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U.K. (FTSE) Market Analysis & Valuation

UpdatedAug 25, 2025
DataAggregated Company Financials
Companies1121
  • 7D0.7%
  • 3M10.7%
  • 1Y12.8%
  • YTD16.7%

In the last week, the market has been flat. As for the longer term, the market has risen 13% in the past 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
Mon, 25 Aug 2025UK£2.7tUK£1.9tUK£134.1b16.1x20.1x1.4x
Wed, 23 Jul 2025UK£2.5tUK£1.9tUK£127.0b16.2x20x1.3x
Fri, 20 Jun 2025UK£2.5tUK£1.9tUK£127.5b16.2x19.5x1.3x
Sun, 18 May 2025UK£2.5tUK£2.0tUK£133.0b16.5x18.6x1.3x
Tue, 15 Apr 2025UK£2.3tUK£2.0tUK£135.1b14.9x17.1x1.2x
Thu, 13 Mar 2025UK£2.5tUK£2.0tUK£137.3b15.1x17.8x1.2x
Sat, 08 Feb 2025UK£2.5tUK£2.0tUK£124.0b16x20.3x1.2x
Mon, 06 Jan 2025UK£2.4tUK£2.1tUK£123.5b15.9x19.6x1.2x
Wed, 04 Dec 2024UK£2.5tUK£2.0tUK£122.8b16.3x20x1.2x
Fri, 01 Nov 2024UK£2.4tUK£2.0tUK£118.5b16.2x20.4x1.2x
Sun, 29 Sep 2024UK£2.5tUK£2.0tUK£117.8b17x20.8x1.2x
Tue, 27 Aug 2024UK£2.5tUK£2.0tUK£119.6b16.9x20.5x1.2x
Thu, 25 Jul 2024UK£2.4tUK£2.0tUK£129.6b16.4x18.5x1.2x
Sat, 22 Jun 2024UK£2.4tUK£2.0tUK£132.0b16.6x18.4x1.2x
Mon, 20 May 2024UK£2.5tUK£2.0tUK£125.9b17x20x1.2x
Wed, 17 Apr 2024UK£2.4tUK£2.1tUK£148.4b16.1x16.3x1.1x
Fri, 15 Mar 2024UK£2.3tUK£2.1tUK£144.9b16.3x16.1x1.1x
Sun, 11 Feb 2024UK£2.3tUK£2.0tUK£144.7b15.2x15.6x1.1x
Tue, 09 Jan 2024UK£2.3tUK£2.1tUK£193.2b15.1x12.1x1.1x
Thu, 07 Dec 2023UK£2.3tUK£2.1tUK£193.5b14.6x11.8x1.1x
Sat, 04 Nov 2023UK£2.2tUK£2.1tUK£193.8b14x11.6x1x
Mon, 02 Oct 2023UK£2.3tUK£2.2tUK£186.2b14.6x12.6x1.1x
Wed, 30 Aug 2023UK£2.3tUK£2.2tUK£184.0b14.6x12.5x1.1x
Fri, 28 Jul 2023UK£2.4tUK£2.2tUK£206.4b14.3x11.7x1.1x
Sun, 25 Jun 2023UK£2.3tUK£2.2tUK£208.4b14.1x11.1x1.1x
Tue, 23 May 2023UK£2.4tUK£2.2tUK£216.8b14.4x11.3x1.1x
Thu, 20 Apr 2023UK£2.5tUK£2.2tUK£179.2b14x13.9x1.1x
Sat, 18 Mar 2023UK£2.3tUK£2.2tUK£185.7b13.2x12.5x1.1x
Mon, 13 Feb 2023UK£2.5tUK£2.1tUK£195.5b13.8x12.9x1.2x
Wed, 11 Jan 2023UK£2.5tUK£2.1tUK£185.2b13.5x13.4x1.2x
Fri, 09 Dec 2022UK£2.4tUK£2.1tUK£185.5b13.4x13x1.1x
Sun, 06 Nov 2022UK£2.4tUK£2.3tUK£210.5b12.5x11.3x1x
Tue, 04 Oct 2022UK£2.3tUK£2.3tUK£208.7b12x11x1x
Thu, 01 Sep 2022UK£2.5tUK£2.3tUK£207.3b13.3x11.9x1.1x
Price to Earnings Ratio

11.9x


Total Market Cap: UK£2.5tTotal Earnings: UK£207.3bTotal Revenue: UK£2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 15.6x202320242025
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 20.1x which is higher than its 3-year average PE of 15.6x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 14% per year over the last three years.
  • Revenues have also declined 5.1% 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 Market0.73%
Consumer Staples2.42%
Financials2.22%
Consumer Discretionary2.21%
Healthcare2.08%
Materials1.98%
Real Estate1.71%
Telecom1.48%
Utilities1.27%
Tech1.15%
Energy0.22%
Industrials0.04%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.1x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 20.3%, which is higher than its past year's earnings growth of 9.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings growth rate of 7.0% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 6.8% 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£9.672.9%
+UK£4.6b		47.7%PB1.2xFinancials
ULVR UnileverUK£46.623.3%
+UK£3.7b		-3.1%PE24.1xConsumer Staples
AZN AstraZenecaUK£119.682.0%
+UK£3.6b		-8.5%PE30.2xHealthcare
SHEL ShellUK£26.922.2%
+UK£3.3b		-1.0%PE15.7xEnergy
RIO Rio Tinto GroupUK£46.013.4%
+UK£2.5b		-3.4%PE9.8xMaterials
See more

Market Insights

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Costain Group
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Costain Group's (LON:COST) Dividend Will Be £0.01

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SMWH
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IWG
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12.3%
AZN
UK£119.68
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7D
2.0%
1Y
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BAB
UK£10.00
Babcock International Group
7D
-4.5%
1Y
88.3%
ULVR
UK£46.62
Unilever
7D
3.3%
1Y
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Is Unilever (LON:ULVR) Using Too Much Debt?

Aug 17
Is Unilever (LON:ULVR) Using Too Much Debt?
FEVR
UK£8.42
Fevertree Drinks
7D
-11.0%
1Y
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When Should You Buy Fevertree Drinks PLC (LON:FEVR)?

Aug 15
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BA.
UK£17.64
BAE Systems
7D
-1.5%
1Y
34.4%

BAE Systems (LON:BA.) Will Pay A Dividend Of £0.135

Aug 14
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GSK
UK£14.80
GSK
7D
2.8%
1Y
-7.7%
LGEN
UK£2.57
Legal & General Group
7D
-0.9%
1Y
13.4%
STAN
UK£14.17
Standard Chartered
7D
5.7%
1Y
85.1%
SHEL
UK£26.92
Shell
7D
2.2%
1Y
-1.0%

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Aug 07
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DGE
UK£21.21
Diageo
7D
4.2%
1Y
-16.2%
RR.
UK£10.43
Rolls-Royce Holdings
7D
-3.6%
1Y
109.1%

Rising Supply Chain Risks And Slowing Demand Will Undercut Margins

Analysts have raised their price target for Rolls-Royce Holdings to £9.97, citing stronger cash flow forecasts, sustained operational improvements, and a more optimistic long-term aerospace outlook. Analyst Commentary Valuation concerns leading to a more cautious outlook after strong share price appreciation.
HSBA
UK£9.67
HSBC Holdings
7D
2.9%
1Y
47.7%
RIO
UK£46.01
Rio Tinto Group
7D
3.4%
1Y
-3.4%