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U.K. (FTSE) Market Analysis & Valuation

UpdatedMar 05, 2026
DataAggregated Company Financials
Companies1091
  • 7D-2.5%
  • 3M8.9%
  • 1Y21.6%
  • YTD6.4%

Over the last 7 days, the market has dropped 2.0%, driven by a pullback of 5.5% in the Consumer Staples sector. Meanwhile, the Energy sector has outperformed, gaining 4.6% in that time. In contrast to the last week, the market is actually up 21% over the past year. 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
Thu, 05 Mar 2026UK£3.0tUK£2.0tUK£150.9b16.6x19.8x1.5x
Sat, 31 Jan 2026UK£2.9tUK£1.9tUK£136.7b16.9x21.5x1.5x
Mon, 29 Dec 2025UK£2.8tUK£2.0tUK£137.9b16.1x20.5x1.4x
Wed, 26 Nov 2025UK£2.8tUK£2.0tUK£138.9b16.2x19.8x1.4x
Fri, 24 Oct 2025UK£2.8tUK£1.9tUK£135.8b16.6x20.3x1.4x
Sun, 21 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.4x19.6x1.4x
Tue, 19 Aug 2025UK£2.7tUK£1.9tUK£134.1b16.1x19.8x1.4x
Thu, 17 Jul 2025UK£2.5tUK£1.9tUK£127.6b16x19.7x1.3x
Sat, 14 Jun 2025UK£2.5tUK£1.9tUK£127.3b16.1x19.7x1.3x
Mon, 12 May 2025UK£2.4tUK£2.0tUK£130.8b16x18.6x1.2x
Wed, 09 Apr 2025UK£2.3tUK£2.0tUK£137.0b14.4x16.5x1.1x
Fri, 07 Mar 2025UK£2.5tUK£2.0tUK£137.6b15.6x18.1x1.2x
Sun, 02 Feb 2025UK£2.5tUK£2.0tUK£124.1b15.9x20.3x1.2x
Tue, 31 Dec 2024UK£2.4tUK£2.0tUK£122.8b15.9x19.4x1.2x
Thu, 28 Nov 2024UK£2.4tUK£2.0tUK£122.7b16.3x19.8x1.2x
Sat, 26 Oct 2024UK£2.4tUK£2.0tUK£123.5b16.2x19.7x1.2x
Mon, 23 Sep 2024UK£2.4tUK£2.0tUK£118.1b16.9x19.9x1.2x
Wed, 21 Aug 2024UK£2.4tUK£2.0tUK£121.4b17x20.1x1.2x
Fri, 19 Jul 2024UK£2.4tUK£2.0tUK£129.2b16.7x18.8x1.2x
Sun, 16 Jun 2024UK£2.4tUK£2.1tUK£130.6b16.4x18.6x1.2x
Tue, 14 May 2024UK£2.5tUK£2.1tUK£136.0b16.9x18.4x1.2x
Thu, 11 Apr 2024UK£2.4tUK£2.1tUK£147.3b16x16.3x1.1x
Sat, 09 Mar 2024UK£2.3tUK£2.1tUK£145.3b16x16.1x1.1x
Mon, 05 Feb 2024UK£2.3tUK£2.1tUK£183.3b14.8x12.5x1.1x
Wed, 03 Jan 2024UK£2.4tUK£2.1tUK£194.3b15.1x12.2x1.1x
Fri, 01 Dec 2023UK£2.3tUK£2.1tUK£193.6b14.3x11.7x1.1x
Sun, 29 Oct 2023UK£2.2tUK£2.2tUK£186.2b13.4x11.8x1x
Tue, 26 Sep 2023UK£2.3tUK£2.2tUK£186.8b14.4x12.5x1.1x
Thu, 24 Aug 2023UK£2.3tUK£2.1tUK£184.2b14.4x12.3x1.1x
Sat, 22 Jul 2023UK£2.4tUK£2.2tUK£206.7b14.1x11.6x1.1x
Mon, 19 Jun 2023UK£2.4tUK£2.2tUK£207.5b14.3x11.5x1.1x
Wed, 17 May 2023UK£2.4tUK£2.2tUK£218.8b14.4x11.1x1.1x
Fri, 14 Apr 2023UK£2.5tUK£2.2tUK£179.3b13.9x13.7x1.1x
Sun, 12 Mar 2023UK£2.5tUK£2.2tUK£189.2b13.5x13.1x1.1x
Price to Earnings Ratio

13.1x


Total Market Cap: UK£2.5tTotal Earnings: UK£189.2bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17x202420252026
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 19.6x which is higher than its 3-year average PE of 17.0x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 7.2% per year over the last three years.
  • Revenues have also declined 3.6% 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-2.48%
Energy1.36%
Industrials0.77%
Tech0.25%
Healthcare-1.77%
Utilities-2.21%
Telecom-2.47%
Real Estate-2.91%
Consumer Discretionary-3.36%
Consumer Staples-3.94%
Financials-3.99%
Materials-5.28%
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 53.3x.
    • 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 7.7% 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 5.1% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.9% 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
BA. BAE SystemsUK£22.697.7%
+UK£4.9b		39.9%PE32.7xIndustrials
RR. Rolls-Royce HoldingsUK£13.634.0%
+UK£4.4b		69.3%PE19.5xIndustrials
LSEG London Stock Exchange GroupUK£86.6011.1%
+UK£4.3b		-23.9%PE34.9xFinancials
SHEL ShellUK£30.641.7%
+UK£2.8b		21.2%PE13xEnergy
REL RELXUK£25.535.7%
+UK£2.4b		-31.9%PE22.2xIndustrials
See more

Market Insights

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Latest News

RR.
UK£13.63
Rolls-Royce Holdings
7D
4.0%
1Y
69.3%
BARC
UK£4.31
Barclays
7D
-8.5%
1Y
41.9%

BARC: Evelyn Bid And Wealth Expansion Will Support Stronger Future Returns

Narrative Update on Barclays Analysts have lifted their price target on Barclays to £5.30 from £4.92, reflecting updated assumptions that include a slightly lower discount rate, modestly adjusted revenue growth expectations, a higher projected profit margin, and a lower future P/E multiple. What's in the News Barclays issued earnings guidance for fiscal 2026, indicating expected Group total income of about £31b.
GSK
UK£21.15
GSK
7D
-4.5%
1Y
42.6%
LSEG
UK£86.60
London Stock Exchange Group
7D
11.1%
1Y
-23.9%

LSEG: Activist Review And Buybacks Will Support Long-Term Upside Potential

Analysts have nudged their price target on London Stock Exchange Group slightly higher to £123.11, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margins and future P/E expectations. What's in the News Elliott Investment Management is pressing London Stock Exchange Group to launch a review of its portfolio, covering its data business, exchange operations and 51% stake in Tradeweb Markets, and is urging up to £5b in share buybacks over the next 12 months (Bloomberg periodical and Key Developments, February 18 and 20, 2026).
BA.
UK£22.69
BAE Systems
7D
7.7%
1Y
39.9%
HSBA
UK£12.91
HSBC Holdings
7D
-7.4%
1Y
39.1%

HSBA: Future Returns Will Hinge On Cost Discipline And Capital Allocation

Analysts have lifted their price targets on HSBC Holdings into a higher £1,200 to £1,540 range, reflecting updated views on fair value, a lower discount rate, slightly adjusted revenue growth assumptions, firmer profit margin forecasts and a modestly lower future P/E multiple. Analyst Commentary Recent research suggests a tighter cluster of views around HSBC Holdings, with several banks updating their price targets into the current £1,200 to £1,540 range.
ULVR
UK£51.15
Unilever
7D
-5.3%
1Y
0.2%
WISE
UK£8.98
Wise
7D
7.5%
1Y
-6.7%

WISE: Slower Margin Delivery Will Eventually Challenge Optimistic Future P/E Assumptions

Analyst price targets for Wise have edged higher, with the latest revisions supported by slightly adjusted fair value, discount rate, revenue growth and profit margin assumptions, along with a modestly higher future P/E estimate that reflects recent Street research, including a £0.10 target increase and an upgrade in stance on the shares. Analyst Commentary The latest Street research on Wise points to a more constructive tone overall, with incremental target moves such as the £0.10 price target lift at JPMorgan and a stance change toward a more positive view.
RIO
UK£71.90
Rio Tinto Group
7D
-3.6%
1Y
46.6%

RIO: Post Glencore Talks And Copper Outlook Will Shape Balanced Risk Profile

Analysts have lifted their fair value estimate for Rio Tinto Group to the equivalent of about £69.66 per share, from £63.89. This reflects updated assumptions on discount rate, revenue growth, margins and future P/E, even as recent Street research shows a mix of reduced and raised price targets in the £5,900 to £8,300 range and a shift toward more Neutral and Equal Weight ratings.
ANTO
UK£40.45
Antofagasta
7D
-9.2%
1Y
122.2%

ANTO: High Copper Optimism Will Likely Outrun Centinela Execution And Delivery Risks

Narrative update The analyst price target for Antofagasta has been lifted by £0.49 to £23.49. Analysts point to recalibrated fair value assumptions, a higher future P/E multiple, and updated expectations for revenue growth and profit margins as key drivers of the change.
REL
UK£25.53
RELX
7D
5.7%
1Y
-31.9%

AI Cost Pressures And Data Regulation Risks Will Shape A Cautious But Constructive Outlook

Catalysts About RELX RELX provides information based analytics and decision tools across risk, scientific research, legal and exhibitions markets. What are the underlying business or industry changes driving this perspective?
HLN
UK£3.87
Haleon
7D
2.4%
1Y
-3.5%
AAL
UK£35.18
Anglo American
7D
-8.1%
1Y
28.7%
FRES
UK£38.52
Fresnillo
7D
-11.0%
1Y
364.9%

FRES: Mixed Rating Shifts Will Likely Expose Mounting Execution Risk

The Fresnillo analyst price target has been reduced by about £0.17 per share, as analysts factor in slightly higher projected revenue growth and profit margins, together with a modestly lower P/E and discount rate following recent mixed rating and target changes across the Street. Analyst Commentary Recent Street research on Fresnillo shows a split view, with some firms lifting targets while others trim expectations or ratings.
SHEL
UK£30.64
Shell
7D
1.7%
1Y
21.2%
BP.
UK£4.81
BP
7D
2.3%
1Y
17.9%

BP.: Future Returns Will Reflect Portfolio Sales Refining Strength And CEO Transition

Analysts have trimmed their average price target on BP by £0.10, citing more cautious revenue growth assumptions, a slightly higher discount rate, and continued sector wide downgrades that have only been partially offset by firmer margin expectations. Analyst Commentary Recent Street research on BP points to a mixed backdrop, with several downgrades and price target cuts offset by a smaller group of more constructive voices focusing on balance sheet strength and refining exposure.