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U.K. (FTSE) Software Industry Analysis

UpdatedJun 11, 2025
DataAggregated Company Financials
Companies53
  • 7D1.1%
  • 3M7.9%
  • 1Y12.0%
  • YTD0.3%

The Software industry is up 1.1% in the last week, with Sage Group up 2.4%. During this same period, the GB Group underperformed, falling 9.8%. This takes the industry's 12 month performance to a gain of 12%. 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
Wed, 11 Jun 2025UK£19.0bUK£4.7bUK£404.1m34.9x46.9x4.1x
Fri, 09 May 2025UK£19.0bUK£4.8bUK£374.1m32.5x50.9x4x
Sun, 06 Apr 2025UK£17.4bUK£4.8bUK£373.3m27.1x46.6x3.7x
Tue, 04 Mar 2025UK£19.1bUK£4.8bUK£307.3m32.3x62x4x
Thu, 30 Jan 2025UK£19.9bUK£4.8bUK£305.7m30.8x65.1x4.2x
Sat, 28 Dec 2024UK£19.6bUK£4.8bUK£303.4m34.3x64.7x4.1x
Mon, 25 Nov 2024UK£19.7bUK£4.8bUK£324.1m35.8x60.8x4.1x
Wed, 23 Oct 2024UK£16.9bUK£4.7bUK£208.8m34.4x81.2x3.6x
Fri, 20 Sep 2024UK£21.1bUK£5.2bUK£277.5m37.6x76x4.1x
Sun, 18 Aug 2024UK£21.1bUK£5.2bUK£258.0m37.6x81.7x4x
Tue, 16 Jul 2024UK£21.5bUK£5.3bUK£259.7m38.4x82.6x4.1x
Thu, 13 Jun 2024UK£21.5bUK£5.3bUK£265.3m40.7x81.2x4.1x
Sat, 11 May 2024UK£22.8bUK£5.2bUK£107.4m38.2x212.8x4.4x
Mon, 08 Apr 2024UK£21.6bUK£5.2bUK£74.6m37.9x289.6x4.1x
Wed, 06 Mar 2024UK£21.1bUK£5.2bUK£60.3m36.1x349.5x4.1x
Fri, 02 Feb 2024UK£42.5bUK£10.2bUK£70.8m38.1x599.8x4.2x
Sun, 31 Dec 2023UK£42.5bUK£10.1bUK£71.1m36.6x597.5x4.2x
Tue, 28 Nov 2023UK£41.4bUK£10.2bUK£137.2m32x301.7x4.1x
Thu, 26 Oct 2023UK£39.2bUK£10.1bUK£122.9m31.8x318.5x3.9x
Sat, 23 Sep 2023UK£41.0bUK£10.1bUK£131.8m33x310.7x4.1x
Mon, 21 Aug 2023UK£39.5bUK£10.0bUK£100.9m33x391.8x4x
Wed, 19 Jul 2023UK£41.5bUK£10.5bUK£128.7m35.4x322.1x3.9x
Fri, 16 Jun 2023UK£40.9bUK£10.5bUK£252.3m38.1x162.2x3.9x
Sun, 14 May 2023UK£39.9bUK£10.7bUK£110.1m36x362.5x3.7x
Tue, 11 Apr 2023UK£39.2bUK£10.6bUK£289.6m37x135.5x3.7x
Thu, 09 Mar 2023UK£39.7bUK£10.4bUK£301.2m35.5x132x3.8x
Sat, 04 Feb 2023UK£40.1bUK£10.3bUK£296.6m34x135.1x3.9x
Mon, 02 Jan 2023UK£38.9bUK£10.3bUK£296.7m34.2x131.2x3.8x
Wed, 30 Nov 2022UK£39.6bUK£10.3bUK£324.5m33.6x122.1x3.8x
Fri, 28 Oct 2022UK£63.5bUK£10.2bUK£346.2m39.9x183.5x6.2x
Sun, 25 Sep 2022UK£38.7bUK£10.4bUK£343.0m39.6x112.8x3.7x
Tue, 23 Aug 2022UK£36.5bUK£9.7bUK£245.4m48.8x148.8x3.8x
Thu, 21 Jul 2022UK£33.4bUK£9.6bUK£295.8m43.3x112.8x3.5x
Sat, 18 Jun 2022UK£32.7bUK£9.6bUK£141.8m42.1x230.2x3.4x
Price to Earnings Ratio

230.2x


Total Market Cap: UK£32.7bTotal Earnings: UK£141.8mTotal Revenue: UK£9.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 204.8x202320242025
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 46.9x which is lower than its 3-year average PE of 205x.
  • 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 42% per year over the last three years.
  • Meanwhile revenues for these companies have declined 21% 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 Market0.99%
Tech4.99%
Software1.10%
Application Software1.16%
Systems Software-5.37%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 196x.
    • Analysts are expecting annual earnings growth of 15.3%, which is lower than the prior year's growth of 17.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 27% 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
SGE Sage GroupUK£12.602.4%
+UK£255.7m		20.2%PE34.9x
PINE Pinewood Technologies GroupUK£4.4510.0%
+UK£40.7m		12.4%PE71.9x
BYIT Bytes Technology GroupUK£5.351.9%
+UK£24.1m		-2.3%PE23.5x
NET NetcallUK£1.156.5%
+UK£11.7m		32.2%PE37.2x
IDOX IDOXUK£0.604.2%
+UK£11.1m		-7.4%PE52.5x
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Latest News

GBG

UK£2.48

GB Group

7D

-9.8%

1Y

-29.3%

CRTA

UK£0.29

Cirata

7D

-8.2%

1Y

-53.9%

NET

UK£1.15

Netcall

7D

6.5%

1Y

32.2%

BGO

UK£0.88

Bango

7D

-5.4%

1Y

-34.5%

PINE

UK£4.45

Pinewood Technologies Group

7D

10.0%

1Y

12.4%

ELCO

UK£1.70

Eleco

7D

6.6%

1Y

50.4%

RM.

UK£1.09

RM

7D

9.0%

1Y

24.9%

SGE

UK£12.60

Sage Group

7D

2.4%

1Y

20.2%

BYIT

UK£5.35

Bytes Technology Group

7D

1.9%

1Y

-2.3%

CNS

UK£0.15

Corero Network Security

7D

-4.1%

1Y

0.7%

IDOX

UK£0.60

IDOX

7D

4.2%

1Y

-7.4%

CER

UK£19.00

Cerillion

7D

-1.0%

1Y

19.1%

TRCS

UK£5.05

Tracsis

7D

7.4%

1Y

-43.6%

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May 18
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DOTD

UK£0.79

dotdigital Group

7D

-6.6%

1Y

-15.7%

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May 07
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ALFA

UK£2.40

Alfa Financial Software Holdings

7D

-0.2%

1Y

28.2%

TAP

UK£0.015

Tap Global Group

7D

-14.3%

1Y

66.7%