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U.K. (FTSE) Market Analysis & Valuation

UpdatedMar 25, 2026
DataAggregated Company Financials
Companies1088
  • 7D-4.3%
  • 3M0.7%
  • 1Y15.0%
  • YTD-0.2%

Over the last 7 days, the market has dropped 4.3%, driven by declines in every sector, especially the Financials sector. In contrast to the last week, the market is actually up 15% over the past year. Earnings are forecast to grow by 12% 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, 25 Mar 2026UK£2.8tUK£2.0tUK£156.6b14.7x17.8x1.4x
Fri, 20 Feb 2026UK£3.0tUK£2.0tUK£148.6b16.7x20.4x1.5x
Sun, 18 Jan 2026UK£2.9tUK£2.0tUK£137.9b16.7x21.3x1.5x
Tue, 16 Dec 2025UK£2.8tUK£2.0tUK£138.2b16x20.2x1.4x
Thu, 13 Nov 2025UK£2.8tUK£2.0tUK£138.0b16.5x20.5x1.4x
Sat, 11 Oct 2025UK£2.7tUK£1.9tUK£135.8b16.8x20x1.4x
Mon, 08 Sep 2025UK£2.7tUK£1.9tUK£135.5b16.4x19.7x1.4x
Wed, 06 Aug 2025UK£2.6tUK£2.0tUK£135.0b16.3x19.6x1.4x
Fri, 04 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.2x19.6x1.3x
Sun, 01 Jun 2025UK£2.5tUK£1.9tUK£126.0b16.2x19.7x1.3x
Tue, 29 Apr 2025UK£2.4tUK£2.0tUK£134.4b15.3x17.8x1.2x
Thu, 27 Mar 2025UK£2.5tUK£2.0tUK£135.8b15.7x18.2x1.2x
Sat, 22 Feb 2025UK£2.5tUK£2.0tUK£137.5b16.2x18.2x1.2x
Mon, 20 Jan 2025UK£2.5tUK£2.1tUK£125.0b16x19.9x1.2x
Wed, 18 Dec 2024UK£2.4tUK£2.0tUK£122.0b15.9x19.7x1.2x
Fri, 15 Nov 2024UK£2.4tUK£2.0tUK£120.5b16.4x19.8x1.2x
Sun, 13 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.3x20.2x1.2x
Tue, 10 Sep 2024UK£2.4tUK£2.0tUK£119.5b16.5x20.3x1.2x
Thu, 08 Aug 2024UK£2.4tUK£2.0tUK£126.0b16.4x19x1.2x
Sat, 06 Jul 2024UK£2.4tUK£2.0tUK£130.7b16.8x18.5x1.2x
Mon, 03 Jun 2024UK£2.5tUK£2.0tUK£129.3b17.3x19.1x1.2x
Wed, 01 May 2024UK£2.4tUK£2.1tUK£143.4b16.3x17x1.2x
Fri, 29 Mar 2024UK£2.4tUK£2.1tUK£145.9b16.4x16.5x1.1x
Sun, 25 Feb 2024UK£2.3tUK£2.1tUK£196.4b15.6x11.8x1.1x
Tue, 23 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.6x11.7x1.1x
Thu, 21 Dec 2023UK£2.3tUK£2.1tUK£194.0b15.1x12.1x1.1x
Sat, 18 Nov 2023UK£2.3tUK£2.1tUK£194.6b14.4x11.6x1.1x
Mon, 16 Oct 2023UK£2.3tUK£2.2tUK£187.0b13.8x12.4x1.1x
Wed, 13 Sep 2023UK£2.3tUK£2.2tUK£185.5b14.5x12.5x1.1x
Fri, 11 Aug 2023UK£2.4tUK£2.1tUK£184.3b14.5x12.8x1.1x
Sun, 09 Jul 2023UK£2.3tUK£2.2tUK£207.1b14x10.9x1x
Tue, 06 Jun 2023UK£2.4tUK£2.2tUK£212.1b14.3x11.2x1.1x
Thu, 04 May 2023UK£2.4tUK£2.2tUK£208.2b14.4x11.7x1.1x
Sat, 01 Apr 2023UK£2.4tUK£2.2tUK£181.4b13.8x13.2x1.1x
Price to Earnings Ratio

13.2x


Total Market Cap: UK£2.4tTotal Earnings: UK£181.4bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.1x202420252026
Current Market PE
  • Investors are relatively neutral on the British market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
  • The market is trading close to its 3-year average PE ratio of 17.1x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 4.8% per year over the last three years.
  • Revenues have also declined 2.9% 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 Market-4.25%
Energy-0.031%
Tech-3.43%
Materials-3.44%
Financials-3.53%
Telecom-3.76%
Healthcare-4.16%
Consumer Discretionary-5.37%
Industrials-5.70%
Consumer Staples-5.96%
Real Estate-7.77%
Utilities-8.60%
Sector PE
  • Investors favour the Tech sector the most for future growth even though it's trading below its 3-year average PE ratio of 53.4x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.7%, which is higher than its past year's earnings growth of 7.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 32% over the next 5 years.
  • This is better than its past earnings growth rate of 0.7% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.6% 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
DPLM DiplomaUK£58.6516.6%
+UK£1.1b		48.1%PE42.5xIndustrials
BP. BPUK£5.581.0%
+UK£860.7m		26.2%PE2123.6xEnergy
GLEN GlencoreUK£5.280.7%
+UK£433.5m		73.4%PE228xMaterials
GAW Games Workshop GroupUK£181.004.4%
+UK£254.4m		26.0%PE29xConsumer Discretionary
ENT EntainUK£5.847.0%
+UK£244.3m		-10.7%PS0.7xConsumer Discretionary
See more

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Latest News

HBR
UK£2.94
Harbour Energy
7D
4.2%
1Y
46.5%
ENT
UK£5.84
Entain
7D
7.0%
1Y
-10.7%
IGG
UK£14.39
IG Group Holdings
7D
4.7%
1Y
49.7%
KAP
US$78.80
National Atomic Company Kazatomprom JSC
7D
1.0%
1Y
120.7%

KAP: Long Term Uranium Contracts Will Support Stronger Outlook

Analysts have revised their price target for National Atomic Company Kazatomprom JSC to $96.78 from $93.91, reflecting updated assumptions for revenue growth, profit margins, and a lower expected future P/E multiple. What's in the News A special shareholders meeting is set for April 6, 2026 to consider approving a major transaction involving assets valued at more than 50% of Kazatomprom's total book value.
BATS
UK£43.32
British American Tobacco
7D
-4.7%
1Y
38.1%

BATS: Future Returns Will Reflect Dividend Dependability And Measured Revenue Outlook

Analysts have made a small upward adjustment to their British American Tobacco price target to reflect modest tweaks to assumptions on fair value, discount rate, revenue growth, profit margin and future P/E, lifting the target from about £45.81 to roughly £45.85. What's in the News Reaffirmed full year 2026 earnings guidance, with constant currency revenue growth targeted at the lower end of a 3% to 5% range (company guidance).
ULVR
UK£45.28
Unilever
7D
-7.2%
1Y
-10.4%
BP.
UK£5.58
BP
7D
1.0%
1Y
26.2%

BP.: Future Returns Will Depend On Elevated Middle East Oil Supply Risks

Narrative Update The analyst price target for BP has been raised by £0.22. Analysts point to higher oil and gas price assumptions, tighter projected crude balances, and stronger valuation support for integrated energy majors as the key drivers of their updated view.
BA.
UK£21.27
BAE Systems
7D
-8.8%
1Y
35.5%

BA.: Raising Defence Exposure Should Support Earnings Repricing Beyond 2026

Narrative Update The analyst price target for BAE Systems has moved higher into a £1,860 to £2,438 range, reflecting analysts' updated views that supportive revenue growth assumptions, slightly softer margin expectations, and modestly adjusted future P/E multiples together justify a higher valuation. Analyst Commentary Recent Street research points to generally constructive sentiment on BAE Systems, with several bullish analysts moving price targets higher into the upper half of the current £1,860 to £2,438 range.
DPLM
UK£58.65
Diploma
7D
16.6%
1Y
48.1%
HSBA
UK£11.81
HSBC Holdings
7D
-2.1%
1Y
32.8%

HSBC Holdings (HSBA): The "East-West" Pivot and the Wealth Supercycle

Vestra has increased revenue growth from 5.4% to 166.9%.
AZN
UK£138.10
AstraZeneca
7D
-4.1%
1Y
22.0%

AZN: Oncology Pipeline And Breast Cancer Trial Readouts Will Support Re Rating

Analysts have lifted AstraZeneca's fair value estimate from £182.81 to £205.97 and raised several price targets, citing updated models, a higher assumed profit margin and a more constructive view on the earnings pipeline. Analyst Commentary Recent Street research points to a cluster of upbeat views on AstraZeneca, with several bullish analysts revisiting their models and adjusting price targets after fresh company updates and sector readthroughs.
RIO
UK£64.81
Rio Tinto Group
7D
-4.1%
1Y
33.5%

RIO: Ended Glencore Talks Will Refocus On Copper And Asset Sales

Analysts have trimmed the blended price target for Rio Tinto Group by roughly £400 to around £7,200, reflecting updated views on commodity risk, iron ore seasonality and valuation after recent share gains. Analyst Commentary Recent research shows a mixed but generally cautious stance on Rio Tinto, with several firms trimming price targets and shifting ratings toward more neutral positions after a strong share price run.
RR.
UK£11.66
Rolls-Royce Holdings
7D
-6.5%
1Y
45.4%

RR.: FY25 Beat And New Buyback Program Will Support Stronger Long Term Prospects

The analyst price target for Rolls-Royce Holdings is updated to a fair value of £17.70 from £16.25, based on Street research where analysts have raised targets to £12.50 and £16.00 following an FY25 beat and higher 2026 guidance. This also incorporates a slightly higher assumed discount rate, a higher revenue growth outlook, and a revised future P/E of 38.93x.
GLEN
UK£5.28
Glencore
7D
0.7%
1Y
73.4%

GLEN: Fair Outlook Weighs Ended Megamerger Talks And Mixed Earnings Expectations

Glencore's updated analyst price target edges lower to £4.60, reflecting a mix of recent target cuts and raises as analysts factor in slightly higher discount rates, modestly softer revenue growth and profit margin assumptions, and a higher assumed future P/E multiple. Analyst Commentary Recent research on Glencore shows a split in views, with some high profile firms lifting their targets and others turning more cautious.
NG.
UK£12.32
National Grid
7D
-9.5%
1Y
27.6%

NG.: Margin Resilience And P/E Expectations Will Shape Predictable Future Returns

Analysts have nudged their National Grid fair value estimate higher from £12.47 to £13.14, pointing to slightly firmer profit margin expectations and a modestly higher future P/E multiple, even as revenue growth assumptions are trimmed. Analyst Commentary Bullish Takeaways Bullish analysts view the uplift in fair value to £13.14 as consistent with a business that can sustain firmer profit margins over time, which they see as supportive of the overall earnings quality story.
GAW
UK£181.00
Games Workshop Group
7D
4.4%
1Y
26.0%