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U.K. (FTSE) Telecom Sector Analysis

UpdatedSep 26, 2023
DataAggregated Company Financials
Companies82
  • 7D0.2%
  • 3M1.6%
  • 1Y-6.7%
  • YTD-1.0%

The Telecom is pretty flat in the last 7 days, but Rightmove has stood out, gaining 4.7%. As for the longer term, the industry has declined 6.7% in the last year. As for the next few years, earnings are forecast to decline by 4.9% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 26 Sep 2023UK£84.7bUK£98.0bUK£14.2b18.1x6x0.9x
Thu, 24 Aug 2023UK£81.0bUK£97.1bUK£14.0b17.6x5.8x0.8x
Sat, 22 Jul 2023UK£85.4bUK£96.2bUK£14.0b18.4x6.1x0.9x
Mon, 19 Jun 2023UK£87.4bUK£95.7bUK£13.8b21.4x6.3x0.9x
Wed, 17 May 2023UK£91.1bUK£96.7bUK£13.9b21.4x6.6x0.9x
Fri, 14 Apr 2023UK£94.3bUK£97.3bUK£5.3b20.3x17.7x1x
Sun, 12 Mar 2023UK£96.7bUK£97.7bUK£5.5b18.4x17.7x1x
Tue, 07 Feb 2023UK£95.2bUK£93.0bUK£5.6b18x17x1x
Thu, 05 Jan 2023UK£88.4bUK£96.4bUK£5.6b18.3x15.9x0.9x
Sat, 03 Dec 2022UK£97.2bUK£99.1bUK£5.6b18.1x17.3x1x
Mon, 31 Oct 2022UK£95.4bUK£99.0bUK£5.1b17.5x18.6x1x
Wed, 28 Sep 2022UK£97.2bUK£100.9bUK£5.2b18.3x18.6x1x
Fri, 26 Aug 2022UK£106.8bUK£97.4bUK£5.0b22.1x21.3x1.1x
Sun, 24 Jul 2022UK£117.3bUK£96.2bUK£4.0b22.3x29.2x1.2x
Tue, 21 Jun 2022UK£113.7bUK£96.6bUK£4.0b20.3x28.7x1.2x
Thu, 19 May 2022UK£114.3bUK£95.2bUK£4.1b24x28.1x1.2x
Sat, 16 Apr 2022UK£125.4bUK£92.6bUK£2.6b25.6x48.3x1.4x
Mon, 14 Mar 2022UK£119.2bUK£92.8bUK£2.4b29.2x49.2x1.3x
Wed, 09 Feb 2022UK£134.1bUK£92.8bUK£2.0b30.7x65.4x1.4x
Fri, 07 Jan 2022UK£129.2bUK£92.1bUK£1.9b34.7x67x1.4x
Sun, 05 Dec 2021UK£126.6bUK£93.0bUK£1.8b34.7x69x1.4x
Tue, 02 Nov 2021UK£125.8bUK£92.0bUK£1.9b38.5x64.9x1.4x
Thu, 30 Sep 2021UK£130.9bUK£92.4bUK£1.9b38.3x69.6x1.4x
Sat, 28 Aug 2021UK£135.6bUK£91.6bUK£1.9b35.5x72.5x1.5x
Sun, 04 Jul 2021UK£133.3bUK£91.5bUK£1.9b34.6x71.3x1.5x
Wed, 07 Apr 2021UK£125.6bUK£90.8bUK£124.2m33.9x1011.1x1.4x
Sat, 09 Jan 2021UK£113.8bUK£92.7b-UK£1,169,796,755.8935.6x-97.3x1.2x
Fri, 02 Oct 2020UK£93.7bUK£94.9bUK£728.6m27.9x128.6x1x
Price to Earnings Ratio

128.6x


Total Market Cap: UK£93.7bTotal Earnings: UK£728.6mTotal Revenue: UK£94.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 117.3x202120222023
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 6.0x which is lower than its 3-year average PE of 117x.
  • The 3-year average PS ratio of 1.3x 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 169% 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 Market-0.24%
Telecom0.21%
Interactive Media and Services2.95%
Wireless Telecom0.95%
Media-0.50%
Telecom Services and Carriers-2.06%
Entertainment-4.08%
Industry PE
  • Investors are most optimistic about the Media industry even though it's trading below its 3-year average PE ratio of 42.2x.
    • Analysts are expecting annual earnings growth of 22.4%, which is higher than its past year's earnings growth of 19.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Wireless Telecom industry is expected to see its earnings decline by 43% 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
RMV RightmoveUK£5.704.7%
+UK£207.6m
3.9%PE23.5x
AUTO Auto Trader GroupUK£6.203.3%
+UK£179.6m
7.6%PE24.3x
VOD Vodafone GroupUK£0.800.7%
+UK£154.3m
-25.0%PE2.1x
AAF Airtel AfricaUK£1.272.0%
+UK£93.8m
-8.1%PE17.7x
TRST Trustpilot GroupUK£0.9919.6%
+UK£69.7m
34.4%PS3.2x
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Latest News

VOD

UK£0.80

Vodafone Group

7D

0.7%

1Y

-25.0%

TRST

UK£0.99

Trustpilot Group

7D

19.6%

1Y

34.4%

GAMA

UK£10.90

Gamma Communications

7D

-6.2%

1Y

0.4%

TM17

UK£2.95

Team17 Group

7D

-10.6%

1Y

-26.3%

SFOR

UK£0.68

S4 Capital

7D

-9.2%

1Y

-53.1%

AUTO

UK£6.20

Auto Trader Group

7D

3.3%

1Y

7.6%

HTWS

UK£0.77

Helios Towers

7D

-7.8%

1Y

-31.9%

RCH

UK£0.82

Reach

7D

8.9%

1Y

10.3%