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U.K. (FTSE) Application Software Industry Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies46
  • 7D-2.9%
  • 3M-20.3%
  • 1Y-32.7%
  • YTDn/a

Over the last 7 days, the Application Software industry has dropped 6.1%, driven by a pullback from Sage Group of 5.7%. In contrast, Pebble Beach Systems Group has gained 14%. However, the industry is down 33% 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, 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
Sun, 26 Feb 2023UK£26.8bUK£8.3bUK£32.4m34.7x824.7x3.2x
Price to Earnings Ratio

824.7x


Total Market Cap: UK£26.8bTotal Earnings: UK£32.4mTotal Revenue: UK£8.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Application Software Industry Price to Earnings3Y Average 90.3x202420252026
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 27.3x which is lower than its 3-year average PE of 91.1x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Application Software industry have grown 141% 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 Market1.85%
Tech2.87%
Software-2.90%
Application Software-2.93%
Systems Software0.59%
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
BYIT Bytes Technology GroupUK£2.991.4%
+UK£9.5m		-33.2%PE13.2x
RM. RMUK£1.023.6%
+UK£3.4m		-9.7%PS0.6x
QTX Quartix TechnologiesUK£2.871.4%
+UK£1.9m		88.2%PE26.4x
ALT Altitude GroupUK£0.2410.9%
+UK£1.8m		-7.9%PE43.2x
PEB Pebble Beach Systems GroupUK£0.206.4%
+UK£1.5m		158.1%PS2.1x

Latest News

SGE
UK£8.01
Sage Group
7D
-1.4%
1Y
-39.3%

SGE: Embedded Banking Partnerships Will Support Further Share Price Upside

The analyst price target for Sage Group has been adjusted to £1,250 from £1,350, as analysts refine fair value, discount rate, growth, margin and P/E assumptions in light of recent mixed research that includes both upgrades and a reduced target. Analyst Commentary Recent research on Sage Group reflects a mix of optimism on growth prospects and caution on valuation and execution, which helps explain the adjustment in the consensus price target.
PINE
UK£3.07
Pinewood Technologies Group
7D
-32.7%
1Y
-9.3%
PEB
UK£0.20
Pebble Beach Systems Group
7D
6.4%
1Y
158.1%
GBG
UK£1.95
GB Group
7D
-8.0%
1Y
-45.4%
ALT
UK£0.24
Altitude Group
7D
10.9%
1Y
-7.9%
PR1
UK£0.024
Pri0r1ty Intelligence Group
7D
23.1%
1Y
-56.4%
ALFA
UK£1.86
Alfa Financial Software Holdings
7D
-2.0%
1Y
-23.3%
QTX
UK£2.87
Quartix Technologies
7D
1.4%
1Y
88.2%

QTX: Shares Will Rise As Single Dividend Structure Increases Payout Clarity

Analysts have revised their price target for Quartix Technologies to reflect updated assumptions for the discount rate, revenue growth, profit margin and future P/E. The new target implies a valuation that is in line with their latest fair value estimate of £3.60 per share.
SAAS
UK£0.81
Microlise Group
7D
-5.8%
1Y
-29.4%

SAAS: High P/E And 2025 Guidance Will Support Future Returns

Analysts have trimmed their fair value estimate for Microlise Group from £1.54 to £1.46, citing slightly higher discount rate assumptions and a lower future P/E multiple in their updated model. What's in the News Microlise Group issued earnings guidance for fiscal 2025, giving you a clearer view of what management currently expects.
ZOO
UK£0.16
ZOO Digital Group
7D
9.6%
1Y
-43.2%
RM.
UK£1.02
RM
7D
3.6%
1Y
-9.7%
NET
UK£1.23
Netcall
7D
-3.5%
1Y
9.3%
ESYS
UK£0.18
essensys
7D
10.8%
1Y
-51.4%

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
CER
UK£15.80
Cerillion
7D
-1.9%
1Y
-3.4%

Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up

Jan 20
Cerillion Plc's (LON:CER) 26% Share Price Surge Not Quite Adding Up
DOTD
UK£0.57
dotdigital Group
7D
-14.5%
1Y
-38.9%
BYIT
UK£2.99
Bytes Technology Group
7D
1.4%
1Y
-33.2%