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

U.K. (FTSE) Telecom Sector Analysis

UpdatedDec 16, 2025
DataAggregated Company Financials
Companies59
  • 7D2.3%
  • 3M1.9%
  • 1Y18.0%
  • YTD18.9%

In the last week, the Telecom industry is up 2.3%, with Zegona Communications leading the way, up 8.0%. During this same period, the Informa underperformed, falling 5.4%. This takes the industry's 12 month performance to a gain of 18%. Looking forward, 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
Wed, 17 Dec 2025UK£102.1bUK£97.4b-UK£1,430,449,031.4417x-71.4x1x
Fri, 14 Nov 2025UK£100.3bUK£97.1b-UK£1,669,753,128.8917.3x-60.1x1x
Sun, 12 Oct 2025UK£98.9bUK£95.4b-UK£1,456,923,615.5116.3x-67.9x1x
Tue, 09 Sep 2025UK£102.0bUK£95.3b-UK£1,407,657,850.1316x-72.5x1.1x
Thu, 07 Aug 2025UK£101.6bUK£96.3b-UK£1,245,625,251.0016.3x-81.5x1.1x
Sat, 05 Jul 2025UK£96.3bUK£93.4b-UK£648,561,108.1816.7x-148.4x1x
Mon, 02 Jun 2025UK£93.5bUK£92.6b-UK£580,794,835.3115.8x-160.9x1x
Wed, 30 Apr 2025UK£89.2bUK£92.7bUK£4.5b16.3x19.6x1x
Fri, 28 Mar 2025UK£89.8bUK£92.2bUK£4.5b15.1x19.9x1x
Sun, 23 Feb 2025UK£89.3bUK£86.9bUK£4.6b18.3x19.5x1x
Tue, 21 Jan 2025UK£87.8bUK£88.0bUK£4.5b17x19.5x1x
Thu, 19 Dec 2024UK£88.5bUK£87.0bUK£4.4b19.4x20x1x
Sat, 16 Nov 2024UK£84.7bUK£87.4bUK£4.4b16.9x19.1x1x
Mon, 14 Oct 2024UK£87.5bUK£86.9bUK£3.7b20x23.9x1x
Wed, 11 Sep 2024UK£89.1bUK£87.4bUK£3.6b19.5x24.8x1x
Fri, 09 Aug 2024UK£85.8bUK£88.1bUK£3.6b21.1x23.8x1x
Sun, 07 Jul 2024UK£87.3bUK£87.6bUK£3.2b18.4x27.5x1x
Tue, 04 Jun 2024UK£90.3bUK£87.7bUK£3.2b21.8x28.6x1x
Thu, 02 May 2024UK£81.1bUK£95.0bUK£12.4b18.2x6.5x0.9x
Sat, 30 Mar 2024UK£82.5bUK£94.9bUK£12.4b21.2x6.6x0.9x
Mon, 26 Feb 2024UK£80.2bUK£94.9bUK£12.2b21.1x6.6x0.8x
Wed, 24 Jan 2024UK£84.6bUK£97.1bUK£12.8b17.2x6.6x0.9x
Fri, 22 Dec 2023UK£86.4bUK£97.7bUK£13.0b17x6.6x0.9x
Sun, 19 Nov 2023UK£83.8bUK£97.5bUK£13.1b16.6x6.4x0.9x
Tue, 17 Oct 2023UK£83.4bUK£97.9bUK£14.2b16.9x5.9x0.9x
Thu, 14 Sep 2023UK£84.5bUK£97.3bUK£14.0b20.3x6x0.9x
Sat, 12 Aug 2023UK£83.4bUK£97.4bUK£14.1b18.1x5.9x0.9x
Mon, 10 Jul 2023UK£81.9bUK£95.7bUK£13.9b20.5x5.9x0.9x
Wed, 07 Jun 2023UK£88.7bUK£96.3bUK£13.9b21.2x6.4x0.9x
Fri, 05 May 2023UK£94.4bUK£97.2bUK£5.4b21.6x17.6x1x
Sun, 02 Apr 2023UK£92.9bUK£97.3bUK£5.4b20.3x17.4x1x
Tue, 28 Feb 2023UK£98.4bUK£97.5bUK£5.6b16.3x17.5x1x
Thu, 26 Jan 2023UK£92.9bUK£96.4bUK£5.5b16.7x16.8x1x
Sat, 24 Dec 2022UK£91.6bUK£100.1bUK£5.8b17.8x15.8x0.9x
Price to Earnings Ratio

15.8x


Total Market Cap: UK£91.6bTotal Earnings: UK£5.8bTotal Revenue: UK£100.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average -6.1x202320242025
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 0.96x.
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 Market1.08%
Telecom2.32%
Telecom Services and Carriers5.65%
Interactive Media and Services2.47%
Wireless Telecom1.98%
Media-0.96%
Entertainment-2.56%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 30.0x.
    • Analysts are expecting annual earnings growth of 27.0%, 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 45% 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
ZEG Zegona CommunicationsUK£14.256.3%
+UK£645.3m		353.8%PS4.1x
BT.A BT GroupUK£1.821.9%
+UK£337.8m		23.7%PE18.8x
AAF Airtel AfricaUK£3.191.7%
+UK£197.0m		202.6%PE31.8x
WPP WPPUK£3.345.3%
+UK£179.2m		-61.0%PE9.4x
AUTO Auto Trader GroupUK£6.092.2%
+UK£112.4m		-24.5%PE17.6x

Latest News

FDEV
UK£4.58
Frontier Developments
7D
-11.9%
1Y
126.2%
ZEG
UK£14.25
Zegona Communications
7D
6.3%
1Y
353.8%
FUTR
UK£5.27
Future
7D
-9.1%
1Y
-45.3%
ITV
UK£0.82
ITV
7D
0.6%
1Y
14.5%

Is Now The Time To Look At Buying ITV plc (LON:ITV)?

Dec 15
Is Now The Time To Look At Buying ITV plc (LON:ITV)?
HTWS
UK£1.58
Helios Towers
7D
-4.6%
1Y
67.7%

HTWS: Share Repurchases Will Drive Future Upside Despite Higher Risk Premium

Analysts have nudged our fair value estimate for Helios Towers higher to reflect a tighter analyst price target range, with upside led by Berenberg's lift to 215 GBp and offset slightly by Deutsche Bank's trim to 245 GBp, both underpinned by expectations of stronger revenue growth and resilient margins despite a modestly higher discount rate and richer future earnings multiples. Analyst Commentary Bullish analysts highlight that the higher price target reflects growing confidence in Helios Towers' ability to convert its tenancy pipeline into sustained revenue expansion, supporting a rerating from previously more conservative valuation levels.
EVPL
UK£3.13
everplay group
7D
-5.4%
1Y
39.1%
AUTO
UK£6.09
Auto Trader Group
7D
2.2%
1Y
-24.5%

AUTO: Cautious Outlook Will Shape Expectations After Key Price Objective Cut

Analysts have trimmed their price target on Auto Trader Group from approximately 770 GBp to around 630 GBp, reflecting more cautious assumptions on revenue growth, profit margins, and valuation multiples, despite some supportive broker commentary. Analyst Commentary Recent Street research on Auto Trader Group highlights a mixed but increasingly cautious backdrop, with the latest price target moves pointing to heightened scrutiny of the company’s valuation and execution risks.
RMV
UK£5.21
Rightmove
7D
-1.7%
1Y
-22.8%

RMV: Artificial Intelligence Will Drive Future Efficiency Despite Competitive Pressures

The analyst price target for Rightmove has been reduced modestly, reflecting analysts' reassessment of the shares amid lowered Street targets in the 500 to 585 GBp range and concerns over intensifying competition and near-term profit pressure from its new AI-driven strategy. Analyst Commentary Street research on Rightmove has turned more cautious overall, with most recent actions centered on target cuts and rating downgrades as analysts factor in execution risk around the AI driven strategy and a more competitive landscape.
INF
UK£8.64
Informa
7D
-8.3%
1Y
5.9%

Revenues Not Telling The Story For Informa plc (LON:INF)

Dec 08
Revenues Not Telling The Story For Informa plc (LON:INF)
BCG
UK£1.96
Baltic Classifieds Group
7D
3.8%
1Y
-38.3%
AAF
UK£3.19
Airtel Africa
7D
1.7%
1Y
202.6%

AAF: Board Changes, Dividend And Buyback Extension Will Shape Balanced Outlook

Analysts have nudged their price target for Airtel Africa slightly higher to reflect modestly stronger expected revenue growth, which is only partially offset by a marginally lower profit margin and a slightly richer future valuation multiple. What's in the News Airtel Africa has scheduled a board meeting for January 29, 2026 to consider a directorate change, signaling potential shifts in senior leadership (company filing).
BT.A
UK£1.82
BT Group
7D
1.9%
1Y
23.7%

BT.A: Sector Mergers Will Drive Future Upside Despite Recent Rating Downgrades

Analysts have trimmed their average price target on BT Group from 225 GBp to 150 GBp, citing a less favorable relative outlook as sector merger dynamics and modestly softer growth expectations temper the company’s risk reward profile. Analyst Commentary Recent rating changes reflect a more balanced, wait and see stance on BT Group, with analysts reassessing the companys relative positioning as sector consolidation and shifting capital allocation priorities reshape the competitive landscape.
WPP
UK£3.34
WPP
7D
5.3%
1Y
-61.0%

WPP: Restructuring And AI Initiatives Will Drive Long-Term Share Re-Rating

Analysts have trimmed their price targets on WPP by roughly $3 per share, or about 10 to 15 percent, as they factor in a more cautious outlook tied to prolonged restructuring, balance sheet concerns, and slightly lower medium term growth expectations. Analyst Commentary Recent Street research on WPP highlights a mixed backdrop, with analysts balancing incremental optimism on valuation against ongoing concerns around execution risk and balance sheet strength.
VOD
UK£0.95
Vodafone Group
7D
0.4%
1Y
40.5%

VOD: Rising Fiber Competition And Efficiency Drives Will Balance Future Prospects

Vodafone Group's analyst consensus price target has increased from £0.89 to £0.90 per share, as analysts point to improved revenue growth projections and a higher future earnings multiple. This comes despite heightened risks in key markets.
BMY
UK£4.74
Bloomsbury Publishing
7D
-2.8%
1Y
-30.3%
CAN
UK£2.44
Canal+
7D
-2.6%
1Y
15.6%