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

U.K. (FTSE) Telecom Sector Analysis

UpdatedDec 31, 2025
DataAggregated Company Financials
Companies59
  • 7D1.9%
  • 3M2.2%
  • 1Y21.8%
  • YTD20.5%

Airtel Africa is up 5.2%, leading the way for the Telecom industry, which has gained 1.9%. In the last 12 months, the industry was up 22%. As for the next few years, earnings are expected to grow by 31% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 31 Dec 2025UK£103.1bUK£96.9b-UK£1,401,763,653.3816.8x-73.6x1.1x
Fri, 28 Nov 2025UK£101.7bUK£97.3b-UK£1,399,865,026.0317.3x-72.7x1x
Sun, 26 Oct 2025UK£100.3bUK£95.5b-UK£1,462,442,122.6516.3x-68.6x1x
Tue, 23 Sep 2025UK£100.0bUK£95.5b-UK£1,442,231,128.3416.3x-69.3x1x
Thu, 21 Aug 2025UK£102.8bUK£95.3b-UK£1,379,481,593.0016.4x-74.5x1.1x
Sat, 19 Jul 2025UK£96.6bUK£95.5b-UK£909,999,895.0516.4x-106.1x1x
Mon, 16 Jun 2025UK£93.1bUK£92.9b-UK£616,515,171.9015.6x-151x1x
Wed, 14 May 2025UK£89.8bUK£92.5bUK£4.6b14.9x19.5x1x
Fri, 11 Apr 2025UK£82.3bUK£93.4bUK£4.6b16.1x17.9x0.9x
Sun, 09 Mar 2025UK£89.1bUK£87.1bUK£4.9b16.1x18.1x1x
Tue, 04 Feb 2025UK£89.9bUK£87.4bUK£4.6b18.5x19.6x1x
Thu, 02 Jan 2025UK£88.0bUK£87.1bUK£4.4b18.4x19.9x1x
Sat, 30 Nov 2024UK£89.2bUK£87.2bUK£4.4b20.8x20.1x1x
Mon, 28 Oct 2024UK£87.8bUK£86.9bUK£3.6b17.1x24.5x1x
Wed, 25 Sep 2024UK£91.3bUK£86.9bUK£3.7b21.2x24.9x1.1x
Fri, 23 Aug 2024UK£87.7bUK£87.6bUK£3.6b19.8x24.4x1x
Sun, 21 Jul 2024UK£87.4bUK£87.4bUK£3.2b19.4x27.6x1x
Tue, 18 Jun 2024UK£86.8bUK£87.6bUK£3.2b19.3x27.4x1x
Thu, 16 May 2024UK£87.2bUK£87.9bUK£4.2b20.1x20.8x1x
Sat, 13 Apr 2024UK£81.0bUK£95.0bUK£12.4b20.9x6.5x0.9x
Mon, 11 Mar 2024UK£81.5bUK£95.0bUK£12.2b21.5x6.7x0.9x
Wed, 07 Feb 2024UK£80.5bUK£94.9bUK£12.7b18.4x6.4x0.8x
Fri, 05 Jan 2024UK£86.1bUK£97.5bUK£13.0b16.8x6.6x0.9x
Sun, 03 Dec 2023UK£84.6bUK£97.1bUK£12.9b16.1x6.6x0.9x
Tue, 31 Oct 2023UK£81.3bUK£98.3bUK£14.2b18x5.7x0.8x
Thu, 28 Sep 2023UK£84.1bUK£98.1bUK£14.2b17.6x5.9x0.9x
Sat, 26 Aug 2023UK£80.7bUK£97.3bUK£14.0b17.6x5.8x0.8x
Mon, 24 Jul 2023UK£85.4bUK£96.2bUK£14.0b18.4x6.1x0.9x
Wed, 21 Jun 2023UK£86.2bUK£95.8bUK£13.9b21.6x6.2x0.9x
Fri, 19 May 2023UK£90.7bUK£96.6bUK£14.0b21.3x6.5x0.9x
Sun, 16 Apr 2023UK£94.9bUK£97.5bUK£5.3b21.3x17.8x1x
Tue, 14 Mar 2023UK£93.2bUK£97.5bUK£5.4b18x17.1x1x
Thu, 09 Feb 2023UK£96.5bUK£96.8bUK£5.6b18x17.3x1x
Sat, 07 Jan 2023UK£89.6bUK£96.4bUK£5.6b18.2x16.1x0.9x
Price to Earnings Ratio

16.1x


Total Market Cap: UK£89.6bTotal Earnings: UK£5.6bTotal Revenue: UK£96.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average -7.3x20242025
Current Industry PE
  • Investors are optimistic on the British Communication Services industry, and appear confident in long term growth rates.
  • The 3-year average PS ratio of 0.96x is lower than the industry's current PS ratio of 1.1x.
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 Market0.71%
Telecom1.93%
Wireless Telecom2.89%
Entertainment1.96%
Telecom Services and Carriers1.67%
Media1.63%
Interactive Media and Services0.29%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 30.5x.
    • Analysts are expecting annual earnings growth of 27.4%, which is higher than its past year's earnings decline of 13.7% 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 growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
AAF Airtel AfricaUK£3.555.8%
+UK£707.8m		212.7%PE35.4x
ZEG Zegona CommunicationsUK£13.955.3%
+UK£530.9m		233.7%PS4x
VOD Vodafone GroupUK£0.991.7%
+UK£381.4m		44.8%PS0.7x
WPP WPPUK£3.383.1%
+UK£110.5m		-59.2%PE9.5x
INF InformaUK£8.840.4%
+UK£46.1m		10.7%PE155.2x

Latest News

BT.A
UK£1.84
BT Group
7D
-0.4%
1Y
27.8%

What You Can Learn From BT Group plc's (LON:BT.A) P/E

Dec 30
What You Can Learn From BT Group plc's (LON:BT.A) P/E
AAF
UK£3.55
Airtel Africa
7D
5.8%
1Y
212.7%

Shareholders Would Enjoy A Repeat Of Airtel Africa's (LON:AAF) Recent Growth In Returns

Dec 29
Shareholders Would Enjoy A Repeat Of Airtel Africa's (LON:AAF) Recent Growth In Returns
AUTO
UK£5.86
Auto Trader Group
7D
-0.03%
1Y
-26.1%

AUTO: Diverging Broker Views And Dividend Actions Will Shape Future Expectations

Analysts have modestly reduced their price target on Auto Trader Group to about £6.30 per share from roughly £7.70, citing a slightly higher discount rate despite marginal improvements in long term revenue growth and profit margin expectations. Analyst Commentary Recent Street research reflects a cautious reassessment of Auto Trader Group, with bearish analysts highlighting a less compelling risk reward profile at current levels.
CAN
UK£2.67
Canal+
7D
1.7%
1Y
31.3%

There Are Reasons To Feel Uneasy About Canal+'s (LON:CAN) Returns On Capital

Dec 24
There Are Reasons To Feel Uneasy About Canal+'s (LON:CAN) Returns On Capital
RMV
UK£5.20
Rightmove
7D
0.9%
1Y
-19.0%

RMV Will Face Profit Pressure As AI Pivot Meets Rising Competition

Rightmove's analyst price target has been revised down from about £5.55 to £5.00, reflecting analysts' concerns over rising competitive pressures, a reset in guidance, and expectations that the company's AI driven growth strategy will weigh on near term profitability. Analyst Commentary Recent Street research has reinforced a cautious tone around Rightmove's equity story, with multiple bearish analysts cutting price targets and reassessing the risk reward profile as the company pivots toward an artificial intelligence driven strategy.
STVG
UK£1.06
STV Group
7D
-7.9%
1Y
-52.2%

STVG: Margin Outlook Will Support Confidence Despite Near Term Revenue Headwinds

Analysts have trimmed their price target on STV Group from approximately £2.22 to £1.59, citing a sharper discount rate and lower expected revenue growth that more than offset improvements in profit margin and a cheaper projected valuation multiple. What's in the News STV Group plc stated that it will not propose an interim dividend for the period ended 30 June 2025, citing an uncertain trading environment, with the Board keeping the decision under review (Key Developments).
WPP
UK£3.38
WPP
7D
3.1%
1Y
-59.2%
ITV
UK£0.82
ITV
7D
1.1%
1Y
11.9%

ITV: Comcast Talks Will Expose Mounting Pressure On Core Broadcasting Profitability

Analysts have reduced their price target for ITV to approximately £1.05 per share from about £1.12. This reflects slightly lower assumptions for long term revenue growth, profit margins, and valuation multiples, while still maintaining a constructive view on the stock.
INF
UK£8.84
Informa
7D
0.4%
1Y
10.7%

INF: Future Returns Will Be Driven By Compounding B2B Events Recovery

Analysts have nudged their price target for Informa higher, reflecting a modest uptick in estimated fair value to about $10.93 and a higher future P E multiple, even as they factor in slightly lower revenue growth and profit margin forecasts. Analyst Commentary Recent research updates point to a constructive stance on Informa, with price targets moving higher as analysts refine their views on the group’s recovery trajectory and earnings power.
ZEG
UK£13.95
Zegona Communications
7D
5.3%
1Y
233.7%
VOD
UK£0.99
Vodafone Group
7D
1.7%
1Y
44.8%

VOD: Rising German Fiber Competition Will Pressure Cash Flows And Share Price

Analysts have nudged their consolidated price target for Vodafone Group modestly higher by roughly 7 percent to about 140 GBp, citing a lower perceived risk profile from a reduced discount rate and slightly better margin and earnings multiple assumptions, even as they factor in tougher revenue trends and competitive pressures in key European markets. Analyst Commentary Bearish analysts continue to flag structural and execution risks that, in their view, are not fully reflected in Vodafone Group's current valuation.
FOUR
UK£38.45
4imprint Group
7D
-0.3%
1Y
-20.8%
SYS1
UK£2.25
System1 Group
7D
-6.3%
1Y
-63.7%

Do System1 Group's (LON:SYS1) Earnings Warrant Your Attention?

Dec 11
Do System1 Group's (LON:SYS1) Earnings Warrant Your Attention?
SAA
UK£1.31
M&C Saatchi
7D
-1.1%
1Y
-22.9%
ALRT
UK£0.018
Defence Holdings
7D
-10.7%
1Y
4,566.7%
DEVO
UK£0.24
Devolver Digital
7D
-2.0%
1Y
-2.0%