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U.K. (FTSE) Software Industry Analysis

UpdatedMay 09, 2026
DataAggregated Company Financials
Companies52
  • 7D-0.2%
  • 3M-2.1%
  • 1Y-28.3%
  • YTD-14.0%

Over the last 7 days, the Software industry has remained flat, although notably Alfa Financial Software Holdings gained 7.0%. Unfortunately though, the industry is down 28% over the past 12 months. Looking forward, 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
Sat, 09 May 2026UK£12.9bUK£4.5bUK£450.0m23.1x28.6x2.8x
Mon, 06 Apr 2026UK£12.3bUK£4.5bUK£435.7m26.4x28.3x2.7x
Wed, 04 Mar 2026UK£12.8bUK£4.5bUK£431.9m30.7x29.7x2.9x
Fri, 30 Jan 2026UK£14.7bUK£4.5bUK£430.1m34.6x34.2x3.3x
Sun, 28 Dec 2025UK£15.7bUK£4.5bUK£422.0m33x37.1x3.5x
Tue, 25 Nov 2025UK£15.9bUK£4.5bUK£446.3m30x35.6x3.5x
Thu, 23 Oct 2025UK£16.7bUK£4.4bUK£435.6m31.3x38.4x3.8x
Sat, 20 Sep 2025UK£16.3bUK£4.4bUK£439.5m33.1x37.1x3.7x
Mon, 18 Aug 2025UK£16.1bUK£4.4bUK£435.0m35.2x37x3.7x
Wed, 16 Jul 2025UK£18.0bUK£4.5bUK£394.1m35.8x45.7x4x
Fri, 13 Jun 2025UK£19.0bUK£4.7bUK£404.7m34.5x47x4.1x
Sun, 11 May 2025UK£19.1bUK£4.7bUK£374.2m32.6x51x4x
Tue, 08 Apr 2025UK£16.3bUK£4.8bUK£372.9m26x43.7x3.4x
Thu, 06 Mar 2025UK£18.6bUK£4.8bUK£313.3m31.1x59.5x3.9x
Sat, 01 Feb 2025UK£20.0bUK£4.8bUK£306.4m30.9x65.3x4.2x
Mon, 30 Dec 2024UK£19.6bUK£4.8bUK£303.5m34.3x64.7x4.1x
Wed, 27 Nov 2024UK£20.0bUK£4.8bUK£324.1m35.4x61.7x4.2x
Fri, 25 Oct 2024UK£16.8bUK£4.7bUK£208.7m33.6x80.7x3.6x
Sun, 22 Sep 2024UK£20.9bUK£5.2bUK£277.7m37.3x75.3x4.1x
Tue, 20 Aug 2024UK£21.2bUK£5.2bUK£257.9m38.4x82.3x4x
Thu, 18 Jul 2024UK£21.4bUK£5.3bUK£254.0m38.2x84.1x4.1x
Sat, 15 Jun 2024UK£21.6bUK£5.3bUK£264.3m41.4x81.8x4.1x
Mon, 13 May 2024UK£22.8bUK£5.2bUK£107.4m38.2x212.8x4.4x
Wed, 10 Apr 2024UK£21.2bUK£5.2bUK£72.3m38.8x293.8x4.1x
Fri, 08 Mar 2024UK£21.5bUK£5.2bUK£102.1m34.9x210.4x4.1x
Sun, 04 Feb 2024UK£42.4bUK£10.2bUK£70.7m37.1x599.8x4.2x
Tue, 02 Jan 2024UK£42.5bUK£10.1bUK£71.1m36.6x597.7x4.2x
Thu, 30 Nov 2023UK£41.5bUK£10.2bUK£82.9m32x500.2x4.1x
Sat, 28 Oct 2023UK£39.2bUK£10.1bUK£126.6m32.6x309.8x3.9x
Mon, 25 Sep 2023UK£41.0bUK£10.1bUK£131.8m33x310.8x4.1x
Wed, 23 Aug 2023UK£39.5bUK£10.0bUK£100.9m33.5x391.7x4x
Fri, 21 Jul 2023UK£41.7bUK£10.6bUK£128.3m35.2x325.3x4x
Sun, 18 Jun 2023UK£41.3bUK£10.5bUK£129.5m37.5x319x3.9x
Tue, 16 May 2023UK£39.8bUK£10.7bUK£109.8m36.2x362.6x3.7x
Price to Earnings Ratio

362.6x


Total Market Cap: UK£39.8bTotal Earnings: UK£109.8mTotal Revenue: UK£10.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 168.8x202420252026
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 28.6x which is lower than its 3-year average PE of 169x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 60% per year over the last three years.
  • Meanwhile revenues for these companies have declined 25% 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-0.81%
Tech2.77%
Software-0.16%
Application Software-0.16%
Systems Software-0.74%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 20.8x.
    • Analysts are expecting annual earnings growth of 14.5%, which is higher than its past year's earnings growth of 8.9% 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
ALFA Alfa Financial Software HoldingsUK£1.627.0%
+UK£31.4m		-33.3%PE16x
BYIT Bytes Technology GroupUK£3.133.4%
+UK£24.6m		-43.0%PE13.9x
PINE Pinewood Technologies GroupUK£2.857.5%
+UK£23.0m		-26.1%PE6.5x
GBG GB GroupUK£2.244.1%
+UK£20.6m		-19.6%PE57.4x
ELCO ElecoUK£1.3814.1%
+UK£14.1m		-1.8%PE86.9x

Latest News

ELCO
UK£1.38
Eleco
7D
14.1%
1Y
-1.8%
Analysis Article • 8h

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...
SKL
UK£0.42
Skillcast Group
7D
-10.6%
1Y
-7.7%
Analysis Article • May 08

Here's Why We Think Skillcast Group (LON:SKL) Might Deserve Your Attention Today

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...
PINE
UK£2.85
Pinewood Technologies Group
7D
7.5%
1Y
-26.1%
ALFA
UK£1.62
Alfa Financial Software Holdings
7D
7.0%
1Y
-33.3%
Narrative Update • May 03

ALFA: Dividend Approval And CFO Transition Will Support Future Upside Potential

Analysts have trimmed their price target for Alfa Financial Software Holdings to £2.67 from £2.83, citing slightly lower assumptions for revenue growth, profit margin and future P/E, along with a higher discount rate in their models. What's in the News Shareholders approved a final dividend of 1.5 pence per ordinary share at the AGM held on 30 April 2026, confirming the latest cash return to investors (Key Developments).
GBG
UK£2.24
GB Group
7D
4.1%
1Y
-19.6%
Narrative Update • May 02

GBG: Refined Forecast Assumptions Will Support Confidence In Future Earnings Potential

Analysts have lifted their price target on GB Group to £4.50, with the move underpinned by updated assumptions that keep fair value at £4.50 while adjusting the discount rate, revenue growth, profit margin and future P/E inputs. Valuation Changes Fair Value: kept steady at £4.50, indicating no change in the central valuation estimate.
SGE
UK£8.77
Sage Group
7D
-1.7%
1Y
-30.8%
Narrative Update • May 01

SGE: Mixed Views On AI Rollout And Buyback Will Shape Future Upside

Analysts have trimmed Sage Group's fair value estimate to £8.50 from £9.00, reflecting recent reductions in Street price targets to around £11.50 and updated assumptions on discount rate, revenue growth, profit margin and future P/E. Analyst Commentary Recent Street research has tilted more cautious on Sage Group, with several Bearish analysts cutting price targets and reassessing the risk and reward trade off.
CER
UK£13.00
Cerillion
7D
-4.4%
1Y
-22.8%
BYIT
UK£3.13
Bytes Technology Group
7D
3.4%
1Y
-43.0%
Narrative Update • Apr 29

BYIT: Flat 2027 Profit Guidance And Cost Reset Will Underpin Extended Recovery Timeline

Analysts have trimmed their price target on Bytes Technology Group, cutting fair value by roughly £0.78 per share as they reset assumptions around discount rates, long term revenue growth, profit margins and future P/E multiples following the latest research updates. Analyst Commentary Bullish Takeaways Bullish analysts still see scope for value creation if Bytes Technology Group can deliver consistent execution against revised growth and margin assumptions that now feed into a lower fair value range.
BGO
UK£0.63
Bango
7D
-3.8%
1Y
-33.2%
AOM
UK£2.14
ActiveOps
7D
5.2%
1Y
92.3%
Narrative Update • Apr 27

AOM: Stable Assumptions And Higher Revenue Outlook Will Support Future Upside

Analysts have left their £ fair value estimate for ActiveOps unchanged. This reflects a balance between slightly higher revenue growth assumptions, a small adjustment in the discount rate, and a modestly lower future P/E expectation.
QTX
UK£2.55
Quartix Technologies
7D
-1.9%
1Y
7.1%
Narrative Update • Apr 27

QTX: Dividend Policy And Audit Completion Will Support Future Share Upside

Analysts have nudged their price target on Quartix Technologies to £3.60, with the shift linked to updated assumptions on discount rate, profit margin and forward P/E, while keeping fair value unchanged at £3.60. What's in the News The board has proposed a final dividend of 7.5 pence per share for the year ended 31 December 2025, resulting in a total dividend of 10 pence per share for the year, subject to approval at the AGM on 22 April 2026 (Key Developments).
IGP
UK£1.13
Intercede Group
7D
7.7%
1Y
-37.5%
ALT
UK£0.18
Altitude Group
7D
-14.4%
1Y
-9.8%
SATS
UK£0.0024
Satsuma Technology
7D
19.5%
1Y
-34.7%
BTC
UK£0.021
London BTC
7D
-16.5%
1Y
-84.5%
INT
UK£0.78
IntelliAM AI
7D
-8.8%
1Y
24.0%