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U.K. (FTSE) Software Industry Analysis

UpdatedJun 16, 2026
DataAggregated Company Financials
Companies49
  • 7D-2.9%
  • 3M-0.8%
  • 1Y-32.3%
  • YTD-17.6%

Over the last 7 days, the Software industry has dropped 2.9%, driven by Sage Group declining 4.1%. On the other hand ActiveOps is actually up 8.3%. Overall the industry is down 32% in 12 months. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Jun 2026UK£12.0bUK£4.5bUK£376.4m19.5x31.9x2.6x
Thu, 14 May 2026UK£12.6bUK£4.5bUK£447.7m23.8x28.2x2.8x
Sat, 11 Apr 2026UK£12.2bUK£4.5bUK£435.6m31.8x28x2.7x
Mon, 09 Mar 2026UK£12.8bUK£4.5bUK£433.1m30.2x29.6x2.9x
Wed, 04 Feb 2026UK£13.8bUK£4.5bUK£430.0m32x32.1x3.1x
Fri, 02 Jan 2026UK£15.7bUK£4.5bUK£422.0m32.1x37.2x3.5x
Sun, 30 Nov 2025UK£15.8bUK£4.5bUK£447.0m33.2x35.4x3.5x
Tue, 28 Oct 2025UK£16.6bUK£4.4bUK£435.6m30.5x38.2x3.8x
Thu, 25 Sep 2025UK£16.1bUK£4.4bUK£439.4m33.1x36.7x3.7x
Sat, 23 Aug 2025UK£16.2bUK£4.4bUK£437.4m37.3x37x3.7x
Mon, 21 Jul 2025UK£18.2bUK£4.5bUK£397.4m35.2x45.8x4.1x
Wed, 18 Jun 2025UK£18.9bUK£4.7bUK£405.4m35.1x46.6x4x
Fri, 16 May 2025UK£18.7bUK£4.9bUK£401.4m33.3x46.5x3.8x
Sun, 13 Apr 2025UK£16.9bUK£4.8bUK£372.3m27.6x45.3x3.5x
Tue, 11 Mar 2025UK£18.1bUK£4.8bUK£312.7m30.5x58x3.8x
Thu, 06 Feb 2025UK£19.9bUK£4.8bUK£306.6m32x64.9x4.2x
Sat, 04 Jan 2025UK£19.6bUK£4.8bUK£305.1m30.9x64.1x4.1x
Mon, 02 Dec 2024UK£20.0bUK£4.8bUK£322.7m35.4x62.1x4.2x
Wed, 30 Oct 2024UK£16.7bUK£4.7bUK£208.9m32.7x79.9x3.6x
Fri, 27 Sep 2024UK£20.5bUK£5.1bUK£286.6m34.6x71.7x4x
Sun, 25 Aug 2024UK£20.9bUK£5.2bUK£245.3m38.3x85x4x
Tue, 23 Jul 2024UK£21.5bUK£5.3bUK£254.3m39x84.7x4.1x
Thu, 20 Jun 2024UK£21.9bUK£5.3bUK£268.6m41.3x81.6x4.1x
Sat, 18 May 2024UK£22.0bUK£5.3bUK£164.2m38.2x134.2x4.2x
Mon, 15 Apr 2024UK£21.2bUK£5.2bUK£89.4m38x237.1x4.1x
Wed, 13 Mar 2024UK£22.0bUK£5.2bUK£102.1m36x215.3x4.2x
Fri, 09 Feb 2024UK£21.0bUK£5.2bUK£65.8m37.3x319x4x
Sun, 07 Jan 2024UK£41.8bUK£10.1bUK£71.1m36.1x588x4.1x
Tue, 05 Dec 2023UK£41.6bUK£10.1bUK£72.2m33.1x576.7x4.1x
Thu, 02 Nov 2023UK£39.4bUK£10.1bUK£126.8m32.7x310.7x3.9x
Sat, 30 Sep 2023UK£40.5bUK£10.1bUK£129.7m38x312x4x
Mon, 28 Aug 2023UK£39.6bUK£10.0bUK£101.0m33.8x392.5x4x
Wed, 26 Jul 2023UK£46.3bUK£10.6bUK£122.9m35.5x376.9x4.4x
Fri, 23 Jun 2023UK£41.0bUK£10.6bUK£129.2m38x317x3.9x
Price to Earnings Ratio

317x


Total Market Cap: UK£41.0bTotal Earnings: UK£129.2mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 150.1x202420252026
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 31.9x which is lower than its 3-year average PE of 150x.
  • 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 43% 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 Market0.74%
Tech-7.54%
Software-2.92%
Systems Software-2.07%
Application Software-2.93%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 35.5x.
    • Analysts are expecting annual earnings growth of 18.2%, 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 91% 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
PINE Pinewood Technologies GroupUK£2.464.7%
+UK£12.7m		-45.0%PE5.6x
AOM ActiveOpsUK£2.607.2%
+UK£12.5m		117.6%PS5x
GBG GB GroupUK£2.051.5%
+UK£6.9m		-14.8%PS1.7x
IGP Intercede GroupUK£1.239.9%
+UK£6.6m		-27.5%PE20.3x
TRCS TracsisUK£3.353.1%
+UK£3.0m		-28.7%PE101.7x

Latest News

CER
UK£12.50
Cerillion
7D
0.8%
1Y
-18.8%
QTX
UK£2.45
Quartix Technologies
7D
-5.8%
1Y
1.7%
Narrative Update • Jun 15

QTX: Dividend Continuity Will Sustain Confidence As Audit Delay Resolves

Analysts have kept their £3.65 price target for Quartix Technologies unchanged, citing stable assumptions on the discount rate, revenue growth, profit margin and future P/E as the basis for maintaining their view. What's in the News Quartix Technologies plc has proposed a final dividend of 7.5 pence per share for the year ended 31 December 2025, taking the total dividend for the financial year to 10 pence per share, subject to approval at the AGM on 22 April 2026.
SGE
UK£8.23
Sage Group
7D
-3.3%
1Y
-35.1%
Narrative Update • Jun 15

SGE: AI Rollout And Buybacks Will Support Durable Long Term Upside

Narrative Update on Sage Group Analysts have trimmed the central price target framework for Sage Group, with the fair value marker moving from about £15.22 to £13.34. This broadly aligns with recent Street price target cuts toward £9.00 and lower P/E assumptions, even as some research points to more supportive views around margins and a higher £11.65 target from other firms.
ALT
UK£0.24
Altitude Group
7D
19.5%
1Y
2.1%
IGP
UK£1.23
Intercede Group
7D
9.9%
1Y
-27.5%
TRCS
UK£3.35
Tracsis
7D
3.1%
1Y
-28.7%
Narrative Update • Jun 09

TRCS: Future Software Acquisitions And German Expansion Will Support Upside Potential

Analysts have adjusted their price target on Tracsis to £7.01. The latest view reflects updated assumptions around discount rates, revenue growth, profit margins and a lower future P/E multiple.
ACSO
UK£3.25
accesso Technology Group
7D
2.8%
1Y
-35.5%
Narrative Update • Jun 09

ACSO: New CEO And Integrated Payments Focus Will Support Future Re Rating

Analysts have made a slight adjustment to their price target for accesso Technology Group, reflecting small tweaks to assumptions around the discount rate, revenue growth trajectory, profit margin and future P/E multiple, while keeping the estimated fair value steady at £3.70. What's in the News Lee Cowie has been appointed Chief Executive Officer of accesso Technology Group, following a planned leadership transition from outgoing CEO and founder Steve Brown.
ALFA
UK£1.53
Alfa Financial Software Holdings
7D
-0.3%
1Y
-34.1%
Narrative Update • Jun 06

ALFA: Dividend Approval Will Support Future Upside Potential

Analysts have adjusted their price target on Alfa Financial Software Holdings, citing updated assumptions for the discount rate, revenue growth, profit margin and future P/E. These changes together refine their view of the stock's long term valuation in £ terms.
GBG
UK£2.05
GB Group
7D
1.5%
1Y
-14.8%
Narrative Update • Jun 06

GBG: Expanded Equifax Partnership And Growth Investment Will Support Future Earnings Confidence

Analysts have trimmed their price target on GB Group from £3.20 to £2.70, citing a higher discount rate, updated growth assumptions, and recent commentary around the £6m growth investment and customer traction with companies like Uber as key factors in the recalibration. What's in the News Equifax and GB Group agreed to expand their partnership into the United States, integrating Equifax Identity and Fraud solutions into GBG's adaptive identity platform, GBG Go. (Source: Client Announcements) The integration is intended to let GBG customers use Equifax data to support identity resolution and fraud defenses, including synthetic identity fraud, credit ghosting, and first party fraud.
PINE
UK£2.46
Pinewood Technologies Group
7D
4.7%
1Y
-45.0%
Narrative Update • Jun 05

PINE: Index Exit Will Highlight Expanded Dealer Rollouts As Key Re Rating Catalyst

Analysts have maintained their fair value estimate for Pinewood Technologies Group at £5.85. A slightly higher discount rate and marginally lower profit margin assumptions have resulted in a modestly higher future P/E of 38.78x, which shapes the updated price target narrative.
BYIT
UK£3.50
Bytes Technology Group
7D
-5.7%
1Y
-31.4%
Narrative Update • Jun 03

BYIT: UBS Downgrade And Cost Normalisation Will Pressure Future Returns

Analysts have adjusted their price target on Bytes Technology Group to £2.56, reflecting updated views on slightly different growth, margin and P/E assumptions following the recent downgrade in Street research. What's in the News The board has confirmed a new share repurchase program of up to £25 million of ordinary shares, with the intention to cancel all repurchased shares to reduce share capital.
AOM
UK£2.60
ActiveOps
7D
7.2%
1Y
117.6%
Narrative Update • Jun 03

AOM: Stable Revenue And Margin Outlook Will Support Continued Share Re Rating

Analysts have left their fair value estimate for ActiveOps unchanged at £3.17 per share. Only minor tweaks to inputs such as the discount rate and future P/E assumptions are driving the latest narrative update.
CNS
UK£0.11
Corero Network Security
7D
-4.4%
1Y
-28.3%
NET
UK£1.19
Netcall
7D
-4.0%
1Y
0.4%
DOTD
UK£0.46
dotdigital Group
7D
-2.5%
1Y
-40.4%
Narrative Update • Apr 17

DOTD: Future Margin Delivery And Cash Generation Will Drive Rerating Potential

Analysts have trimmed their price target on dotdigital Group to £0.95, reflecting slightly updated assumptions on revenue growth, profit margins and the future P/E multiple, while keeping fair value broadly unchanged. Analyst Commentary Recent Street research around dotdigital Group highlights a split in sentiment, with some upbeat views contrasted by more cautious voices focused on execution risk and valuation.
RM.
UK£0.98
RM
7D
-3.9%
1Y
-8.4%