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U.K. (FTSE) Telecom Sector Analysis

UpdatedApr 19, 2025
DataAggregated Company Financials
Companies68
  • 7D4.0%
  • 3M-0.2%
  • 1Y11.5%
  • YTD-1.3%

The Telecom industry is up 4.0% in the last week, with Vodafone Group up 6.5%. This means that the industry has gained 11% over the past year. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

Has the U.K. Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 19 Apr 2025UK£86.4bUK£93.1bUK£4.6b16.4x18.9x0.9x
Mon, 17 Mar 2025UK£88.4bUK£92.6bUK£4.8b15x18.4x1x
Wed, 12 Feb 2025UK£91.7bUK£87.5bUK£4.6b18.5x19.9x1x
Fri, 10 Jan 2025UK£85.8bUK£87.6bUK£4.4b18.3x19.3x1x
Sun, 08 Dec 2024UK£90.0bUK£87.1bUK£4.4b20.6x20.3x1x
Tue, 05 Nov 2024UK£86.4bUK£87.2bUK£3.6b17.4x24.1x1x
Thu, 03 Oct 2024UK£89.6bUK£86.9bUK£3.7b20.2x24.3x1x
Sat, 31 Aug 2024UK£88.7bUK£87.3bUK£3.6b19.9x24.7x1x
Mon, 29 Jul 2024UK£88.9bUK£87.5bUK£3.4b21x25.9x1x
Wed, 26 Jun 2024UK£87.2bUK£87.6bUK£3.2b18.8x27.6x1x
Fri, 24 May 2024UK£87.7bUK£87.7bUK£3.1b20.3x28.1x1x
Sun, 21 Apr 2024UK£80.0bUK£95.3bUK£12.5b19.2x6.4x0.8x
Tue, 19 Mar 2024UK£80.7bUK£95.2bUK£12.2b20.8x6.6x0.8x
Thu, 15 Feb 2024UK£79.6bUK£95.0bUK£12.7b19.8x6.3x0.8x
Sat, 13 Jan 2024UK£84.5bUK£97.3bUK£12.9b17.1x6.5x0.9x
Mon, 11 Dec 2023UK£85.7bUK£97.3bUK£12.9b16.7x6.6x0.9x
Wed, 08 Nov 2023UK£83.5bUK£98.1bUK£14.1b18x5.9x0.9x
Fri, 06 Oct 2023UK£81.7bUK£98.0bUK£14.2b17.3x5.8x0.8x
Sun, 03 Sep 2023UK£82.9bUK£97.2bUK£14.0b18.2x5.9x0.9x
Tue, 01 Aug 2023UK£86.2bUK£96.4bUK£13.7b19.4x6.3x0.9x
Thu, 29 Jun 2023UK£83.5bUK£96.3bUK£14.0b21x6x0.9x
Sat, 27 May 2023UK£88.8bUK£96.7bUK£14.0b21.1x6.3x0.9x
Mon, 24 Apr 2023UK£95.0bUK£97.4bUK£5.3b22.6x17.8x1x
Wed, 22 Mar 2023UK£93.1bUK£97.1bUK£5.4b18x17.1x1x
Fri, 17 Feb 2023UK£99.2bUK£96.8bUK£5.6b16.7x17.8x1x
Sun, 15 Jan 2023UK£91.6bUK£96.7bUK£5.5b18.2x16.6x0.9x
Tue, 13 Dec 2022UK£93.4bUK£99.2bUK£5.7b18.1x16.5x0.9x
Thu, 10 Nov 2022UK£100.0bUK£99.6bUK£5.2b19.4x19.3x1x
Sat, 08 Oct 2022UK£95.2bUK£100.0bUK£5.2b18.6x18.2x1x
Mon, 05 Sep 2022UK£104.3bUK£98.6bUK£5.3b21.3x19.8x1.1x
Wed, 03 Aug 2022UK£113.3bUK£95.9bUK£4.3b19.9x26.5x1.2x
Fri, 01 Jul 2022UK£112.3bUK£96.7bUK£4.0b20.6x28.4x1.2x
Sun, 29 May 2022UK£118.7bUK£95.6bUK£4.0b24.3x29.9x1.2x
Tue, 26 Apr 2022UK£122.5bUK£93.7bUK£2.6b27.7x47.3x1.3x
Price to Earnings Ratio

47.3x


Total Market Cap: UK£122.5bTotal Earnings: UK£2.6bTotal Revenue: UK£93.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 18.8x202320242025
Current Industry PE
  • Investors are relatively neutral on the British Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 18.8x.
  • The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.93x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 21% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

Which industries have driven the changes within the U.K. Telecom sector?

GB Market3.99%
Telecom4.02%
Wireless Telecom6.46%
Interactive Media and Services4.10%
Media3.05%
Telecom Services and Carriers2.56%
Entertainment2.22%
Industry PE
  • Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 7.3%, which is higher than its past year's earnings decline of 10.1% per year.
  • Investors are most pessimistic about the Wireless Telecom industry, which is trading below its 3-year average of 15.5x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings decline of 14% per year.
  • In contrast, the Entertainment industry is expected to see its earnings grow by 7.3% 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
VOD Vodafone GroupUK£0.706.5%
+UK£1.1b
5.2%PE8.7x
BT.A BT GroupUK£1.663.1%
+UK£489.9m
57.2%PE21.2x
AAF Airtel AfricaUK£1.646.4%
+UK£356.7m
51.9%PE133x
AUTO Auto Trader GroupUK£7.985.3%
+UK£353.3m
19.4%PE25.1x
ITV ITVUK£0.7612.2%
+UK£304.5m
8.1%PE6.9x
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