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U.K. (FTSE) Application Software Industry Analysis

UpdatedFeb 01, 2026
DataAggregated Company Financials
Companies47
  • 7D-3.1%
  • 3M-12.0%
  • 1Y-22.3%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 3.1%, driven by a pullback from Sage Group of 7.0%. On the other hand Pinewood Technologies Group is actually up 25%. Overall the industry is down 22% 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
Mon, 02 Feb 2026UK£14.7bUK£4.4bUK£453.3m33.7x32.4x3.3x
Wed, 31 Dec 2025UK£15.6bUK£4.4bUK£445.5m32.1x35x3.5x
Fri, 28 Nov 2025UK£15.7bUK£4.4bUK£472.6m29.8x33.2x3.5x
Sun, 26 Oct 2025UK£16.6bUK£4.3bUK£452.3m32x36.7x3.8x
Tue, 23 Sep 2025UK£16.2bUK£4.3bUK£456.1m31.6x35.5x3.8x
Thu, 21 Aug 2025UK£16.2bUK£4.3bUK£449.6m34.1x36x3.8x
Sat, 19 Jul 2025UK£18.1bUK£4.4bUK£412.2m33.1x43.8x4.1x
Mon, 16 Jun 2025UK£18.6bUK£4.4bUK£423.4m32.6x44x4.3x
Wed, 14 May 2025UK£19.0bUK£4.4bUK£391.2m31x48.6x4.3x
Fri, 11 Apr 2025UK£16.7bUK£4.4bUK£389.5m25.6x42.9x3.8x
Sun, 09 Mar 2025UK£18.2bUK£4.5bUK£338.2m29.9x53.9x4.1x
Tue, 04 Feb 2025UK£19.9bUK£4.5bUK£331.9m30.4x59.8x4.4x
Thu, 02 Jan 2025UK£19.3bUK£4.4bUK£329.2m32.6x58.7x4.3x
Sat, 30 Nov 2024UK£19.9bUK£4.4bUK£348.2m33.9x57x4.5x
Mon, 28 Oct 2024UK£16.5bUK£4.3bUK£237.2m32.2x69.7x3.8x
Wed, 25 Sep 2024UK£16.7bUK£4.3bUK£221.3m35x75.6x3.9x
Fri, 23 Aug 2024UK£17.1bUK£4.4bUK£198.7m37.3x85.9x3.9x
Sun, 21 Jul 2024UK£17.4bUK£4.4bUK£211.4m37.1x82.2x3.9x
Tue, 18 Jun 2024UK£17.7bUK£4.5bUK£220.7m42.4x80.2x4x
Thu, 16 May 2024UK£18.8bUK£4.4bUK£64.6m37.5x291.5x4.3x
Sat, 13 Apr 2024UK£18.0bUK£4.4bUK£44.7m38.3x402.9x4.1x
Mon, 11 Mar 2024UK£18.8bUK£4.4bUK£68.2m34.9x275.3x4.3x
Wed, 07 Feb 2024UK£18.3bUK£4.4bUK£72.2m36.8x253.2x4.2x
Fri, 05 Jan 2024UK£29.7bUK£7.9b-UK£224,840,280.0036.8x-132.3x3.8x
Sun, 03 Dec 2023UK£29.2bUK£7.9b-UK£223,669,449.0032.1x-130.7x3.7x
Tue, 31 Oct 2023UK£27.0bUK£7.9b-UK£169,270,056.0030.8x-159.2x3.4x
Thu, 28 Sep 2023UK£27.7bUK£7.8b-UK£166,078,793.0032.7x-166.8x3.5x
Sat, 26 Aug 2023UK£27.2bUK£7.8b-UK£166,956,083.0028.4x-162.7x3.5x
Mon, 24 Jul 2023UK£28.1bUK£8.4b-UK£146,876,964.0030.4x-191.6x3.4x
Wed, 21 Jun 2023UK£28.1bUK£8.4b-UK£145,693,213.0031.3x-192.9x3.4x
Fri, 19 May 2023UK£27.4bUK£8.7b-UK£214,166,264.0035.2x-128.1x3.2x
Sun, 16 Apr 2023UK£26.9bUK£8.4bUK£13.5m37.6x1995.8x3.2x
Tue, 14 Mar 2023UK£26.4bUK£8.3bUK£35.1m31.5x752.1x3.2x
Thu, 09 Feb 2023UK£27.1bUK£8.3bUK£32.4m32.6x838.2x3.3x
Price to Earnings Ratio

838.2x


Total Market Cap: UK£27.1bTotal Earnings: UK£32.4mTotal Revenue: UK£8.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 102.9x202420252026
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 32.4x which is lower than its 3-year average PE of 103x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 141% 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 Market0.64%
Tech-1.91%
Software-3.14%
Application Software-3.09%
Systems Software-9.15%
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
PINE Pinewood Technologies GroupUK£4.7225.0%
+UK£108.8m		37.4%PE87.4x
TRCS TracsisUK£3.6024.1%
+UK£20.8m		2.9%PE206x
CER CerillionUK£17.004.3%
+UK£20.7m		4.9%PE30.2x
DOTD dotdigital GroupUK£0.749.8%
+UK£20.0m		-14.9%PE20x
ELCO ElecoUK£1.4813.8%
+UK£15.1m		2.1%PE33.1x

Latest News

RM.
UK£1.05
RM
7D
-4.5%
1Y
-2.3%
PINE
UK£4.72
Pinewood Technologies Group
7D
25.0%
1Y
37.4%

PINE: Higher Future P E Assumptions Will Support Stronger Share Price

Analysts have lifted their price target for Pinewood Technologies Group to £7.25 from £7.00, reflecting updated assumptions around fair value, revenue growth, profit margins and future P/E expectations. Analyst Commentary Analysts lifting the price target to £7.25 signals updated thinking on how Pinewood Technologies Group might balance growth, margins and valuation from here.
ACSO
UK£2.83
accesso Technology Group
7D
16.0%
1Y
-42.8%
ALFA
UK£2.15
Alfa Financial Software Holdings
7D
1.4%
1Y
-3.8%
NET
UK£1.32
Netcall
7D
6.5%
1Y
21.7%
CRDL
UK£0.052
Cordel Group
7D
-16.8%
1Y
-30.7%
SATS
UK£0.0031
Satsuma Technology
7D
-10.8%
1Y
-69.3%
TRCS
UK£3.60
Tracsis
7D
24.1%
1Y
2.9%

Tracsis (LON:TRCS) Could Be Struggling To Allocate Capital

Jan 28
Tracsis (LON:TRCS) Could Be Struggling To Allocate Capital
ELCO
UK£1.48
Eleco
7D
13.8%
1Y
2.1%
QTX
UK£3.01
Quartix Technologies
7D
-6.5%
1Y
69.6%

QTX: Shares Will Rise On Unified Dividend Policy And Payout Visibility

Analysts have modestly lifted their price target for Quartix Technologies to £3.60 from £3.60, reflecting slightly adjusted assumptions around the discount rate, revenue growth and profit margin, while keeping the fair value estimate steady. What's in the News The Board plans to consolidate Quartix Technologies' separate ordinary and supplementary dividends into a single ordinary dividend, with details to be set out in the upcoming annual report (Key Developments).
SAAS
UK£0.91
Microlise Group
7D
-3.7%
1Y
-30.4%

SAAS: High P/E And Stable Profitability Will Support Future Returns

Analysts have nudged their fair value estimate for Microlise Group from £1.52 to about £1.54, reflecting updated assumptions on the discount rate, revenue growth, profit margins, and a forward P/E that now sits closer to 71x. What's in the News Microlise Group issued earnings guidance for fiscal 2025, setting revenue expectations below current market forecasts.
SGE
UK£9.57
Sage Group
7D
-7.0%
1Y
-29.0%

SGE: Durable Model And Capital Returns Will Support Further Share Price Upside

Narrative update on Sage Group The updated analyst price target for Sage Group reflects a modest fair value adjustment to £13.02. Analysts point to recent mixed target changes across £12.50 to £14.25 and differing views on growth, valuation and the durability of its model.
CER
UK£17.00
Cerillion
7D
4.3%
1Y
4.9%

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
TAP
UK£0.015
Tap Global Group
7D
-16.2%
1Y
-40.4%
DOTD
UK£0.74
dotdigital Group
7D
9.8%
1Y
-14.9%
APTD
UK£2.70
Aptitude Software Group
7D
-5.9%
1Y
-19.4%