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U.K. (FTSE) Telecom Sector Analysis

UpdatedApr 27, 2024
DataAggregated Company Financials
Companies71
  • 7D2.0%
  • 3M-1.6%
  • 1Y-13.2%
  • YTD-1.3%

In the last week, the Telecom industry is up 2.0%, with Vodafone Group up 3.1%. However, the industry is down 13% over the past year. Earnings are forecast to grow by 5.0% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 27 Apr 2024UK£81.5bUK£95.0bUK£12.4b19.2x6.6x0.9x
Mon, 25 Mar 2024UK£82.3bUK£95.1bUK£12.4b20.9x6.6x0.9x
Wed, 21 Feb 2024UK£80.8bUK£95.1bUK£12.7b20.4x6.4x0.9x
Fri, 19 Jan 2024UK£83.1bUK£97.1bUK£12.8b17.2x6.5x0.9x
Sun, 17 Dec 2023UK£84.0bUK£97.3bUK£12.9b17.2x6.5x0.9x
Tue, 14 Nov 2023UK£83.3bUK£98.3bUK£14.2b17.9x5.9x0.8x
Thu, 12 Oct 2023UK£84.5bUK£97.8bUK£14.1b17.4x6x0.9x
Sat, 09 Sep 2023UK£82.1bUK£97.3bUK£14.0b17.9x5.9x0.8x
Mon, 07 Aug 2023UK£84.5bUK£97.2bUK£13.7b19.9x6.2x0.9x
Wed, 05 Jul 2023UK£84.3bUK£95.9bUK£13.9b21.2x6.1x0.9x
Fri, 02 Jun 2023UK£87.9bUK£96.1bUK£13.9b20.8x6.3x0.9x
Sun, 30 Apr 2023UK£97.3bUK£97.2bUK£5.4b22.2x18.1x1x
Tue, 28 Mar 2023UK£91.5bUK£97.0bUK£5.4b19.5x16.9x0.9x
Thu, 23 Feb 2023UK£97.8bUK£96.4bUK£5.6b16.9x17.5x1x
Sat, 21 Jan 2023UK£91.9bUK£96.2bUK£5.5b16.9x16.7x1x
Mon, 19 Dec 2022UK£90.8bUK£99.8bUK£5.7b17.7x15.8x0.9x
Wed, 16 Nov 2022UK£98.7bUK£99.7bUK£5.6b20.1x17.5x1x
Fri, 14 Oct 2022UK£319.3bUK£99.1bUK£5.2b17.8x61.3x3.2x
Sun, 11 Sep 2022UK£104.0bUK£98.8bUK£5.3b21.7x19.6x1.1x
Tue, 09 Aug 2022UK£113.0bUK£97.5bUK£4.9b21.7x23.2x1.2x
Thu, 07 Jul 2022UK£113.0bUK£96.2bUK£4.1b20.7x27.5x1.2x
Sat, 04 Jun 2022UK£117.7bUK£96.0bUK£4.1b24.3x28.6x1.2x
Mon, 02 May 2022UK£118.9bUK£93.8bUK£1.9b26.2x63.4x1.3x
Wed, 30 Mar 2022UK£126.8bUK£93.1bUK£2.6b26.1x48x1.4x
Fri, 25 Feb 2022UK£125.7bUK£92.3bUK£2.1b27.6x59.3x1.4x
Sun, 23 Jan 2022UK£129.1bUK£92.1bUK£1.9b33.9x67.1x1.4x
Tue, 21 Dec 2021UK£124.6bUK£93.1bUK£1.9b33x64.2x1.3x
Thu, 18 Nov 2021UK£132.5bUK£92.4bUK£1.8b37.8x73.6x1.4x
Sat, 16 Oct 2021UK£126.8bUK£91.5bUK£1.9b38.5x68.2x1.4x
Mon, 13 Sep 2021UK£133.0bUK£91.7bUK£1.9b31.1x71.6x1.5x
Wed, 11 Aug 2021UK£135.4bUK£91.6bUK£1.9b35.2x72.4x1.5x
Sun, 06 Jun 2021UK£130.7bUK£90.8bUK£129.1m34.7x1012.1x1.4x
Price to Earnings Ratio

1057.5x


Total Market Cap: UK£131.3bTotal Earnings: UK£124.1mTotal Revenue: UK£90.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 87x202220232024
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 6.6x which is lower than its 3-year average PE of 87.0x.
  • 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 364% 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 Market2.84%
Telecom1.96%
Entertainment3.98%
Wireless Telecom2.88%
Interactive Media and Services2.86%
Media2.05%
Telecom Services and Carriers-0.85%
Industry PE
  • Investors are most optimistic about the Media industry even though it's trading below its 3-year average PE ratio of 50.0x.
    • Analysts are expecting annual earnings growth of 21.2%, which is higher than its past year's earnings decline of 11.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings decline of 59% per year.
  • In contrast, the Wireless Telecom industry is expected to see its earnings decline by 18% 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£0.693.1%
+UK£563.3m		-28.0%PE2.1x
WPP WPPUK£8.124.9%
+UK£409.8m		-12.4%PE78.9x
AUTO Auto Trader GroupUK£6.954.0%
+UK£236.6m		9.4%PE26.6x
INF InformaUK£8.012.2%
+UK£213.2m		10.8%PE25.9x
AAF Airtel AfricaUK£1.101.9%
+UK£74.4m		-8.6%PE38.4x
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Latest News

WPP

UK£8.12

WPP

7D

4.9%

1Y

-12.4%

VOD

UK£0.69

Vodafone Group

7D

3.1%

1Y

-28.0%

INF

UK£8.01

Informa

7D

2.2%

1Y

10.8%

Informa (LON:INF) Is Increasing Its Dividend To £0.122

Apr 25
Informa (LON:INF) Is Increasing Its Dividend To £0.122

GAMA

UK£13.10

Gamma Communications

7D

-1.4%

1Y

12.7%

Gamma Communications' (LON:GAMA) Shareholders Will Receive A Bigger Dividend Than Last Year

Apr 23
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TRST

UK£1.93

Trustpilot Group

7D

4.8%

1Y

117.9%

AAF

UK£1.10

Airtel Africa

7D

1.9%

1Y

-8.6%

RMV

UK£5.15

Rightmove

7D

1.1%

1Y

-10.4%

YOU

UK£8.90

YouGov

7D

-1.1%

1Y

4.7%

YouGov (LON:YOU) Seems To Use Debt Quite Sensibly

Apr 18
YouGov (LON:YOU) Seems To Use Debt Quite Sensibly

AUTO

UK£6.95

Auto Trader Group

7D

4.0%

1Y

9.4%

Auto Trader Group plc (LON:AUTO) Shares Could Be 23% Below Their Intrinsic Value Estimate

Apr 18
Auto Trader Group plc (LON:AUTO) Shares Could Be 23% Below Their Intrinsic Value Estimate

SFOR

UK£0.51

S4 Capital

7D

-7.8%

1Y

-65.5%

BT.A

UK£1.05

BT Group

7D

-0.4%

1Y

-33.9%

Returns On Capital Signal Tricky Times Ahead For BT Group (LON:BT.A)

Apr 15
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ZEG

UK£2.38

Zegona Communications

7D

-3.3%

1Y

362.1%

FUTR

UK£6.09

Future

7D

-1.8%

1Y

-46.0%

NEXN

UK£2.26

Nexxen International

7D

-2.6%

1Y

1.9%

HTWS

UK£0.94

Helios Towers

7D

-2.3%

1Y

-9.6%

Helios Towers plc (LON:HTWS) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Mar 17
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BCG

UK£2.25

Baltic Classifieds Group

7D

3.4%

1Y

38.5%