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U.K. (FTSE) Application Software Industry Analysis

UpdatedMar 19, 2026
DataAggregated Company Financials
Companies46
  • 7D-1.4%
  • 3M-21.1%
  • 1Y-27.2%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 1.4%, driven by Alfa Financial Software Holdings declining 19%. Overall the industry is down 27% in 12 months. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Mar 2026UK£12.3bUK£4.4bUK£455.3m28.7x26.9x2.8x
Sat, 14 Feb 2026UK£12.7bUK£4.4bUK£455.7m31.2x28x2.9x
Mon, 12 Jan 2026UK£15.6bUK£4.4bUK£454.0m33x34.4x3.5x
Wed, 10 Dec 2025UK£15.6bUK£4.4bUK£445.2m33x35.1x3.5x
Fri, 07 Nov 2025UK£16.0bUK£4.3bUK£447.8m35.7x35.8x3.7x
Sun, 05 Oct 2025UK£16.1bUK£4.3bUK£456.5m32x35.3x3.7x
Tue, 02 Sep 2025UK£16.0bUK£4.3bUK£448.7m33.8x35.7x3.7x
Thu, 31 Jul 2025UK£17.1bUK£4.3bUK£442.7m33.1x38.5x4x
Sat, 28 Jun 2025UK£18.5bUK£4.4bUK£410.0m33.5x45.1x4.2x
Mon, 26 May 2025UK£18.4bUK£4.5bUK£417.7m31x44x4.1x
Wed, 23 Apr 2025UK£17.1bUK£4.4bUK£390.5m28.1x43.8x3.9x
Fri, 21 Mar 2025UK£17.7bUK£4.4bUK£392.3m29x45.1x4x
Sun, 16 Feb 2025UK£19.5bUK£4.5bUK£332.4m32x58.8x4.4x
Tue, 14 Jan 2025UK£19.0bUK£4.4bUK£327.6m30.4x58.1x4.3x
Thu, 12 Dec 2024UK£19.6bUK£4.4bUK£346.2m35.7x56.7x4.4x
Sat, 09 Nov 2024UK£17.0bUK£4.3bUK£234.8m35.9x72.6x3.9x
Mon, 07 Oct 2024UK£16.3bUK£4.3bUK£227.4m31.1x71.5x3.8x
Wed, 04 Sep 2024UK£16.9bUK£4.4bUK£220.8m37.7x76.5x3.9x
Fri, 02 Aug 2024UK£17.8bUK£4.4bUK£207.2m40x85.8x4x
Sun, 30 Jun 2024UK£18.0bUK£4.5bUK£216.9m38.9x83x4x
Tue, 28 May 2024UK£17.8bUK£4.4bUK£119.7m37.9x148.5x4x
Thu, 25 Apr 2024UK£18.0bUK£4.4bUK£45.0m37.1x399.7x4.1x
Sat, 23 Mar 2024UK£18.7bUK£4.4bUK£37.6m38.1x498x4.3x
Mon, 19 Feb 2024UK£18.5bUK£4.4bUK£72.2m36.4x256.8x4.2x
Wed, 17 Jan 2024UK£29.9bUK£7.9b-UK£224,910,697.0035.7x-133x3.8x
Fri, 15 Dec 2023UK£29.7bUK£7.9b-UK£223,647,044.0033.8x-132.9x3.8x
Sun, 12 Nov 2023UK£27.5bUK£7.9b-UK£169,012,095.0031.3x-162.5x3.5x
Tue, 10 Oct 2023UK£27.3bUK£7.8b-UK£167,194,636.0032.2x-163.1x3.5x
Thu, 07 Sep 2023UK£27.7bUK£7.8b-UK£165,914,500.0028.7x-167.2x3.6x
Sat, 05 Aug 2023UK£27.2bUK£7.8b-UK£173,997,473.0030x-156.6x3.5x
Mon, 03 Jul 2023UK£28.2bUK£8.4b-UK£148,608,340.0031.3x-189.6x3.4x
Wed, 31 May 2023UK£27.6bUK£8.4b-UK£235,229,547.0034.1x-117.5x3.3x
Fri, 28 Apr 2023UK£27.1bUK£8.5bUK£23.0m34.1x1180x3.2x
Sun, 26 Mar 2023UK£26.4bUK£8.4bUK£36.2m32.5x730.7x3.2x
Price to Earnings Ratio

730.7x


Total Market Cap: UK£26.4bTotal Earnings: UK£36.2mTotal Revenue: UK£8.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 70.9x202420252026
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 26.9x which is lower than its 3-year average PE of 70.9x.
  • 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 133% 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-0.77%
Tech-1.75%
Software-1.45%
Application Software-1.44%
Systems Software-3.79%
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£8.400.5%
+UK£24.3m		-29.4%PE21x
IDOX IDOXUK£0.710.6%
+UK£1.8m		18.0%PE52.9x
TAP Tap Global GroupUK£0.0157.1%
+UK£744.6k		0%PS3.2x
CTAI CatenaiUK£0.003218.9%
+UK£716.9k		75.0%PS309.4x

Latest News

ELCO
UK£1.15
Eleco
7D
-8.4%
1Y
-9.5%
IGP
UK£0.77
Intercede Group
7D
-19.8%
1Y
-41.2%
SGE
UK£8.40
Sage Group
7D
0.5%
1Y
-29.4%

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.
BYIT
UK£3.00
Bytes Technology Group
7D
-1.6%
1Y
-38.8%

BYIT: Cash Generation And Capital Light Model Will Support Extended Recovery Timeline

Analysts have trimmed their price target on Bytes Technology Group to £4.00, reflecting a more cautious view as they see the recovery timeline stretching out, even though key valuation inputs such as fair value estimates, discount rate, revenue growth, profit margin and future P/E assumptions remain effectively unchanged. Analyst Commentary Bullish Takeaways Bullish analysts highlight that Bytes Technology Group is viewed as a capital light, cash generative business, which can support valuation resilience even with a more measured share price target of £4.00.
DOTD
UK£0.46
dotdigital Group
7D
-8.3%
1Y
-36.8%
ALFA
UK£1.53
Alfa Financial Software Holdings
7D
-12.1%
1Y
-32.5%
AOM
UK£1.99
ActiveOps
7D
-7.4%
1Y
106.2%

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

Analysts have maintained their £3.17 price target on ActiveOps, citing a largely unchanged view on fair value, growth and profitability assumptions, with only minor adjustments to the discount rate and future P/E inputs. Valuation Changes Fair Value: £3.17 remains unchanged, with no revision to the estimated fair value per share.
PINE
UK£2.52
Pinewood Technologies Group
7D
-3.3%
1Y
-24.7%

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?
IDOX
UK£0.71
IDOX
7D
0.6%
1Y
18.0%
TAP
UK£0.015
Tap Global Group
7D
7.1%
1Y
0%
CER
UK£11.60
Cerillion
7D
-14.7%
1Y
-23.2%

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
CTAI
UK£0.0032
Catenai
7D
18.9%
1Y
75.0%