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U.K. (FTSE) Software Industry Analysis

UpdatedJun 26, 2026
DataAggregated Company Financials
Companies50
  • 7D-0.7%
  • 3M2.8%
  • 1Y-35.7%
  • YTD-20.3%

Over the last 7 days, the Software industry has remained flat, although notably Bytes Technology Group gained 5.6%. As for the longer term, the industry has declined 36% in the last year. Looking forward, 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
Sat, 27 Jun 2026UK£11.8bUK£4.6bUK£366.2m19.3x32.3x2.6x
Mon, 25 May 2026UK£12.9bUK£4.7bUK£462.6m23.4x28x2.8x
Wed, 22 Apr 2026UK£13.2bUK£4.5bUK£409.0m30.2x32.3x2.9x
Fri, 20 Mar 2026UK£12.3bUK£4.5bUK£431.9m28.1x28.5x2.7x
Sun, 15 Feb 2026UK£12.8bUK£4.5bUK£432.4m31.2x29.7x2.9x
Tue, 13 Jan 2026UK£16.0bUK£4.5bUK£430.5m33.2x37.1x3.6x
Thu, 11 Dec 2025UK£15.6bUK£4.5bUK£421.5m33.2x37x3.5x
Sat, 08 Nov 2025UK£16.0bUK£4.4bUK£430.6m35.2x37.1x3.6x
Mon, 06 Oct 2025UK£16.2bUK£4.4bUK£440.5m31x36.8x3.7x
Wed, 03 Sep 2025UK£15.9bUK£4.4bUK£436.3m37.8x36.4x3.6x
Fri, 01 Aug 2025UK£17.4bUK£4.4bUK£430.2m34.8x40.4x4x
Sun, 29 Jun 2025UK£18.7bUK£4.7bUK£388.6m37.3x48.1x4x
Tue, 27 May 2025UK£18.6bUK£4.8bUK£400.8m32.4x46.4x3.8x
Thu, 24 Apr 2025UK£17.6bUK£4.8bUK£371.6m30x47.3x3.7x
Sat, 22 Mar 2025UK£17.8bUK£4.8bUK£392.5m29.8x45.5x3.7x
Mon, 17 Feb 2025UK£19.7bUK£4.8bUK£306.9m32.4x64.3x4.1x
Wed, 15 Jan 2025UK£19.2bUK£4.8bUK£301.2m30.8x63.6x4x
Fri, 13 Dec 2024UK£19.9bUK£4.8bUK£320.5m37x62.1x4.2x
Sun, 10 Nov 2024UK£17.3bUK£4.7bUK£206.3m36.3x83.7x3.7x
Tue, 08 Oct 2024UK£16.5bUK£4.7bUK£199.0m32x83x3.5x
Thu, 05 Sep 2024UK£20.6bUK£5.2bUK£267.6m37.7x77.1x4x
Sat, 03 Aug 2024UK£21.4bUK£5.3bUK£256.4m39.6x83.6x4.1x
Mon, 01 Jul 2024UK£22.0bUK£5.3bUK£260.8m39.8x84.3x4.1x
Wed, 29 May 2024UK£21.8bUK£5.3bUK£163.1m39.8x133.5x4.1x
Fri, 26 Apr 2024UK£21.4bUK£5.2bUK£89.5m37.4x239.5x4.1x
Sun, 24 Mar 2024UK£21.7bUK£5.2bUK£70.0m36.7x310.8x4.2x
Tue, 20 Feb 2024UK£21.0bUK£5.2bUK£65.8m35.9x320x4.1x
Thu, 18 Jan 2024UK£42.2bUK£10.1bUK£71.1m35.7x594.2x4.2x
Sat, 16 Dec 2023UK£42.2bUK£10.1bUK£72.2m35.4x585x4.2x
Mon, 13 Nov 2023UK£39.9bUK£10.1bUK£126.9m31.9x314.1x3.9x
Wed, 11 Oct 2023UK£40.2bUK£10.1bUK£128.7m34.7x311.9x4x
Fri, 08 Sep 2023UK£40.6bUK£10.0bUK£143.1m34.6x283.9x4.1x
Sun, 06 Aug 2023UK£39.8bUK£10.0bUK£94.3m34.5x422.4x4x
Tue, 04 Jul 2023UK£41.0bUK£10.6bUK£126.5m34.8x324.5x3.9x
Price to Earnings Ratio

324.5x


Total Market Cap: UK£41.0bTotal Earnings: UK£126.5mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 147.2x202420252026
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 31.6x which is lower than its 3-year average PE of 147x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.5x.
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 Market0.80%
Tech-1.50%
Software-0.73%
Systems Software-0.21%
Application Software-0.74%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 37.5x.
    • Analysts are expecting annual earnings growth of 18.0%, 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
BYIT Bytes Technology GroupUK£3.785.6%
+UK£45.3m		-25.7%PE17.2x
SGE Sage GroupUK£8.180.6%
+UK£44.9m		-34.6%PE19.1x
PINE Pinewood Technologies GroupUK£2.658.4%
+UK£23.6m		-40.4%PE6.1x
ALFA Alfa Financial Software HoldingsUK£1.552.9%
+UK£13.1m		-31.3%PE15.3x
GBG GB GroupUK£1.921.9%
+UK£8.3m		-20.1%PS1.6x

Latest News

NET
UK£1.17
Netcall
7D
-2.1%
1Y
0.4%
TRCS
UK£3.13
Tracsis
7D
-3.8%
1Y
-29.0%
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£1.92
GB Group
7D
1.9%
1Y
-20.1%
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.
IGP
UK£1.09
Intercede Group
7D
-10.0%
1Y
-41.8%
OMG
UK£0.39
Oxford Metrics
7D
-7.4%
1Y
-23.2%
ALFA
UK£1.55
Alfa Financial Software Holdings
7D
2.9%
1Y
-31.3%
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£2.65
Pinewood Technologies Group
7D
8.4%
1Y
-40.4%
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.
BYIT
UK£3.78
Bytes Technology Group
7D
5.6%
1Y
-25.7%
Narrative Update • Jun 18

BYIT: Cost Normalisation And Buybacks Will Support Stronger Future Cash Recovery

Analysts have nudged their fair value estimate for Bytes Technology Group up slightly from £4.70 to £4.75, reflecting updated assumptions on discount rates, growth and margins following recent research and valuation work. What’s in the News for Bytes Technology Group Bytes Technology Group plc has an authorised share repurchase program of up to £25 million aimed at reducing share capital, with all ordinary shares bought under the plan expected to be cancelled and the program targeted for completion in the first half of FY27.
CER
UK£11.00
Cerillion
7D
-9.5%
1Y
-29.9%
QTX
UK£2.35
Quartix Technologies
7D
3.3%
1Y
-6.7%
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£8.18
Sage Group
7D
0.6%
1Y
-34.6%
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.
KRM
UK£0.46
KRM22
7D
15.0%
1Y
31.4%
APTD
UK£2.17
Aptitude Software Group
7D
4.8%
1Y
-35.0%
ELCO
UK£1.18
Eleco
7D
-3.7%
1Y
-27.7%
Analysis Article • May 09

There May Be Reason For Hope In Eleco's (LON:ELCO) Disappointing Earnings

Shareholders appeared unconcerned with Eleco plc's ( LON:ELCO ) lackluster earnings report last week. We think that the...
DOTD
UK£0.42
dotdigital Group
7D
-7.6%
1Y
-44.2%
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£0.91
RM
7D
-6.2%
1Y
9.0%