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U.K. (FTSE) Application Software Industry Analysis

UpdatedApr 12, 2026
DataAggregated Company Financials
Companies47
  • 7D-2.4%
  • 3M-23.4%
  • 1Y-24.7%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 2.5%, driven by a pullback from Sage Group of 4.5%. Meanwhile, Cerillion actually outperformed within the industry, gaining 12% in the last week. The industry has fallen 25% in the last year. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 12 Apr 2026UK£11.9bUK£4.4bUK£453.9m31.8x26.3x2.7x
Tue, 10 Mar 2026UK£12.6bUK£4.4bUK£456.8m29.3x27.7x2.9x
Thu, 05 Feb 2026UK£13.3bUK£4.4bUK£453.3m32.1x29.4x3x
Sat, 03 Jan 2026UK£15.2bUK£4.4bUK£445.5m32.7x34.2x3.4x
Mon, 01 Dec 2025UK£15.7bUK£4.4bUK£445.2m33.2x35.3x3.6x
Wed, 29 Oct 2025UK£16.7bUK£4.3bUK£452.4m32.1x36.9x3.9x
Fri, 26 Sep 2025UK£15.9bUK£4.3bUK£457.3m31.6x34.8x3.7x
Sun, 24 Aug 2025UK£16.1bUK£4.3bUK£449.6m33.2x35.9x3.8x
Tue, 22 Jul 2025UK£18.1bUK£4.4bUK£412.2m33.3x43.8x4.1x
Thu, 19 Jun 2025UK£18.8bUK£4.4bUK£419.3m33.7x44.8x4.3x
Sat, 17 May 2025UK£18.6bUK£4.5bUK£418.4m32.4x44.6x4.1x
Mon, 14 Apr 2025UK£16.7bUK£4.4bUK£389.7m25.4x42.8x3.8x
Wed, 12 Mar 2025UK£17.6bUK£4.5bUK£338.2m29.5x52.2x4x
Fri, 07 Feb 2025UK£19.7bUK£4.5bUK£332.0m31.2x59.2x4.4x
Sun, 05 Jan 2025UK£19.4bUK£4.5bUK£331.1m30.7x58.5x4.3x
Tue, 03 Dec 2024UK£19.9bUK£4.4bUK£348.1m35x57.2x4.5x
Thu, 31 Oct 2024UK£16.6bUK£4.3bUK£236.0m31.7x70.2x3.8x
Sat, 28 Sep 2024UK£16.8bUK£4.3bUK£231.1m32.4x72.7x3.9x
Mon, 26 Aug 2024UK£16.9bUK£4.4bUK£199.2m37.8x84.7x3.8x
Wed, 24 Jul 2024UK£17.6bUK£4.4bUK£211.4m39.4x83.4x4x
Fri, 21 Jun 2024UK£18.0bUK£4.5bUK£223.2m40.5x80.6x4x
Sun, 19 May 2024UK£18.0bUK£4.4bUK£120.6m37.1x148.9x4x
Tue, 16 Apr 2024UK£18.0bUK£4.4bUK£45.8m38.1x392x4.1x
Thu, 14 Mar 2024UK£18.6bUK£4.4bUK£68.1m36.7x273.3x4.3x
Sat, 10 Feb 2024UK£18.7bUK£4.4bUK£72.2m36.8x258.4x4.3x
Mon, 08 Jan 2024UK£29.6bUK£7.9b-UK£224,779,178.0036x-131.5x3.7x
Wed, 06 Dec 2023UK£29.1bUK£7.9b-UK£223,848,847.0033.1x-130x3.7x
Fri, 03 Nov 2023UK£27.3bUK£7.9b-UK£170,064,912.0030.8x-160.7x3.5x
Sun, 01 Oct 2023UK£27.6bUK£7.8b-UK£165,059,127.0034.2x-167.5x3.5x
Tue, 29 Aug 2023UK£27.2bUK£7.8b-UK£166,933,992.0028.4x-162.7x3.5x
Thu, 27 Jul 2023UK£27.9bUK£8.4b-UK£146,661,105.0030.2x-190.3x3.3x
Sat, 24 Jun 2023UK£27.8bUK£8.4b-UK£148,533,081.0030.3x-187x3.3x
Mon, 22 May 2023UK£27.6bUK£8.7b-UK£214,152,172.0034.9x-128.9x3.2x
Wed, 19 Apr 2023UK£27.0bUK£8.4bUK£13.5m37.6x2004.1x3.2x
Price to Earnings Ratio

2004.1x


Total Market Cap: UK£27.0bTotal Earnings: UK£13.5mTotal Revenue: UK£8.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 44.9x202420252026
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 26.7x which is lower than its 3-year average PE of 46.8x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 223% 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 Market1.87%
Tech2.83%
Software-2.39%
Application Software-2.42%
Systems Software1.65%
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
CER CerillionUK£14.5011.5%
+UK£44.3m		11.5%PE25.8x
APTD Aptitude Software GroupUK£2.3510.8%
+UK£12.5m		-12.3%PE31.8x
NET NetcallUK£1.085.9%
+UK£10.2m		2.9%PE76.8x
QTX Quartix TechnologiesUK£2.438.7%
+UK£9.4m		24.0%PE18.4x
ADVT AdvancedAdvTUK£1.703.0%
+UK£6.3m		13.3%PE38.6x

Latest News

AOM
UK£2.02
ActiveOps
7D
3.9%
1Y
134.3%

AOM: Stable Assumptions And Lower Discount Rate Will Support Future Upside

Analysts have trimmed their price target on ActiveOps slightly to £3.17 from £3.17, reflecting marginally lower discount rate and future P/E assumptions, while keeping revenue growth and profit margin expectations broadly unchanged. Valuation Changes Fair Value: Held steady at £3.17 per share, with no change from the prior estimate.
APTD
UK£2.35
Aptitude Software Group
7D
10.8%
1Y
-12.3%
FADL
UK£0.47
Fadel Partners
7D
-9.5%
1Y
-32.1%
SAAS
UK£0.58
Microlise Group
7D
8.3%
1Y
-40.9%

SAAS: Recurring Revenue Mix And Premium P/E Will Support Future Upside

Analysts have held their fair value estimate for Microlise Group steady at £1.46 per share, with slight adjustments to the discount rate and future P/E assumptions informing their unchanged price target view. What's in the News Microlise Group issued new guidance for total Group revenue for the year ended 31 December 2025 at £84.0 million, which the company states is in line with revised market expectations, compared with £81.0 million for FY 2024 (Corporate Guidance).
ACSO
UK£2.43
accesso Technology Group
7D
-1.0%
1Y
-41.7%

ACSO: Margin Outlook And Buyback Activity Will Support A Re Rating

Analysts have trimmed their fair value estimate for accesso Technology Group to £3.70 from £4.36, reflecting a reset in revenue growth assumptions alongside higher discount rates and a lower future P/E multiple, while still acknowledging improved profit margin expectations and recent supportive Street research. Analyst Commentary Recent Street commentary on accesso Technology Group has been mixed, with some research turning more constructive on the shares while others remain cautious.
SKL
UK£0.51
Skillcast Group
7D
-3.8%
1Y
40.3%
DOTD
UK£0.45
dotdigital Group
7D
-2.6%
1Y
-32.0%

DOTD: Future Margin Delivery And Cash Generation Will Support A Rerating

Analysts have nudged their price target on dotdigital Group slightly higher to £X from £Y. This reflects small adjustments to the discount rate, revenue growth, profit margin and forward P/E assumptions.
GBG
UK£1.88
GB Group
7D
-8.3%
1Y
-24.7%

GBG: Slightly Improved Assumptions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £X.X, reflecting small adjustments to assumptions around the discount rate, revenue growth, profit margins and future P/E, while keeping estimated fair value broadly unchanged at £4.50. Valuation Changes Fair Value: kept unchanged at £4.50, indicating no shift in the central valuation anchor.
SGE
UK£8.18
Sage Group
7D
-4.5%
1Y
-28.1%

SGE: Mixed Research Views And Partnerships Will Shape Future Upside Potential

Analysts have reduced Sage Group's fair value estimate from £9.50 to £9.00. This reflects recent price target revisions from £14.00 to £11.50, along with mixed updates that balance slightly adjusted growth, margin and future P/E assumptions.
BYIT
UK£2.84
Bytes Technology Group
7D
-2.5%
1Y
-40.3%

BYIT: Capital Light Cash Generation Will Underpin Extended Recovery Story

Analysts have reduced their fair value estimate for Bytes Technology Group from £6.38 to £4.70. This reflects a lower assumed future P/E and softer projected revenue growth, along with the view that the company’s recovery timeline is taking longer than previously expected.
CER
UK£14.50
Cerillion
7D
11.5%
1Y
11.5%
QTX
UK£2.43
Quartix Technologies
7D
8.7%
1Y
24.0%

QTX: Shares Will Rise As Dividend Simplification And Audit Progress Support Upside

Analysts have nudged their price target on Quartix Technologies slightly higher to £3.60. The change reflects updated assumptions for discount rates, revenue growth, profit margins and a modestly higher future P/E multiple.
ALFA
UK£1.49
Alfa Financial Software Holdings
7D
1.4%
1Y
-26.9%
RM.
UK£0.94
RM
7D
-1.3%
1Y
-11.3%
NET
UK£1.08
Netcall
7D
5.9%
1Y
2.9%
ADVT
UK£1.70
AdvancedAdvT
7D
3.0%
1Y
13.3%