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U.K. (FTSE) Market Analysis & Valuation

UpdatedAug 30, 2025
DataAggregated Company Financials
Companies1122
  • 7D2.7%
  • 3M15.1%
  • 1Y19.4%
  • YTD19.8%

The market is up 2.7% over the last week, with the Energy sector leading the way, up 5.0%. Meanwhile, the Financials sector has underperformed, shrinking 3.1% in that time. As for the past 12 months, the market is up 19%. As for the next few years, earnings are expected to grow by 12% 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
Sat, 30 Aug 2025UK£2.7tUK£1.9tUK£135.3b15.9x19.7x1.4x
Mon, 28 Jul 2025UK£2.6tUK£1.9tUK£125.2b16.4x20.5x1.3x
Wed, 25 Jun 2025UK£2.5tUK£1.9tUK£126.9b16.3x19.5x1.3x
Fri, 23 May 2025UK£2.5tUK£2.0tUK£126.6b16.3x19.6x1.3x
Sun, 20 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Tue, 18 Mar 2025UK£2.5tUK£2.0tUK£136.0b15.2x18.3x1.2x
Thu, 13 Feb 2025UK£2.5tUK£2.0tUK£121.9b16.4x20.9x1.3x
Sat, 11 Jan 2025UK£2.4tUK£2.1tUK£124.7b15.8x19.3x1.2x
Mon, 09 Dec 2024UK£2.4tUK£2.0tUK£122.3b16.5x20x1.2x
Wed, 06 Nov 2024UK£2.4tUK£2.0tUK£118.0b16.3x20.4x1.2x
Fri, 04 Oct 2024UK£2.4tUK£2.0tUK£118.5b16.6x20.5x1.2x
Sun, 01 Sep 2024UK£2.5tUK£2.0tUK£119.2b16.9x20.7x1.2x
Tue, 30 Jul 2024UK£2.4tUK£2.0tUK£127.1b16.5x19.2x1.2x
Thu, 27 Jun 2024UK£2.4tUK£2.0tUK£132.3b16.3x18.3x1.2x
Sat, 25 May 2024UK£2.5tUK£2.0tUK£126.3b17.2x19.6x1.2x
Mon, 22 Apr 2024UK£2.4tUK£2.1tUK£149.1b15.6x16x1.1x
Wed, 20 Mar 2024UK£2.3tUK£2.1tUK£145.0b15.9x16.1x1.1x
Fri, 16 Feb 2024UK£2.3tUK£2.0tUK£144.9b15.2x15.6x1.1x
Sun, 14 Jan 2024UK£2.3tUK£2.1tUK£193.4b14.9x12x1.1x
Tue, 12 Dec 2023UK£2.3tUK£2.1tUK£194.1b14.7x11.8x1.1x
Thu, 09 Nov 2023UK£2.2tUK£2.2tUK£194.8b13.8x11.5x1x
Sat, 07 Oct 2023UK£2.3tUK£2.2tUK£186.2b13.9x12.3x1.1x
Mon, 04 Sep 2023UK£2.3tUK£2.2tUK£184.9b14.5x12.5x1.1x
Wed, 02 Aug 2023UK£2.4tUK£2.2tUK£194.8b14.5x12.2x1.1x
Fri, 30 Jun 2023UK£2.3tUK£2.2tUK£209.0b14.1x11.1x1.1x
Sun, 28 May 2023UK£2.4tUK£2.2tUK£213.9b14x11.2x1.1x
Tue, 25 Apr 2023UK£2.5tUK£2.2tUK£178.6b14.2x13.9x1.1x
Thu, 23 Mar 2023UK£2.3tUK£2.2tUK£182.7b13.7x12.6x1.1x
Sat, 18 Feb 2023UK£2.6tUK£2.2tUK£202.9b13.8x12.7x1.2x
Mon, 16 Jan 2023UK£2.5tUK£2.1tUK£184.7b13.8x13.7x1.2x
Wed, 14 Dec 2022UK£2.4tUK£2.1tUK£185.1b13.3x13.1x1.2x
Fri, 11 Nov 2022UK£2.4tUK£2.3tUK£207.9b12.8x11.6x1.1x
Sun, 09 Oct 2022UK£2.3tUK£2.4tUK£209.0b11.9x11.1x1x
Tue, 06 Sep 2022UK£2.5tUK£2.3tUK£207.8b13x11.8x1.1x
Price to Earnings Ratio

11.8x


Total Market Cap: UK£2.5tTotal Earnings: UK£207.8bTotal Revenue: UK£2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 15.7x202320242025
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 19.7x which is higher than its 3-year average PE of 15.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 13% per year over the last three years.
  • Revenues have also declined 5.2% 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 Market2.67%
Energy5.01%
Materials0.75%
Tech-0.10%
Telecom-0.71%
Industrials-0.77%
Healthcare-1.49%
Utilities-1.80%
Consumer Staples-1.93%
Real Estate-2.96%
Consumer Discretionary-3.07%
Financials-3.08%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.2x.
    • 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 9.6% 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 6.6% 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
RR. Rolls-Royce HoldingsUK£10.702.6%
+UK£2.2b		115.6%PE15.5xIndustrials
SHEL ShellUK£27.241.2%
+UK£1.7b		1.6%PE15.8xEnergy
BP. BPUK£4.322.0%
+UK£1.3b		0.6%PE160.7xEnergy
AAL Anglo AmericanUK£22.783.5%
+UK£830.9m		-9.2%PS1.2xMaterials
FRES FresnilloUK£17.885.9%
+UK£729.5m		230.2%PE39xMaterials
See more

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RIO
UK£46.42
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0.9%
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NWG
UK£5.11
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7D
-9.2%
1Y
47.9%

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NatWest Group’s consensus price target has been modestly raised to £5.91, reflecting analyst confidence in improved earnings visibility, stable UK economic conditions, operational efficiency, and capital return potential. Analyst Commentary Bullish analysts cite improved earnings visibility and confidence in NatWest’s underlying profitability as drivers for higher price targets.
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5.9%
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4.7%

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Despite robust organic revenue growth, improved margins, solid cash flow, and ongoing geographic expansion supporting long-term prospects, Compass Group’s consensus analyst price target has marginally decreased from £27.94 to £27.44. Analyst Commentary Bullish analysts point to robust organic revenue growth, driven by strong contract wins and client retention.
BATS
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British American Tobacco
7D
-3.0%
1Y
47.6%
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57.8%
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-1.5%
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1.2%
1Y
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0.6%

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2.6%
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115.6%

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3.5%
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UK£9.47
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