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U.K. (FTSE) Software Industry Analysis

UpdatedJun 01, 2026
DataAggregated Company Financials
Companies51
  • 7D-1.8%
  • 3M0.02%
  • 1Y-28.3%
  • YTD-15.3%

Over the last 7 days, the Software industry has dropped 1.8%, driven by Sage Group declining 4.1%. Overall the industry is down 28% in 12 months. Earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 01 Jun 2026UK£12.4bUK£4.6bUK£456.5m22.5x27.1x2.7x
Wed, 29 Apr 2026UK£12.8bUK£4.5bUK£449.5m28.6x28.5x2.8x
Fri, 27 Mar 2026UK£11.8bUK£4.5bUK£433.3m26.9x27.2x2.6x
Sun, 22 Feb 2026UK£12.7bUK£4.5bUK£432.1m31.1x29.5x2.8x
Tue, 20 Jan 2026UK£15.2bUK£4.5bUK£430.4m33x35.4x3.4x
Thu, 18 Dec 2025UK£15.6bUK£4.5bUK£421.9m33.2x37.1x3.5x
Sat, 15 Nov 2025UK£15.9bUK£4.4bUK£430.1m33.8x36.9x3.6x
Mon, 13 Oct 2025UK£16.4bUK£4.4bUK£437.6m31.1x37.5x3.7x
Wed, 10 Sep 2025UK£16.3bUK£4.4bUK£438.7m37.3x37.2x3.7x
Fri, 08 Aug 2025UK£17.2bUK£4.3bUK£430.0m35.7x39.9x3.9x
Sun, 06 Jul 2025UK£17.9bUK£4.7bUK£391.8m37x45.6x3.8x
Tue, 03 Jun 2025UK£18.6bUK£4.8bUK£405.6m33.1x45.8x3.8x
Thu, 01 May 2025UK£18.3bUK£4.8bUK£372.0m31.2x49.1x3.8x
Sat, 29 Mar 2025UK£18.1bUK£4.8bUK£365.6m29x49.6x3.8x
Mon, 24 Feb 2025UK£19.5bUK£4.8bUK£307.1m32.2x63.5x4.1x
Wed, 22 Jan 2025UK£19.7bUK£4.8bUK£304.7m28.3x64.8x4.1x
Fri, 20 Dec 2024UK£19.7bUK£4.8bUK£319.7m35.2x61.7x4.1x
Sun, 17 Nov 2024UK£17.6bUK£4.7bUK£210.7m35.3x83.3x3.7x
Tue, 15 Oct 2024UK£16.7bUK£4.7bUK£204.0m32.8x81.7x3.6x
Thu, 12 Sep 2024UK£20.6bUK£5.2bUK£278.2m35.8x74x4x
Sat, 10 Aug 2024UK£20.8bUK£5.3bUK£258.2m37.2x80.7x4x
Mon, 08 Jul 2024UK£22.1bUK£5.3bUK£261.5m38.9x84.4x4.1x
Wed, 05 Jun 2024UK£21.4bUK£5.3bUK£163.0m41.5x131.2x4.1x
Fri, 03 May 2024UK£22.4bUK£5.3bUK£105.7m37.5x211.7x4.3x
Sun, 31 Mar 2024UK£21.9bUK£5.2bUK£77.9m37.7x281.5x4.2x
Tue, 27 Feb 2024UK£20.9bUK£5.2bUK£66.0m35.4x316.9x4.1x
Thu, 25 Jan 2024UK£42.3bUK£10.1bUK£71.3m38.5x593.1x4.2x
Sat, 23 Dec 2023UK£42.4bUK£10.1bUK£72.2m36.9x587.9x4.2x
Mon, 20 Nov 2023UK£39.9bUK£10.1bUK£131.9m33.7x302.7x4x
Wed, 18 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.9x4x
Fri, 15 Sep 2023UK£41.1bUK£10.0bUK£130.8m33.8x314.3x4.1x
Sun, 13 Aug 2023UK£40.0bUK£10.0bUK£97.5m35.6x409.9x4x
Tue, 11 Jul 2023UK£40.6bUK£10.6bUK£129.1m35.6x314.3x3.8x
Thu, 08 Jun 2023UK£40.8bUK£10.6bUK£235.8m37.5x173.1x3.9x
Price to Earnings Ratio

173.1x


Total Market Cap: UK£40.8bTotal Earnings: UK£235.8mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 155.9x202420252026
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 27.1x which is lower than its 3-year average PE of 157x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 25% 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 Market-0.29%
Tech2.04%
Software-1.83%
Systems Software-1.67%
Application Software-1.83%
Industry PE
  • Investors are most optimistic about the Application Software industry, which is trading close to its 3-year average PE ratio of 24.1x.
    • Analysts are expecting annual earnings growth of 15.5%, which is higher than its past year's earnings growth of 1.2% 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 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
BYIT Bytes Technology GroupUK£3.693.1%
+UK£26.5m		-29.8%PE17x
CER CerillionUK£14.006.5%
+UK£25.1m		-25.1%PE24.9x
PINE Pinewood Technologies GroupUK£2.707.6%
+UK£21.9m		-31.0%PE6.2x
ALFA Alfa Financial Software HoldingsUK£1.592.3%
+UK£10.7m		-33.5%PE15.7x
GBG GB GroupUK£2.371.7%
+UK£9.3m		-13.8%PE60.7x

Latest News

PEB
UK£0.27
Pebble Beach Systems Group
7D
14.9%
1Y
260.0%
SGE
UK£8.42
Sage Group
7D
-4.1%
1Y
-30.9%
PINE
UK£2.70
Pinewood Technologies Group
7D
7.6%
1Y
-31.0%
ADVT
UK£1.53
AdvancedAdvT
7D
-3.2%
1Y
-3.2%
ALFA
UK£1.59
Alfa Financial Software Holdings
7D
2.3%
1Y
-33.5%
New Narrative • May 20

Cloud Migration And Regulatory Costs Will Pressure Margins Yet Strengthen Long Term Recurring Revenues

Catalysts About Alfa Financial Software Holdings Alfa Financial Software Holdings provides enterprise software for asset and automotive finance providers, with a growing focus on subscription and cloud delivery models. What are the underlying business or industry changes driving this perspective?
CER
UK£14.00
Cerillion
7D
6.5%
1Y
-25.1%
IGP
UK£1.17
Intercede Group
7D
7.8%
1Y
-27.3%
GBG
UK£2.37
GB Group
7D
1.7%
1Y
-13.8%
Narrative Update • May 17

GBG: Updated Discount Rate And Margins Will Underpin Future Earnings Confidence

Analysts have adjusted their price target for GB Group to £39.94 from £39.43, citing updated assumptions around the discount rate, revenue growth, profit margin, and future P/E that keep the overall fair value view broadly unchanged. Valuation Changes Fair Value: kept flat at £4.5, with no change in the overall fair value estimate.
SAAS
UK£0.42
Microlise Group
7D
-2.3%
1Y
-60.0%
BYIT
UK£3.69
Bytes Technology Group
7D
3.1%
1Y
-29.8%
Narrative Update • May 15

BYIT: UBS Downgrade And Lower P/E Will Pressure Future Returns

Analysts have reduced their fair value estimate for Bytes Technology Group from £3.80 to £2.56, citing a higher required discount rate, more conservative profit margin assumptions and a lower future P/E multiple, partly reflected in a recent UBS downgrade referenced in Street research. Analyst Commentary Bearish analysts have pointed to the recent fair value cut, from £3.80 to £2.56, as a sign that the risk and reward profile for Bytes Technology Group looks less compelling on their models.
AOM
UK£2.45
ActiveOps
7D
-1.0%
1Y
99.2%
Narrative Update • May 15

AOM: Stable Revenue And Margin Outlook Will Drive Further Share Re-Rating

Analysts have kept their average price target for ActiveOps broadly steady at around £3.17, reflecting only minor tweaks to assumptions such as discount rate and future P/E, while maintaining a consistent view on revenue growth and profit margin potential. Valuation Changes Fair Value: unchanged at £3.17 per share, with no revision to the overall valuation anchor.
PULS
UK£0.39
Pulsar Group
7D
-1.3%
1Y
-4.9%
GETB
UK£0.68
GetBusy
7D
-4.9%
1Y
33.3%
DOTD
UK£0.50
dotdigital Group
7D
1.9%
1Y
-39.8%
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.
SATS
UK£0.0022
Satsuma Technology
7D
-4.3%
1Y
-59.1%
CRTA
UK£0.18
Cirata
7D
-7.7%
1Y
-43.5%