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

U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 21, 2026
DataAggregated Company Financials
Companies1092
  • 7D0.2%
  • 3M6.9%
  • 1Y19.1%
  • YTD2.3%

In the last week, the market has stayed flat, however the Energy sector stood out, gaining 3.3%. As for the longer term, the market has risen 20% in the past 12 months. Earnings are forecast to grow by 14% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 21 Jan 2026UK£2.9tUK£2.0tUK£137.6b16.7x21.1x1.5x
Fri, 19 Dec 2025UK£2.8tUK£2.0tUK£138.3b16.1x20.3x1.4x
Sun, 16 Nov 2025UK£2.8tUK£2.0tUK£139.2b16.4x20x1.4x
Tue, 14 Oct 2025UK£2.7tUK£1.9tUK£135.8b16.8x20.1x1.4x
Thu, 11 Sep 2025UK£2.7tUK£1.9tUK£136.8b16.3x19.5x1.4x
Sat, 09 Aug 2025UK£2.6tUK£1.9tUK£134.0b16.2x19.7x1.4x
Mon, 07 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.3x19.6x1.3x
Wed, 04 Jun 2025UK£2.5tUK£1.9tUK£127.2b16.2x19.5x1.3x
Fri, 02 May 2025UK£2.4tUK£2.0tUK£131.5b15.7x18.4x1.2x
Sun, 30 Mar 2025UK£2.5tUK£2.0tUK£135.5b15.5x18.2x1.2x
Tue, 25 Feb 2025UK£2.5tUK£2.0tUK£137.3b16.1x18.2x1.2x
Thu, 23 Jan 2025UK£2.5tUK£2.1tUK£124.1b15.8x20.1x1.2x
Sat, 21 Dec 2024UK£2.4tUK£2.0tUK£122.7b16x19.4x1.2x
Mon, 18 Nov 2024UK£2.4tUK£2.0tUK£121.8b16.3x19.5x1.2x
Wed, 16 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.5x20.4x1.2x
Fri, 13 Sep 2024UK£2.4tUK£2.0tUK£119.3b16.5x20.3x1.2x
Sun, 11 Aug 2024UK£2.4tUK£2.0tUK£123.3b16.4x19.6x1.2x
Tue, 09 Jul 2024UK£2.4tUK£2.0tUK£130.8b16.7x18.5x1.2x
Thu, 06 Jun 2024UK£2.5tUK£2.0tUK£129.7b16.8x19x1.2x
Sat, 04 May 2024UK£2.4tUK£2.1tUK£141.9b16.5x17.3x1.2x
Mon, 01 Apr 2024UK£2.4tUK£2.1tUK£145.9b16.4x16.5x1.1x
Wed, 28 Feb 2024UK£2.3tUK£2.0tUK£140.6b15.3x16.4x1.1x
Fri, 26 Jan 2024UK£2.3tUK£2.1tUK£193.0b14.9x11.8x1.1x
Sun, 24 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.2x12.1x1.1x
Tue, 21 Nov 2023UK£2.3tUK£2.1tUK£194.2b14.4x11.7x1.1x
Thu, 19 Oct 2023UK£2.3tUK£2.2tUK£187.2b13.7x12.4x1.1x
Sat, 16 Sep 2023UK£2.4tUK£2.2tUK£185.8b14.7x12.7x1.1x
Mon, 14 Aug 2023UK£2.3tUK£2.1tUK£184.6b14.3x12.6x1.1x
Wed, 12 Jul 2023UK£2.3tUK£2.2tUK£206.3b13.8x11x1x
Fri, 09 Jun 2023UK£2.4tUK£2.2tUK£210.5b14.2x11.3x1.1x
Sun, 07 May 2023UK£2.4tUK£2.2tUK£209.8b14.4x11.6x1.1x
Tue, 04 Apr 2023UK£2.4tUK£2.2tUK£180.9b13.8x13.3x1.1x
Thu, 02 Mar 2023UK£2.5tUK£2.2tUK£192.4b13.8x13.2x1.2x
Sat, 28 Jan 2023UK£2.5tUK£2.1tUK£183.6b14x13.6x1.2x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.5tTotal Earnings: UK£183.6bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.7x202420252026
Current Market PE
  • Investors are optimistic on the British market, and appear confident in strong long term growth rates.
  • The market is trading at a PE ratio of 21.2x which is higher than its 3-year average PE of 16.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.2% per year over the last three years.
  • Revenues have also declined 2.1% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Sector Trends

Which sectors have driven the changes within the U.K. Market?

GB Market0.18%
Utilities2.92%
Financials1.86%
Materials1.77%
Telecom1.10%
Real Estate1.06%
Energy0.95%
Consumer Staples0.34%
Industrials-1.59%
Tech-2.53%
Healthcare-2.55%
Consumer Discretionary-2.85%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 19.4x.
    • Analysts are expecting annual earnings growth of 30.1%, which is lower than the prior year's growth of 33.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 30% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.1% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuationSector
HSBA HSBC HoldingsUK£12.291.3%
+UK£2.8b		48.9%PB1.5xFinancials
KAP National Atomic Company Kazatomprom JSCUS$74.5014.8%
+US$2.5b		102.2%PE13.6xEnergy
NG. National GridUK£11.913.2%
+UK£1.8b		21.9%PE20.6xUtilities
NWG NatWest GroupUK£6.523.7%
+UK£1.8b		56.2%PB1.2xFinancials
BEZ BeazleyUK£11.2637.6%
+UK£1.8b		34.5%PE9.1xFinancials
See more

Market Insights

Header cover image
Why Didn’t Oil React to Venezuela? 🇻🇪
Stella Ong avatar
Stella Ong
|
|
Maduro is out, the US stepped in… and oil markets barely reacted? Let’s look at why.
Continue reading
Which Markets Will Sink or Swim in 2026? 🌍
Last Week

Which Markets Will Sink or Swim in 2026? 🌍

Latest News

AZN
UK£135.20
AstraZeneca
7D
-3.5%
1Y
22.3%
GSK
UK£17.96
GSK
7D
-3.4%
1Y
32.2%
NG.
UK£11.91
National Grid
7D
3.2%
1Y
21.9%

Is National Grid (LON:NG.) A Risky Investment?

Jan 20
Is National Grid (LON:NG.) A Risky Investment?
WISE
UK£9.68
Wise
7D
17.8%
1Y
-7.0%

WISE: Partnership Momentum Will Support Premium P/E Case Going Forward

Analysts have trimmed their price target on Wise to £13.75 from £13.80, citing updated assumptions on revenue growth, profit margins, and future P/E expectations. Analyst Commentary Recent research updates on Wise show that some bullish analysts are still constructive on the shares, even with a slightly lower price target of £13.75 compared to £13.80 previously.
BEZ
UK£11.26
Beazley
7D
37.6%
1Y
34.5%
RIO
UK£63.14
Rio Tinto Group
7D
1.6%
1Y
25.7%

RIO: Megamerger Talks And Critical Mineral Moves Will Shape Medium Term Outlook

Rio Tinto's updated analyst price targets, including recent moves to about £57.00, reflect analysts' use of higher fair value estimates, slightly adjusted discount rates, and refreshed assumptions around revenue, profit margins, and P/E multiples. Analyst Commentary Bullish Takeaways Bullish analysts are lifting price targets toward about £57.00, which signals more confidence in the underlying fair value they assign to Rio Tinto based on their updated models.
AHT
UK£50.00
Ashtead Group
7D
-7.1%
1Y
-8.5%

AHT: Buybacks And Rising Dividend Policy Will Drive Future Upside

The latest analyst update nudges the Ashtead Group fair value estimate from £57.25 to £58.85, with analysts pointing to revised assumptions for revenue growth, profit margins and future P/E as the key drivers behind the change. What's in the News Ashtead Group has an authorized share repurchase program of up to US$1,500m, running until the end of April 2027, as previously announced.
RR.
UK£12.81
Rolls-Royce Holdings
7D
-1.8%
1Y
115.7%

RR.: Future Engine Ambitions Will Likely Magnify Execution Risk Ahead

Analysts have trimmed their average fair value estimate for Rolls-Royce Holdings to £8.36 from £8.64, pointing to updated assumptions on discount rate, revenue growth, profit margins and future P/E, following recent research that highlights the company’s operational turnaround and potential upside from its next generation Ultrafan program. Analyst Commentary Recent research points to a mixed tone on Rolls-Royce, with some analysts highlighting the operational turnaround and potential upside linked to the Ultrafan program, while others flag valuation and execution risks that could limit near term upside.
PSON
UK£9.38
Pearson
7D
-12.8%
1Y
-26.7%
KAP
US$74.50
National Atomic Company Kazatomprom JSC
7D
14.8%
1Y
102.2%

There's No Escaping National Atomic Company Kazatomprom JSC's (LON:KAP) Muted Earnings Despite A 26% Share Price Rise

Jan 16
There's No Escaping National Atomic Company Kazatomprom JSC's (LON:KAP) Muted Earnings Despite A 26% Share Price Rise
EXPN
UK£32.27
Experian
7D
-3.3%
1Y
-15.7%
HSBA
UK£12.29
HSBC Holdings
7D
1.3%
1Y
48.9%
NWG
UK£6.52
NatWest Group
7D
3.7%
1Y
56.2%
REL
UK£30.09
RELX
7D
-3.7%
1Y
-24.7%

REL: Earnings Guidance And Margin Outlook Will Support Future Generative AI Upside

Analysts have trimmed their fair value estimate for RELX from £44.18 to £43.85 per share, reflecting slightly adjusted assumptions around discount rates, revenue growth, profit margins, and future P/E levels. What's in the News RELX reaffirmed earnings guidance for the full year 2025, indicating expectations for continued underlying revenue growth.
CPG
UK£22.53
Compass Group
7D
-2.6%
1Y
-16.6%

CPG: Strengthened European Platform And Better Returns Profile Should Drive Future Upside

Analysts have inched their blended price target higher to about £31.00 per share, supported by updated assumptions for slightly stronger revenue growth, modestly improved profit margins, and a marginally higher future P/E multiple, which align with recent Street research highlighting a stronger long term growth platform and improved returns profile. Analyst Commentary Recent Street research on Compass Group has focused on fine tuning upside potential and reassessing how much of the long term growth and returns story is already reflected in the share price.
III
UK£32.22
3i Group
7D
5.2%
1Y
-15.5%

III: Slower Momentum Will Still Deliver Compounding Returns And Dividend Support

Analysts have trimmed their 3i Group price target to £31.50 from £41.00, reflecting updated assumptions for the discount rate and earnings multiples as they factor in what they describe as slower momentum for the company. Analyst Commentary Recent research on 3i Group is skewed toward caution, with bearish analysts pointing to slower momentum and a valuation reset as key reasons for trimming expectations.