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U.K. (FTSE) Software Industry Analysis

UpdatedDec 16, 2025
DataAggregated Company Financials
Companies49
  • 7D1.1%
  • 3M-2.4%
  • 1Y-15.7%
  • YTD-14.4%

Over the last 7 days, the Software industry has risen 1.1%, driven by gains from GB Group of 2.0%. In contrast, the industry has lost 16% in the last 12 months. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Dec 2025UK£15.7bUK£4.5bUK£421.8m33.3x37.2x3.5x
Thu, 13 Nov 2025UK£16.2bUK£4.4bUK£430.5m34.6x37.7x3.7x
Sat, 11 Oct 2025UK£16.4bUK£4.4bUK£437.6m31.1x37.5x3.7x
Mon, 08 Sep 2025UK£16.2bUK£4.4bUK£438.6m37.6x36.9x3.7x
Wed, 06 Aug 2025UK£17.0bUK£4.4bUK£430.3m34.1x39.4x3.9x
Fri, 04 Jul 2025UK£17.9bUK£4.7bUK£391.8m36.9x45.7x3.8x
Sun, 01 Jun 2025UK£18.6bUK£4.8bUK£400.7m32.5x46.4x3.8x
Tue, 29 Apr 2025UK£17.8bUK£4.8bUK£372.1m30.2x47.8x3.7x
Thu, 27 Mar 2025UK£18.1bUK£4.8bUK£367.8m28.9x49.3x3.8x
Sat, 22 Feb 2025UK£19.5bUK£4.8bUK£307.1m32.2x63.5x4.1x
Mon, 20 Jan 2025UK£19.7bUK£4.8bUK£304.1m28.7x64.8x4.1x
Wed, 18 Dec 2024UK£19.8bUK£4.8bUK£320.4m36.4x61.8x4.2x
Fri, 15 Nov 2024UK£17.7bUK£4.7bUK£210.4m35.7x84.3x3.8x
Sun, 13 Oct 2024UK£16.7bUK£4.7bUK£204.0m32.8x81.7x3.6x
Tue, 10 Sep 2024UK£20.7bUK£5.2bUK£276.7m37.4x74.9x4x
Thu, 08 Aug 2024UK£21.1bUK£5.3bUK£256.5m37.7x82.1x4x
Sat, 06 Jul 2024UK£22.1bUK£5.3bUK£261.5m38.9x84.4x4.1x
Mon, 03 Jun 2024UK£21.4bUK£5.3bUK£163.1m38.4x131.2x4.1x
Wed, 01 May 2024UK£22.1bUK£5.2bUK£90.3m39.3x244.9x4.2x
Fri, 29 Mar 2024UK£21.9bUK£5.2bUK£78.6m37.7x279.1x4.2x
Sun, 25 Feb 2024UK£21.0bUK£5.2bUK£66.0m35.8x318.5x4.1x
Tue, 23 Jan 2024UK£42.2bUK£10.1bUK£71.3m37.5x592.7x4.2x
Thu, 21 Dec 2023UK£42.5bUK£10.1bUK£72.1m36.7x589.2x4.2x
Sat, 18 Nov 2023UK£39.9bUK£10.1bUK£131.9m33.7x302.6x4x
Mon, 16 Oct 2023UK£40.0bUK£10.1bUK£129.6m30.9x308.8x4x
Wed, 13 Sep 2023UK£41.0bUK£10.0bUK£131.1m33.9x312.4x4.1x
Fri, 11 Aug 2023UK£40.1bUK£10.0bUK£97.1m36.3x412.6x4x
Sun, 09 Jul 2023UK£40.6bUK£10.6bUK£128.9m35.7x314.7x3.8x
Tue, 06 Jun 2023UK£40.8bUK£10.6bUK£39.2m37.9x1041.2x3.9x
Thu, 04 May 2023UK£40.1bUK£10.7bUK£109.8m35.8x365.5x3.8x
Sat, 01 Apr 2023UK£39.4bUK£10.6bUK£299.3m35.8x131.5x3.7x
Mon, 27 Feb 2023UK£39.4bUK£10.3bUK£297.6m34.7x132.5x3.8x
Wed, 25 Jan 2023UK£39.2bUK£10.3bUK£301.0m32.9x130.4x3.8x
Fri, 23 Dec 2022UK£38.8bUK£10.4bUK£295.7m33.7x131.2x3.7x
Price to Earnings Ratio

131.2x


Total Market Cap: UK£38.8bTotal Earnings: UK£295.7mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 184.2x202320242025
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 37.2x which is lower than its 3-year average PE of 184x.
  • 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 Market1.08%
Tech-1.64%
Software1.10%
Application Software1.13%
Systems Software-4.79%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 134x.
    • 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
GBG GB GroupUK£2.512.0%
+UK£11.9m		-28.2%PE65.9x
SKL Skillcast GroupUK£0.728.2%
+UK£4.9m		70.6%PE59.6x
DOTD dotdigital GroupUK£0.651.9%
+UK£3.7m		-28.0%PE17.9x
QTX Quartix TechnologiesUK£2.752.2%
+UK£2.9m		74.6%PE25.3x
AOM ActiveOpsUK£2.341.7%
+UK£2.9m		108.0%PS4.5x

Latest News

SGE
UK£10.79
Sage Group
7D
-0.4%
1Y
-17.4%

Sage Group (LON:SGE) Is Increasing Its Dividend To £0.144

Dec 16
Sage Group (LON:SGE) Is Increasing Its Dividend To £0.144
DOTD
UK£0.65
dotdigital Group
7D
1.9%
1Y
-28.0%
ALFA
UK£2.19
Alfa Financial Software Holdings
7D
0.2%
1Y
1.9%
AOM
UK£2.34
ActiveOps
7D
1.7%
1Y
108.0%

AOM: Scalable Model Will Drive Margin Expansion Toward Ambitious Recurring Revenue Goal

Analysts have modestly raised their price target on ActiveOps, lifting fair value from £3.12 to £3.17 as they balance slightly higher discount rates and slower expected revenue growth against improving profit margin forecasts and a more reasonable future earnings multiple. What's in the News ActiveOps held an Analyst and Investor Day to demonstrate how its Decision Intelligence platform is reshaping service operations management and to highlight its strategy for deepening enterprise relationships and expanding through partners, alongside accelerated R and D investment and a scalable, profit focused operating model (Key Developments).
TRCS
UK£2.98
Tracsis
7D
-9.2%
1Y
-43.9%

TRCS: Future M&A Resumption And Progressive Dividend Policy Are Expected To Support Upside

Analysts have nudged their price target for Tracsis modestly higher to reflect slightly increased discount rate assumptions and a marginally richer future earnings multiple, while maintaining their view that the stock remains fairly valued around £6.18. What's in the News Management reaffirmed that mergers and acquisitions remain a core pillar of Tracsis's growth strategy, with a disciplined, bolt on pipeline intended to supplement organic expansion and be fully integrated into the unified business structure (Key Developments).
QTX
UK£2.75
Quartix Technologies
7D
2.2%
1Y
74.6%

QTX: Shares Will Benefit From Confident 2025 And 2026 Earnings Guidance

Analysts have nudged their price target on Quartix Technologies slightly higher to reflect incremental improvements in long term growth and profitability expectations, while noting only marginal changes in discount rate and valuation multiples. What's in the News Issued new earnings guidance for 2025 and 2026, indicating expectations to slightly exceed the most recently updated market estimates for full-year revenue and profit (company guidance) Valuation Changes The fair value estimate remains unchanged at 3.6, indicating no revision to the intrinsic value assessment.
GBG
UK£2.51
GB Group
7D
2.0%
1Y
-28.2%
CER
UK£12.20
Cerillion
7D
-5.4%
1Y
-35.1%

Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)

Dec 01
Impressive Earnings May Not Tell The Whole Story For Cerillion (LON:CER)
IDOX
UK£0.68
IDOX
7D
-2.3%
1Y
7.3%
APTD
UK£2.81
Aptitude Software Group
7D
-3.1%
1Y
-13.8%
PINE
UK£3.58
Pinewood Technologies Group
7D
-2.1%
1Y
6.4%
BYIT
UK£3.42
Bytes Technology Group
7D
-1.5%
1Y
-22.1%
ACSO
UK£3.36
accesso Technology Group
7D
-2.9%
1Y
-40.2%
SKL
UK£0.72
Skillcast Group
7D
8.2%
1Y
70.6%
BGO
UK£0.91
Bango
7D
2.2%
1Y
-1.6%
PULS
UK£0.36
Pulsar Group
7D
2.8%
1Y
-35.4%