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U.K. (FTSE) Software Industry Analysis

UpdatedJun 14, 2026
DataAggregated Company Financials
Companies49
  • 7D-4.3%
  • 3M-0.9%
  • 1Y-32.1%
  • YTD-18.3%

Over the last 7 days, the Software industry has dropped 4.3%, driven by a pullback from Sage Group of 5.9%. The industry has fallen 32% in the last year. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 14 Jun 2026UK£11.9bUK£4.5bUK£376.4m19.4x31.7x2.6x
Tue, 12 May 2026UK£12.9bUK£4.5bUK£450.0m23.6x28.6x2.8x
Thu, 09 Apr 2026UK£12.5bUK£4.5bUK£435.5m31x28.6x2.8x
Sat, 07 Mar 2026UK£12.8bUK£4.5bUK£433.1m30.2x29.6x2.9x
Mon, 02 Feb 2026UK£14.8bUK£4.5bUK£430.0m33.7x34.4x3.3x
Wed, 31 Dec 2025UK£15.7bUK£4.5bUK£422.0m32.1x37.2x3.5x
Fri, 28 Nov 2025UK£15.8bUK£4.5bUK£448.8m29.8x35.1x3.5x
Sun, 26 Oct 2025UK£16.7bUK£4.4bUK£435.5m31.2x38.4x3.8x
Tue, 23 Sep 2025UK£16.3bUK£4.4bUK£439.5m33.1x37.1x3.7x
Thu, 21 Aug 2025UK£16.3bUK£4.4bUK£437.3m36x37.3x3.7x
Sat, 19 Jul 2025UK£18.2bUK£4.5bUK£397.4m35.2x45.8x4.1x
Mon, 16 Jun 2025UK£18.8bUK£4.7bUK£405.7m34.5x46.4x4x
Wed, 14 May 2025UK£19.2bUK£4.7bUK£374.2m33.1x51.4x4x
Fri, 11 Apr 2025UK£16.9bUK£4.8bUK£372.1m27x45.4x3.5x
Sun, 09 Mar 2025UK£18.4bUK£4.8bUK£312.9m31.6x58.8x3.9x
Tue, 04 Feb 2025UK£20.0bUK£4.8bUK£306.2m31.2x65.4x4.2x
Thu, 02 Jan 2025UK£19.5bUK£4.8bUK£303.3m33.9x64.3x4.1x
Sat, 30 Nov 2024UK£20.0bUK£4.8bUK£322.6m35.4x62.1x4.2x
Mon, 28 Oct 2024UK£16.7bUK£4.7bUK£208.7m33.2x80.2x3.6x
Wed, 25 Sep 2024UK£20.6bUK£5.1bUK£277.8m37.4x74.3x4x
Fri, 23 Aug 2024UK£21.1bUK£5.2bUK£245.4m37.8x85.8x4x
Sun, 21 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.1x84.1x4.1x
Tue, 18 Jun 2024UK£21.7bUK£5.3bUK£264.3m42.3x81.9x4.1x
Thu, 16 May 2024UK£22.9bUK£5.2bUK£108.3m38x211.7x4.4x
Sat, 13 Apr 2024UK£21.2bUK£5.2bUK£89.4m38x237.1x4.1x
Mon, 11 Mar 2024UK£21.5bUK£5.2bUK£102.0m34.7x210.4x4.1x
Wed, 07 Feb 2024UK£20.7bUK£5.2bUK£65.8m37.1x315.1x4x
Fri, 05 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592x4.1x
Sun, 03 Dec 2023UK£41.8bUK£10.1bUK£72.2m33.1x579.3x4.1x
Tue, 31 Oct 2023UK£39.3bUK£10.1bUK£126.7m32.7x310.5x3.9x
Thu, 28 Sep 2023UK£40.6bUK£10.1bUK£130.9m37.7x310.3x4x
Sat, 26 Aug 2023UK£39.6bUK£10.0bUK£100.9m33.8x392.7x4x
Mon, 24 Jul 2023UK£41.6bUK£10.6bUK£128.3m35.2x324.4x3.9x
Wed, 21 Jun 2023UK£41.1bUK£10.6bUK£129.3m37.9x318.1x3.9x
Price to Earnings Ratio

318.1x


Total Market Cap: UK£41.1bTotal Earnings: UK£129.3mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 150.3x202420252026
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 31.7x which is lower than its 3-year average PE of 150x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 43% 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 Market1.05%
Tech-8.77%
Software-4.27%
Systems Software-1.27%
Application Software-4.30%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 33.1x.
    • Analysts are expecting annual earnings growth of 18.2%, 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 92% 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
GBG GB GroupUK£2.072.7%
+UK£12.7m		-12.8%PS1.7x
AOM ActiveOpsUK£2.533.9%
+UK£6.8m		111.3%PS4.9x
CER CerillionUK£12.501.6%
+UK£5.9m		-20.6%PE27x
APTD Aptitude Software GroupUK£2.304.1%
+UK£4.9m		-25.6%PE31.2x
ALT Altitude GroupUK£0.2323.7%
+UK£3.3m		0%PE41.2x

Latest News

IGP
UK£1.12
Intercede Group
7D
-9.7%
1Y
-33.1%
SKL
UK£0.47
Skillcast Group
7D
6.7%
1Y
3.3%
ACSO
UK£3.28
accesso Technology Group
7D
2.8%
1Y
-34.4%
Narrative Update • Jun 09

ACSO: New CEO And Integrated Payments Focus Will Support Future Re Rating

Analysts have made a slight adjustment to their price target for accesso Technology Group, reflecting small tweaks to assumptions around the discount rate, revenue growth trajectory, profit margin and future P/E multiple, while keeping the estimated fair value steady at £3.70. What's in the News Lee Cowie has been appointed Chief Executive Officer of accesso Technology Group, following a planned leadership transition from outgoing CEO and founder Steve Brown.
ALFA
UK£1.50
Alfa Financial Software Holdings
7D
-4.1%
1Y
-36.1%
Narrative Update • Jun 06

ALFA: Dividend Approval Will Support Future Upside Potential

Analysts have adjusted their price target on Alfa Financial Software Holdings, citing updated assumptions for the discount rate, revenue growth, profit margin and future P/E. These changes together refine their view of the stock's long term valuation in £ terms.
GBG
UK£2.07
GB Group
7D
2.7%
1Y
-12.8%
Narrative Update • Jun 06

GBG: Expanded Equifax Partnership And Growth Investment Will Support Future Earnings Confidence

Analysts have trimmed their price target on GB Group from £3.20 to £2.70, citing a higher discount rate, updated growth assumptions, and recent commentary around the £6m growth investment and customer traction with companies like Uber as key factors in the recalibration. What's in the News Equifax and GB Group agreed to expand their partnership into the United States, integrating Equifax Identity and Fraud solutions into GBG's adaptive identity platform, GBG Go. (Source: Client Announcements) The integration is intended to let GBG customers use Equifax data to support identity resolution and fraud defenses, including synthetic identity fraud, credit ghosting, and first party fraud.
PINE
UK£2.45
Pinewood Technologies Group
7D
-3.5%
1Y
-45.1%
Narrative Update • Jun 05

PINE: Index Exit Will Highlight Expanded Dealer Rollouts As Key Re Rating Catalyst

Analysts have maintained their fair value estimate for Pinewood Technologies Group at £5.85. A slightly higher discount rate and marginally lower profit margin assumptions have resulted in a modestly higher future P/E of 38.78x, which shapes the updated price target narrative.
CER
UK£12.50
Cerillion
7D
1.6%
1Y
-20.6%
BYIT
UK£3.58
Bytes Technology Group
7D
-4.5%
1Y
-30.8%
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.
AOM
UK£2.53
ActiveOps
7D
3.9%
1Y
111.3%
Narrative Update • Jun 03

AOM: Stable Revenue And Margin Outlook Will Support Continued Share Re Rating

Analysts have left their fair value estimate for ActiveOps unchanged at £3.17 per share. Only minor tweaks to inputs such as the discount rate and future P/E assumptions are driving the latest narrative update.
SGE
UK£8.18
Sage Group
7D
-5.9%
1Y
-35.2%
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.
KRM
UK£0.35
KRM22
7D
9.2%
1Y
1.4%
NET
UK£1.19
Netcall
7D
-5.6%
1Y
-2.9%
APTD
UK£2.30
Aptitude Software Group
7D
4.1%
1Y
-25.6%
ELCO
UK£1.21
Eleco
7D
-5.5%
1Y
-28.1%
Analysis Article • May 09

There May Be Reason For Hope In Eleco's (LON:ELCO) Disappointing Earnings

Shareholders appeared unconcerned with Eleco plc's ( LON:ELCO ) lackluster earnings report last week. We think that the...
ALT
UK£0.23
Altitude Group
7D
23.7%
1Y
0%
DOTD
UK£0.46
dotdigital Group
7D
-2.6%
1Y
-39.7%
Narrative Update • Apr 17

DOTD: Future Margin Delivery And Cash Generation Will Drive Rerating Potential

Analysts have trimmed their price target on dotdigital Group to £0.95, reflecting slightly updated assumptions on revenue growth, profit margins and the future P/E multiple, while keeping fair value broadly unchanged. Analyst Commentary Recent Street research around dotdigital Group highlights a split in sentiment, with some upbeat views contrasted by more cautious voices focused on execution risk and valuation.