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

U.K. (FTSE) Application Software Industry Analysis

UpdatedMar 02, 2026
DataAggregated Company Financials
Companies46
  • 7D3.1%
  • 3M-17.7%
  • 1Y-29.6%
  • YTDn/a

In the last week, the Application Software industry is up 3.1%, with Sage Group up 7.2%. Meanwhile, Netcall actually underperformed within the industry, shrinking 9.2% in the last week. In contrast, the industry has lost 30% in the last 12 months. 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, 04 Mar 2026UK£12.6bUK£4.4bUK£455.6m30.6x27.8x2.9x
Fri, 30 Jan 2026UK£14.6bUK£4.4bUK£453.4m34.6x32.2x3.3x
Sun, 28 Dec 2025UK£15.6bUK£4.4bUK£445.6m33x34.9x3.5x
Tue, 25 Nov 2025UK£15.8bUK£4.4bUK£470.2m30x33.6x3.6x
Thu, 23 Oct 2025UK£16.6bUK£4.3bUK£452.3m32.1x36.8x3.9x
Sat, 20 Sep 2025UK£16.2bUK£4.3bUK£456.1m31.6x35.6x3.8x
Mon, 18 Aug 2025UK£16.0bUK£4.3bUK£447.2m32.5x35.8x3.7x
Wed, 16 Jul 2025UK£17.9bUK£4.4bUK£408.9m34.3x43.7x4.1x
Fri, 13 Jun 2025UK£18.8bUK£4.4bUK£422.4m32.5x44.6x4.3x
Sun, 11 May 2025UK£18.9bUK£4.4bUK£391.2m30.5x48.3x4.3x
Tue, 08 Apr 2025UK£16.1bUK£4.4bUK£390.5m25.2x41.2x3.6x
Thu, 06 Mar 2025UK£18.5bUK£4.5bUK£338.8m29.9x54.5x4.1x
Sat, 01 Feb 2025UK£19.8bUK£4.5bUK£332.0m30.2x59.8x4.4x
Mon, 30 Dec 2024UK£19.5bUK£4.4bUK£329.3m32.7x59.1x4.4x
Wed, 27 Nov 2024UK£19.8bUK£4.4bUK£349.3m34x56.8x4.5x
Fri, 25 Oct 2024UK£16.6bUK£4.3bUK£237.2m32.2x70.1x3.8x
Sun, 22 Sep 2024UK£17.0bUK£4.4bUK£221.5m37x76.6x3.9x
Tue, 20 Aug 2024UK£17.2bUK£4.4bUK£209.7m37.2x82x3.9x
Thu, 18 Jul 2024UK£17.4bUK£4.4bUK£211.7m37.5x82x3.9x
Sat, 15 Jun 2024UK£17.6bUK£4.5bUK£220.6m41x79.8x3.9x
Mon, 13 May 2024UK£18.7bUK£4.4bUK£62.9m37.6x297.9x4.3x
Wed, 10 Apr 2024UK£18.2bUK£4.4bUK£28.7m39.2x635.3x4.2x
Fri, 08 Mar 2024UK£18.8bUK£4.4bUK£68.1m35.6x276.3x4.3x
Sun, 04 Feb 2024UK£30.1bUK£7.9b-UK£225,088,381.0037x-133.5x3.8x
Tue, 02 Jan 2024UK£30.0bUK£7.9b-UK£224,811,730.0035.6x-133.2x3.8x
Thu, 30 Nov 2023UK£29.0bUK£7.9b-UK£213,028,664.0030.3x-136.3x3.7x
Sat, 28 Oct 2023UK£26.9bUK£7.9b-UK£169,411,542.0030.8x-158.6x3.4x
Mon, 25 Sep 2023UK£28.0bUK£7.8b-UK£165,121,205.0032.5x-169.7x3.6x
Wed, 23 Aug 2023UK£27.1bUK£7.8b-UK£167,392,741.0028x-162.1x3.5x
Fri, 21 Jul 2023UK£28.2bUK£8.4b-UK£146,896,120.0030.5x-191.8x3.4x
Sun, 18 Jun 2023UK£28.1bUK£8.4b-UK£145,533,166.0032.1x-192.9x3.4x
Tue, 16 May 2023UK£27.0bUK£8.5b-UK£164,180,329.0034.9x-164.3x3.2x
Thu, 13 Apr 2023UK£26.8bUK£8.4bUK£12.9m37.6x2075.9x3.2x
Sat, 11 Mar 2023UK£26.8bUK£8.3bUK£35.2m33.5x760.2x3.2x
Price to Earnings Ratio

760.2x


Total Market Cap: UK£26.8bTotal Earnings: UK£35.2mTotal Revenue: UK£8.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 80.8x202420252026
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 27.8x which is lower than its 3-year average PE of 81.5x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 135% 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 Market1.95%
Tech3.83%
Software3.11%
Application Software3.14%
Systems Software-1.09%
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£8.477.7%
+UK£562.7m		-32.6%PE21.3x
BYIT Bytes Technology GroupUK£3.075.5%
+UK£37.9m		-25.3%PE13.6x
GBG GB GroupUK£1.995.7%
+UK£24.9m		-35.6%PE51.6x
ALFA Alfa Financial Software HoldingsUK£1.892.5%
+UK£13.6m		-21.0%PE18.9x
TRCS TracsisUK£3.406.3%
+UK£6.0m		-4.8%PE194.6x

Latest News

AOM
UK£2.27
ActiveOps
7D
-13.4%
1Y
124.8%

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.
TRCS
UK£3.40
Tracsis
7D
6.3%
1Y
-4.8%
ADVT
UK£1.45
AdvancedAdvT
7D
-3.3%
1Y
-9.4%
SAAS
UK£0.71
Microlise Group
7D
-9.5%
1Y
-34.4%

SAAS: High P/E And Recurring Revenue Will Support Future Returns

Microlise Group's analyst price target remains unchanged at £1.46, as analysts point to steady assumptions around discount rate, revenue growth and profit margin that keep their valuation framework intact. What's in the News Microlise Group issued total Group revenue guidance for the year ending 31 December 2025 at £84.0 million, described as in line with revised market expectations (Key Developments).
CRDL
UK£0.049
Cordel Group
7D
5.4%
1Y
-36.8%
PULS
UK£0.47
Pulsar Group
7D
1.1%
1Y
1.1%
PINE
UK£2.91
Pinewood Technologies Group
7D
-3.8%
1Y
-17.2%

AI-Focused Dealership Systems Face Execution Risks Yet May Ultimately Reward Patience

Catalysts About Pinewood Technologies Group Pinewood Technologies Group provides automotive retail software and AI driven tools to dealer groups across multiple regions, including the U.K., Europe, Japan, South Africa and North America. What are the underlying business or industry changes driving this perspective?
SGE
UK£8.47
Sage Group
7D
7.7%
1Y
-32.6%

SGE: Embedded Banking Partnerships Will Support Further Share Price Upside

The analyst price target for Sage Group has been adjusted to £1,250 from £1,350, as analysts refine fair value, discount rate, growth, margin and P/E assumptions in light of recent mixed research that includes both upgrades and a reduced target. Analyst Commentary Recent research on Sage Group reflects a mix of optimism on growth prospects and caution on valuation and execution, which helps explain the adjustment in the consensus price target.
GBG
UK£1.99
GB Group
7D
5.7%
1Y
-35.6%
ALFA
UK£1.89
Alfa Financial Software Holdings
7D
2.5%
1Y
-21.0%
OMG
UK£0.47
Oxford Metrics
7D
-13.3%
1Y
-11.0%
TAP
UK£0.013
Tap Global Group
7D
8.0%
1Y
-18.2%
NET
UK£1.03
Netcall
7D
-13.4%
1Y
-10.0%
CER
UK£14.30
Cerillion
7D
-6.5%
1Y
-5.9%

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
IGP
UK£1.02
Intercede Group
7D
-12.1%
1Y
-30.8%
BYIT
UK£3.07
Bytes Technology Group
7D
5.5%
1Y
-25.3%