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U.K. (FTSE) Telecom Sector Analysis

UpdatedMar 19, 2024
DataAggregated Company Financials
Companies71
  • 7D-0.8%
  • 3M-1.0%
  • 1Y-9.9%
  • YTD-2.4%

Over the last 7 days, the Telecom industry has remained flat, although notably Vodafone Group declined by 4.0%. As for the longer term, the industry has declined 8.9% in the last year. Earnings are forecast to grow by 3.6% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Thu, 24 Mar 2022UK£125.5bUK£93.4bUK£2.7b26.8x46.3x1.3x
Sat, 19 Feb 2022UK£133.7bUK£92.4bUK£2.1b29.8x64.2x1.4x
Mon, 17 Jan 2022UK£129.0bUK£92.0bUK£1.9b34.6x67.4x1.4x
Wed, 15 Dec 2021UK£127.0bUK£92.9bUK£1.8b34.5x69.2x1.4x
Fri, 12 Nov 2021UK£132.5bUK£92.2bUK£2.0b39.3x67.6x1.4x
Sun, 10 Oct 2021UK£127.2bUK£91.7bUK£1.9b37.3x68.1x1.4x
Tue, 07 Sep 2021UK£136.3bUK£91.7bUK£1.9b31.1x73.3x1.5x
Thu, 05 Aug 2021UK£133.6bUK£91.6bUK£1.9b36.7x71.5x1.5x
Sun, 09 May 2021UK£131.3bUK£90.8bUK£124.1m33.7x1057.5x1.4x
Price to Earnings Ratio

1011.1x


Total Market Cap: UK£125.6bTotal Earnings: UK£124.2mTotal Revenue: UK£90.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 115.4x202220232024
Current Industry PE
  • Investors are pessimistic on the British Communication Services 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 6.7x which is lower than its 3-year average PE of 116x.
  • The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.86x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 362% 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 Market0.54%
Telecom-0.81%
Media1.36%
Interactive Media and Services-0.18%
Telecom Services and Carriers-2.01%
Entertainment-2.23%
Wireless Telecom-3.29%
Industry PE
  • Investors are most optimistic about the Media industry even though it's trading below its 3-year average PE ratio of 48.6x.
    • Analysts are expecting annual earnings growth of 22.8%, which is higher than its past year's earnings growth of 6.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is better than its past earnings growth rate of 6.2% per year.
  • In contrast, the Wireless Telecom industry is expected to see its earnings decline by 27% 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
INF InformaUK£8.232.7%
+UK£287.6m
22.3%PE26.7x
ZEG Zegona CommunicationsUK£2.1410.3%
+UK£140.8m
209.0%PB192.7x
GAMA Gamma CommunicationsUK£13.729.8%
+UK£118.9m
21.4%PE26.1x
ITV ITVUK£0.733.0%
+UK£78.3m
-9.4%PE13.9x
FOUR 4imprint GroupUK£60.904.6%
+UK£76.0m
30.0%PE20.5x
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Latest News

ITV

UK£0.73

ITV

7D

3.0%

1Y

-9.4%

VOD

UK£0.67

Vodafone Group

7D

-4.0%

1Y

-27.2%

TM17

UK£2.22

Team17 Group

7D

-7.5%

1Y

-46.5%

TRST

UK£2.05

Trustpilot Group

7D

3.9%

1Y

121.8%

NFG

UK£9.05

Next 15 Group

7D

-2.1%

1Y

0.9%

ZEG

UK£2.14

Zegona Communications

7D

10.3%

1Y

209.0%