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U.K. (FTSE) Software Industry Analysis

UpdatedJan 09, 2026
DataAggregated Company Financials
Companies49
  • 7D-0.3%
  • 3M-4.9%
  • 1Y-15.1%
  • YTD2.1%

Over the last 7 days, the Software industry has remained flat, although notably Cerillion gained 15%. As for the longer term, the industry has declined 15% in the last year. 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
Fri, 09 Jan 2026UK£15.6bUK£4.5bUK£430.4m33x36.3x3.5x
Sun, 07 Dec 2025UK£15.6bUK£4.5bUK£421.5m33.6x37x3.5x
Tue, 04 Nov 2025UK£16.7bUK£4.4bUK£435.5m30.8x38.5x3.8x
Thu, 02 Oct 2025UK£16.1bUK£4.4bUK£439.9m30.6x36.7x3.7x
Sat, 30 Aug 2025UK£16.1bUK£4.4bUK£436.5m37.7x36.8x3.7x
Mon, 28 Jul 2025UK£17.7bUK£4.4bUK£424.4m35.1x41.8x4x
Wed, 25 Jun 2025UK£18.8bUK£4.7bUK£400.3m36.3x47x4x
Fri, 23 May 2025UK£18.8bUK£4.9bUK£400.6m33.3x46.8x3.9x
Sun, 20 Apr 2025UK£17.4bUK£4.8bUK£373.3m26.9x46.5x3.6x
Tue, 18 Mar 2025UK£17.9bUK£4.8bUK£313.1m30.1x57x3.7x
Thu, 13 Feb 2025UK£19.7bUK£4.8bUK£306.4m32.5x64.3x4.1x
Sat, 11 Jan 2025UK£19.3bUK£4.8bUK£304.3m30.4x63.6x4x
Mon, 09 Dec 2024UK£20.1bUK£4.8bUK£320.5m36x62.8x4.2x
Wed, 06 Nov 2024UK£16.8bUK£4.7bUK£207.7m35.8x80.7x3.6x
Fri, 04 Oct 2024UK£16.4bUK£4.7bUK£199.1m31.6x82.6x3.5x
Sun, 01 Sep 2024UK£21.0bUK£5.2bUK£267.5m38.5x78.6x4.1x
Tue, 30 Jul 2024UK£21.9bUK£5.3bUK£256.1m40.2x85.4x4.2x
Thu, 27 Jun 2024UK£22.0bUK£5.3bUK£267.0m40.1x82.5x4.1x
Sat, 25 May 2024UK£21.8bUK£5.3bUK£168.8m38.4x129.2x4.1x
Mon, 22 Apr 2024UK£20.8bUK£5.2bUK£91.5m37.9x227x4x
Wed, 20 Mar 2024UK£21.6bUK£5.2bUK£69.4m35.7x311.4x4.2x
Fri, 16 Feb 2024UK£20.9bUK£5.2bUK£65.8m37.3x317.3x4x
Sun, 14 Jan 2024UK£42.4bUK£10.1bUK£71.1m37x596.5x4.2x
Tue, 12 Dec 2023UK£42.3bUK£10.2bUK£72.1m33.1x586.7x4.2x
Thu, 09 Nov 2023UK£39.9bUK£10.1bUK£126.9m32.7x314.2x4x
Sat, 07 Oct 2023UK£40.2bUK£10.1bUK£128.7m36.3x312x4x
Mon, 04 Sep 2023UK£40.1bUK£10.0bUK£102.2m34x392.9x4x
Wed, 02 Aug 2023UK£40.6bUK£10.6bUK£124.7m33.5x325.6x3.8x
Fri, 30 Jun 2023UK£41.0bUK£10.6bUK£126.1m35.2x325.5x3.9x
Sun, 28 May 2023UK£40.2bUK£10.6bUK£39.2m35.2x1024.4x3.8x
Tue, 25 Apr 2023UK£39.8bUK£10.6bUK£292.8m37.4x136.1x3.8x
Thu, 23 Mar 2023UK£39.1bUK£10.6bUK£311.0m32.7x125.8x3.7x
Sat, 18 Feb 2023UK£39.6bUK£10.3bUK£296.6m35.1x133.5x3.8x
Mon, 16 Jan 2023UK£39.6bUK£10.3bUK£299.8m32.7x132.1x3.8x
Price to Earnings Ratio

132.1x


Total Market Cap: UK£39.6bTotal Earnings: UK£299.8mTotal Revenue: UK£10.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 182.1x202420252026
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 36.4x which is lower than its 3-year average PE of 182x.
  • The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 13% 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 Market1.28%
Tech1.95%
Software-0.26%
Systems Software9.89%
Application Software-0.31%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 118x.
    • Analysts are expecting annual earnings growth of 15.9%, which is higher than its past year's earnings growth of 7.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 58% over the next 5 years.
  • In contrast, the Application Software industry is expected to see its earnings grow by 16% 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
CER CerillionUK£14.0014.8%
+UK£53.1m		-16.2%PE24.9x
BYIT Bytes Technology GroupUK£3.672.4%
+UK£20.3m		-13.3%PE16.2x
QTX Quartix TechnologiesUK£2.988.4%
+UK£11.1m		89.2%PE27.4x
NET NetcallUK£1.175.4%
+UK£10.2m		6.9%PE49x
IDOX IDOXUK£0.713.2%
+UK£10.2m		13.8%PE52.6x

Latest News

CER
UK£14.00
Cerillion
7D
14.8%
1Y
-16.2%
QTX
UK£2.98
Quartix Technologies
7D
8.4%
1Y
89.2%
SGE
UK£10.69
Sage Group
7D
-1.3%
1Y
-17.7%

Sage Group's (LON:SGE) Shareholders Will Receive A Bigger Dividend Than Last Year

Jan 07
Sage Group's (LON:SGE) Shareholders Will Receive A Bigger Dividend Than Last Year
ADVT
UK£1.70
AdvancedAdvT
7D
-1.4%
1Y
15.3%
ACSO
UK£2.83
accesso Technology Group
7D
-14.5%
1Y
-45.6%

When Should You Buy accesso Technology Group plc (LON:ACSO)?

Jan 06
When Should You Buy accesso Technology Group plc (LON:ACSO)?
TAP
UK£0.018
Tap Global Group
7D
-25.5%
1Y
-38.6%
DOTD
UK£0.66
dotdigital Group
7D
-2.4%
1Y
-20.5%
AOM
UK£2.44
ActiveOps
7D
5.6%
1Y
123.9%

AOM: Scalable Model Will Deliver 25% Margins On Expanding Recurring Revenue

Analysts have modestly reaffirmed their valuation on ActiveOps with no material change to the implied price target, citing only marginal adjustments to the discount rate, long term revenue growth, profit margin and forward P E assumptions. What's in the News ActiveOps is hosting an Analyst and Investor Day to demonstrate how its Decision Intelligence platform is transforming service operations management, highlighting strategy to scale growth with enterprise customers and partners, accelerate R&D, and leverage its scalable operating model (Key Developments).
PINE
UK£3.50
Pinewood Technologies Group
7D
-2.2%
1Y
2.0%
NET
UK£1.17
Netcall
7D
5.4%
1Y
6.9%
GBG
UK£2.50
GB Group
7D
-2.9%
1Y
-26.3%
PEB
UK£0.19
Pebble Beach Systems Group
7D
-7.3%
1Y
87.7%

Investors Don't See Light At End Of Pebble Beach Systems Group plc's (LON:PEB) Tunnel

Dec 05
Investors Don't See Light At End Of Pebble Beach Systems Group plc's (LON:PEB) Tunnel
IDOX
UK£0.71
IDOX
7D
3.2%
1Y
13.8%
BYIT
UK£3.67
Bytes Technology Group
7D
2.4%
1Y
-13.3%
GETB
UK£0.94
GetBusy
7D
15.3%
1Y
77.4%
MBO
UK£0.085
MobilityOne
7D
347.4%
1Y
325.0%