly lower fair value estimates and an extended recovery timeline, even as they continue to highlight the appeal of capital light, cash generative models.
GBG
UK£2.01
GB Group
7D
0.7%
1Y
-31.8%

GBG: Index Additions Will Support Confidence In Future Earnings Potential

Analysts have trimmed their price target on GB Group by £0.40. This reflects updated assumptions that include a higher discount rate, revised revenue growth and profit margin expectations, and a lower future P/E multiple.
AOM
UK£2.19
ActiveOps
7D
-3.5%
1Y
121.2%

AOM: Stable Assumptions Will Support Attractive Upside To £100 Million ARR

Analysts have kept their £3.17 price target for ActiveOps unchanged. They point to their broadly steady assumptions on discount rate, revenue growth, profit margin and future P/E as the key drivers behind this consistent view.
ADVT
UK£1.65
AdvancedAdvT
7D
13.8%
1Y
4.8%
ALFA
UK£1.94
Alfa Financial Software Holdings
7D
2.8%
1Y
-14.3%
ELCO
UK£1.30
Eleco
7D
-8.8%
1Y
5.3%
OMG
UK£0.49
Oxford Metrics
7D
3.6%
1Y
-5.4%
CER
UK£13.10
Cerillion
7D
-8.4%
1Y
-0.8%

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£0.58
Skillcast Group
7D
-15.3%
1Y
48.7%

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

Jan 15
The Price Is Right For Skillcast Group plc (LON:SKL)
AMOI
UK£0.015
Anemoi International
7D
20.0%
1Y
275.0%
CTAI
UK£0.0025
Catenai
7D
22.0%
1Y
31.6%