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U.K. (FTSE) Application Software Industry Analysis

UpdatedApr 22, 2026
DataAggregated Company Financials
Companies47
  • 7D6.5%
  • 3M-11.0%
  • 1Y-19.4%
  • YTDn/a

In the last week, the Application Software industry is up 6.5%, with Sage Group up 6.4%. Meanwhile, Cerillion actually underperformed within the industry, shrinking 5.9% in the last week. In contrast, the industry has lost 19% in the last 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
Thu, 23 Apr 2026UK£13.1bUK£4.4bUK£454.3m30.2x28.9x3x
Sat, 21 Mar 2026UK£12.2bUK£4.4bUK£455.3m27.7x26.7x2.7x
Mon, 16 Feb 2026UK£12.7bUK£4.4bUK£455.7m31.2x28x2.9x
Wed, 14 Jan 2026UK£15.9bUK£4.4bUK£454.0m33.1x35x3.6x
Fri, 12 Dec 2025UK£15.6bUK£4.4bUK£445.5m33.3x34.9x3.5x
Sun, 09 Nov 2025UK£15.9bUK£4.3bUK£447.8m35.2x35.5x3.7x
Tue, 07 Oct 2025UK£16.2bUK£4.3bUK£455.5m31.1x35.5x3.8x
Thu, 04 Sep 2025UK£15.9bUK£4.3bUK£448.7m33.7x35.5x3.7x
Sat, 02 Aug 2025UK£17.0bUK£4.3bUK£442.7m33.1x38.5x4x
Mon, 30 Jun 2025UK£18.5bUK£4.4bUK£406.2m34.5x45.6x4.2x
Wed, 28 May 2025UK£18.5bUK£4.5bUK£417.6m31.2x44.3x4.1x
Fri, 25 Apr 2025UK£17.3bUK£4.4bUK£388.9m29.2x44.5x3.9x
Sun, 23 Mar 2025UK£17.7bUK£4.4bUK£388.7m29.8x45.5x4x
Tue, 18 Feb 2025UK£19.6bUK£4.5bUK£332.4m31.8x59x4.4x
Thu, 16 Jan 2025UK£19.2bUK£4.5bUK£330.6m29.1x58.2x4.3x
Sat, 14 Dec 2024UK£19.7bUK£4.4bUK£345.8m35.5x56.9x4.4x
Mon, 11 Nov 2024UK£17.0bUK£4.3bUK£234.8m35.9x72.6x3.9x
Wed, 09 Oct 2024UK£16.3bUK£4.3bUK£227.3m30.8x71.7x3.8x
Fri, 06 Sep 2024UK£16.7bUK£4.4bUK£221.0m37.4x75.7x3.8x
Sun, 04 Aug 2024UK£17.4bUK£4.4bUK£207.4m39.1x83.7x3.9x
Tue, 02 Jul 2024UK£17.8bUK£4.5bUK£216.9m37.8x82.3x4x
Thu, 30 May 2024UK£17.7bUK£4.4bUK£119.7m38.7x148x4x
Sat, 27 Apr 2024UK£18.0bUK£4.4bUK£45.1m37x400.1x4.1x
Mon, 25 Mar 2024UK£18.7bUK£4.4bUK£35.1m38.1x533.6x4.3x
Wed, 21 Feb 2024UK£18.3bUK£4.4bUK£72.2m36x254x4.2x
Fri, 19 Jan 2024UK£29.9bUK£7.9b-UK£224,786,935.0036.6x-133x3.8x
Sun, 17 Dec 2023UK£29.7bUK£7.9b-UK£223,769,977.0034.2x-132.9x3.8x
Tue, 14 Nov 2023UK£27.4bUK£7.9b-UK£168,978,499.0031.6x-162.2x3.5x
Thu, 12 Oct 2023UK£27.5bUK£7.8b-UK£166,265,155.0030.2x-165.2x3.5x
Sat, 09 Sep 2023UK£28.1bUK£7.8b-UK£165,946,579.0028.9x-169.3x3.6x
Mon, 07 Aug 2023UK£27.2bUK£7.8b-UK£174,038,835.0030x-156.5x3.5x
Wed, 05 Jul 2023UK£28.2bUK£8.4b-UK£147,201,675.0031x-191.4x3.4x
Fri, 02 Jun 2023UK£27.9bUK£8.4b-UK£235,007,611.0034.8x-118.6x3.3x
Sun, 30 Apr 2023UK£27.2bUK£8.5b-UK£164,185,720.0034.6x-165.9x3.2x
Price to Earnings Ratio

-165.9x


Total Market Cap: UK£27.2bTotal Earnings: -UK£164,185,720.00Total Revenue: UK£8.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 26.9x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Application Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 28.3x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 170% per year over the last three years.
  • Meanwhile revenues for these companies have declined 20% 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-0.72%
Tech6.87%
Software6.44%
Application Software6.48%
Systems Software2.26%
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£9.246.4%
+UK£506.0m		-22.2%PE22.9x
GBG GB GroupUK£2.196.1%
+UK£29.3m		-17.3%PE56.2x
ALFA Alfa Financial Software HoldingsUK£1.623.7%
+UK£17.2m		-22.6%PE15.9x
PINE Pinewood Technologies GroupUK£2.405.7%
+UK£15.0m		-23.7%PE44.3x
BGO BangoUK£0.8029.0%
+UK£13.9m		0%PS1.5x

Latest News

CER
UK£13.50
Cerillion
7D
-5.9%
1Y
-12.9%
IGP
UK£1.04
Intercede Group
7D
16.9%
1Y
-31.5%
AOM
UK£1.96
ActiveOps
7D
-3.2%
1Y
132.0%
GBG
UK£2.19
GB Group
7D
6.1%
1Y
-17.3%

GBG: Refined Assumptions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £X.XX from £X.XX, citing updated assumptions around the discount rate, revenue growth, profit margin and forward P/E that leave their overall fair value view broadly unchanged. Valuation Changes Fair Value: The fair value estimate is unchanged at 4.5, indicating no material shift in the core valuation output.
SGE
UK£9.24
Sage Group
7D
6.4%
1Y
-22.2%

SGE: Banking Partnerships And Share Buybacks Will Support Future Share Price Upside

Narrative Update The analyst price target for Sage Group has been reduced by £200, with analysts attributing this change to a lower fair value estimate, a reduced future P/E assumption and updated margin expectations. Analyst Commentary Recent research on Sage Group has focused on recalibrating valuation assumptions rather than making wholesale changes to the fundamental story.
BYIT
UK£3.15
Bytes Technology Group
7D
1.5%
1Y
-35.4%

BYIT: Cost Normalisation Headwinds Will Set Up A Stronger Cash Recovery

Analysts have made a small adjustment to their price target for Bytes Technology Group, citing largely unchanged fair value estimates around £4.70, minor tweaks to the discount rate, revenue growth outlook and profit margin, as well as a steady future P/E assumption near 20.6x. What's in the News Bytes Technology Group issued earnings guidance for 2027, indicating operating profit is expected to be broadly flat as the business absorbs about £4.5m of cost normalisation (Key Developments).
ALFA
UK£1.62
Alfa Financial Software Holdings
7D
3.7%
1Y
-22.6%
ELCO
UK£1.23
Eleco
7D
-1.2%
1Y
3.4%
QTX
UK£2.51
Quartix Technologies
7D
-9.4%
1Y
18.4%
PINE
UK£2.40
Pinewood Technologies Group
7D
5.7%
1Y
-23.7%

PINE: Resumed Coverage And Deal Dislocation Will Drive Future Upside

Narrative Update on Pinewood Technologies Group The analyst price target for Pinewood Technologies has been reset to £5.50. Analysts cite resumed coverage, expectations for significant growth ahead, and a valuation based on a lower comparator multiple that they still see as leaving material upside for the shares.
BGO
UK£0.80
Bango
7D
29.0%
1Y
0%
TAP
UK£0.011
Tap Global Group
7D
-12.0%
1Y
-33.3%
KRM
UK£0.32
KRM22
7D
-7.4%
1Y
18.9%
NET
UK£1.14
Netcall
7D
3.2%
1Y
1.3%
ADVT
UK£1.65
AdvancedAdvT
7D
-2.9%
1Y
10.0%
PULS
UK£0.41
Pulsar Group
7D
-8.0%
1Y
2.5%