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U.K. (FTSE) Software Industry Analysis

UpdatedApr 13, 2026
DataAggregated Company Financials
Companies50
  • 7D-2.4%
  • 3M-23.4%
  • 1Y-25.9%
  • YTD-19.9%

Over the last 7 days, the Software industry has dropped 2.4%, driven by Sage Group declining 4.5%. On the other hand Cerillion is actually up 12%. Overall the industry is down 26% in 12 months. Earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 13 Apr 2026UK£12.0bUK£4.5bUK£435.6m31.8x27.6x2.7x
Wed, 11 Mar 2026UK£12.7bUK£4.5bUK£431.2m29.2x29.4x2.8x
Fri, 06 Feb 2026UK£13.6bUK£4.5bUK£429.8m31.6x31.7x3x
Sun, 04 Jan 2026UK£15.3bUK£4.5bUK£433.5m32.7x35.3x3.4x
Tue, 02 Dec 2025UK£15.7bUK£4.5bUK£421.4m33.1x37.2x3.5x
Thu, 30 Oct 2025UK£16.5bUK£4.4bUK£435.5m30.8x37.9x3.8x
Sat, 27 Sep 2025UK£15.9bUK£4.4bUK£440.7m30.2x36.1x3.6x
Mon, 25 Aug 2025UK£16.2bUK£4.4bUK£437.4m37.3x37.1x3.7x
Wed, 23 Jul 2025UK£18.2bUK£4.5bUK£397.6m35.2x45.9x4.1x
Fri, 20 Jun 2025UK£18.7bUK£4.7bUK£401.6m35.1x46.7x4x
Sun, 18 May 2025UK£18.9bUK£4.9bUK£401.3m33.5x47x3.9x
Tue, 15 Apr 2025UK£17.2bUK£4.8bUK£372.6m27x46x3.6x
Thu, 13 Mar 2025UK£17.9bUK£4.8bUK£313.0m29.9x57.2x3.7x
Sat, 08 Feb 2025UK£19.8bUK£4.8bUK£306.2m32.9x64.5x4.1x
Mon, 06 Jan 2025UK£19.6bUK£4.8bUK£305.1m30.9x64.1x4.1x
Wed, 04 Dec 2024UK£19.9bUK£4.8bUK£322.5m34.8x61.8x4.2x
Fri, 01 Nov 2024UK£16.8bUK£4.7bUK£207.2m34.2x81x3.6x
Sun, 29 Sep 2024UK£20.7bUK£5.1bUK£286.0m34.4x72.4x4.1x
Tue, 27 Aug 2024UK£20.9bUK£5.2bUK£245.3m38.3x85x4x
Thu, 25 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.3x84.2x4.1x
Sat, 22 Jun 2024UK£22.0bUK£5.3bUK£267.0m40.7x82.4x4.1x
Mon, 20 May 2024UK£22.0bUK£5.3bUK£164.2m38.2x134.2x4.2x
Wed, 17 Apr 2024UK£21.1bUK£5.2bUK£90.6m37.9x233.4x4x
Fri, 15 Mar 2024UK£22.0bUK£5.2bUK£69.4m36.5x317.4x4.2x
Sun, 11 Feb 2024UK£21.2bUK£5.2bUK£65.8m37.3x321.9x4.1x
Tue, 09 Jan 2024UK£42.1bUK£10.1bUK£71.1m36.4x591.5x4.1x
Thu, 07 Dec 2023UK£41.7bUK£10.2bUK£72.0m34.2x579.2x4.1x
Sat, 04 Nov 2023UK£39.6bUK£10.1bUK£125.9m32.7x314.4x3.9x
Mon, 02 Oct 2023UK£40.4bUK£10.1bUK£130.9m34.4x308.6x4x
Wed, 30 Aug 2023UK£40.0bUK£10.0bUK£101.1m33.8x396x4x
Fri, 28 Jul 2023UK£40.6bUK£10.6bUK£122.3m36.7x331.7x3.8x
Sun, 25 Jun 2023UK£40.9bUK£10.6bUK£126.4m38.8x323.2x3.9x
Tue, 23 May 2023UK£40.5bUK£10.9bUK£60.2m35.6x672.5x3.7x
Thu, 20 Apr 2023UK£39.6bUK£10.6bUK£298.4m37.6x132.7x3.7x
Price to Earnings Ratio

132.7x


Total Market Cap: UK£39.6bTotal Earnings: UK£298.4mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 173.5x202420252026
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 27.6x which is lower than its 3-year average PE of 173x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 13% per year over the last three years.
  • Meanwhile revenues for these companies have declined 25% 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 Market1.87%
Tech2.83%
Software-2.39%
Systems Software1.65%
Application Software-2.42%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 43.1x.
    • Analysts are expecting annual earnings growth of 15.5%, which is higher than its past year's earnings growth of 8.9% 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 15% 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
CER CerillionUK£14.5011.5%
+UK£44.3m		17.9%PE25.8x
APTD Aptitude Software GroupUK£2.3510.8%
+UK£12.5m		-12.3%PE31.8x
NET NetcallUK£1.085.9%
+UK£10.2m		0.5%PE76.8x
QTX Quartix TechnologiesUK£2.438.7%
+UK£9.4m		25.3%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
137.1%

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
-42.3%

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
-35.2%

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
-28.8%

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
-29.5%

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
-41.8%

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
17.9%
QTX
UK£2.43
Quartix Technologies
7D
8.7%
1Y
25.3%

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
-27.6%
RM.
UK£0.94
RM
7D
-1.3%
1Y
-11.3%
NET
UK£1.08
Netcall
7D
5.9%
1Y
0.5%
ADVT
UK£1.70
AdvancedAdvT
7D
3.0%
1Y
13.3%