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U.K. (FTSE) Application Software Industry Analysis

UpdatedApr 01, 2026
DataAggregated Company Financials
Companies46
  • 7D3.6%
  • 3M-21.6%
  • 1Y-29.6%
  • YTDn/a

The Application Software is pretty flat in the last 7 days, but Sage Group has stood out, gaining 4.1%. Unfortunately though, the industry is down 30% over the past 12 months. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 01 Apr 2026UK£12.0bUK£4.4bUK£456.7m26.6x26.3x2.7x
Fri, 27 Feb 2026UK£12.8bUK£4.4bUK£455.6m31.4x28x2.9x
Sun, 25 Jan 2026UK£15.2bUK£4.4bUK£454.1m33x33.4x3.4x
Tue, 23 Dec 2025UK£15.7bUK£4.4bUK£445.5m32.9x35.2x3.5x
Thu, 20 Nov 2025UK£15.7bUK£4.3bUK£447.2m30.4x35x3.6x
Sat, 18 Oct 2025UK£16.1bUK£4.3bUK£453.0m30.9x35.6x3.7x
Mon, 15 Sep 2025UK£16.0bUK£4.3bUK£454.4m33.3x35.3x3.7x
Wed, 13 Aug 2025UK£16.0bUK£4.3bUK£442.5m33x36.1x3.7x
Fri, 11 Jul 2025UK£17.8bUK£4.4bUK£409.7m34x43.4x4.1x
Sun, 08 Jun 2025UK£18.8bUK£4.4bUK£421.9m34.2x44.6x4.3x
Tue, 06 May 2025UK£18.6bUK£4.4bUK£391.2m30.1x47.7x4.2x
Thu, 03 Apr 2025UK£18.0bUK£4.4bUK£391.0m27.8x46.1x4.1x
Sat, 01 Mar 2025UK£18.8bUK£4.5bUK£332.6m31.1x56.5x4.2x
Mon, 27 Jan 2025UK£19.7bUK£4.5bUK£331.7m29x59.3x4.4x
Wed, 25 Dec 2024UK£19.5bUK£4.4bUK£329.2m32.4x59.2x4.4x
Fri, 22 Nov 2024UK£19.3bUK£4.4bUK£349.4m33.5x55.2x4.3x
Sun, 20 Oct 2024UK£16.8bUK£4.3bUK£237.4m32.2x70.9x3.9x
Tue, 17 Sep 2024UK£16.8bUK£4.4bUK£221.0m36.2x76.2x3.9x
Thu, 15 Aug 2024UK£17.1bUK£4.4bUK£209.1m37.7x81.7x3.9x
Sat, 13 Jul 2024UK£17.6bUK£4.4bUK£217.3m37.4x80.9x4x
Mon, 10 Jun 2024UK£17.8bUK£4.5bUK£96.9m40.2x183.3x4x
Wed, 08 May 2024UK£18.6bUK£4.4bUK£62.9m37x295.6x4.2x
Fri, 05 Apr 2024UK£18.6bUK£4.4bUK£40.9m39x454.3x4.2x
Sun, 03 Mar 2024UK£18.8bUK£4.3bUK£72.5m36x259.5x4.3x
Tue, 30 Jan 2024UK£30.2bUK£7.9b-UK£224,970,214.0037.9x-134.3x3.8x
Thu, 28 Dec 2023UK£30.1bUK£7.9b-UK£223,640,261.0035.9x-134.6x3.8x
Sat, 25 Nov 2023UK£28.7bUK£7.9b-UK£158,817,223.0030.1x-180.7x3.6x
Mon, 23 Oct 2023UK£26.8bUK£7.8b-UK£166,012,227.0029.8x-161.7x3.4x
Wed, 20 Sep 2023UK£27.9bUK£7.8b-UK£164,845,425.0032.5x-169.3x3.6x
Fri, 18 Aug 2023UK£27.1bUK£7.8b-UK£170,562,782.0029.1x-159x3.5x
Sun, 16 Jul 2023UK£28.0bUK£8.4b-UK£146,513,779.0030.7x-191.3x3.3x
Tue, 13 Jun 2023UK£27.9bUK£8.4b-UK£22,802,587.0033.2x-1225.4x3.3x
Thu, 11 May 2023UK£27.0bUK£8.5b-UK£164,140,644.0035.6x-164.6x3.2x
Sat, 08 Apr 2023UK£26.7bUK£8.4bUK£12.9m37x2071.6x3.2x
Price to Earnings Ratio

2071.6x


Total Market Cap: UK£26.7bTotal Earnings: UK£12.9mTotal Revenue: UK£8.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 61.5x202420252026
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 26.0x which is lower than its 3-year average PE of 61.5x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 228% 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 Market1.99%
Tech2.18%
Software3.56%
Application Software3.58%
Systems Software0.59%
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
SGE Sage GroupUK£8.384.1%
+UK£306.3m		-31.5%PE20.9x
CER CerillionUK£12.8527.9%
+UK£82.7m		-16.6%PE22.8x
BYIT Bytes Technology GroupUK£2.769.0%
+UK£53.9m		-43.0%PE12.2x
GBG GB GroupUK£2.015.1%
+UK£21.6m		-31.3%PE51.7x
NET NetcallUK£1.025.7%
+UK£9.5m		-3.3%PE72.1x

Latest News

CER
UK£12.85
Cerillion
7D
27.9%
1Y
-16.6%
ACSO
UK£2.48
accesso Technology Group
7D
1.6%
1Y
-44.5%
AOM
UK£1.72
ActiveOps
7D
-5.0%
1Y
89.0%

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
4.0%
1Y
-32.0%
PINE
UK£2.09
Pinewood Technologies Group
7D
-11.3%
1Y
-36.6%

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
-4.4%
1Y
-50.9%

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).
BYIT
UK£2.76
Bytes Technology Group
7D
9.0%
1Y
-43.0%
SGE
UK£8.38
Sage Group
7D
4.1%
1Y
-31.5%

SGE: Cloud Partnerships And Buybacks Will Support Durable Long Term Upside

Analysts have trimmed the Sage Group fair value estimate from about £16.20 to roughly £15.22, citing lower price targets such as Citi's move to £11.50 per share, alongside more supportive views from other firms that still regard the company's growth outlook as attractively priced at current levels. Analyst Commentary Recent research shows a mixed but generally constructive tone around Sage Group, with some trimming of upside targets alongside fresh upgrades that point to confidence in the current share price as an entry point.
GBG
UK£2.01
GB Group
7D
5.1%
1Y
-31.3%

GBG: Index Additions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £4.50. This reflects small refinements to assumptions around discount rate, revenue growth, profit margin and future P/E that leave their overall valuation view broadly unchanged.
ALFA
UK£1.45
Alfa Financial Software Holdings
7D
-1.6%
1Y
-33.3%
NET
UK£1.02
Netcall
7D
5.7%
1Y
-3.3%
SATS
UK£0.0019
Satsuma Technology
7D
-9.3%
1Y
-66.2%
BTC
UK£0.025
London BTC
7D
16.7%
1Y
-85.2%
APTD
UK£2.13
Aptitude Software Group
7D
-3.2%
1Y
-28.3%
TAP
UK£0.011
Tap Global Group
7D
-23.3%
1Y
-23.3%
BGO
UK£0.63
Bango
7D
-7.4%
1Y
-19.4%