Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.K. (FTSE) Market Analysis & Valuation

UpdatedMar 14, 2025
DataAggregated Company Financials
Companies1192
  • 7D-1.5%
  • 3M1.2%
  • 1Y7.2%
  • YTD1.8%

Over the last 7 days, the market has dropped 1.5%, driven by a decline of 3.2% in the Financials sector. As for the longer term, the market has actually risen by 7.2% in the last year. Earnings are forecast to grow by 14% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 14 Mar 2025UK£2.4tUK£2.0tUK£137.3b15x17.8x1.2x
Sun, 09 Feb 2025UK£2.5tUK£2.0tUK£123.9b16x20.3x1.2x
Tue, 07 Jan 2025UK£2.4tUK£2.0tUK£123.0b15.9x19.7x1.2x
Thu, 05 Dec 2024UK£2.4tUK£2.0tUK£122.6b16.4x20x1.2x
Sat, 02 Nov 2024UK£2.4tUK£2.0tUK£118.3b16.3x20.4x1.2x
Mon, 30 Sep 2024UK£2.5tUK£2.0tUK£117.8b17x20.8x1.2x
Wed, 28 Aug 2024UK£2.5tUK£2.0tUK£119.2b17x20.6x1.2x
Fri, 26 Jul 2024UK£2.4tUK£2.0tUK£129.7b16.3x18.6x1.2x
Sun, 23 Jun 2024UK£2.4tUK£2.0tUK£132.0b16.7x18.4x1.2x
Tue, 21 May 2024UK£2.5tUK£2.0tUK£125.5b17.2x20.1x1.2x
Thu, 18 Apr 2024UK£2.4tUK£2.1tUK£148.3b15.7x16x1.1x
Sat, 16 Mar 2024UK£2.3tUK£2.0tUK£144.3b16.1x16.1x1.1x
Mon, 12 Feb 2024UK£2.3tUK£2.0tUK£144.7b15.2x15.6x1.1x
Wed, 10 Jan 2024UK£2.3tUK£2.1tUK£193.5b15x12x1.1x
Fri, 08 Dec 2023UK£2.3tUK£2.1tUK£193.9b14.7x11.7x1.1x
Sun, 05 Nov 2023UK£2.2tUK£2.1tUK£193.8b14x11.6x1x
Tue, 03 Oct 2023UK£2.3tUK£2.2tUK£186.7b14.3x12.5x1.1x
Thu, 31 Aug 2023UK£2.3tUK£2.1tUK£183.3b14.5x12.6x1.1x
Sat, 29 Jul 2023UK£2.4tUK£2.1tUK£191.6b14.3x12.5x1.1x
Mon, 26 Jun 2023UK£2.3tUK£2.2tUK£208.4b14.1x11.1x1.1x
Wed, 24 May 2023UK£2.4tUK£2.2tUK£216.7b14.3x11.2x1.1x
Fri, 21 Apr 2023UK£2.5tUK£2.2tUK£178.8b14.1x13.8x1.1x
Sun, 19 Mar 2023UK£2.2tUK£2.2tUK£182.4b13.6x12.3x1x
Tue, 14 Feb 2023UK£2.5tUK£2.1tUK£194.8b13.8x13x1.2x
Thu, 12 Jan 2023UK£2.5tUK£2.1tUK£185.5b13.7x13.4x1.2x
Sat, 10 Dec 2022UK£2.4tUK£2.1tUK£185.8b13.4x13x1.1x
Mon, 07 Nov 2022UK£2.4tUK£2.3tUK£210.3b12.5x11.3x1x
Wed, 05 Oct 2022UK£2.4tUK£2.3tUK£208.0b12x11.3x1x
Fri, 02 Sep 2022UK£2.4tUK£2.3tUK£207.9b12.8x11.6x1.1x
Sun, 31 Jul 2022UK£2.5tUK£2.2tUK£192.0b14x13.1x1.1x
Tue, 28 Jun 2022UK£2.5tUK£2.3tUK£195.6b14.3x12.7x1.1x
Thu, 26 May 2022UK£2.5tUK£2.2tUK£187.2b15.3x13.6x1.2x
Sat, 23 Apr 2022UK£2.6tUK£2.1tUK£191.4b16.9x13.6x1.3x
Mon, 21 Mar 2022UK£2.6tUK£2.0tUK£192.0b16.5x13.4x1.3x
Price to Earnings Ratio

13.4x


Total Market Cap: UK£2.6tTotal Earnings: UK£192.0bTotal Revenue: UK£2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 14.8x202320242025
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 17.8x which is higher than its 3-year average PE of 14.8x.
Past Earnings Growth
  • The earnings for British listed companies have declined 11% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

Which sectors have driven the changes within the U.K. Market?

GB Market-1.51%
Utilities2.80%
Energy2.52%
Real Estate1.63%
Telecom0.80%
Consumer Staples-0.70%
Healthcare-1.37%
Consumer Discretionary-1.39%
Tech-2.86%
Materials-3.10%
Financials-3.20%
Industrials-3.49%
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 55.3x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 14.5%, which is higher than its past year's earnings growth of 8.0% per year.
  • The Financials sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average of 9.9x.
Forecasted Growth
  • Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings decline of 8.1% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 11% 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
SHEL ShellUK£26.032.8%
+UK£4.3b		2.6%PE12.8xEnergy
BATS British American TobaccoUK£31.903.1%
+UK£2.1b		34.0%PE23.2xConsumer Staples
NG. National GridUK£9.564.0%
+UK£1.8b		-8.3%PE27.1xUtilities
BP. BPUK£4.182.1%
+UK£1.3b		-14.7%PE220.6xEnergy
LSEG London Stock Exchange GroupUK£110.851.6%
+UK£928.0m		17.9%PE85.8xFinancials
See more
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlans & PricingLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Market Insights

Header cover image

🫧 Bubble Concerns, Sector Rotation, and Tariff Tactics

Richard Bowman avatar
Richard Bowman
|
|

5 comments

The market’s latest pullback is getting pinned on the escalating trade war. Tariffs are dominating the headlines, right alongside sinking GDP forecasts. But beneath the surface, there’s a growing unease about valuations and earnings. So this week, we’re diving into that side of the story, how valuations and earnings fit into the bigger picture of tariffs, growth, inflation, and interest rates. Sure, we’re mostly talking about the U.S. market here, but trust us, this matters everywhere.
Continue reading
🚗 Automakers Caught In The Tariff Crossfire
Last Week

🚗 Automakers Caught In The Tariff Crossfire

Latest News

BATS

UK£31.90

British American Tobacco

7D

3.1%

1Y

34.0%

SHEL

UK£26.03

Shell

7D

2.8%

1Y

2.6%

HSBA

UK£8.53

HSBC Holdings

7D

-3.2%

1Y

45.5%

IAG

UK£2.76

International Consolidated Airlines Group

7D

-14.8%

1Y

85.4%

REL

UK£37.10

RELX

7D

1.2%

1Y

9.4%

LSEG

UK£110.85

London Stock Exchange Group

7D

1.6%

1Y

17.9%

BARC

UK£2.89

Barclays

7D

-6.3%

1Y

65.6%

AAL

UK£22.55

Anglo American

7D

-8.4%

1Y

23.0%

BP.

UK£4.18

BP

7D

2.1%

1Y

-14.7%

We Think BP (LON:BP.) Is Taking Some Risk With Its Debt

Mar 08
We Think BP (LON:BP.) Is Taking Some Risk With Its Debt

NG.

UK£9.56

National Grid

7D

4.0%

1Y

-8.3%

NWG

UK£4.34

NatWest Group

7D

-6.6%

1Y

80.7%

CPG

UK£26.43

Compass Group

7D

1.1%

1Y

19.8%

We Think Compass Group (LON:CPG) Can Stay On Top Of Its Debt

Mar 05
We Think Compass Group (LON:CPG) Can Stay On Top Of Its Debt

LLOY

UK£0.68

Lloyds Banking Group

7D

-6.1%

1Y

38.5%

RR.

UK£7.71

Rolls-Royce Holdings

7D

-4.2%

1Y

98.1%

Subdued Growth No Barrier To Rolls-Royce Holdings plc (LON:RR.) With Shares Advancing 28%

Mar 04
Subdued Growth No Barrier To Rolls-Royce Holdings plc (LON:RR.) With Shares Advancing 28%

VOD

UK£0.73

Vodafone Group

7D

5.3%

1Y

10.9%

Here's Why Vodafone Group (LON:VOD) Has A Meaningful Debt Burden

Mar 03
Here's Why Vodafone Group (LON:VOD) Has A Meaningful Debt Burden

DGE

UK£20.83

Diageo

7D

-6.0%

1Y

-28.4%