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U.K. (FTSE) Software Industry Analysis

UpdatedJun 05, 2026
DataAggregated Company Financials
Companies51
  • 7D3.0%
  • 3M2.1%
  • 1Y-27.9%
  • YTD-13.7%

Over the last 7 days, the Software industry has risen 3.0%, driven by gains from Sage Group of 5.5%. During this same period, the GB Group underperformed, falling 15%. However, the industry is down 28% over the past year. Earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 05 Jun 2026UK£12.6bUK£4.6bUK£370.1m20.7x34x2.8x
Sun, 03 May 2026UK£12.9bUK£4.5bUK£450.6m27.8x28.7x2.9x
Tue, 31 Mar 2026UK£12.0bUK£4.5bUK£433.2m27.4x27.6x2.7x
Thu, 26 Feb 2026UK£12.5bUK£4.5bUK£432.1m30.9x28.9x2.8x
Sat, 24 Jan 2026UK£15.3bUK£4.5bUK£430.6m33x35.5x3.4x
Mon, 22 Dec 2025UK£15.7bUK£4.5bUK£421.9m32.8x37.2x3.5x
Wed, 19 Nov 2025UK£15.6bUK£4.4bUK£423.4m29.8x36.9x3.6x
Fri, 17 Oct 2025UK£16.6bUK£4.4bUK£436.3m30.7x38x3.8x
Sun, 14 Sep 2025UK£16.1bUK£4.4bUK£439.5m37.6x36.7x3.7x
Tue, 12 Aug 2025UK£16.7bUK£4.4bUK£430.1m35.7x38.8x3.8x
Thu, 10 Jul 2025UK£18.1bUK£4.5bUK£395.2m35.8x45.9x4.1x
Sat, 07 Jun 2025UK£19.0bUK£4.7bUK£400.4m34.7x47.4x4.1x
Mon, 05 May 2025UK£18.8bUK£4.8bUK£374.1m31x50.4x4x
Wed, 02 Apr 2025UK£18.2bUK£4.8bUK£373.5m29.5x48.6x3.8x
Fri, 28 Feb 2025UK£19.0bUK£4.8bUK£307.3m32.6x61.7x4x
Sun, 26 Jan 2025UK£19.8bUK£4.8bUK£306.1m30.2x64.8x4.1x
Tue, 24 Dec 2024UK£19.6bUK£4.8bUK£303.3m34.3x64.5x4.1x
Thu, 21 Nov 2024UK£19.5bUK£4.7bUK£272.7m35.4x71.4x4.2x
Sat, 19 Oct 2024UK£17.1bUK£4.7bUK£209.0m33x81.7x3.7x
Mon, 16 Sep 2024UK£20.9bUK£5.2bUK£278.0m36.1x75.3x4.1x
Wed, 14 Aug 2024UK£21.1bUK£5.3bUK£258.0m38x81.7x4x
Fri, 12 Jul 2024UK£21.5bUK£5.3bUK£259.7m38.9x82.7x4.1x
Sun, 09 Jun 2024UK£21.8bUK£5.3bUK£140.4m40.7x155.1x4.1x
Tue, 07 May 2024UK£22.6bUK£5.2bUK£107.2m37.5x210.9x4.3x
Thu, 04 Apr 2024UK£21.7bUK£5.2bUK£77.8m38x278.6x4.1x
Sat, 02 Mar 2024UK£21.4bUK£5.2bUK£66.0m36.4x324.1x4.2x
Mon, 29 Jan 2024UK£42.6bUK£10.2bUK£70.9m38.1x601.3x4.2x
Wed, 27 Dec 2023UK£42.4bUK£10.1bUK£72.1m36.9x588.2x4.2x
Fri, 24 Nov 2023UK£41.4bUK£10.1bUK£134.2m32.3x308.9x4.1x
Sun, 22 Oct 2023UK£39.2bUK£10.1bUK£130.0m30.9x301.7x3.9x
Tue, 19 Sep 2023UK£40.9bUK£10.0bUK£134.1m35.1x304.8x4.1x
Thu, 17 Aug 2023UK£39.9bUK£10.0bUK£97.7m35.1x407.9x4x
Sat, 15 Jul 2023UK£40.9bUK£10.5bUK£128.8m35.6x317.6x3.9x
Mon, 12 Jun 2023UK£40.7bUK£10.5bUK£251.5m37.7x161.7x3.9x
Price to Earnings Ratio

161.7x


Total Market Cap: UK£40.7bTotal Earnings: UK£251.5mTotal Revenue: UK£10.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 152.2x202420252026
Current Industry PE
  • Investors are pessimistic on the British 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 34.0x which is lower than its 3-year average PE of 152x.
  • 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 Software industry have grown 14% per year over the last three years.
  • Meanwhile revenues for these companies have declined 24% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the U.K. Tech industry?

GB Market-0.63%
Tech3.96%
Software3.03%
Application Software3.03%
Systems Software3.01%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 24.8x.
    • Analysts are expecting annual earnings growth of 17.7%, which is higher than its past year's earnings decline of 6.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 91% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 18% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
SGE Sage GroupUK£8.835.5%
+UK£413.2m		-28.5%PE20.7x
BYIT Bytes Technology GroupUK£3.827.0%
+UK£59.1m		-27.8%PE17.6x
ALFA Alfa Financial Software HoldingsUK£1.593.2%
+UK£14.9m		-33.2%PE15.7x
IGP Intercede GroupUK£1.246.0%
+UK£4.2m		-27.6%PE20.5x
CNS Corero Network SecurityUK£0.114.7%
+UK£2.6m		-28.6%PS3x

Latest News

CER
UK£12.65
Cerillion
7D
-4.9%
1Y
-33.8%
GBG
UK£1.98
GB Group
7D
-14.7%
1Y
-28.8%
BTC
UK£0.018
London BTC
7D
-27.1%
1Y
-86.8%
BYIT
UK£3.82
Bytes Technology Group
7D
7.0%
1Y
-27.8%
Narrative Update • Jun 03

BYIT: UBS Downgrade And Cost Normalisation Will Pressure Future Returns

Analysts have adjusted their price target on Bytes Technology Group to £2.56, reflecting updated views on slightly different growth, margin and P/E assumptions following the recent downgrade in Street research. What's in the News The board has confirmed a new share repurchase program of up to £25 million of ordinary shares, with the intention to cancel all repurchased shares to reduce share capital.
PEB
UK£0.23
Pebble Beach Systems Group
7D
-9.6%
1Y
161.1%
CNS
UK£0.11
Corero Network Security
7D
4.7%
1Y
-28.6%
SGE
UK£8.83
Sage Group
7D
5.5%
1Y
-28.5%
Narrative Update • Jun 01

SGE: AI Rollout And Buybacks Will Shape Balanced Outlook After Mixed Repricing

Sage Group’s updated analyst price target now sits around £8.61 per share, down from about £8.77, as analysts factor in reduced revenue growth assumptions, slightly higher discount rates, and mixed Street views that include recent target cuts alongside at least one upgrade to Buy. Analyst Commentary Recent research on Sage Group reflects a split view, with some analysts taking a more cautious stance while others remain constructive.
PINE
UK£2.58
Pinewood Technologies Group
7D
-1.9%
1Y
-35.4%
TRCS
UK£3.40
Tracsis
7D
-4.2%
1Y
-29.2%
Narrative Update • May 26

TRCS: North American Rail Wins Will Support Future Earnings Rerating Potential

Analysts have adjusted their price target for Tracsis to reflect updated assumptions on the discount rate, a profit margin of 8.22% and a future P/E of 30.75x. Taken together, these revisions indicate a different outlook for the stock’s valuation in £ terms than before.
ALFA
UK£1.59
Alfa Financial Software Holdings
7D
3.2%
1Y
-33.2%
New Narrative • May 20

Cloud Migration And Regulatory Costs Will Pressure Margins Yet Strengthen Long Term Recurring Revenues

Catalysts About Alfa Financial Software Holdings Alfa Financial Software Holdings provides enterprise software for asset and automotive finance providers, with a growing focus on subscription and cloud delivery models. What are the underlying business or industry changes driving this perspective?
KRM
UK£0.33
KRM22
7D
4.8%
1Y
-7.1%
ZOO
UK£0.11
ZOO Digital Group
7D
16.7%
1Y
23.0%
IGP
UK£1.24
Intercede Group
7D
6.0%
1Y
-27.6%
APTD
UK£2.22
Aptitude Software Group
7D
1.8%
1Y
-27.2%
SATS
UK£0.002
Satsuma Technology
7D
-10.9%
1Y
-62.9%
RM.
UK£1.05
RM
7D
-5.0%
1Y
0.5%