Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Software Industry Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies51
  • 7D4.5%
  • 3M3.0%
  • 1Y-28.7%
  • YTD-15.8%

In the last week, the Software industry is up 1.4%, with Sage Group up 4.7%. In the past year, the industry is down 34%. 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
Thu, 02 Jul 2026UK£12.2bUK£4.6bUK£370.8m19.3x33x2.7x
Sat, 30 May 2026UK£12.8bUK£4.7bUK£462.7m24.9x27.6x2.7x
Mon, 27 Apr 2026UK£13.0bUK£4.5bUK£453.2m27.6x28.7x2.9x
Wed, 25 Mar 2026UK£11.7bUK£4.5bUK£431.6m27.4x27.1x2.6x
Fri, 20 Feb 2026UK£12.6bUK£4.5bUK£432.0m31.4x29.2x2.8x
Sun, 18 Jan 2026UK£15.5bUK£4.5bUK£430.4m32.3x35.9x3.4x
Tue, 16 Dec 2025UK£15.7bUK£4.5bUK£421.8m33.3x37.2x3.5x
Thu, 13 Nov 2025UK£16.2bUK£4.4bUK£430.5m34.6x37.7x3.7x
Sat, 11 Oct 2025UK£16.4bUK£4.4bUK£437.6m31.1x37.5x3.7x
Mon, 08 Sep 2025UK£16.2bUK£4.4bUK£438.6m37.6x36.9x3.7x
Wed, 06 Aug 2025UK£17.0bUK£4.4bUK£430.3m34.1x39.4x3.9x
Fri, 04 Jul 2025UK£17.9bUK£4.7bUK£391.8m36.9x45.7x3.8x
Sun, 01 Jun 2025UK£18.6bUK£4.8bUK£400.7m32.5x46.4x3.8x
Tue, 29 Apr 2025UK£17.8bUK£4.8bUK£372.1m30.2x47.8x3.7x
Thu, 27 Mar 2025UK£18.1bUK£4.8bUK£367.8m28.9x49.3x3.8x
Sat, 22 Feb 2025UK£19.5bUK£4.8bUK£307.1m32.2x63.5x4.1x
Mon, 20 Jan 2025UK£19.7bUK£4.8bUK£304.1m28.7x64.8x4.1x
Wed, 18 Dec 2024UK£19.8bUK£4.8bUK£320.4m36.4x61.8x4.2x
Fri, 15 Nov 2024UK£17.7bUK£4.7bUK£210.4m35.7x84.3x3.8x
Sun, 13 Oct 2024UK£16.7bUK£4.7bUK£204.0m32.8x81.7x3.6x
Tue, 10 Sep 2024UK£20.7bUK£5.2bUK£276.7m37.4x74.9x4x
Thu, 08 Aug 2024UK£21.1bUK£5.3bUK£256.5m37.7x82.1x4x
Sat, 06 Jul 2024UK£22.1bUK£5.3bUK£261.5m38.9x84.4x4.1x
Mon, 03 Jun 2024UK£21.4bUK£5.3bUK£163.1m38.4x131.2x4.1x
Wed, 01 May 2024UK£22.1bUK£5.2bUK£90.3m39.3x244.9x4.2x
Fri, 29 Mar 2024UK£21.9bUK£5.2bUK£78.6m37.7x279.1x4.2x
Sun, 25 Feb 2024UK£21.0bUK£5.2bUK£66.0m35.8x318.5x4.1x
Tue, 23 Jan 2024UK£42.2bUK£10.1bUK£71.3m37.5x592.7x4.2x
Thu, 21 Dec 2023UK£42.5bUK£10.1bUK£72.1m36.7x589.2x4.2x
Sat, 18 Nov 2023UK£39.9bUK£10.1bUK£131.9m33.7x302.6x4x
Mon, 16 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.8x4x
Wed, 13 Sep 2023UK£41.0bUK£10.0bUK£131.1m33.9x312.4x4.1x
Fri, 11 Aug 2023UK£40.1bUK£10.0bUK£97.1m36.3x412.6x4x
Sun, 09 Jul 2023UK£40.6bUK£10.6bUK£128.9m35.7x314.7x3.8x
Price to Earnings Ratio

314.7x


Total Market Cap: UK£40.6bTotal Earnings: UK£128.9mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 145.8x202420252026
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 32.4x which is lower than its 3-year average PE of 146x.
  • 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 41% 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 Market0.24%
Tech3.02%
Software4.49%
Application Software4.54%
Systems Software-1.08%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 38.6x.
    • Analysts are expecting annual earnings growth of 18.3%, 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 101% 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
SGE Sage GroupUK£8.474.7%
+UK£342.7m		-29.7%PE19.7x
BYIT Bytes Technology GroupUK£4.018.1%
+UK£70.1m		17.3%PE18.3x
GBG GB GroupUK£2.1211.0%
+UK£48.5m		-7.8%PS1.7x
PINE Pinewood Technologies GroupUK£2.8811.2%
+UK£33.4m		-35.3%PE6.6x
ALFA Alfa Financial Software HoldingsUK£1.647.1%
+UK£32.1m		-25.5%PE16.2x

Latest News

BYIT
UK£4.01
Bytes Technology Group
7D
8.1%
1Y
17.3%
CRTA
UK£0.17
Cirata
7D
-8.2%
1Y
-38.6%
SGE
UK£8.47
Sage Group
7D
4.7%
1Y
-29.7%
Narrative Update • Jun 29

SGE: AI Adoption And Capital Returns Will Support Future Share Price Upside

The updated Sage Group narrative reflects a lower implied price target, moving in line with recent Street revisions, such as JPMorgan's cut to £10.00 from £11.00 and Deutsche Bank's trim to £9.00. It also incorporates analyst views on moderating growth assumptions, a slightly higher discount rate, and a reduced future P/E multiple, offset by a small uplift in margin expectations.
NET
UK£1.17
Netcall
7D
-0.9%
1Y
1.3%
IGP
UK£1.06
Intercede Group
7D
-4.5%
1Y
-43.5%
Narrative Update • Jun 26

IGP: Post Quantum Passkey Partnerships Will Drive Future Authentication Upside

Analysts have revised their price target on Intercede Group to £1.80 from £2.25, citing updated assumptions around higher projected revenue growth, improved profit margins and a lower future P/E multiple, along with a modestly higher discount rate. What’s in the News for Intercede Group Intercede Group extended its partnership with Swissbit AG to begin active development of an end-to-end FIDO2 Passkey offering that aims to use post-quantum cryptography, combining Swissbit hardware with Intercede’s MyID product family to support phishing-resistant authentication across device issuance and management.
ELCO
UK£1.18
Eleco
7D
-3.3%
1Y
-27.7%
Narrative Update • Jun 26

ELCO: Higher Margin Outlook Will Drive Repriced Upside Potential

Eleco's analyst price target has been reset from £1.76 to £2.00, with analysts citing updated assumptions on discount rate, revenue growth, profit margin and future P/E to support the revision. What's in the News for Eleco Directors of Eleco plc have recommended a final dividend of 0.85 pence per ordinary share, subject to shareholder approval at the AGM.
DOTD
UK£0.45
dotdigital Group
7D
6.0%
1Y
-37.7%
Narrative Update • Jun 26

DOTD: Future Margin Discipline And Earnings Quality Will Drive Rerating Potential

The latest narrative update on dotdigital Group reflects a revised analyst price target of £0.95 to £1.10, supported by analyst assumptions for fair value, revenue growth, profit margins and future P/E that are consistent with recent sector research, where price target adjustments have been framed as recalibrations rather than outright changes in view. Analyst Commentary Recent broker activity around consumer and eCommerce stocks offers useful context for how analysts might look at dotdigital Group, especially when it comes to resetting expectations and tightening focus on execution and valuation risks.
TRCS
UK£3.30
Tracsis
7D
8.2%
1Y
-22.4%
Narrative Update • Jun 25

TRCS: Global Transport Software Expansion Will Support Future Earnings Rerating Potential

Analysts have made a small, model-driven adjustment to their Tracsis price target. This reflects updated assumptions around discount rate and future P/E rather than any material change in the company’s underlying fair value estimate of £6.18 per share.
GBG
UK£2.12
GB Group
7D
11.0%
1Y
-7.8%
Narrative Update • Jun 24

GBG: Growth Investment And Equifax Partnership Will Support Stronger Long Term Earnings

Analysts have trimmed their price target for GB Group from £3.20 to £2.70, citing the near term impact of the planned £6m growth investment. They also highlighted customer wins and growing management confidence as support for the longer term opportunity.
ALFA
UK£1.64
Alfa Financial Software Holdings
7D
7.1%
1Y
-25.5%
Narrative Update • Jun 23

ALFA: Dividend And Stable Assumptions Will Support Future Upside Potential

Analysts have kept their price target for Alfa Financial Software Holdings broadly unchanged in £ terms, indicating only marginal tweaks in key inputs such as discount rate, revenue growth, profit margin and future P/E assumptions, rather than any shift in their core view on the stock. What's in the News At its AGM held on 30 April 2026, Alfa Financial Software Holdings approved a final dividend of 1.5 pence per ordinary share, according to company meeting disclosures.
PINE
UK£2.88
Pinewood Technologies Group
7D
11.2%
1Y
-35.3%
Narrative Update • Jun 22

PINE: Delayed Dealer Rollouts Will Drive Future Re Rating Potential

Analysts have maintained their £5.85 price target for Pinewood Technologies Group, citing only marginal tweaks to assumptions such as discount rate, revenue growth, profit margin and future P/E that do not materially change their overall view on the stock. What's in the News for Pinewood Technologies Group Pinewood Technologies Group PLC entered a five year contract with Marshall Motor Group on October 22, 2024 to implement the Pinewood.AI system, according to a client announcement.
CER
UK£10.70
Cerillion
7D
-2.7%
1Y
-32.3%
SKL
UK£0.46
Skillcast Group
7D
-3.2%
1Y
-2.1%
KRM
UK£0.46
KRM22
7D
-4.2%
1Y
30.0%
APTD
UK£2.12
Aptitude Software Group
7D
2.9%
1Y
-36.0%
RM.
UK£0.93
RM
7D
-2.1%
1Y
12.7%