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U.K. (FTSE) Software Industry Analysis

UpdatedMay 18, 2025
DataAggregated Company Financials
Companies54
  • 7D-1.2%
  • 3M-3.0%
  • 1Y7.8%
  • YTD-0.6%

Over the last 7 days, the Software industry has dropped 1.2%, driven by Sage Group declining 1.9%. In contrast, Cerillion has gained 8.9%. Over the past 12 months, the industry was up 7.8%. Earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 18 May 2025UK£18.9bUK£4.9bUK£401.3m33.5x47x3.9x
Tue, 15 Apr 2025UK£17.2bUK£4.8bUK£372.6m27x46x3.6x
Thu, 13 Mar 2025UK£17.9bUK£4.8bUK£313.0m29.9x57.2x3.7x
Sat, 08 Feb 2025UK£19.8bUK£4.8bUK£306.2m32.9x64.5x4.1x
Mon, 06 Jan 2025UK£19.6bUK£4.8bUK£305.1m30.9x64.1x4.1x
Wed, 04 Dec 2024UK£19.9bUK£4.8bUK£322.5m34.8x61.8x4.2x
Fri, 01 Nov 2024UK£16.8bUK£4.7bUK£207.2m34.2x81x3.6x
Sun, 29 Sep 2024UK£20.7bUK£5.1bUK£286.0m34.4x72.4x4.1x
Tue, 27 Aug 2024UK£20.9bUK£5.2bUK£245.3m38.3x85x4x
Thu, 25 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.3x84.2x4.1x
Sat, 22 Jun 2024UK£22.0bUK£5.3bUK£267.0m40.7x82.4x4.1x
Mon, 20 May 2024UK£22.0bUK£5.3bUK£164.2m38.2x134.2x4.2x
Wed, 17 Apr 2024UK£21.1bUK£5.2bUK£90.6m37.9x233.4x4x
Fri, 15 Mar 2024UK£22.0bUK£5.2bUK£69.4m36.5x317.4x4.2x
Sun, 11 Feb 2024UK£21.2bUK£5.2bUK£65.8m37.3x321.9x4.1x
Tue, 09 Jan 2024UK£42.1bUK£10.1bUK£71.1m36.4x591.5x4.1x
Thu, 07 Dec 2023UK£41.7bUK£10.2bUK£72.0m34.2x579.2x4.1x
Sat, 04 Nov 2023UK£39.6bUK£10.1bUK£125.9m32.7x314.4x3.9x
Mon, 02 Oct 2023UK£40.4bUK£10.1bUK£130.9m34.4x308.6x4x
Wed, 30 Aug 2023UK£40.0bUK£10.0bUK£101.1m33.8x396x4x
Fri, 28 Jul 2023UK£40.6bUK£10.6bUK£122.3m36.7x331.7x3.8x
Sun, 25 Jun 2023UK£40.9bUK£10.6bUK£126.4m38.8x323.2x3.9x
Tue, 23 May 2023UK£40.5bUK£10.9bUK£60.2m35.6x672.5x3.7x
Thu, 20 Apr 2023UK£39.6bUK£10.6bUK£298.4m37.6x132.7x3.7x
Sat, 18 Mar 2023UK£39.0bUK£10.4bUK£300.1m32.1x130x3.7x
Mon, 13 Feb 2023UK£39.3bUK£10.3bUK£296.6m33.5x132.4x3.8x
Wed, 11 Jan 2023UK£39.7bUK£10.3bUK£298.7m32.8x132.9x3.8x
Fri, 09 Dec 2022UK£39.3bUK£10.3bUK£316.1m34.7x124.2x3.8x
Sun, 06 Nov 2022UK£38.2bUK£10.3bUK£339.6m42.1x112.5x3.7x
Tue, 04 Oct 2022UK£38.6bUK£10.3bUK£341.5m34x113.1x3.8x
Thu, 01 Sep 2022UK£38.6bUK£9.7bUK£215.5m50x179.2x4x
Sat, 30 Jul 2022UK£33.5bUK£9.6bUK£299.5m51.1x111.7x3.5x
Mon, 27 Jun 2022UK£33.3bUK£9.5bUK£297.9m41.5x111.8x3.5x
Wed, 25 May 2022UK£32.9bUK£9.3bUK£196.4m41.7x167.5x3.5x
Price to Earnings Ratio

167.5x


Total Market Cap: UK£32.9bTotal Earnings: UK£196.4mTotal Revenue: UK£9.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 207.5x202320242025
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 47.0x which is lower than its 3-year average PE of 207x.
  • The industry is trading close to its 3-year average PS ratio of 4.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 27% per year over the last three years.
  • Meanwhile revenues for these companies have declined 19% 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 Market1.61%
Tech1.31%
Software-1.19%
Systems Software6.30%
Application Software-1.27%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 217x.
    • Analysts are expecting annual earnings growth of 15.3%, which is lower than the prior year's growth of 18.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 15% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 5.2% 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£18.358.9%
+UK£44.2m		21.1%PE35.5x
GBG GB GroupUK£2.914.3%
+UK£30.1m		-12.6%PE89.5x
DOTD dotdigital GroupUK£0.905.4%
+UK£14.1m		-8.5%PE24.4x
CRTA CirataUK£0.3542.2%
+UK£13.2m		-39.3%PS7.7x
ELCO ElecoUK£1.517.9%
+UK£9.1m		41.1%PE37.4x
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Latest News

SGE

UK£12.44

Sage Group

7D

-1.9%

1Y

12.4%

QTX

UK£2.55

Quartix Technologies

7D

7.1%

1Y

82.1%

author-image

Customer Acquisition And Cost Reduction Will Strengthen Market Position

May 17 Strategic focus on key markets and investment in sales aims to drive recurring revenue and improve operational efficiency without increasing customer attrition.

CER

UK£18.35

Cerillion

7D

8.9%

1Y

21.1%

BYIT

UK£5.07

Bytes Technology Group

7D

-7.9%

1Y

-4.3%

Bytes Technology Group plc (LON:BYIT) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

May 16
Bytes Technology Group plc (LON:BYIT) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

APTD

UK£2.90

Aptitude Software Group

7D

-3.0%

1Y

-11.3%

ELCO

UK£1.51

Eleco

7D

7.9%

1Y

41.1%

IDOX

UK£0.56

IDOX

7D

-2.8%

1Y

-14.0%

ACSO

UK£4.97

accesso Technology Group

7D

3.3%

1Y

-34.3%

FDP

UK£24.50

FD Technologies

7D

-2.0%

1Y

90.5%

DOTD

UK£0.90

dotdigital Group

7D

5.4%

1Y

-8.5%

Earnings Not Telling The Story For dotdigital Group Plc (LON:DOTD) After Shares Rise 26%

May 07
Earnings Not Telling The Story For dotdigital Group Plc (LON:DOTD) After Shares Rise 26%

BGO

UK£0.90

Bango

7D

-4.3%

1Y

-30.6%

PINE

UK£3.93

Pinewood Technologies Group

7D

1.8%

1Y

20.8%

GBG

UK£2.91

GB Group

7D

4.3%

1Y

-12.6%

TRCS

UK£4.20

Tracsis

7D

-10.6%

1Y

-54.2%

CRTA

UK£0.35

Cirata

7D

42.2%

1Y

-39.3%

CNS

UK£0.17

Corero Network Security

7D

-2.5%

1Y

27.3%

Corero Network Security plc (LON:CNS) Stocks Pounded By 26% But Not Lagging Industry On Growth Or Pricing

Apr 08
Corero Network Security plc (LON:CNS) Stocks Pounded By 26% But Not Lagging Industry On Growth Or Pricing