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U.K. (FTSE) Software Industry Analysis

UpdatedApr 25, 2026
DataAggregated Company Financials
Companies51
  • 7D-1.8%
  • 3M-13.4%
  • 1Y-22.3%
  • YTD-13.1%

Over the last 7 days, the Software industry has dropped 1.8%, driven by Sage Group declining 2.0%. On the other hand Netcall is actually up 13%. However, the industry is down 22% over the past year. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 25 Apr 2026UK£13.0bUK£4.5bUK£453.2m27.6x28.8x2.9x
Mon, 23 Mar 2026UK£12.3bUK£4.5bUK£431.8m27.7x28.4x2.7x
Wed, 18 Feb 2026UK£12.6bUK£4.5bUK£432.2m31x29.1x2.8x
Fri, 16 Jan 2026UK£15.3bUK£4.5bUK£430.4m32.3x35.6x3.4x
Sun, 14 Dec 2025UK£15.6bUK£4.5bUK£421.8m33.3x36.9x3.5x
Tue, 11 Nov 2025UK£16.0bUK£4.4bUK£430.6m35.5x37.2x3.7x
Thu, 09 Oct 2025UK£16.3bUK£4.4bUK£437.7m31x37.2x3.7x
Sat, 06 Sep 2025UK£16.2bUK£4.4bUK£438.6m37.6x36.9x3.7x
Mon, 04 Aug 2025UK£17.1bUK£4.4bUK£430.2m34.5x39.8x3.9x
Wed, 02 Jul 2025UK£18.7bUK£4.7bUK£392.4m37.2x47.5x4x
Fri, 30 May 2025UK£18.5bUK£4.8bUK£400.7m32.9x46.2x3.8x
Sun, 27 Apr 2025UK£17.7bUK£4.8bUK£371.8m30.3x47.5x3.7x
Tue, 25 Mar 2025UK£18.0bUK£4.7bUK£366.9m29.2x48.9x3.8x
Thu, 20 Feb 2025UK£19.8bUK£4.8bUK£307.0m32.6x64.4x4.1x
Sat, 18 Jan 2025UK£19.7bUK£4.8bUK£304.2m28.7x64.8x4.1x
Mon, 16 Dec 2024UK£19.9bUK£4.8bUK£320.0m37.1x62.1x4.2x
Wed, 13 Nov 2024UK£17.5bUK£4.7bUK£204.7m36x85.3x3.7x
Fri, 11 Oct 2024UK£16.5bUK£4.7bUK£199.4m32x82.7x3.5x
Sun, 08 Sep 2024UK£20.5bUK£5.2bUK£276.6m36.8x74.3x4x
Tue, 06 Aug 2024UK£20.9bUK£5.3bUK£256.4m37.7x81.5x4x
Thu, 04 Jul 2024UK£22.0bUK£5.3bUK£260.7m39.2x84.4x4.1x
Sat, 01 Jun 2024UK£21.4bUK£5.3bUK£163.1m38.4x131.1x4.1x
Mon, 29 Apr 2024UK£22.2bUK£5.2bUK£89.6m38.3x247.4x4.2x
Wed, 27 Mar 2024UK£22.0bUK£5.2bUK£73.5m36.8x299.8x4.2x
Fri, 23 Feb 2024UK£21.1bUK£5.2bUK£66.0m35.6x319.6x4.1x
Sun, 21 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592.6x4.2x
Tue, 19 Dec 2023UK£42.2bUK£10.1bUK£72.1m35.7x585.2x4.2x
Thu, 16 Nov 2023UK£39.9bUK£10.1bUK£127.5m32.9x312.8x4x
Sat, 14 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.8x4x
Mon, 11 Sep 2023UK£40.9bUK£10.0bUK£143.1m34.8x286x4.1x
Wed, 09 Aug 2023UK£39.9bUK£10.0bUK£94.2m36x423.1x4x
Fri, 07 Jul 2023UK£40.7bUK£10.6bUK£128.7m35.7x316.4x3.9x
Sun, 04 Jun 2023UK£40.8bUK£10.6bUK£39.2m36.6x1041.1x3.9x
Tue, 02 May 2023UK£40.1bUK£10.7bUK£109.7m36.4x365.1x3.7x
Price to Earnings Ratio

365.1x


Total Market Cap: UK£40.1bTotal Earnings: UK£109.7mTotal Revenue: UK£10.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 172.3x202420252026
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 28.8x which is lower than its 3-year average PE of 172x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.9x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 60% 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 Market-2.67%
Tech0.22%
Software-1.78%
Systems Software0.72%
Application Software-1.80%
Industry PE
  • Investors are most optimistic about the Application Software industry, which is trading close to its 3-year average PE ratio of 24.0x.
    • Analysts are expecting annual earnings growth of 14.1%, 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 91% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 14% 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
NET NetcallUK£1.2713.5%
+UK£25.6m		11.9%PE89.9x
IGP Intercede GroupUK£1.0417.6%
+UK£9.3m		-31.5%PE17.1x
IDOX IDOXUK£0.71-0.3%
UK£8.5m		33.3%PE54.3x
APTD Aptitude Software GroupUK£2.396.5%
+UK£7.9m		-16.0%PE32.3x
SAAS Microlise GroupUK£0.649.4%
+UK£6.4m		-35.4%PS0.9x

Latest News

ACSO
UK£2.59
accesso Technology Group
7D
-9.6%
1Y
-45.5%
IDOX
UK£0.71
IDOX
7D
-0.3%
1Y
33.3%
ALFA
UK£1.57
Alfa Financial Software Holdings
7D
-2.1%
1Y
-26.3%
PINE
UK£2.45
Pinewood Technologies Group
7D
1.7%
1Y
-22.0%
CER
UK£13.00
Cerillion
7D
-9.4%
1Y
-17.2%
IGP
UK£1.04
Intercede Group
7D
17.6%
1Y
-31.5%
GBG
UK£2.12
GB Group
7D
-4.0%
1Y
-7.4%

GBG: Refined Assumptions Will Support Confidence In Future Earnings Potential

Analysts have nudged their price target on GB Group slightly higher to £X.XX from £X.XX, citing updated assumptions around the discount rate, revenue growth, profit margin and forward P/E that leave their overall fair value view broadly unchanged. Valuation Changes Fair Value: The fair value estimate is unchanged at 4.5, indicating no material shift in the core valuation output.
APTD
UK£2.39
Aptitude Software Group
7D
6.5%
1Y
-16.0%

Aptitude Software Group's (LON:APTD) Conservative Accounting Might Explain Soft Earnings

Apr 17
Aptitude Software Group's (LON:APTD) Conservative Accounting Might Explain Soft Earnings
SGE
UK£9.03
Sage Group
7D
-2.0%
1Y
-24.6%

SGE: Banking Partnerships And Share Buybacks Will Support Future Share Price Upside

Narrative Update The analyst price target for Sage Group has been reduced by £200, with analysts attributing this change to a lower fair value estimate, a reduced future P/E assumption and updated margin expectations. Analyst Commentary Recent research on Sage Group has focused on recalibrating valuation assumptions rather than making wholesale changes to the fundamental story.
BYIT
UK£3.11
Bytes Technology Group
7D
-1.8%
1Y
-37.3%

BYIT: Cost Normalisation Headwinds Will Set Up A Stronger Cash Recovery

Analysts have made a small adjustment to their price target for Bytes Technology Group, citing largely unchanged fair value estimates around £4.70, minor tweaks to the discount rate, revenue growth outlook and profit margin, as well as a steady future P/E assumption near 20.6x. What's in the News Bytes Technology Group issued earnings guidance for 2027, indicating operating profit is expected to be broadly flat as the business absorbs about £4.5m of cost normalisation (Key Developments).
QTX
UK£2.50
Quartix Technologies
7D
-10.2%
1Y
19.0%
SAAS
UK£0.64
Microlise Group
7D
9.4%
1Y
-35.4%

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).
BGO
UK£0.78
Bango
7D
10.7%
1Y
-4.3%
RM.
UK£0.99
RM
7D
4.4%
1Y
-3.7%
NET
UK£1.27
Netcall
7D
13.5%
1Y
11.9%
ADVT
UK£1.65
AdvancedAdvT
7D
-2.9%
1Y
10.0%