Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Software Industry Analysis

UpdatedJun 22, 2026
DataAggregated Company Financials
Companies50
  • 7D-1.9%
  • 3M4.6%
  • 1Y-34.8%
  • YTD-19.2%

Over the last 7 days, the Software industry has dropped 1.9%, driven by Sage Group declining 0.7%. The industry has fallen 35% in the last year. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 22 Jun 2026UK£11.8bUK£4.6bUK£376.8m20x31.3x2.6x
Wed, 20 May 2026UK£13.1bUK£4.5bUK£444.2m22.8x29.6x2.9x
Fri, 17 Apr 2026UK£13.0bUK£4.5bUK£408.8m31.2x31.9x2.9x
Sun, 15 Mar 2026UK£12.5bUK£4.5bUK£431.5m29x29.1x2.8x
Tue, 10 Feb 2026UK£13.3bUK£4.5bUK£429.8m31.6x30.9x3x
Thu, 08 Jan 2026UK£15.7bUK£4.5bUK£430.5m33.2x36.4x3.5x
Sat, 06 Dec 2025UK£15.6bUK£4.5bUK£421.5m33.6x37x3.5x
Mon, 03 Nov 2025UK£16.6bUK£4.4bUK£435.5m31.1x38x3.8x
Wed, 01 Oct 2025UK£16.2bUK£4.4bUK£439.8m30.7x36.8x3.7x
Fri, 29 Aug 2025UK£16.1bUK£4.4bUK£436.5m37.5x36.8x3.7x
Sun, 27 Jul 2025UK£17.7bUK£4.4bUK£424.4m35.1x41.8x4x
Tue, 24 Jun 2025UK£18.9bUK£4.7bUK£402.2m36.7x46.9x4x
Thu, 22 May 2025UK£18.7bUK£4.9bUK£400.6m33.2x46.7x3.9x
Sat, 19 Apr 2025UK£17.4bUK£4.8bUK£373.3m26.9x46.5x3.6x
Mon, 17 Mar 2025UK£17.9bUK£4.8bUK£312.9m30.1x57.3x3.8x
Wed, 12 Feb 2025UK£19.7bUK£4.8bUK£306.3m32.9x64.4x4.1x
Fri, 10 Jan 2025UK£19.6bUK£4.8bUK£304.6m30.7x64.4x4.1x
Sun, 08 Dec 2024UK£20.1bUK£4.8bUK£320.5m36x62.8x4.2x
Tue, 05 Nov 2024UK£16.6bUK£4.7bUK£207.4m35.7x80.2x3.6x
Thu, 03 Oct 2024UK£16.6bUK£4.7bUK£202.2m32.2x82.2x3.6x
Sat, 31 Aug 2024UK£21.0bUK£5.2bUK£267.5m38.5x78.6x4.1x
Mon, 29 Jul 2024UK£21.8bUK£5.3bUK£256.0m40.6x85.2x4.2x
Wed, 26 Jun 2024UK£22.0bUK£5.3bUK£266.9m39.8x82.2x4.1x
Fri, 24 May 2024UK£22.0bUK£5.3bUK£166.2m37.5x132.4x4.2x
Sun, 21 Apr 2024UK£20.8bUK£5.2bUK£91.5m37.9x227x4x
Tue, 19 Mar 2024UK£21.6bUK£5.2bUK£69.4m36.3x311.2x4.2x
Thu, 15 Feb 2024UK£20.9bUK£5.2bUK£65.8m37.1x317.9x4x
Sat, 13 Jan 2024UK£42.4bUK£10.1bUK£71.1m37x596.5x4.2x
Mon, 11 Dec 2023UK£42.1bUK£10.2bUK£72.1m33.1x584.2x4.1x
Wed, 08 Nov 2023UK£39.8bUK£10.1bUK£125.9m32.7x315.9x3.9x
Fri, 06 Oct 2023UK£40.0bUK£10.1bUK£128.7m33.7x310.7x4x
Sun, 03 Sep 2023UK£40.1bUK£10.0bUK£102.2m34x392.9x4x
Tue, 01 Aug 2023UK£40.7bUK£10.6bUK£125.1m33.6x325.4x3.9x
Thu, 29 Jun 2023UK£40.6bUK£10.6bUK£126.1m35.2x322x3.8x
Price to Earnings Ratio

322x


Total Market Cap: UK£40.6bTotal Earnings: UK£126.1mTotal Revenue: UK£10.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 148.5x202420252026
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 31.3x which is lower than its 3-year average PE of 149x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 44% 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 Market-1.12%
Tech0.093%
Software-1.85%
Systems Software-0.83%
Application Software-1.86%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 36.7x.
    • Analysts are expecting annual earnings growth of 18.0%, which is higher than its past year's earnings decline of 6.5% 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 18% 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
BYIT Bytes Technology GroupUK£3.611.7%
+UK£14.6m		-28.6%PE16.6x
KRM KRM22UK£0.4322.5%
+UK£4.7m		24.3%PS3.5x
PEB Pebble Beach Systems GroupUK£0.258.7%
+UK£2.5m		185.7%PE11.7x
AOM ActiveOpsUK£2.651.3%
+UK£2.5m		109.5%PS5.1x
IGP Intercede GroupUK£1.212.1%
+UK£1.5m		-33.2%PE20x

Latest News

GBG
UK£1.85
GB Group
7D
-10.8%
1Y
-20.6%
BYIT
UK£3.61
Bytes Technology Group
7D
1.7%
1Y
-28.6%
Narrative Update • Jun 18

BYIT: Cost Normalisation And Buybacks Will Support Stronger Future Cash Recovery

Analysts have nudged their fair value estimate for Bytes Technology Group up slightly from £4.70 to £4.75, reflecting updated assumptions on discount rates, growth and margins following recent research and valuation work. What’s in the News for Bytes Technology Group Bytes Technology Group plc has an authorised share repurchase program of up to £25 million aimed at reducing share capital, with all ordinary shares bought under the plan expected to be cancelled and the program targeted for completion in the first half of FY27.
AOM
UK£2.65
ActiveOps
7D
1.3%
1Y
109.5%
Narrative Update • Jun 17

AOM: Stable Revenue And Margin Outlook Will Support Continued Share Re Rating

Analysts have kept their £3.17 price target for ActiveOps unchanged, citing steady assumptions on fair value, revenue growth, profit margin and future P/E that together support a broadly consistent outlook for the stock. What’s in the News for ActiveOps No recent ActiveOps news, periodical coverage or key developments were provided in the supplied sources, so there are currently no specific events to highlight for investors.
CER
UK£11.80
Cerillion
7D
-5.2%
1Y
-22.9%
QTX
UK£2.28
Quartix Technologies
7D
-9.0%
1Y
1.1%
Narrative Update • Jun 15

QTX: Dividend Continuity Will Sustain Confidence As Audit Delay Resolves

Analysts have kept their £3.65 price target for Quartix Technologies unchanged, citing stable assumptions on the discount rate, revenue growth, profit margin and future P/E as the basis for maintaining their view. What's in the News Quartix Technologies plc has proposed a final dividend of 7.5 pence per share for the year ended 31 December 2025, taking the total dividend for the financial year to 10 pence per share, subject to approval at the AGM on 22 April 2026.
SGE
UK£8.02
Sage Group
7D
-3.0%
1Y
-36.7%
Narrative Update • Jun 15

SGE: AI Rollout And Buybacks Will Support Durable Long Term Upside

Narrative Update on Sage Group Analysts have trimmed the central price target framework for Sage Group, with the fair value marker moving from about £15.22 to £13.34. This broadly aligns with recent Street price target cuts toward £9.00 and lower P/E assumptions, even as some research points to more supportive views around margins and a higher £11.65 target from other firms.
IGP
UK£1.21
Intercede Group
7D
2.1%
1Y
-33.2%
ALFA
UK£1.52
Alfa Financial Software Holdings
7D
0.3%
1Y
-31.0%
Narrative Update • Jun 06

ALFA: Dividend Approval Will Support Future Upside Potential

Analysts have adjusted their price target on Alfa Financial Software Holdings, citing updated assumptions for the discount rate, revenue growth, profit margin and future P/E. These changes together refine their view of the stock's long term valuation in £ terms.
PINE
UK£2.47
Pinewood Technologies Group
7D
-2.0%
1Y
-45.2%
Narrative Update • Jun 05

PINE: Index Exit Will Highlight Expanded Dealer Rollouts As Key Re Rating Catalyst

Analysts have maintained their fair value estimate for Pinewood Technologies Group at £5.85. A slightly higher discount rate and marginally lower profit margin assumptions have resulted in a modestly higher future P/E of 38.78x, which shapes the updated price target narrative.
CRTA
UK£0.17
Cirata
7D
4.2%
1Y
-28.8%
PEB
UK£0.25
Pebble Beach Systems Group
7D
8.7%
1Y
185.7%
KRM
UK£0.43
KRM22
7D
22.5%
1Y
24.3%
SAAS
UK£0.42
Microlise Group
7D
2.4%
1Y
-59.2%
APTD
UK£2.07
Aptitude Software Group
7D
-10.0%
1Y
-39.8%
OMG
UK£0.40
Oxford Metrics
7D
-16.3%
1Y
-20.2%
DOTD
UK£0.43
dotdigital Group
7D
-7.4%
1Y
-41.4%
Narrative Update • Apr 17

DOTD: Future Margin Delivery And Cash Generation Will Drive Rerating Potential

Analysts have trimmed their price target on dotdigital Group to £0.95, reflecting slightly updated assumptions on revenue growth, profit margins and the future P/E multiple, while keeping fair value broadly unchanged. Analyst Commentary Recent Street research around dotdigital Group highlights a split in sentiment, with some upbeat views contrasted by more cautious voices focused on execution risk and valuation.