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U.K. (FTSE) Application Software Industry Analysis

UpdatedMar 24, 2026
DataAggregated Company Financials
Companies46
  • 7D-3.8%
  • 3M-22.6%
  • 1Y-29.9%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 3.8%, driven by Sage Group declining 3.2%. Overall the industry is down 30% in 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
Tue, 24 Mar 2026UK£11.9bUK£4.4bUK£455.3m26.7x26.2x2.7x
Thu, 19 Feb 2026UK£12.5bUK£4.4bUK£455.6m31.4x27.4x2.8x
Sat, 17 Jan 2026UK£15.4bUK£4.4bUK£454.0m32.3x33.8x3.5x
Mon, 15 Dec 2025UK£15.5bUK£4.4bUK£445.5m33.3x34.7x3.5x
Wed, 12 Nov 2025UK£16.2bUK£4.3bUK£447.8m35.2x36.1x3.7x
Fri, 10 Oct 2025UK£16.2bUK£4.3bUK£454.3m31.3x35.7x3.8x
Sun, 07 Sep 2025UK£16.1bUK£4.3bUK£453.6m33.4x35.4x3.7x
Tue, 05 Aug 2025UK£16.9bUK£4.3bUK£442.7m32.7x38.2x3.9x
Thu, 03 Jul 2025UK£17.6bUK£4.4bUK£409.7m35x43x4x
Sat, 31 May 2025UK£18.4bUK£4.5bUK£417.6m31.6x44x4.1x
Mon, 28 Apr 2025UK£17.5bUK£4.4bUK£388.9m29.2x44.9x4x
Wed, 26 Mar 2025UK£17.9bUK£4.4bUK£392.3m28.5x45.6x4x
Fri, 21 Feb 2025UK£19.3bUK£4.5bUK£332.5m31.8x58.2x4.3x
Sun, 19 Jan 2025UK£19.5bUK£4.5bUK£330.5m28.6x59.1x4.4x
Tue, 17 Dec 2024UK£19.6bUK£4.4bUK£345.9m35.3x56.6x4.4x
Thu, 14 Nov 2024UK£17.4bUK£4.4bUK£239.4m35.4x72.5x4x
Sat, 12 Oct 2024UK£16.5bUK£4.3bUK£232.3m32.4x70.9x3.8x
Mon, 09 Sep 2024UK£16.6bUK£4.4bUK£219.5m36.4x75.6x3.8x
Wed, 07 Aug 2024UK£16.9bUK£4.4bUK£207.0m37.4x81.9x3.8x
Fri, 05 Jul 2024UK£18.0bUK£4.5bUK£218.2m37.9x82.4x4x
Sun, 02 Jun 2024UK£17.3bUK£4.4bUK£119.7m38.3x144.9x3.9x
Tue, 30 Apr 2024UK£18.0bUK£4.4bUK£45.2m37.1x397.4x4.1x
Thu, 28 Mar 2024UK£18.8bUK£4.4bUK£36.7m38.3x512.1x4.3x
Sat, 24 Feb 2024UK£18.5bUK£4.3bUK£72.5m35.5x255.6x4.3x
Mon, 22 Jan 2024UK£29.8bUK£7.9b-UK£224,791,849.0035.9x-132.4x3.8x
Wed, 20 Dec 2023UK£29.8bUK£7.9b-UK£223,667,040.0035.1x-133.3x3.8x
Fri, 17 Nov 2023UK£27.5bUK£7.9b-UK£168,286,335.0032.9x-163.3x3.5x
Sun, 15 Oct 2023UK£27.5bUK£7.8b-UK£166,385,698.0029.6x-165.4x3.5x
Tue, 12 Sep 2023UK£28.1bUK£7.8b-UK£165,883,774.0028.9x-169.5x3.6x
Thu, 10 Aug 2023UK£27.4bUK£7.8b-UK£174,076,708.0030.6x-157.3x3.5x
Sat, 08 Jul 2023UK£27.7bUK£8.4b-UK£146,197,045.0031x-189.7x3.3x
Mon, 05 Jun 2023UK£28.0bUK£8.4b-UK£235,134,789.0035.2x-119x3.3x
Wed, 03 May 2023UK£27.2bUK£8.5b-UK£164,260,719.0035.3x-165.6x3.2x
Fri, 31 Mar 2023UK£26.6bUK£8.4bUK£19.2m32.7x1386.2x3.2x
Price to Earnings Ratio

1386.2x


Total Market Cap: UK£26.6bTotal Earnings: UK£19.2mTotal Revenue: UK£8.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 67.7x202420252026
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 26.2x which is lower than its 3-year average PE of 67.7x.
  • 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 187% 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-4.09%
Tech-2.64%
Software-3.77%
Application Software-3.76%
Systems Software-4.86%
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
CRDL Cordel GroupUK£0.05210.5%
+UK£1.1m		-27.6%PS2.7x
TAP Tap Global GroupUK£0.0153.4%
+UK£372.3k		0%PS3.2x
SYME Supply@ME CapitalUK£0.0000320.0%
+UK£358.7k		-16.7%PS12.2x
ESYS essensysUK£0.160.3%
+UK£39.7k		-51.8%PS0.6x

Latest News

BYIT
UK£2.54
Bytes Technology Group
7D
-15.0%
1Y
-48.6%
CER
UK£10.05
Cerillion
7D
-18.3%
1Y
-35.0%
CRDL
UK£0.052
Cordel Group
7D
10.5%
1Y
-27.6%
PINE
UK£2.35
Pinewood Technologies Group
7D
-8.6%
1Y
-29.5%
SGE
UK£8.05
Sage Group
7D
-6.4%
1Y
-33.2%

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£1.91
GB Group
7D
-5.3%
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£1.47
Alfa Financial Software Holdings
7D
-7.2%
1Y
-35.4%
AOM
UK£1.81
ActiveOps
7D
-14.6%
1Y
93.6%

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.
QTX
UK£2.12
Quartix Technologies
7D
-12.4%
1Y
-1.9%

QTX: Shares Will Rise As Dividend Policy Shift Supports Upside

Analysts have kept their fair value estimate for Quartix Technologies unchanged at £3.60, with a slightly adjusted discount rate and future P/E assumption. This has led to a modest recalibration rather than a clear shift in their overall price target stance.
TAP
UK£0.015
Tap Global Group
7D
3.4%
1Y
0%
ESYS
UK£0.16
essensys
7D
0.3%
1Y
-51.8%

essensys plc's (LON:ESYS) Prospects Need A Boost To Lift Shares

Jan 24
essensys plc's (LON:ESYS) Prospects Need A Boost To Lift Shares
SYME
UK£0.00003
Supply@ME Capital
7D
20.0%
1Y
-16.7%