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

U.K. (FTSE) Telecom Sector Analysis

UpdatedMay 20, 2026
DataAggregated Company Financials
Companies58
  • 7D-2.1%
  • 3M1.3%
  • 1Y13.3%
  • YTD5.3%

Over the last 7 days, the Telecom industry has dropped 2.1%, driven by a pullback from Airtel Africa of 19%. Over the past 12 months, the industry was up 13%. 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, 20 May 2026UK£99.1bUK£98.7bUK£1.8b14.5x53.9x1x
Fri, 17 Apr 2026UK£100.2bUK£97.2b-UK£1,803,182,730.6315.5x-55.6x1x
Sun, 15 Mar 2026UK£96.1bUK£97.0b-UK£2,071,523,559.5216.5x-46.4x1x
Tue, 10 Feb 2026UK£106.3bUK£97.1b-UK£1,364,048,079.4516.3x-77.9x1.1x
Thu, 08 Jan 2026UK£104.0bUK£96.7b-UK£1,377,315,549.7716.2x-75.5x1.1x
Sat, 06 Dec 2025UK£100.6bUK£97.1b-UK£1,404,493,444.5017.1x-71.6x1x
Mon, 03 Nov 2025UK£101.6bUK£96.0b-UK£1,364,273,085.9816.3x-74.5x1.1x
Wed, 01 Oct 2025UK£101.0bUK£95.5b-UK£1,472,490,214.4116.7x-68.6x1.1x
Fri, 29 Aug 2025UK£103.5bUK£95.2b-UK£1,373,481,538.6816.4x-75.4x1.1x
Sun, 27 Jul 2025UK£101.1bUK£96.4b-UK£1,295,019,105.4517.3x-78.1x1x
Tue, 24 Jun 2025UK£93.8bUK£93.2b-UK£633,958,062.1417x-148x1x
Thu, 22 May 2025UK£94.7bUK£93.0b-UK£865,642,878.2816x-109.4x1x
Sat, 19 Apr 2025UK£86.4bUK£93.1bUK£4.6b16.4x18.9x0.9x
Mon, 17 Mar 2025UK£88.4bUK£92.6bUK£4.8b15x18.4x1x
Wed, 12 Feb 2025UK£91.7bUK£87.5bUK£4.6b18.5x19.9x1x
Fri, 10 Jan 2025UK£85.8bUK£87.6bUK£4.4b18.3x19.3x1x
Sun, 08 Dec 2024UK£90.0bUK£87.1bUK£4.4b20.6x20.3x1x
Tue, 05 Nov 2024UK£86.4bUK£87.2bUK£3.6b17.4x24.1x1x
Thu, 03 Oct 2024UK£89.6bUK£86.9bUK£3.7b20.2x24.3x1x
Sat, 31 Aug 2024UK£88.7bUK£87.3bUK£3.6b19.9x24.7x1x
Mon, 29 Jul 2024UK£88.9bUK£87.5bUK£3.4b21x25.9x1x
Wed, 26 Jun 2024UK£87.2bUK£87.6bUK£3.2b18.8x27.6x1x
Fri, 24 May 2024UK£87.7bUK£87.7bUK£3.1b20.3x28.1x1x
Sun, 21 Apr 2024UK£80.0bUK£95.3bUK£12.5b19.2x6.4x0.8x
Tue, 19 Mar 2024UK£80.7bUK£95.2bUK£12.2b20.8x6.6x0.8x
Thu, 15 Feb 2024UK£79.6bUK£95.0bUK£12.7b19.8x6.3x0.8x
Sat, 13 Jan 2024UK£84.5bUK£97.3bUK£12.9b17.1x6.5x0.9x
Mon, 11 Dec 2023UK£85.7bUK£97.3bUK£12.9b16.7x6.6x0.9x
Wed, 08 Nov 2023UK£83.5bUK£98.1bUK£14.1b18x5.9x0.9x
Fri, 06 Oct 2023UK£81.7bUK£98.0bUK£14.2b17.3x5.8x0.8x
Sun, 03 Sep 2023UK£82.9bUK£97.2bUK£14.0b18.2x5.9x0.9x
Tue, 01 Aug 2023UK£86.2bUK£96.4bUK£13.7b19.4x6.3x0.9x
Thu, 29 Jun 2023UK£83.5bUK£96.3bUK£14.0b21x6x0.9x
Sat, 27 May 2023UK£88.8bUK£96.7bUK£14.0b21.1x6.3x0.9x
Price to Earnings Ratio

6.3x


Total Market Cap: UK£88.8bTotal Earnings: UK£14.0bTotal Revenue: UK£96.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average -16.8x202420252026
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 53.9x which is higher than its 3-year average PE of -16.8x.
  • 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 49% 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 Market0.16%
Telecom-2.10%
Media3.07%
Interactive Media and Services1.27%
Entertainment0.70%
Telecom Services and Carriers-1.04%
Wireless Telecom-6.44%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 4.5x.
    • Analysts are expecting annual earnings growth of 43.4%, 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 43% 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 4.0% 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£1.131.1%
+UK£276.3m		45.6%PS0.7x
INF InformaUK£8.132.3%
+UK£230.0m		0%PE933.4x
WPP WPPUK£2.797.4%
+UK£207.1m		-54.2%PS0.2x
CAN Canal+UK£2.425.4%
+UK£121.6m		24.3%PS0.4x
AUTO Autotrader GroupUK£5.031.8%
+UK£74.3m		-43.5%PE14x

Latest News

AAF
UK£3.34
Airtel Africa
7D
-19.3%
1Y
84.8%
HTWS
UK£2.35
Helios Towers
7D
-1.7%
1Y
105.1%
Narrative Update • May 17

HTWS: Upgraded 2026 Tenancy Pipeline Will Support Future P/E Upside

Helios Towers' analyst price targets have moved higher, with recent revisions to £2.30 and £2.70. These changes are supported by updated assumptions around fair value, discount rate, revenue growth and future P/E.
VOD
UK£1.13
Vodafone Group
7D
1.1%
1Y
45.6%
LBG
UK£0.36
LBG Media
7D
-4.5%
1Y
-60.6%
GAMA
UK£9.74
Gamma Communications
7D
8.9%
1Y
-18.2%
BCG
UK£1.90
Baltic Classifieds Group
7D
-0.9%
1Y
-48.1%
Narrative Update • May 12

BCG: Upcoming 2026 Shareholder Meeting Will Support Continued Upside Potential

Analysts have trimmed their price target for Baltic Classifieds Group from £2.61 to £2.50, reflecting updated assumptions for fair value, discount rate, revenue growth, profit margin, and future P/E. What's in the News Baltic Classifieds Group has scheduled a Special or Extraordinary Shareholders Meeting for May 27, 2026, at 11:00 FLE Standard Time.
WPP
UK£2.79
WPP
7D
7.4%
1Y
-54.2%
Narrative Update • May 10

WPP: Weak 2026 Guidance And Sector Pressures Will Limit Future Repricing

Analysts have nudged WPP's average price target slightly higher, with recent moves such as Citi's £0.10 raise and Barclays' lift to £3.00 at Equal Weight reflecting cautious acknowledgement of recent account wins, alongside tempered expectations for profit margins and growth. Analyst Commentary Recent research highlights a mixed backdrop for WPP, with some modest price target increases sitting alongside earlier reductions and continued Neutral or Equal Weight ratings.
INF
UK£8.13
Informa
7D
2.3%
1Y
0%
Analysis Article • May 08

Informa's (LON:INF) Conservative Accounting Might Explain Soft Earnings

Shareholders appeared unconcerned with Informa plc's ( LON:INF ) lackluster earnings report last week. Our analysis...
TIG
UK£0.37
Team Internet Group
7D
-4.4%
1Y
-48.3%
AUTO
UK£5.03
Autotrader Group
7D
1.8%
1Y
-43.5%
Narrative Update • May 06

AUTO: Future Margin Resilience Will Support Repriced P/E Despite Recent Downgrades

Analysts have trimmed the Autotrader Group price target by £1.19 per share. This reflects a slightly lower fair value estimate and a higher discount rate, along with modest adjustments to long term P/E assumptions following recent target cuts and a downgrade from several banks.
BT.A
UK£2.32
BT Group
7D
-1.3%
1Y
36.6%
Narrative Update • May 03

BT.A: Fibre Monetisation Execution Risks Will Likely Restrain Free Cash Flow Upside

Analysts have nudged their average price targets on BT Group higher, with recent moves to around £1.50 per share, helped by views that fibre monetisation could support stronger free cash flow over time. Analyst Commentary Recent research on BT Group has included both positive and cautious viewpoints, giving you a mixed picture of how the market is framing the current setup.
TRST
UK£2.44
Trustpilot Group
7D
2.9%
1Y
-1.0%
Narrative Update • Apr 30

TRST: Share Buyback And Richer P/E Assumptions Will Support Future Upside

Analysts have lifted their price target on Trustpilot Group to around £4.04 from about £3.80, citing updated assumptions for revenue growth, profit margins and future P/E multiples, supported by recent target increases from the Street. Analyst Commentary Bullish analysts are reacting to the recent research moves with a clear tilt toward higher valuation potential for Trustpilot Group.
CAN
UK£2.42
Canal+
7D
5.4%
1Y
24.3%
GMR
UK£0.32
Gaming Realms
7D
-5.6%
1Y
-30.4%
Narrative Update • Apr 25

GMR: Expanded Buyback Authorization Will Support Future Upside Potential

Analysts have raised their price target on Gaming Realms to £0.57, a modest increase supported by slightly revised assumptions for the discount rate, long-term revenue growth, profit margin and future P/E, which together leave their overall fair value assessment broadly unchanged. What's in the News On March 3, 2026, Gaming Realms increased its equity buyback authorization by £5 million to a total of £11 million, expanding the size of its existing share repurchase plan (Key Developments).
FOUR
UK£36.68
4imprint Group
7D
3.3%
1Y
4.5%
ZEG
UK£17.78
Zegona Communications
7D
-1.4%
1Y
150.4%