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U.K. (FTSE) Telecom Sector Analysis

UpdatedApr 03, 2026
DataAggregated Company Financials
Companies59
  • 7D2.9%
  • 3M2.2%
  • 1Y17.7%
  • YTD2.2%

Over the last 7 days, the Telecom industry has risen 2.9%, driven by gains from BT Group of 5.6%. Meanwhile, Future actually underperformed within the industry, shrinking 32% in the last week. In the last 12 months, the industry was up 18%. Earnings are forecast to grow by 31% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 04 Apr 2026UK£97.0bUK£97.5b-UK£1,825,241,529.7314.6x-53.1x1x
Mon, 02 Mar 2026UK£99.6bUK£96.8b-UK£1,994,343,895.1516.4x-49.9x1x
Wed, 28 Jan 2026UK£106.4bUK£96.6b-UK£1,389,472,288.2716.2x-76.6x1.1x
Fri, 26 Dec 2025UK£101.2bUK£96.8b-UK£1,393,820,431.2316.7x-72.6x1x
Sun, 23 Nov 2025UK£98.7bUK£97.0b-UK£1,653,860,409.8516.5x-59.7x1x
Tue, 21 Oct 2025UK£99.2bUK£95.3b-UK£1,440,975,069.3715.6x-68.8x1x
Thu, 18 Sep 2025UK£101.3bUK£95.2b-UK£1,424,014,936.8716.2x-71.1x1.1x
Sat, 16 Aug 2025UK£101.6bUK£95.2b-UK£1,367,704,518.2216.5x-74.3x1.1x
Mon, 14 Jul 2025UK£95.9bUK£93.6b-UK£659,131,502.0615.8x-145.4x1x
Wed, 11 Jun 2025UK£92.5bUK£92.8b-UK£596,899,571.5416.4x-155x1x
Fri, 09 May 2025UK£89.0bUK£92.7bUK£4.5b15x19.7x1x
Sun, 06 Apr 2025UK£83.8bUK£93.0bUK£4.5b15.8x18.4x0.9x
Tue, 04 Mar 2025UK£89.1bUK£86.7bUK£4.9b16.4x18.1x1x
Thu, 30 Jan 2025UK£88.6bUK£87.6bUK£4.5b18.4x19.7x1x
Sat, 28 Dec 2024UK£87.6bUK£87.2bUK£4.4b18.5x19.8x1x
Mon, 25 Nov 2024UK£87.1bUK£87.3bUK£4.4b20.3x19.6x1x
Wed, 23 Oct 2024UK£87.5bUK£86.8bUK£3.6b18.2x24x1x
Fri, 20 Sep 2024UK£91.7bUK£87.3bUK£3.7b20.6x25x1.1x
Sun, 18 Aug 2024UK£88.7bUK£87.8bUK£3.6b20.2x24.7x1x
Tue, 16 Jul 2024UK£87.5bUK£87.3bUK£3.2b18.3x27.6x1x
Thu, 13 Jun 2024UK£86.1bUK£87.5bUK£3.2b19.7x27.2x1x
Sat, 11 May 2024UK£84.7bUK£95.0bUK£12.2b20x6.9x0.9x
Mon, 08 Apr 2024UK£80.8bUK£95.0bUK£12.4b20.1x6.5x0.9x
Wed, 06 Mar 2024UK£80.8bUK£94.9bUK£12.2b21.5x6.6x0.9x
Fri, 02 Feb 2024UK£84.4bUK£96.9bUK£12.8b17.7x6.6x0.9x
Sun, 31 Dec 2023UK£86.6bUK£97.6bUK£13.0b17x6.7x0.9x
Tue, 28 Nov 2023UK£83.0bUK£97.1bUK£13.0b15.2x6.4x0.9x
Thu, 26 Oct 2023UK£79.8bUK£98.3bUK£14.2b17.6x5.6x0.8x
Sat, 23 Sep 2023UK£85.7bUK£98.1bUK£14.2b19.3x6x0.9x
Mon, 21 Aug 2023UK£80.4bUK£97.0bUK£14.0b17.4x5.8x0.8x
Wed, 19 Jul 2023UK£84.0bUK£95.9bUK£13.9b20.2x6x0.9x
Fri, 16 Jun 2023UK£87.2bUK£95.9bUK£13.9b21.3x6.3x0.9x
Sun, 14 May 2023UK£93.1bUK£97.2bUK£5.4b21.5x17.4x1x
Tue, 11 Apr 2023UK£92.6bUK£97.2bUK£5.3b20.2x17.4x1x
Price to Earnings Ratio

17.4x


Total Market Cap: UK£92.6bTotal Earnings: UK£5.3bTotal Revenue: UK£97.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average -14.3x202420252026
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 PS ratio of 0.97x.
Past Earnings Growth
  • Total earnings for the Communication Services industry have declined over the last three years, with the industry now making a loss overall.
  • Meanwhile revenues have remained mostly flat.
  • This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

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

GB Market4.41%
Telecom2.90%
Telecom Services and Carriers4.89%
Interactive Media and Services3.46%
Wireless Telecom2.41%
Entertainment2.25%
Media1.15%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 19.5x.
    • Analysts are expecting annual earnings growth of 20.4%, which is higher than its past year's earnings growth of 8.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 44% over the next 5 years.
  • In contrast, the Entertainment industry is expected to see its earnings grow by 7.7% 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
BT.A BT GroupUK£2.165.6%
+UK£1.5b		24.6%PE22.7x
VOD Vodafone GroupUK£1.153.5%
+UK£877.7m		61.0%PS0.8x
INF InformaUK£7.852.8%
+UK£254.4m		8.7%PE905.6x
HTWS Helios TowersUK£1.899.3%
+UK£162.8m		78.1%PE65.2x
RMV RightmoveUK£4.294.1%
+UK£126.6m		-39.0%PE14.9x

Latest News

ITV
UK£0.76
ITV
7D
-0.5%
1Y
3.5%

ITV: Easing Advertising Headwinds Will Support Stronger Future Share Appeal

Analysts have nudged their price expectations for ITV higher, with the updated fair value estimate moving from £1.03 to £1.04 as they factor in easing pressure on advertising demand and slightly richer P/E assumptions, despite more cautious views on growth and margins. Analyst Commentary Recent Street research points to a more constructive tone around ITV, with bullish analysts emphasising easing pressure on advertising demand and a supportive valuation backdrop.
VOD
UK£1.15
Vodafone Group
7D
3.5%
1Y
61.0%

VOD: Higher Price Hopes Will Face Ongoing Execution Risk Concerns

The analyst fair value estimate for Vodafone has been adjusted higher to reflect a slightly lower discount rate, modest tweaks to revenue growth and profit margin assumptions, and a higher future P/E. Recent price target increases from multiple firms, including moves such as Berenberg's lift to £1.19 and Goldman Sachs's to £11.58, have reset expectations around the shares.
FUTR
UK£2.86
Future
7D
-32.0%
1Y
-61.1%
HTWS
UK£1.89
Helios Towers
7D
9.3%
1Y
78.1%

HTWS: Higher Cash Flow Confidence Will Support Future P/E Re Rating Potential

Helios Towers' analyst price target has increased to £2.34 from £2.28, with analysts highlighting recent target raises from firms that now expect the shares to reach £2.70 and £2.30 as key support for the revised outlook. Analyst Commentary Recent research activity around Helios Towers has focused on higher price targets clustered between £2.30 and £2.70, which feeds into the upgraded consensus target of £2.34.
RMV
UK£4.29
Rightmove
7D
4.1%
1Y
-39.0%
ZEG
UK£17.25
Zegona Communications
7D
1.8%
1Y
167.9%
DEVO
UK£0.22
Devolver Digital
7D
-6.4%
1Y
12.8%
INF
UK£7.85
Informa
7D
2.8%
1Y
8.7%

INF: Future Returns Will Be Driven By Ongoing Buybacks Despite AI Uncertainty

Informa's updated analyst price target has moved lower by £0.45 in fair value terms, reflecting a mix of modest target trims from £1,345 to £1,330 and £1,330 to £1,300, alongside one increase to £1,080 and a new £975 initiation, as analysts balance slightly adjusted growth, margin and P/E assumptions. Analyst Commentary Recent research updates present a mixed picture, with several price targets adjusted and one new initiation.
NFG
UK£2.26
Next 15 Group
7D
-5.8%
1Y
-13.7%

NFG: Analyst Day Updates Will Support Reappraisal Of Earnings Quality Outlook

Analysts have trimmed their average 12 month price target for Next 15 Group to £5.10, citing updated assumptions around a higher discount rate, a slightly larger forecast revenue decline, modestly stronger profit margins, and a small adjustment to future P/E expectations. What's in the News Next 15 Group held an Analyst/Investor Day, giving the market an opportunity to hear directly from management about the business and the outlook assumptions that may feed into valuation models (Key Developments).
AUTO
UK£4.75
Autotrader Group
7D
2.2%
1Y
-38.3%

AUTO: Recent Rating Shifts Will Set Up A Future Repricing Opportunity

Auto Trader Group's analyst price target has been marked down, reflected in a fair value move from about £10.05 to £8.90, as analysts point to lower price targets across several firms and slightly adjusted assumptions for discount rate, revenue growth, profit margin and future P/E. Analyst Commentary Recent Street research on Auto Trader Group has leaned cautious on price targets, but there are still some clear positives that stand out for you as an investor.
RCH
UK£0.60
Reach
7D
-2.9%
1Y
-14.3%

RCH: Firmer Margins And Lower Discount Rate Will Support Future Upside

Analysts have kept their £1.75 price target for Reach unchanged, citing slightly firmer margin and P/E assumptions that are largely offset by a modestly softer revenue growth outlook. Valuation Changes Fair Value: £1.75 remains unchanged, indicating no adjustment to the central valuation anchor.
WPP
UK£2.40
WPP
7D
3.3%
1Y
-57.4%

WPP: AI Uncertainty Will Eventually Give Way To Agency Model Re Rating

Analysts have trimmed their fair value estimates and lowered price targets for WPP to around £3.00 to £3.10 per share, reflecting higher discount rates, softer margin expectations and a higher assumed future P/E of about 27x, even as some recent research highlights that the business model is intact but still needs better organic growth momentum. Analyst Commentary Recent research on WPP clusters around neutral ratings with modestly trimmed price targets, but the tone is mixed.
BT.A
UK£2.16
BT Group
7D
5.6%
1Y
24.6%

BT.A: Execution Risks In Fiber Monetization Will Limit Future Upside

The analyst price target for BT Group has moved higher into a £1.50 to £2.50 range, with analysts pointing to improving fiber monetization and free cash flow potential as key reasons for the shift. Analyst Commentary Recent Street research highlights a mixed backdrop for BT Group, with price targets now spread across a relatively wide £1.50 to £2.50 range and different views on how quickly fiber investments might translate into cash returns.
CAU
UK£0.12
Centaur Media
7D
-49.6%
1Y
-55.2%
LBG
UK£0.56
LBG Media
7D
-4.1%
1Y
-47.7%
BOOM
UK£4.60
Audioboom Group
7D
-6.1%
1Y
5.0%