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U.K. (FTSE) Telecom Sector Analysis

UpdatedNov 21, 2024
DataAggregated Company Financials
Companies70
  • 7D2.6%
  • 3M-0.7%
  • 1Y8.6%
  • YTD6.9%

The Telecom industry is up 3.0% in the last week, with BT Group up 9.6%. This means that the industry has gained 9.8% over the past year. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 21 Nov 2024UK£85.7bUK£87.3bUK£4.4b18.3x19.3x1x
Sat, 19 Oct 2024UK£89.0bUK£86.8bUK£3.7b20.2x24.4x1x
Mon, 16 Sep 2024UK£91.0bUK£87.5bUK£3.6b20x25x1x
Wed, 14 Aug 2024UK£87.1bUK£87.9bUK£3.6b19.9x24.2x1x
Fri, 12 Jul 2024UK£87.9bUK£87.4bUK£3.2b18.7x27.8x1x
Sun, 09 Jun 2024UK£87.8bUK£87.7bUK£3.2b19.2x27.7x1x
Tue, 07 May 2024UK£82.4bUK£95.0bUK£12.4b18x6.6x0.9x
Thu, 04 Apr 2024UK£81.7bUK£94.9bUK£12.4b20.1x6.6x0.9x
Sat, 02 Mar 2024UK£81.1bUK£95.0bUK£12.3b21.5x6.6x0.9x
Mon, 29 Jan 2024UK£86.7bUK£97.1bUK£12.8b18.2x6.8x0.9x
Wed, 27 Dec 2023UK£86.8bUK£97.6bUK£13.0b17.4x6.7x0.9x
Fri, 24 Nov 2023UK£82.8bUK£97.2bUK£13.0b16.4x6.4x0.9x
Sun, 22 Oct 2023UK£79.9bUK£98.3bUK£14.2b17.3x5.6x0.8x
Tue, 19 Sep 2023UK£84.6bUK£97.6bUK£14.1b19.3x6x0.9x
Thu, 17 Aug 2023UK£81.5bUK£97.0bUK£14.0b18x5.8x0.8x
Sat, 15 Jul 2023UK£84.2bUK£95.7bUK£13.9b20.8x6.1x0.9x
Mon, 12 Jun 2023UK£88.4bUK£95.9bUK£13.8b21.2x6.4x0.9x
Wed, 10 May 2023UK£95.0bUK£96.8bUK£5.3b21.9x17.8x1x
Fri, 07 Apr 2023UK£92.6bUK£97.6bUK£5.4b20.4x17.3x0.9x
Sun, 05 Mar 2023UK£98.4bUK£97.7bUK£5.6b16.8x17.6x1x
Tue, 31 Jan 2023UK£93.9bUK£96.3bUK£5.5b16.8x17x1x
Thu, 29 Dec 2022UK£91.9bUK£100.2bUK£5.8b17.9x15.9x0.9x
Sat, 26 Nov 2022UK£98.7bUK£99.4bUK£5.6b19x17.7x1x
Mon, 24 Oct 2022UK£93.4bUK£99.8bUK£5.2b17.4x17.9x0.9x
Wed, 21 Sep 2022UK£101.1bUK£99.3bUK£5.3b19.5x19x1x
Fri, 19 Aug 2022UK£112.4bUK£97.7bUK£4.9b23.1x23x1.2x
Sun, 17 Jul 2022UK£113.1bUK£96.2bUK£4.0b22.3x28.2x1.2x
Tue, 14 Jun 2022UK£111.6bUK£96.4bUK£4.0b21x27.8x1.2x
Thu, 12 May 2022UK£113.3bUK£94.9bUK£2.0b23x57.1x1.2x
Sat, 09 Apr 2022UK£125.0bUK£93.1bUK£2.6b24.5x48.3x1.3x
Mon, 07 Mar 2022UK£116.0bUK£92.3bUK£2.4b29.2x48.3x1.3x
Wed, 02 Feb 2022UK£131.4bUK£92.0bUK£1.9b32.7x68.4x1.4x
Fri, 31 Dec 2021UK£128.9bUK£92.3bUK£1.9b35.5x66.8x1.4x
Sun, 28 Nov 2021UK£124.8bUK£92.6bUK£1.8b35.4x68x1.3x
Price to Earnings Ratio

68x


Total Market Cap: UK£124.8bTotal Earnings: UK£1.8bTotal Revenue: UK£92.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Telecom Sector Price to Earnings3Y Average 24.4x202220232024
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 19.3x which is lower than its 3-year average PE of 24.4x.
  • The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.98x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 34% 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 Market0.73%
Telecom2.57%
Telecom Services and Carriers8.12%
Wireless Telecom2.59%
Interactive Media and Services1.17%
Media0.077%
Entertainment-1.42%
Industry PE
  • Investors are most optimistic about the Interactive Media and Services industry even though it's trading below its 3-year average PE ratio of 114x.
    • Analysts expect its future annual earnings growth (9.1%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 41% over the next 5 years.
  • This is better than its past earnings decline of 25% per year.
  • In contrast, the Interactive Media and Services industry is expected to see its earnings grow by 9.1% 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
BT.A BT GroupUK£1.509.6%
+UK£1.3b		22.4%PE19.2x
VOD Vodafone GroupUK£0.713.2%
+UK£527.8m		-4.9%PE9.4x
INF InformaUK£8.411.7%
+UK£182.3m		12.4%PE35.5x
ZEG Zegona CommunicationsUK£3.245.9%
+UK£136.7m		113.2%PS9.8x
AUTO Auto Trader GroupUK£8.021.8%
+UK£121.7m		12.6%PE25.6x
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