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U.K. (FTSE) Software Industry Analysis

UpdatedMar 26, 2025
DataAggregated Company Financials
Companies56
  • 7D2.3%
  • 3M-5.7%
  • 1Y-5.7%
  • YTD-5.2%

The Software industry is up 1.6% in the last week, with Sage Group up 2.9%. During this same period, the Aptitude Software Group underperformed, falling 11%. In contrast, the industry has lost 5.4% in the last 12 months. 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
Wed, 26 Mar 2025UK£18.1bUK£4.8bUK£367.9m30.1x49.2x3.8x
Fri, 21 Feb 2025UK£19.5bUK£4.8bUK£307.1m32x63.6x4.1x
Sun, 19 Jan 2025UK£19.7bUK£4.8bUK£304.1m28.7x64.8x4.1x
Tue, 17 Dec 2024UK£19.8bUK£4.8bUK£320.3m37x61.8x4.2x
Thu, 14 Nov 2024UK£17.6bUK£4.7bUK£210.6m35.6x83.4x3.8x
Sat, 12 Oct 2024UK£16.7bUK£4.7bUK£204.0m32.8x81.7x3.6x
Mon, 09 Sep 2024UK£20.5bUK£5.2bUK£276.6m36.8x74.3x4x
Wed, 07 Aug 2024UK£21.0bUK£5.3bUK£256.5m37.8x82x4x
Fri, 05 Jul 2024UK£22.0bUK£5.3bUK£261.6m39.1x84x4.1x
Sun, 02 Jun 2024UK£21.4bUK£5.3bUK£163.1m38.4x131.2x4.1x
Tue, 30 Apr 2024UK£22.1bUK£5.2bUK£89.3m39.6x247.1x4.2x
Thu, 28 Mar 2024UK£21.8bUK£5.2bUK£73.5m37.5x296.8x4.2x
Sat, 24 Feb 2024UK£21.0bUK£5.2bUK£66.0m35.8x318.5x4.1x
Mon, 22 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592.6x4.2x
Wed, 20 Dec 2023UK£42.4bUK£10.1bUK£72.2m36.1x587x4.2x
Fri, 17 Nov 2023UK£39.9bUK£10.1bUK£127.5m32.9x312.8x4x
Sun, 15 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.8x4x
Tue, 12 Sep 2023UK£41.0bUK£10.0bUK£143.1m34.5x286.5x4.1x
Thu, 10 Aug 2023UK£40.0bUK£10.0bUK£94.2m35.8x424.5x4x
Sat, 08 Jul 2023UK£40.6bUK£10.6bUK£129.0m35.7x314.7x3.8x
Mon, 05 Jun 2023UK£40.8bUK£10.6bUK£39.2m36.6x1041.1x3.9x
Wed, 03 May 2023UK£40.0bUK£10.7bUK£110.0m36.4x364x3.7x
Fri, 31 Mar 2023UK£39.4bUK£10.6bUK£293.5m33.1x134.1x3.7x
Sun, 26 Feb 2023UK£39.4bUK£10.3bUK£297.6m34.7x132.5x3.8x
Tue, 24 Jan 2023UK£39.2bUK£10.3bUK£301.7m33x130x3.8x
Thu, 22 Dec 2022UK£39.0bUK£10.4bUK£297.6m34x131.1x3.8x
Sat, 19 Nov 2022UK£39.7bUK£10.4bUK£322.2m40.1x123.2x3.8x
Mon, 17 Oct 2022UK£37.6bUK£10.3bUK£341.6m37.7x110x3.6x
Wed, 14 Sep 2022UK£39.4bUK£9.8bUK£314.3m50x125.4x4x
Fri, 12 Aug 2022UK£36.8bUK£9.6bUK£246.4m48.7x149.3x3.8x
Sun, 10 Jul 2022UK£32.6bUK£9.6bUK£295.6m42.5x110.2x3.4x
Tue, 07 Jun 2022UK£33.5bUK£9.3bUK£206.2m41.9x162.7x3.6x
Thu, 05 May 2022UK£34.2bUK£9.3bUK£198.4m40.9x172.4x3.7x
Sat, 02 Apr 2022UK£37.6bUK£9.1bUK£144.0m38.1x260.9x4.1x
Price to Earnings Ratio

260.9x


Total Market Cap: UK£37.6bTotal Earnings: UK£144.0mTotal Revenue: UK£9.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 215.3x202320242025
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 48.9x which is lower than its 3-year average PE of 216x.
  • The industry is trading close to its 3-year average PS ratio of 4.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 36% per year over the last three years.
  • Meanwhile revenues for these companies have declined 20% 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-0.46%
Tech0.28%
Software2.29%
Application Software2.35%
Systems Software-3.09%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 273x.
    • Analysts are expecting annual earnings growth of 14.7%, which is lower than the prior year's growth of 17.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 46% 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
SGE Sage GroupUK£12.052.9%
+UK£337.4m		-6.0%PE36.5x
FDP FD TechnologiesUK£18.7413.0%
+UK£47.7m		56.2%PS1.7x
CER CerillionUK£15.457.3%
+UK£31.0m		1.0%PE29.9x
BYIT Bytes Technology GroupUK£4.931.1%
+UK£12.5m		-4.7%PE22.9x
GBG GB GroupUK£3.071.5%
+UK£11.1m		15.4%PE95.2x
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PR1

UK£0.07

Pri0r1ty Intelligence Group

7D

100.0%

1Y

n/a

ALFA

UK£2.28

Alfa Financial Software Holdings

7D

1.6%

1Y

35.3%

CNS

UK£0.17

Corero Network Security

7D

-3.1%

1Y

83.2%

QTX

UK£2.16

Quartix Technologies

7D

-3.1%

1Y

30.9%

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GBG

UK£3.07

GB Group

7D

1.5%

1Y

15.4%

RM.

UK£1.02

RM

7D

4.9%

1Y

90.2%

BYIT

UK£4.93

Bytes Technology Group

7D

1.1%

1Y

-4.7%

CER

UK£15.45

Cerillion

7D

7.3%

1Y

1.0%

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IDOX

UK£0.58

IDOX

7D

-2.0%

1Y

-7.1%

SGE

UK£12.05

Sage Group

7D

2.9%

1Y

-6.0%

Calculating The Fair Value Of The Sage Group plc (LON:SGE)

Mar 01
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DOTD

UK£0.70

dotdigital Group

7D

-4.6%

1Y

-19.2%

TRCS

UK£3.80

Tracsis

7D

-3.1%

1Y

-58.5%

APTD

UK£2.71

Aptitude Software Group

7D

-11.1%

1Y

-12.0%

AOM

UK£0.94

ActiveOps

7D

-5.1%

1Y

-7.0%

FDP

UK£18.74

FD Technologies

7D

13.0%

1Y

56.2%

ELCO

UK£1.28

Eleco

7D

-3.0%

1Y

38.4%