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U.K. (FTSE) Software Industry Analysis

UpdatedApr 11, 2025
DataAggregated Company Financials
Companies56
  • 7D-5.1%
  • 3M-10.4%
  • 1Y-8.6%
  • YTD-11.3%

Over the last 7 days, the Software industry has dropped 5.1%, driven by a pullback from Sage Group of 5.4%. Meanwhile, Quartix Technologies actually outperformed within the industry, gaining 14% in the last week. Overall the industry is down 8.6% in 12 months. Earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Fri, 19 May 2023UK£40.2bUK£10.9bUK£60.3m35.3x667.5x3.7x
Sun, 16 Apr 2023UK£39.5bUK£10.6bUK£290.3m37.6x136.2x3.7x
Tue, 14 Mar 2023UK£39.2bUK£10.4bUK£298.0m31.5x131.7x3.8x
Thu, 09 Feb 2023UK£39.5bUK£10.3bUK£296.6m32.6x133.3x3.8x
Sat, 07 Jan 2023UK£39.5bUK£10.4bUK£297.4m32.9x132.7x3.8x
Mon, 05 Dec 2022UK£40.2bUK£10.3bUK£315.7m34.2x127.3x3.9x
Wed, 02 Nov 2022UK£38.5bUK£10.3bUK£343.6m41.4x112.2x3.8x
Fri, 30 Sep 2022UK£38.3bUK£10.4bUK£343.5m32.7x111.5x3.7x
Sun, 28 Aug 2022UK£38.7bUK£9.7bUK£216.0m50.4x179.2x4x
Tue, 26 Jul 2022UK£33.2bUK£9.6bUK£295.8m43.5x112.2x3.5x
Thu, 23 Jun 2022UK£33.0bUK£9.5bUK£298.2m42.5x110.6x3.5x
Sat, 21 May 2022UK£32.9bUK£9.3bUK£195.0m41.6x168.9x3.5x
Mon, 18 Apr 2022UK£37.0bUK£9.1bUK£150.1m39.8x246.2x4x
Price to Earnings Ratio

246.2x


Total Market Cap: UK£37.0bTotal Earnings: UK£150.1mTotal Revenue: UK£9.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 212.1x202320242025
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 45.4x which is lower than its 3-year average PE of 212x.
  • The 3-year average PS ratio of 4.1x is higher than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 35% 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 Trends

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

GB Market-6.28%
Tech-4.22%
Software-5.07%
Systems Software-3.87%
Application Software-5.09%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 261x.
    • Analysts are expecting annual earnings growth of 15.2%, which is lower than the prior year's growth of 18.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 15% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 5.6% 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
QTX Quartix TechnologiesUK£2.2014.0%
+UK£13.1m		41.9%PE22.3x
ADVT AdvancedAdvTUK£1.501.7%
+UK£3.3m		6.4%PE28.1x
IGP Intercede GroupUK£1.523.8%
+UK£3.2m		35.7%PE14.5x
BGO BangoUK£0.774.2%
+UK£2.4m		-36.2%PS1.5x
BIRD BlackbirdUK£0.03711.1%
+UK£1.5m		-34.8%PS9x
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Latest News

ALFA

UK£2.09

Alfa Financial Software Holdings

7D

-4.8%

1Y

21.9%

QTX

UK£2.20

Quartix Technologies

7D

14.0%

1Y

41.9%

The Returns At Quartix Technologies (LON:QTX) Aren't Growing

Apr 09
The Returns At Quartix Technologies (LON:QTX) Aren't Growing

PINE

UK£3.11

Pinewood Technologies Group

7D

-4.6%

1Y

-59.6%

IGP

UK£1.52

Intercede Group

7D

3.8%

1Y

35.7%

CER

UK£13.25

Cerillion

7D

-12.3%

1Y

-12.0%

Investors Should Be Encouraged By Cerillion's (LON:CER) Returns On Capital

Apr 08
Investors Should Be Encouraged By Cerillion's (LON:CER) Returns On Capital

GBG

UK£2.53

GB Group

7D

-10.8%

1Y

-5.2%

KBT

UK£0.90

K3 Business Technology Group

7D

2.3%

1Y

-8.2%

APTD

UK£2.63

Aptitude Software Group

7D

-7.4%

1Y

-14.9%

SGE

UK£11.42

Sage Group

7D

-5.4%

1Y

-5.0%

CYK

UK£0.026

Cykel AI Development

7D

8.2%

1Y

n/a

BYIT

UK£4.67

Bytes Technology Group

7D

-3.6%

1Y

-8.4%

BIRD

UK£0.037

Blackbird

7D

11.1%

1Y

-34.8%

IDOX

UK£0.53

IDOX

7D

-5.0%

1Y

-13.7%

ADVT

UK£1.50

AdvancedAdvT

7D

1.7%

1Y

6.4%

BGO

UK£0.77

Bango

7D

4.2%

1Y

-36.2%

SYME

UK£0.000045

Supply@ME Capital

7D

55.2%

1Y

-85.9%