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U.K. (FTSE) Software Industry Analysis

UpdatedSep 23, 2025
DataAggregated Company Financials
Companies49
  • 7D1.8%
  • 3M-10.3%
  • 1Y1.5%
  • YTD-11.1%

Over the last 7 days, the Software industry has risen 1.8%, driven by gains from Sage Group of 3.0%. The industry has been flat over the past 12 months despite the gain this week. 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
Tue, 23 Sep 2025UK£16.3bUK£4.4bUK£439.5m33.1x37.1x3.7x
Thu, 21 Aug 2025UK£16.3bUK£4.4bUK£437.3m36x37.3x3.7x
Sat, 19 Jul 2025UK£18.2bUK£4.5bUK£397.4m35.2x45.8x4.1x
Mon, 16 Jun 2025UK£18.8bUK£4.7bUK£405.7m34.5x46.4x4x
Wed, 14 May 2025UK£19.2bUK£4.7bUK£374.2m33.1x51.4x4x
Fri, 11 Apr 2025UK£16.9bUK£4.8bUK£372.1m27x45.4x3.5x
Sun, 09 Mar 2025UK£18.4bUK£4.8bUK£312.9m31.6x58.8x3.9x
Tue, 04 Feb 2025UK£20.0bUK£4.8bUK£306.2m31.2x65.4x4.2x
Thu, 02 Jan 2025UK£19.5bUK£4.8bUK£303.3m33.9x64.3x4.1x
Sat, 30 Nov 2024UK£20.0bUK£4.8bUK£322.6m35.4x62.1x4.2x
Mon, 28 Oct 2024UK£16.7bUK£4.7bUK£208.7m33.2x80.2x3.6x
Wed, 25 Sep 2024UK£20.6bUK£5.1bUK£277.8m37.4x74.3x4x
Fri, 23 Aug 2024UK£21.1bUK£5.2bUK£245.4m37.8x85.8x4x
Sun, 21 Jul 2024UK£21.4bUK£5.3bUK£254.3m38.1x84.1x4.1x
Tue, 18 Jun 2024UK£21.7bUK£5.3bUK£264.3m42.3x81.9x4.1x
Thu, 16 May 2024UK£22.9bUK£5.2bUK£108.3m38x211.7x4.4x
Sat, 13 Apr 2024UK£21.2bUK£5.2bUK£89.4m38x237.1x4.1x
Mon, 11 Mar 2024UK£21.5bUK£5.2bUK£102.0m34.7x210.4x4.1x
Wed, 07 Feb 2024UK£20.7bUK£5.2bUK£65.8m37.1x315.1x4x
Fri, 05 Jan 2024UK£42.1bUK£10.1bUK£71.1m37.8x592x4.1x
Sun, 03 Dec 2023UK£41.8bUK£10.1bUK£72.2m33.1x579.3x4.1x
Tue, 31 Oct 2023UK£39.3bUK£10.1bUK£126.7m32.7x310.5x3.9x
Thu, 28 Sep 2023UK£40.6bUK£10.1bUK£130.9m37.7x310.3x4x
Sat, 26 Aug 2023UK£39.6bUK£10.0bUK£100.9m33.8x392.7x4x
Mon, 24 Jul 2023UK£41.6bUK£10.6bUK£128.3m35.2x324.4x3.9x
Wed, 21 Jun 2023UK£41.1bUK£10.6bUK£129.3m37.9x318.1x3.9x
Fri, 19 May 2023UK£40.2bUK£10.9bUK£60.3m35.3x667.5x3.7x
Sun, 16 Apr 2023UK£39.5bUK£10.6bUK£290.3m37.6x136.2x3.7x
Tue, 14 Mar 2023UK£39.2bUK£10.4bUK£298.0m31.5x131.7x3.8x
Thu, 09 Feb 2023UK£39.5bUK£10.3bUK£296.6m32.6x133.3x3.8x
Sat, 07 Jan 2023UK£39.5bUK£10.4bUK£297.4m32.9x132.7x3.8x
Mon, 05 Dec 2022UK£40.2bUK£10.3bUK£315.7m34.2x127.3x3.9x
Wed, 02 Nov 2022UK£38.5bUK£10.3bUK£343.6m41.4x112.2x3.8x
Fri, 30 Sep 2022UK£38.3bUK£10.4bUK£343.5m32.7x111.5x3.7x
Price to Earnings Ratio

111.5x


Total Market Cap: UK£38.3bTotal Earnings: UK£343.5mTotal Revenue: UK£10.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Software Industry Price to Earnings3Y Average 195.5x202320242025
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 195x.
  • 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 8.6% 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-0.48%
Tech1.62%
Software1.83%
Application Software1.84%
Systems Software0.42%
Industry PE
  • Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 183x.
    • Analysts are expecting annual earnings growth of 14.7%, which is lower than the prior year's growth of 18.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 25% 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£10.983.0%
+UK£303.4m		7.8%PE30x
ALFA Alfa Financial Software HoldingsUK£2.443.8%
+UK£26.6m		17.1%PE24.4x
BGO BangoUK£1.2421.0%
+UK£16.5m		10.2%PS2.4x
QTX Quartix TechnologiesUK£3.099.6%
+UK£13.1m		96.2%PE28.4x
DOTD dotdigital GroupUK£0.685.9%
+UK£11.7m		-26.3%PE18.4x

Latest News

GBG
UK£2.22
GB Group
7D
-3.1%
1Y
-29.1%
QTX
UK£3.09
Quartix Technologies
7D
9.6%
1Y
96.2%

Market Participants Recognise Quartix Technologies plc's (LON:QTX) Revenues

Sep 19
Market Participants Recognise Quartix Technologies plc's (LON:QTX) Revenues
ELCO
UK£1.49
Eleco
7D
-6.3%
1Y
11.7%
BYIT
UK£3.96
Bytes Technology Group
7D
-4.3%
1Y
-23.5%
BGO
UK£1.24
Bango
7D
21.0%
1Y
10.2%
SGE
UK£10.98
Sage Group
7D
3.0%
1Y
7.8%

Should You Be Adding Sage Group (LON:SGE) To Your Watchlist Today?

Sep 13
Should You Be Adding Sage Group (LON:SGE) To Your Watchlist Today?
ALFA
UK£2.44
Alfa Financial Software Holdings
7D
3.8%
1Y
17.1%
NET
UK£1.20
Netcall
7D
4.3%
1Y
32.6%
AOM
UK£1.78
ActiveOps
7D
-1.4%
1Y
36.0%
CER
UK£14.15
Cerillion
7D
2.5%
1Y
-21.8%

Subdued Growth No Barrier To Cerillion Plc's (LON:CER) Price

Aug 28
Subdued Growth No Barrier To Cerillion Plc's (LON:CER) Price
APTD
UK£3.04
Aptitude Software Group
7D
2.7%
1Y
-10.6%
TAP
UK£0.014
Tap Global Group
7D
-24.3%
1Y
100.0%
PINE
UK£5.30
Pinewood Technologies Group
7D
-5.0%
1Y
49.3%
ADVT
UK£1.90
AdvancedAdvT
7D
-1.3%
1Y
47.3%
DOTD
UK£0.68
dotdigital Group
7D
5.9%
1Y
-26.3%
IDOX
UK£0.53
IDOX
7D
-3.6%
1Y
-15.1%