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U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies1092
  • 7D1.9%
  • 3M12.9%
  • 1Y23.2%
  • YTD7.8%

The market is up 1.9% in the last 7 days, led by the Industrials and Healthcare sectors. The market is up 23% over the last 12 months. As for the next few years, earnings are expected to grow by 13% per annum.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Mon, 27 Feb 2023UK£2.5tUK£2.2tUK£195.0b13.7x13x1.1x
Price to Earnings Ratio

13x


Total Market Cap: UK£2.5tTotal Earnings: UK£195.0bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.9x202420252026
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 20.8x which is higher than its 3-year average PE of 16.9x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.1% per year over the last three years.
  • Revenues have also declined 4.1% 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 Market1.85%
Industrials4.76%
Healthcare4.47%
Tech2.87%
Consumer Discretionary2.65%
Financials1.23%
Materials1.06%
Utilities0.95%
Telecom0.94%
Energy0.05%
Real Estate-0.019%
Consumer Staples-0.16%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 20.6x.
    • Analysts are expecting annual earnings growth of 24.6%, which is lower than the prior year's growth of 33.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings growth rate of 5.5% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.5% 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
RR. Rolls-Royce HoldingsUK£13.248.0%
+UK£8.2b		114.1%PE19.1xIndustrials
BA. BAE SystemsUK£21.6312.4%
+UK£7.1b		68.5%PE31.2xIndustrials
AZN AstraZenecaUK£152.902.6%
+UK£6.0b		31.9%PE31.2xHealthcare
REL RELXUK£22.9311.7%
+UK£4.4b		-42.4%PE20.1xIndustrials
GSK GSKUK£22.264.0%
+UK£3.4b		53.8%PE15.6xHealthcare
See more

Market Insights

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BA.
UK£21.63
BAE Systems
7D
12.4%
1Y
68.5%
RIO
UK£71.18
Rio Tinto Group
7D
-1.3%
1Y
40.6%
AZN
UK£152.90
AstraZeneca
7D
2.6%
1Y
31.9%
SHEL
UK£29.44
Shell
7D
1.9%
1Y
9.7%
ULVR
UK£53.20
Unilever
7D
-0.7%
1Y
8.0%

ULVR: Raised Fair Value Hinges On Margin Delivery And Cost Execution

Analysts have nudged their fair value estimate for Unilever higher to about £60 from roughly £59, citing slightly firmer margin assumptions and a modestly higher future P/E. This comes even as several firms have shifted to Hold or Neutral ratings and highlighted a more balanced risk and reward profile at current levels.
DGE
UK£17.82
Diageo
7D
-3.7%
1Y
-16.1%

DGE: Higher Risk Perception Will Cap Multiple Despite Slightly Firmer Earnings Assumptions

Analysts have lifted their implied price target for Diageo by £0.34 per share, reflecting slightly higher fair value estimates, supported by marginally firmer revenue and profit margin assumptions, alongside a modestly higher future P/E multiple. Analyst Commentary While the latest fair value work on Diageo points to a slightly higher implied price target, bearish analysts in other consumer names are still flagging some caution that can inform how you think about risk here.
CPG
UK£21.95
Compass Group
7D
7.9%
1Y
-21.8%
GSK
UK£22.26
GSK
7D
4.0%
1Y
53.8%
KAP
US$82.10
National Atomic Company Kazatomprom JSC
7D
-4.1%
1Y
121.6%

Uranium Supply Deficit And Contracting Trends Will Shape A Cautious But Balanced Outlook

Catalysts About National Atomic Company Kazatomprom JSC Kazatomprom is a Kazakhstan based producer and seller of natural uranium for the global nuclear fuel market. What are the underlying business or industry changes driving this perspective?
REL
UK£22.93
RELX
7D
11.7%
1Y
-42.4%
AHT
UK£51.06
Ashtead Group
7D
-3.1%
1Y
3.5%

AHT: Buybacks And Progressive Dividend Policy Will Support Further Upside

Analysts have raised their price target on Ashtead Group to £77.32 from £74.60, reflecting updated assumptions around revenue, profit margins and future P/E multiples in their models. What's in the News The Board reaffirmed full year Group rental revenue guidance for 2025/26 in a range of 0% to 4%, giving investors a clear view of the company’s current expectations for top line rental growth (Key Developments).
RR.
UK£13.24
Rolls-Royce Holdings
7D
8.0%
1Y
114.1%

RR.: Turnaround Progress And Quantum Advances Will Support Stronger Long Term Prospects

Analysts have lifted their price target on Rolls-Royce Holdings, with our fair value estimate moving from £15.68 to £16.25, citing updated assumptions around revenue growth, profit margins and future P/E multiples supported by recent positive research on Ultrafan and the wider turnaround story. Analyst Commentary Recent Street research has leaned constructive, with bullish analysts pointing to both the ongoing business turnaround and the potential of the Ultrafan program as key parts of the Rolls-Royce equity story.
BP.
UK£4.79
BP
7D
4.6%
1Y
6.0%
IMB
UK£32.00
Imperial Brands
7D
-2.6%
1Y
16.7%
BT.A
UK£2.03
BT Group
7D
-3.4%
1Y
38.2%
SSE
UK£25.50
SSE
7D
-2.5%
1Y
72.8%

SSE: Future Earnings Visibility And Grid Investment Plans May Support Funding

The updated analyst price target for SSE edges higher as fair value nudges to £25.26, supported by a series of recent target increases from major banks citing reassessments of discount rates, profit margins and future P/E assumptions. Analyst Commentary Recent Street research on SSE clusters around higher price targets, with several major banks adjusting their fair value assumptions and reaffirming positive stances.