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U.K. (FTSE) Application Software Industry Analysis

UpdatedJun 07, 2026
DataAggregated Company Financials
Companies47
  • 7D0.8%
  • 3M1.8%
  • 1Y-29.5%
  • YTDn/a

Over the last 7 days, the Application Software industry has remained flat, although notably Sage Group gained 3.3%. As for the longer term, the industry has declined 29% in the last year. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 07 Jun 2026UK£12.4bUK£4.5bUK£415.4m20.5x29.7x2.7x
Tue, 05 May 2026UK£12.8bUK£4.5bUK£495.8m27.8x25.8x2.9x
Thu, 02 Apr 2026UK£12.2bUK£4.4bUK£454.8m26.6x26.9x2.8x
Sat, 28 Feb 2026UK£12.6bUK£4.4bUK£455.6m30.6x27.8x2.9x
Mon, 26 Jan 2026UK£15.2bUK£4.4bUK£454.1m33x33.4x3.4x
Wed, 24 Dec 2025UK£15.6bUK£4.4bUK£445.5m32.8x35.1x3.5x
Fri, 21 Nov 2025UK£16.2bUK£4.4bUK£470.2m31.2x34.5x3.7x
Sun, 19 Oct 2025UK£16.1bUK£4.3bUK£453.0m30.9x35.6x3.7x
Tue, 16 Sep 2025UK£15.9bUK£4.3bUK£455.1m33.2x35x3.7x
Thu, 14 Aug 2025UK£16.0bUK£4.3bUK£447.2m32.5x35.8x3.7x
Sat, 12 Jul 2025UK£17.8bUK£4.4bUK£409.7m34x43.4x4.1x
Mon, 09 Jun 2025UK£18.8bUK£4.4bUK£421.9m34.2x44.6x4.3x
Wed, 07 May 2025UK£18.5bUK£4.4bUK£391.3m29.9x47.3x4.2x
Fri, 04 Apr 2025UK£17.7bUK£4.4bUK£391.1m27.1x45.2x4x
Sun, 02 Mar 2025UK£18.7bUK£4.5bUK£332.6m31.1x56.1x4.2x
Tue, 28 Jan 2025UK£19.7bUK£4.5bUK£331.7m28.8x59.3x4.4x
Thu, 26 Dec 2024UK£19.5bUK£4.4bUK£329.2m32.4x59.2x4.4x
Sat, 23 Nov 2024UK£19.5bUK£4.4bUK£349.3m34.1x55.9x4.4x
Mon, 21 Oct 2024UK£16.8bUK£4.3bUK£237.4m32.2x70.9x3.9x
Wed, 18 Sep 2024UK£16.9bUK£4.4bUK£220.9m36.3x76.5x3.9x
Fri, 16 Aug 2024UK£17.2bUK£4.4bUK£209.2m36.6x82.2x3.9x
Sun, 14 Jul 2024UK£17.6bUK£4.4bUK£217.3m37.4x80.9x4x
Tue, 11 Jun 2024UK£17.8bUK£4.5bUK£97.0m39.9x183.2x4x
Thu, 09 May 2024UK£18.7bUK£4.4bUK£62.9m37.1x296.9x4.3x
Sat, 06 Apr 2024UK£18.5bUK£4.4bUK£40.9m39x453.7x4.2x
Mon, 04 Mar 2024UK£18.8bUK£4.3bUK£72.5m36x259.5x4.3x
Wed, 31 Jan 2024UK£30.4bUK£7.9b-UK£225,002,063.0037.9x-135.3x3.8x
Fri, 29 Dec 2023UK£30.1bUK£7.9b-UK£223,677,620.0035.6x-134.4x3.8x
Sun, 26 Nov 2023UK£28.7bUK£7.9b-UK£158,814,093.0030.1x-180.8x3.6x
Tue, 24 Oct 2023UK£26.8bUK£7.8b-UK£165,959,221.0029.5x-161.6x3.4x
Thu, 21 Sep 2023UK£28.1bUK£7.8b-UK£164,865,748.0032.5x-170.2x3.6x
Sat, 19 Aug 2023UK£27.1bUK£7.8b-UK£167,398,398.0028.4x-161.9x3.5x
Mon, 17 Jul 2023UK£28.0bUK£8.4b-UK£146,513,779.0030.7x-191.3x3.3x
Wed, 14 Jun 2023UK£28.1bUK£8.4b-UK£22,607,368.0033.6x-1240.8x3.4x
Price to Earnings Ratio

-1240.8x


Total Market Cap: UK£28.1bTotal Earnings: -UK£22,607,368.00Total Revenue: UK£8.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 25.6x202420252026
Current Industry PE
  • Investors are optimistic on the British Application Software industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 29.7x which is higher than its 3-year average PE of 25.6x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • Total earnings for the Application Software industry have gone up over the last three years and the industry is now profitable.
  • Revenues have declined 19% per year.
  • This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.

Industry Comparison

How does U.K. Application Software compare with similar industries?

GB Market-0.73%
Tech0.36%
Software0.81%
Application Software0.81%
Systems Software1.05%
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£8.703.3%
+UK£249.0m		-30.5%PE20.4x
ACSO accesso Technology GroupUK£3.1920.4%
+UK£17.5m		-38.4%PE12.5x
BYIT Bytes Technology GroupUK£3.751.7%
+UK£15.1m		-29.6%PE17.3x
IGP Intercede GroupUK£1.246.0%
+UK£4.2m		-27.3%PE20.5x
ADVT AdvancedAdvTUK£1.551.6%
+UK£3.3m		-8.8%PE34.7x

Latest News

ZOO
UK£0.12
ZOO Digital Group
7D
25.6%
1Y
19.5%
GBG
UK£2.02
GB Group
7D
-15.0%
1Y
-26.2%
Narrative Update • Jun 06

GBG: Expanded Equifax Partnership And Growth Investment Will Support Future Earnings Confidence

Analysts have trimmed their price target on GB Group from £3.20 to £2.70, citing a higher discount rate, updated growth assumptions, and recent commentary around the £6m growth investment and customer traction with companies like Uber as key factors in the recalibration. What's in the News Equifax and GB Group agreed to expand their partnership into the United States, integrating Equifax Identity and Fraud solutions into GBG's adaptive identity platform, GBG Go. (Source: Client Announcements) The integration is intended to let GBG customers use Equifax data to support identity resolution and fraud defenses, including synthetic identity fraud, credit ghosting, and first party fraud.
ACSO
UK£3.19
accesso Technology Group
7D
20.4%
1Y
-38.4%
ADVT
UK£1.55
AdvancedAdvT
7D
1.6%
1Y
-8.8%
PINE
UK£2.54
Pinewood Technologies Group
7D
-5.9%
1Y
-42.9%
Narrative Update • Jun 05

PINE: Index Exit Will Highlight Expanded Dealer Rollouts As Key Re Rating Catalyst

Analysts have maintained their fair value estimate for Pinewood Technologies Group at £5.85. A slightly higher discount rate and marginally lower profit margin assumptions have resulted in a modestly higher future P/E of 38.78x, which shapes the updated price target narrative.
CER
UK£12.30
Cerillion
7D
-12.1%
1Y
-35.4%
BYIT
UK£3.75
Bytes Technology Group
7D
1.7%
1Y
-29.6%
Narrative Update • Jun 03

BYIT: UBS Downgrade And Cost Normalisation Will Pressure Future Returns

Analysts have adjusted their price target on Bytes Technology Group to £2.56, reflecting updated views on slightly different growth, margin and P/E assumptions following the recent downgrade in Street research. What's in the News The board has confirmed a new share repurchase program of up to £25 million of ordinary shares, with the intention to cancel all repurchased shares to reduce share capital.
PEB
UK£0.23
Pebble Beach Systems Group
7D
-16.7%
1Y
136.8%
SGE
UK£8.70
Sage Group
7D
3.3%
1Y
-30.5%
Narrative Update • Jun 01

SGE: AI Rollout And Buybacks Will Shape Balanced Outlook After Mixed Repricing

Sage Group’s updated analyst price target now sits around £8.61 per share, down from about £8.77, as analysts factor in reduced revenue growth assumptions, slightly higher discount rates, and mixed Street views that include recent target cuts alongside at least one upgrade to Buy. Analyst Commentary Recent research on Sage Group reflects a split view, with some analysts taking a more cautious stance while others remain constructive.
TRCS
UK£3.35
Tracsis
7D
-5.6%
1Y
-32.3%
Narrative Update • May 26

TRCS: North American Rail Wins Will Support Future Earnings Rerating Potential

Analysts have adjusted their price target for Tracsis to reflect updated assumptions on the discount rate, a profit margin of 8.22% and a future P/E of 30.75x. Taken together, these revisions indicate a different outlook for the stock’s valuation in £ terms than before.
ALFA
UK£1.57
Alfa Financial Software Holdings
7D
-1.5%
1Y
-36.1%
New Narrative • May 20

Cloud Migration And Regulatory Costs Will Pressure Margins Yet Strengthen Long Term Recurring Revenues

Catalysts About Alfa Financial Software Holdings Alfa Financial Software Holdings provides enterprise software for asset and automotive finance providers, with a growing focus on subscription and cloud delivery models. What are the underlying business or industry changes driving this perspective?
KRM
UK£0.33
KRM22
7D
4.8%
1Y
-7.1%
IGP
UK£1.24
Intercede Group
7D
6.0%
1Y
-27.3%
APTD
UK£2.21
Aptitude Software Group
7D
-3.5%
1Y
-27.8%
ALT
UK£0.19
Altitude Group
7D
2.7%
1Y
-8.7%
DOTD
UK£0.48
dotdigital Group
7D
-4.7%
1Y
-41.5%
Narrative Update • Apr 17

DOTD: Future Margin Delivery And Cash Generation Will Drive Rerating Potential

Analysts have trimmed their price target on dotdigital Group to £0.95, reflecting slightly updated assumptions on revenue growth, profit margins and the future P/E multiple, while keeping fair value broadly unchanged. Analyst Commentary Recent Street research around dotdigital Group highlights a split in sentiment, with some upbeat views contrasted by more cautious voices focused on execution risk and valuation.