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U.K. (FTSE) Telecom Sector Analysis

UpdatedJul 04, 2026
DataAggregated Company Financials
Companies57
  • 7D-1.1%
  • 3M-3.2%
  • 1Y1.6%
  • YTD-1.8%

Over the last 7 days, the Telecom industry has dropped 1.1%, driven by a pullback from Vodafone Group of 6.6%. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 26% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Jul 2026UK£89.5bUK£95.2bUK£2.0b13.9x44.4x0.9x
Tue, 02 Jun 2026UK£97.2bUK£98.3bUK£2.0b15x49.4x1x
Thu, 30 Apr 2026UK£98.3bUK£97.0b-UK£1,784,828,178.1715.2x-55.1x1x
Sat, 28 Mar 2026UK£93.0bUK£97.2b-UK£1,803,494,641.8213.8x-51.6x1x
Mon, 23 Feb 2026UK£98.7bUK£97.3b-UK£1,396,171,356.4716.2x-70.7x1x
Wed, 21 Jan 2026UK£104.7bUK£96.9b-UK£1,390,278,470.0816x-75.3x1.1x
Fri, 19 Dec 2025UK£100.9bUK£97.2b-UK£1,418,566,742.8417.1x-71.1x1x
Sun, 16 Nov 2025UK£99.4bUK£97.2b-UK£1,674,628,684.9717.1x-59.4x1x
Tue, 14 Oct 2025UK£98.5bUK£95.3b-UK£1,446,635,374.0416x-68.1x1x
Thu, 11 Sep 2025UK£101.6bUK£95.2b-UK£1,395,259,383.4516.1x-72.8x1.1x
Sat, 09 Aug 2025UK£99.9bUK£95.3b-UK£1,376,235,779.0216.5x-72.6x1x
Mon, 07 Jul 2025UK£96.3bUK£93.4b-UK£648,561,108.1816.7x-148.4x1x
Wed, 04 Jun 2025UK£93.2bUK£92.5b-UK£577,221,216.6315.8x-161.5x1x
Fri, 02 May 2025UK£90.7bUK£92.7bUK£4.6b15.2x19.9x1x
Sun, 30 Mar 2025UK£90.0bUK£92.3bUK£4.5b14.9x20x1x
Tue, 25 Feb 2025UK£90.0bUK£86.9bUK£4.6b18.2x19.6x1x
Thu, 23 Jan 2025UK£87.9bUK£88.0bUK£4.5b17.8x19.5x1x
Sat, 21 Dec 2024UK£86.7bUK£87.2bUK£4.4b19.6x19.6x1x
Mon, 18 Nov 2024UK£84.7bUK£87.4bUK£4.4b17.5x19x1x
Wed, 16 Oct 2024UK£88.1bUK£86.8bUK£3.7b20.4x24.1x1x
Fri, 13 Sep 2024UK£90.2bUK£87.5bUK£3.6b19.8x24.7x1x
Sun, 11 Aug 2024UK£85.9bUK£88.0bUK£3.6b21.3x23.8x1x
Tue, 09 Jul 2024UK£87.1bUK£87.6bUK£3.2b18.4x27.5x1x
Thu, 06 Jun 2024UK£90.1bUK£87.7bUK£3.2b20.2x28.4x1x
Sat, 04 May 2024UK£82.4bUK£95.0bUK£12.5b18x6.6x0.9x
Mon, 01 Apr 2024UK£82.5bUK£94.9bUK£12.4b21.2x6.6x0.9x
Wed, 28 Feb 2024UK£80.3bUK£94.9bUK£12.2b22.1x6.6x0.8x
Fri, 26 Jan 2024UK£85.3bUK£97.0bUK£12.8b17.9x6.7x0.9x
Sun, 24 Dec 2023UK£86.8bUK£97.6bUK£13.0b17.4x6.7x0.9x
Tue, 21 Nov 2023UK£83.7bUK£97.5bUK£13.1b16.6x6.4x0.9x
Thu, 19 Oct 2023UK£83.1bUK£98.1bUK£14.2b16.9x5.9x0.8x
Sat, 16 Sep 2023UK£85.7bUK£97.4bUK£14.0b20.2x6.1x0.9x
Mon, 14 Aug 2023UK£83.4bUK£97.4bUK£14.1b18.1x5.9x0.9x
Wed, 12 Jul 2023UK£82.3bUK£95.6bUK£13.8b20.2x5.9x0.9x
Price to Earnings Ratio

5.9x


Total Market Cap: UK£82.3bTotal Earnings: UK£13.8bTotal Revenue: UK£95.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average -15x202420252026
Current Industry PE
  • Investors are optimistic on the British Communication Services industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 44.4x which is higher than its 3-year average PE of -15.1x.
  • The industry is trading close to its 3-year average PS ratio of 0.97x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 47% per year over the last three years.
  • 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 Market1.61%
Telecom-1.08%
Entertainment2.82%
Interactive Media and Services2.80%
Media2.68%
Telecom Services and Carriers-3.20%
Wireless Telecom-3.46%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 10.4x.
    • Analysts are expecting annual earnings growth of 36.7%, which is lower than the prior year's growth of 208.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 37% over the next 5 years.
  • However this is lower than its past earnings growth rate of 209% per year.
  • In contrast, the Entertainment industry is expected to see its earnings decline by 8.1% 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
AAF Airtel AfricaUK£3.432.8%
+UK£335.7m		92.7%PE24.6x
INF InformaUK£9.172.1%
+UK£237.0m		13.5%PE1050.5x
CAN Canal+UK£2.638.6%
+UK£204.0m		15.2%PS0.4x
TRST Trustpilot GroupUK£2.7314.1%
+UK£133.2m		18.3%PE185.2x
AUTO Autotrader GroupUK£5.032.6%
+UK£104.5m		-37.9%PE13.9x

Latest News

BCG
UK£1.73
Baltic Classifieds Group
7D
-6.9%
1Y
-47.2%
WPP
UK£2.51
WPP
7D
1.4%
1Y
-52.2%
BT.A
UK£1.88
BT Group
7D
-3.4%
1Y
-4.2%
VOD
UK£0.99
Vodafone Group
7D
-6.6%
1Y
20.9%
Narrative Update • Jul 02

VOD: German Competition And Inorganic Investment Needs Will Pressure Future Returns

Vodafone Group's analyst price targets have generally shifted lower, with cuts such as £1.55 to £1.50 and £1.20 to £1.10. These changes reflect analyst concerns about German competitive pressures and the balance between UK growth, elevated spending, and German EBITDA trends.
RMV
UK£4.49
Rightmove
7D
2.1%
1Y
-41.9%
TRST
UK£2.73
Trustpilot Group
7D
14.1%
1Y
18.3%
Narrative Update • Jun 30

TRST: Shopify Partnership And German Expansion Will Support Stronger Future Returns

The latest analyst updates have lifted the implied fair value for Trustpilot Group to about £3.40 per share from roughly £3.07, with the shift mainly linked to firmer margin assumptions, a lower future P/E of around 42x, and recent supportive research including a new Overweight rating and raised price targets. Analyst Commentary Recent street research around Trustpilot Group gives a mixed picture, with some analysts pointing to underappreciated product strength and geographic opportunities, while others are more cautious.
AAF
UK£3.43
Airtel Africa
7D
2.8%
1Y
92.7%
Narrative Update • Jun 29

AAF: Higher Ownership And Execution Risks Will Likely Cap Future Upside

Airtel Africa’s analyst fair value estimate has been adjusted to £3.35 from £3.02, with analysts pointing to refreshed price targets around £4.50 and £4.40, as well as updated assumptions on discount rate, revenue growth, profit margin and future P/E as key drivers of the change. Analyst Commentary Recent research updates on Airtel Africa show that, while headline price targets have been refreshed, analysts are increasingly focused on how execution, capital allocation and growth assumptions stack up against the current valuation.
AUTO
UK£5.03
Autotrader Group
7D
2.6%
1Y
-37.9%
Narrative Update • Jun 26

AUTO: 2026 Execution Risks Will Pressure Pricing Power Despite Supportive EPS Outlook

The analyst price target for Auto Trader Group has been reset lower to reflect a fair value cut from £4.70 to £4.10, with analysts citing a higher discount rate, more cautious assumptions on revenue growth and margins, and a lower future P/E multiple, even as recent research includes both reduced and newly initiated Buy targets across the stock. Analyst Commentary Recent research on Auto Trader Group shows a mix of views, with several bearish analysts flagging valuation and execution risks alongside more positive coverage from large banks such as Goldman Sachs and JPMorgan.
CAN
UK£2.63
Canal+
7D
8.6%
1Y
15.2%
Narrative Update • Jun 26

CAN: Higher Discount Rate And Flat Revenue Outlook Will Pressure Shares

Analysts have trimmed their price target on Canal+ to £2.25 from £2.50, citing updated assumptions around the discount rate, revenue growth, profit margin and future P/E that point to a more conservative valuation framework. What's in the News for Canal+ Canal+ SA approved a 2025 final dividend of 2.2 euro cents per ordinary share, with an expected total distribution of about €21,572,127.66 to shareholders entitled to the dividend as of 31 December 2025, payable on 15 June 2026 to investors on the London Stock Exchange and South African branch register as of 12 June 2026.
HTWS
UK£2.03
Helios Towers
7D
-5.3%
1Y
65.0%
Narrative Update • Jun 25

HTWS: Expanded 2026 Tenancy Outlook And Lower Discount Rate Will Support Higher P/E

Analysts have raised their price target for Helios Towers by £0.45, citing updated assumptions around the company’s discount rate and valuation multiples reflected in recent research. What’s in the News for Helios Towers Helios Towers issued revised operating guidance for the full year 2026, providing updated expectations for its future activity.
FUTR
UK£2.96
Future
7D
-0.8%
1Y
-57.7%
Narrative Update • Jun 24

FUTR: Recent Downgrades And Buybacks Will Shape A More Cautious Outlook

Analysts have cut their average price target for Future plc to £3.55 from £9.90, reflecting lower fair value estimates, higher assumed risk and softer expectations for revenue growth, profit margins and future P/E multiples. Analyst Commentary Recent Street research on Future plc points to a clear shift in tone, with several bearish analysts rethinking their stance on the stock and its valuation.
DEVO
UK£0.17
Devolver Digital
7D
-5.4%
1Y
-23.9%
Analysis Article • Jun 23

We're Not Worried About Devolver Digital's (LON:DEVO) Cash Burn

We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...
INF
UK£9.17
Informa
7D
2.1%
1Y
13.5%
SFOR
UK£0.36
S4 Capital
7D
20.0%
1Y
40.1%
Narrative Update • Jun 18

SFOR: Higher Discount Rate Will Pressure Already Fragile Profitability Expectations

S4 Capital's latest narrative update reflects a lower analyst price target of £0.35, trimmed from £0.38, with analysts pointing to changes in fair value estimates, a higher discount rate, softer revenue expectations, and a much higher future P/E assumption as key drivers behind the shift. Analyst Commentary on S4 Capital Recent Street research on S4 Capital highlights a cautious tone, with the latest move being a trim in the price target to £0.35 from £0.38 while maintaining an Equal Weight stance.
ZEG
UK£15.50
Zegona Communications
7D
-9.9%
1Y
106.7%
CCP
UK£2.32
Celtic
7D
-3.7%
1Y
19.0%