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U.K. (FTSE) Software Industry Analysis

UpdatedDec 30, 2025
DataAggregated Company Financials
Companies49
  • 7D-0.6%
  • 3M-3.5%
  • 1Y-14.7%
  • YTD-14.7%

The Software is pretty flat in the last 7 days, but dotdigital Group has stood out, gaining 4.6%. 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
Tue, 30 Dec 2025UK£15.7bUK£4.5bUK£422.0m33x37.1x3.5x
Thu, 27 Nov 2025UK£15.7bUK£4.5bUK£446.4m29.3x35.1x3.5x
Sat, 25 Oct 2025UK£16.7bUK£4.4bUK£435.5m31.2x38.4x3.8x
Mon, 22 Sep 2025UK£16.3bUK£4.4bUK£439.5m33.1x37.1x3.7x
Wed, 20 Aug 2025UK£16.3bUK£4.4bUK£434.9m35.1x37.4x3.7x
Fri, 18 Jul 2025UK£18.2bUK£4.5bUK£397.4m35.8x45.9x4.1x
Sun, 15 Jun 2025UK£18.8bUK£4.7bUK£405.7m34.5x46.4x4x
Tue, 13 May 2025UK£19.2bUK£4.8bUK£374.0m33.3x51.2x4x
Thu, 10 Apr 2025UK£16.3bUK£4.8bUK£371.7m26.1x43.8x3.4x
Sat, 08 Mar 2025UK£18.4bUK£4.8bUK£312.8m31.6x58.8x3.9x
Mon, 03 Feb 2025UK£20.0bUK£4.8bUK£306.2m30.9x65.4x4.2x
Wed, 01 Jan 2025UK£19.5bUK£4.8bUK£303.3m33.9x64.3x4.1x
Fri, 29 Nov 2024UK£20.0bUK£4.8bUK£322.5m34.5x62x4.2x
Sun, 27 Oct 2024UK£16.7bUK£4.7bUK£208.7m33.2x80.2x3.6x
Tue, 24 Sep 2024UK£20.9bUK£5.2bUK£277.7m37.3x75.3x4.1x
Thu, 22 Aug 2024UK£21.1bUK£5.2bUK£245.3m37.5x86.1x4x
Sat, 20 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.1x84.1x4.1x
Mon, 17 Jun 2024UK£21.6bUK£5.3bUK£264.3m41.4x81.8x4.1x
Wed, 15 May 2024UK£22.9bUK£5.2bUK£108.6m38.2x210.6x4.4x
Fri, 12 Apr 2024UK£21.5bUK£5.2bUK£72.7m38x295.1x4.1x
Sun, 10 Mar 2024UK£21.5bUK£5.2bUK£102.0m34.7x210.4x4.1x
Tue, 06 Feb 2024UK£20.8bUK£5.2bUK£65.7m37.1x315.9x4x
Thu, 04 Jan 2024UK£42.1bUK£10.1bUK£71.0m37.3x592.4x4.1x
Sat, 02 Dec 2023UK£41.8bUK£10.1bUK£72.2m33.1x579.6x4.1x
Mon, 30 Oct 2023UK£39.2bUK£10.1bUK£126.6m32.6x309.7x3.9x
Wed, 27 Sep 2023UK£40.7bUK£10.1bUK£132.3m33.1x307.6x4x
Fri, 25 Aug 2023UK£39.6bUK£10.0bUK£100.5m33.3x394.4x4x
Sun, 23 Jul 2023UK£41.6bUK£10.6bUK£128.3m35.2x324.4x3.9x
Tue, 20 Jun 2023UK£41.1bUK£10.5bUK£129.5m37.6x317.5x3.9x
Thu, 18 May 2023UK£40.1bUK£10.7bUK£112.1m35.2x357.7x3.7x
Sat, 15 Apr 2023UK£39.5bUK£10.6bUK£290.4m37.6x136.1x3.7x
Mon, 13 Mar 2023UK£39.6bUK£10.4bUK£298.6m33.5x132.8x3.8x
Wed, 08 Feb 2023UK£39.6bUK£10.3bUK£296.8m32.7x133.3x3.8x
Fri, 06 Jan 2023UK£39.3bUK£10.4bUK£295.1m32.8x133.2x3.8x
Price to Earnings Ratio

133.2x


Total Market Cap: UK£39.3bTotal Earnings: UK£295.1mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 183x20242025
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 37.1x which is lower than its 3-year average PE of 183x.
  • 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 Market0.13%
Tech-0.86%
Software-0.62%
Systems Software0.55%
Application Software-0.63%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 125x.
    • Analysts are expecting annual earnings growth of 15.8%, 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
DOTD dotdigital GroupUK£0.684.6%
+UK£9.0m		-20.2%PE18.5x
PINE Pinewood Technologies GroupUK£3.570.7%
+UK£2.9m		2.7%PE66x
OMG Oxford MetricsUK£0.505.1%
+UK£2.8m		-11.1%PS1.3x
QTX Quartix TechnologiesUK£2.751.9%
+UK£2.4m		76.3%PE25.3x
GBG GB GroupUK£2.540.4%
+UK£2.4m		-25.1%PE66.6x

Latest News

SGE
UK£10.80
Sage Group
7D
-1.0%
1Y
-16.0%

Does Sage Group (LON:SGE) Have A Healthy Balance Sheet?

Dec 29
Does Sage Group (LON:SGE) Have A Healthy Balance Sheet?
QTX
UK£2.75
Quartix Technologies
7D
1.9%
1Y
76.3%

QTX: Shares Will Rise On Confident 2025 And 2026 Earnings Guidance

Analysts have modestly reduced their price target on Quartix Technologies, trimming it from 3.60 dollars to 3.60 dollars. They cited slightly lower assumed discount rates and marginally more conservative long term valuation multiples, despite largely unchanged growth and margin expectations.
PULS
UK£0.39
Pulsar Group
7D
2.7%
1Y
-30.0%
PINE
UK£3.57
Pinewood Technologies Group
7D
0.7%
1Y
2.7%
SATS
UK£0.0035
Satsuma Technology
7D
-36.7%
1Y
-70.8%
DOTD
UK£0.68
dotdigital Group
7D
4.6%
1Y
-20.2%
ALFA
UK£2.15
Alfa Financial Software Holdings
7D
-0.7%
1Y
0.2%
OMG
UK£0.50
Oxford Metrics
7D
5.1%
1Y
-11.1%
GBG
UK£2.54
GB Group
7D
0.4%
1Y
-25.1%
ADVT
UK£1.70
AdvancedAdvT
7D
-2.9%
1Y
13.3%
IGP
UK£1.23
Intercede Group
7D
-2.8%
1Y
-30.8%
TAP
UK£0.021
Tap Global Group
7D
13.2%
1Y
-20.4%
RM.
UK£1.15
RM
7D
1.8%
1Y
11.1%
ACSO
UK£3.31
accesso Technology Group
7D
-2.6%
1Y
-38.0%
SKL
UK£0.70
Skillcast Group
7D
-4.1%
1Y
67.9%
BGO
UK£0.90
Bango
7D
-2.7%
1Y
-3.7%