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U.K. (FTSE) Application Software Industry Analysis

UpdatedDec 20, 2025
DataAggregated Company Financials
Companies46
  • 7D0.5%
  • 3M-4.2%
  • 1Y-14.4%
  • YTDn/a

The Application Software industry is up 1.1% in the last week, with Sage Group up 1.8%. In contrast, the industry has lost 15% in the last 12 months. 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
Sat, 20 Dec 2025UK£15.6bUK£4.4bUK£445.5m32.8x35x3.5x
Mon, 17 Nov 2025UK£15.8bUK£4.3bUK£447.2m33.8x35.3x3.6x
Wed, 15 Oct 2025UK£16.4bUK£4.3bUK£452.9m31.5x36.3x3.8x
Fri, 12 Sep 2025UK£16.0bUK£4.3bUK£454.4m33.4x35.3x3.7x
Sun, 10 Aug 2025UK£16.7bUK£4.3bUK£442.4m33.5x37.7x3.9x
Tue, 08 Jul 2025UK£17.8bUK£4.4bUK£409.4m34.9x43.4x4.1x
Thu, 05 Jun 2025UK£18.5bUK£4.4bUK£418.1m33.9x44.3x4.3x
Sat, 03 May 2025UK£18.6bUK£4.4bUK£388.4m30.1x48x4.2x
Mon, 31 Mar 2025UK£18.0bUK£4.4bUK£391.0m28.2x46x4.1x
Wed, 26 Feb 2025UK£18.8bUK£4.5bUK£332.5m31.3x56.6x4.2x
Fri, 24 Jan 2025UK£19.7bUK£4.5bUK£331.4m28.8x59.5x4.4x
Sun, 22 Dec 2024UK£19.4bUK£4.4bUK£329.3m31.8x58.8x4.4x
Tue, 19 Nov 2024UK£17.5bUK£4.4bUK£239.7m35.6x73x4x
Thu, 17 Oct 2024UK£16.5bUK£4.3bUK£237.2m32.2x69.5x3.8x
Sat, 14 Sep 2024UK£17.0bUK£4.4bUK£220.8m35.4x76.8x3.9x
Mon, 12 Aug 2024UK£16.7bUK£4.4bUK£208.9m37.1x80.1x3.8x
Wed, 10 Jul 2024UK£17.6bUK£4.5bUK£219.7m36.7x80.3x3.9x
Fri, 07 Jun 2024UK£17.8bUK£4.4bUK£119.8m40.5x148.3x4x
Sun, 05 May 2024UK£18.5bUK£4.4bUK£63.0m37.3x293.9x4.2x
Tue, 02 Apr 2024UK£18.9bUK£4.4bUK£40.9m38.6x461.4x4.3x
Thu, 29 Feb 2024UK£18.5bUK£4.3bUK£72.5m36.4x255.7x4.3x
Sat, 27 Jan 2024UK£30.2bUK£7.9b-UK£224,996,005.0037.7x-134.3x3.8x
Mon, 25 Dec 2023UK£30.0bUK£7.9b-UK£223,765,915.0035.5x-134.1x3.8x
Wed, 22 Nov 2023UK£27.6bUK£7.9b-UK£162,245,941.0031.8x-170.3x3.5x
Fri, 20 Oct 2023UK£27.3bUK£7.8b-UK£166,021,938.0030.1x-164.2x3.5x
Sun, 17 Sep 2023UK£28.1bUK£7.8b-UK£159,477,422.0032.3x-176.3x3.6x
Tue, 15 Aug 2023UK£27.5bUK£7.8b-UK£170,693,721.0030.6x-160.9x3.5x
Thu, 13 Jul 2023UK£27.9bUK£8.4b-UK£146,644,790.0030.1x-190.2x3.3x
Sat, 10 Jun 2023UK£27.8bUK£8.4b-UK£23,095,082.0033.3x-1203.1x3.3x
Mon, 08 May 2023UK£27.1bUK£8.5b-UK£164,129,479.0035.6x-165.4x3.2x
Wed, 05 Apr 2023UK£26.7bUK£8.4bUK£22.8m35.8x1170.4x3.2x
Fri, 03 Mar 2023UK£26.8bUK£8.3bUK£32.1m32.7x835.6x3.2x
Sun, 29 Jan 2023UK£26.8bUK£8.3bUK£39.2m37.3x684.4x3.2x
Tue, 27 Dec 2022UK£26.3bUK£8.4bUK£33.1m36.8x796.4x3.2x
Price to Earnings Ratio

796.4x


Total Market Cap: UK£26.3bTotal Earnings: UK£33.1mTotal Revenue: UK£8.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 131.9x202320242025
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 35.2x which is lower than its 3-year average PE of 133x.
  • The industry is trading close to its 3-year average PS ratio of 3.8x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 139% 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 Market2.51%
Tech1.07%
Software0.49%
Application Software0.51%
Systems Software-2.75%
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£10.851.2%
+UK£118.7m		-15.9%PE27.9x
BYIT Bytes Technology GroupUK£3.624.3%
+UK£35.0m		-14.9%PE16x
GBG GB GroupUK£2.541.6%
+UK£8.9m		-26.6%PE66.4x
SKL Skillcast GroupUK£0.738.9%
+UK£5.4m		72.9%PE60.4x
PEB Pebble Beach Systems GroupUK£0.2017.4%
+UK£3.7m		99.5%PS2.1x

Latest News

PINE
UK£3.50
Pinewood Technologies Group
7D
-3.7%
1Y
1.3%
BIRD
UK£0.024
Blackbird
7D
-17.2%
1Y
-52.0%
SGE
UK£10.85
Sage Group
7D
1.2%
1Y
-15.9%

SGE: Cloud Transition And Buybacks Will Support Durable Long Term Upside

Analysts now set a modestly higher fair value for Sage Group at approximately £16.20 per share, up from about £16.00. This reflects confidence in its durable growth model and recent earnings delivery, even as they factor in slightly slower revenue growth and margin expectations.
ALFA
UK£2.17
Alfa Financial Software Holdings
7D
-2.3%
1Y
0.5%
NET
UK£1.10
Netcall
7D
-2.7%
1Y
8.9%
QTX
UK£2.75
Quartix Technologies
7D
-1.8%
1Y
80.3%

QTX: Shares Will Benefit From Confident 2025 And 2026 Earnings Guidance

Analysts have nudged their price target on Quartix Technologies slightly higher to reflect incremental improvements in long term growth and profitability expectations, while noting only marginal changes in discount rate and valuation multiples. What's in the News Issued new earnings guidance for 2025 and 2026, indicating expectations to slightly exceed the most recently updated market estimates for full-year revenue and profit (company guidance) Valuation Changes The fair value estimate remains unchanged at 3.6, indicating no revision to the intrinsic value assessment.
SAAS
UK£0.93
Microlise Group
7D
-3.6%
1Y
-8.4%

SAAS: Rising Dividend And Earnings Outlook Will Drive Strong Future Returns

Narrative Update Analysts have trimmed their price target on Microlise Group from approximately £1.68 to £1.52, reflecting slightly higher discount rates, more conservative expectations for revenue growth and profit margins, and a higher projected future P/E multiple. Together, these factors point to a more cautious valuation outlook.
GBG
UK£2.54
GB Group
7D
1.6%
1Y
-26.6%
PEB
UK£0.20
Pebble Beach Systems Group
7D
17.4%
1Y
99.5%

Investors Don't See Light At End Of Pebble Beach Systems Group plc's (LON:PEB) Tunnel

Dec 05
Investors Don't See Light At End Of Pebble Beach Systems Group plc's (LON:PEB) Tunnel
CER
UK£12.10
Cerillion
7D
-4.3%
1Y
-30.1%

Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)

Dec 01
Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)
IDOX
UK£0.65
IDOX
7D
-5.2%
1Y
5.5%
BYIT
UK£3.62
Bytes Technology Group
7D
4.3%
1Y
-14.9%
ACSO
UK£3.45
accesso Technology Group
7D
1.8%
1Y
-32.6%
TIDE
UK£0.82
Crimson Tide
7D
17.9%
1Y
-21.4%
SKL
UK£0.73
Skillcast Group
7D
8.9%
1Y
72.9%
PULS
UK£0.38
Pulsar Group
7D
2.7%
1Y
-33.6%