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U.K. (FTSE) Application Software Industry Analysis

UpdatedMar 25, 2026
DataAggregated Company Financials
Companies46
  • 7D-6.9%
  • 3M-24.3%
  • 1Y-32.0%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 6.9%, driven by a pullback from Sage Group of 6.4%. In contrast, Cordel Group has gained 11%. However, the industry is down 32% over the past year. 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, 26 Mar 2026UK£11.6bUK£4.4bUK£455.1m27.4x25.5x2.6x
Sat, 21 Feb 2026UK£12.6bUK£4.4bUK£455.6m31.1x27.8x2.9x
Mon, 19 Jan 2026UK£15.4bUK£4.4bUK£454.0m32.3x33.8x3.5x
Wed, 17 Dec 2025UK£15.5bUK£4.4bUK£445.5m32.7x34.8x3.5x
Fri, 14 Nov 2025UK£16.0bUK£4.3bUK£447.3m34.1x35.7x3.7x
Sun, 12 Oct 2025UK£16.3bUK£4.3bUK£454.4m31.4x35.9x3.8x
Tue, 09 Sep 2025UK£16.1bUK£4.3bUK£453.6m33.3x35.6x3.8x
Thu, 07 Aug 2025UK£16.9bUK£4.3bUK£442.1m34.1x38.3x3.9x
Sat, 05 Jul 2025UK£17.7bUK£4.4bUK£409.5m34.9x43.2x4x
Mon, 02 Jun 2025UK£18.4bUK£4.5bUK£417.6m31.6x44x4.1x
Wed, 30 Apr 2025UK£17.8bUK£4.4bUK£389.1m29.5x45.6x4x
Fri, 28 Mar 2025UK£17.9bUK£4.4bUK£390.0m28.4x45.8x4x
Sun, 23 Feb 2025UK£19.3bUK£4.5bUK£332.5m31.9x58.1x4.3x
Tue, 21 Jan 2025UK£19.5bUK£4.5bUK£330.8m28.4x59.1x4.4x
Thu, 19 Dec 2024UK£19.8bUK£4.4bUK£346.0m34.9x57.2x4.5x
Sat, 16 Nov 2024UK£17.4bUK£4.4bUK£239.7m34.8x72.4x4x
Mon, 14 Oct 2024UK£16.5bUK£4.3bUK£232.3m32.4x70.9x3.8x
Wed, 11 Sep 2024UK£16.6bUK£4.4bUK£220.4m36.3x75.5x3.8x
Fri, 09 Aug 2024UK£16.8bUK£4.4bUK£208.9m37.2x80.3x3.8x
Sun, 07 Jul 2024UK£18.1bUK£4.5bUK£218.4m37.2x82.7x4x
Tue, 04 Jun 2024UK£17.4bUK£4.4bUK£119.8m38.9x145x3.9x
Thu, 02 May 2024UK£17.9bUK£4.4bUK£53.6m37.5x335x4.1x
Sat, 30 Mar 2024UK£18.9bUK£4.4bUK£41.6m38.6x453.6x4.3x
Mon, 26 Feb 2024UK£18.5bUK£4.3bUK£72.5m35.5x255.5x4.3x
Wed, 24 Jan 2024UK£29.8bUK£7.9b-UK£224,660,972.0036.6x-132.8x3.8x
Fri, 22 Dec 2023UK£30.0bUK£7.9b-UK£223,820,100.0035x-133.9x3.8x
Sun, 19 Nov 2023UK£27.5bUK£7.9b-UK£163,804,956.0033.7x-168.1x3.5x
Tue, 17 Oct 2023UK£27.6bUK£7.8b-UK£166,341,406.0029.9x-165.9x3.5x
Thu, 14 Sep 2023UK£28.1bUK£7.8b-UK£165,732,152.0032.5x-169.6x3.6x
Sat, 12 Aug 2023UK£27.4bUK£7.8b-UK£170,703,329.0030.5x-160.5x3.5x
Mon, 10 Jul 2023UK£27.7bUK£8.4b-UK£146,213,463.0031x-189.7x3.3x
Wed, 07 Jun 2023UK£28.0bUK£8.4b-UK£38,547,840.0034.2x-725.3x3.3x
Fri, 05 May 2023UK£27.1bUK£8.5b-UK£164,173,347.0035.6x-165.1x3.2x
Sun, 02 Apr 2023UK£26.7bUK£8.4bUK£22.9m35.8x1166.7x3.2x
Price to Earnings Ratio

1166.7x


Total Market Cap: UK£26.7bTotal Earnings: UK£22.9mTotal Revenue: UK£8.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 66.4x202420252026
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 25.5x which is lower than its 3-year average PE of 67.1x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 173% 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-4.25%
Tech-3.43%
Software-6.83%
Application Software-6.87%
Systems Software-1.85%
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
IGP Intercede GroupUK£0.792.6%
+UK£1.2m		-44.7%PE13x
CRDL Cordel GroupUK£0.05210.5%
+UK£1.1m		-27.6%PS2.7x
TRCS TracsisUK£3.000.8%
+UK£744.1k		-19.5%PE171.7x
SYME Supply@ME CapitalUK£0.00003540.0%
+UK£717.3k		-2.8%PS14.2x
QTX Quartix TechnologiesUK£2.450.4%
+UK£484.3k		14.5%PE22.5x

Latest News

QTX
UK£2.45
Quartix Technologies
7D
0.4%
1Y
14.5%
PINE
UK£2.14
Pinewood Technologies Group
7D
-17.4%
1Y
-36.2%
BYIT
UK£2.67
Bytes Technology Group
7D
-10.4%
1Y
-45.5%
CER
UK£10.10
Cerillion
7D
-16.5%
1Y
-33.3%
CRDL
UK£0.052
Cordel Group
7D
10.5%
1Y
-27.6%
TRCS
UK£3.00
Tracsis
7D
0.8%
1Y
-19.5%

TRCS: North American Contracts Will Drive Future Recurring Revenue Upside

Analysts have adjusted their price target on Tracsis to £6.18. The change is largely tied to updated assumptions around discount rates, profit margin expectations and a higher future P/E multiple, while keeping fair value estimates stable.
IGP
UK£0.79
Intercede Group
7D
2.6%
1Y
-44.7%
SGE
UK£8.10
Sage Group
7D
-3.2%
1Y
-33.0%

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.
GBG
UK£1.92
GB Group
7D
-2.9%
1Y
-37.8%

GBG: Index Additions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £4.50. This reflects small refinements to assumptions around discount rate, revenue growth, profit margin and future P/E that leave their overall valuation view broadly unchanged.
ALFA
UK£1.48
Alfa Financial Software Holdings
7D
-5.8%
1Y
-34.3%
AOM
UK£1.76
ActiveOps
7D
-17.0%
1Y
85.3%

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.
BTC
UK£0.022
London BTC
7D
4.8%
1Y
-87.1%
DSG
UK£0.13
Dillistone Group
7D
4.1%
1Y
30.8%
APTD
UK£2.13
Aptitude Software Group
7D
-7.4%
1Y
-16.5%
PR1
UK£0.021
Pri0r1ty Intelligence Group
7D
5.1%
1Y
-69.6%
SYME
UK£0.000035
Supply@ME Capital
7D
40.0%
1Y
-2.8%