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U.K. (FTSE) Market Analysis & Valuation

UpdatedJun 06, 2026
DataAggregated Company Financials
Companies1088
  • 7D-0.7%
  • 3M0.7%
  • 1Y16.7%
  • YTD4.3%

The Energy sector gained 3.5% while the market remained flat over the last week. Meanwhile, the market is actually up 17% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 06 Jun 2026UK£2.9tUK£2.0tUK£165.1b15.9x17.7x1.4x
Mon, 04 May 2026UK£2.9tUK£2.0tUK£160.0b15.9x18.4x1.5x
Wed, 01 Apr 2026UK£2.9tUK£2.0tUK£157.9b15x18.1x1.4x
Fri, 27 Feb 2026UK£3.1tUK£2.0tUK£153.0b16.6x20.2x1.6x
Sun, 25 Jan 2026UK£2.9tUK£1.9tUK£137.0b16.8x21.3x1.5x
Tue, 23 Dec 2025UK£2.8tUK£2.0tUK£138.0b16x20.4x1.4x
Thu, 20 Nov 2025UK£2.7tUK£2.0tUK£139.2b16.1x19.6x1.4x
Sat, 18 Oct 2025UK£2.7tUK£1.9tUK£135.4b16.4x19.9x1.4x
Mon, 15 Sep 2025UK£2.7tUK£1.9tUK£135.4b16.4x19.8x1.4x
Wed, 13 Aug 2025UK£2.7tUK£1.9tUK£133.8b15.9x19.9x1.4x
Fri, 11 Jul 2025UK£2.5tUK£1.9tUK£127.0b16.2x19.9x1.3x
Sun, 08 Jun 2025UK£2.5tUK£1.9tUK£127.4b16.2x19.6x1.3x
Tue, 06 May 2025UK£2.4tUK£2.0tUK£130.7b15.8x18.7x1.2x
Thu, 03 Apr 2025UK£2.4tUK£2.0tUK£135.8b15.1x18x1.2x
Sat, 01 Mar 2025UK£2.5tUK£2.0tUK£138.9b15.7x18.1x1.2x
Mon, 27 Jan 2025UK£2.5tUK£2.1tUK£123.4b15.8x20.1x1.2x
Wed, 25 Dec 2024UK£2.4tUK£2.0tUK£123.0b15.9x19.5x1.2x
Fri, 22 Nov 2024UK£2.4tUK£2.0tUK£123.0b16.3x19.5x1.2x
Sun, 20 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.5x20.5x1.2x
Tue, 17 Sep 2024UK£2.4tUK£2.0tUK£118.9b16.7x20.5x1.2x
Thu, 15 Aug 2024UK£2.4tUK£2.0tUK£122.4b16.6x19.9x1.2x
Sat, 13 Jul 2024UK£2.4tUK£2.0tUK£129.8b17x18.8x1.2x
Mon, 10 Jun 2024UK£2.5tUK£2.0tUK£130.0b16.8x18.9x1.2x
Wed, 08 May 2024UK£2.5tUK£2.1tUK£137.4b16.8x18x1.2x
Fri, 05 Apr 2024UK£2.4tUK£2.1tUK£145.9b16x16.5x1.2x
Sun, 03 Mar 2024UK£2.3tUK£2.0tUK£142.0b15.3x16.3x1.1x
Tue, 30 Jan 2024UK£2.3tUK£2.1tUK£192.9b14.8x12x1.1x
Thu, 28 Dec 2023UK£2.3tUK£2.1tUK£193.1b15x12.2x1.1x
Sat, 25 Nov 2023UK£2.3tUK£2.1tUK£193.7b14.4x11.7x1.1x
Mon, 23 Oct 2023UK£2.3tUK£2.2tUK£187.2b13.5x12.1x1x
Wed, 20 Sep 2023UK£2.3tUK£2.2tUK£185.5b14.5x12.7x1.1x
Fri, 18 Aug 2023UK£2.3tUK£2.1tUK£184.0b14.3x12.3x1.1x
Sun, 16 Jul 2023UK£2.3tUK£2.2tUK£204.7b14x11.3x1.1x
Tue, 13 Jun 2023UK£2.4tUK£2.2tUK£210.6b14.3x11.2x1.1x
Price to Earnings Ratio

11.2x


Total Market Cap: UK£2.4tTotal Earnings: UK£210.6bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.5x202420252026
Current Market PE
  • Investors are relatively neutral on the British market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
  • The market is trading close to its 3-year average PE ratio of 17.5x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 7.8% per year over the last three years.
  • Revenues have also declined 2.1% 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 Market-0.73%
Energy3.49%
Utilities1.49%
Healthcare0.89%
Tech0.36%
Consumer Discretionary0.21%
Consumer Staples-0.92%
Telecom-1.04%
Industrials-1.81%
Financials-1.92%
Real Estate-2.16%
Materials-3.01%
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 17.9%, which is higher than its past year's earnings growth of 7.6% 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 10.1x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 4.6% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 7.0% 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£32.283.5%
+UK£6.0b		28.7%PE12.8xEnergy
BP. BPUK£5.464.6%
+UK£3.7b		51.1%PE35.1xEnergy
REL RELXUK£26.166.8%
+UK£2.9b		-34.2%PE22.4xIndustrials
GLEN GlencoreUK£5.903.9%
+UK£2.6b		104.9%PE254.1xMaterials
GSK GSKUK£19.383.0%
+UK£2.3b		28.1%PE13.3xHealthcare
See more

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Latest News

FRES
UK£29.86
Fresnillo
7D
-9.1%
1Y
122.5%
NG.
UK£12.18
National Grid
7D
1.8%
1Y
17.3%
RR.
UK£12.60
Rolls-Royce Holdings
7D
-5.8%
1Y
42.4%
New Narrative • Jun 05

A company I wrote off that quietly turned itself around

A few years ago I thought Rolls-Royce was a mess. Today it's making real money again, paying down its problems, and handing cash back to shareholders.
HSBA
UK£13.61
HSBC Holdings
7D
-2.4%
1Y
54.3%
GSK
UK£19.38
GSK
7D
3.0%
1Y
28.1%
RIO
UK£76.04
Rio Tinto Group
7D
-4.6%
1Y
74.6%
Narrative Update • Jun 04

RIO: Low-Carbon Aluminium And Copper Projects Will Drive Future Upside

Rio Tinto Group's analyst fair value estimate has been adjusted higher from £89.78 to £91.63 as analysts factor in updated assumptions for discount rates, revenue growth, profit margins and future P/E. Recent Street research reflects a mix of higher price targets and rating downgrades based on valuation and macro risk concerns.
GLEN
UK£5.90
Glencore
7D
3.9%
1Y
104.9%
LSEG
UK£93.84
London Stock Exchange Group
7D
4.0%
1Y
-17.6%
PRU
UK£9.51
Prudential
7D
-11.3%
1Y
8.4%
Narrative Update • Jun 04

PRU: Capital Returns And India Insurance Deal Prospects Will Drive Re Rating

Prudential's updated analyst price target now sits at about £12.20, a small uplift from roughly £12.00, as analysts adjust their models for slightly higher assumed revenue growth and P/E multiples while tempering margin expectations, in line with a mix of recent target raises and trims across the Street. Analyst Commentary Recent Street research around Prudential reflects a split view, with some large houses lifting targets while others trim them, keeping the overall tone balanced rather than clearly bullish or bearish.
BP.
UK£5.46
BP
7D
4.6%
1Y
51.1%
Narrative Update • Jun 03

BP.: Future Returns Will Be Driven By Earnings Beat And Portfolio Reshaping

Analysts have raised their price targets for BP, resulting in a fair value estimate that now reflects a higher implied P/E. This shift is supported by a series of recent upgrades and target increases in the £40 to £47 range, following the latest earnings beat and views on a key leadership transition at the company.
BA.
UK£19.31
BAE Systems
7D
-4.6%
1Y
0%
Narrative Update • Jun 03

BA.: Expanding Space And Missile Defense Exposure Should Support Earnings Repricing

Analysts have lifted their fair value estimate for BAE Systems from £26.00 to £26.62, citing updated assumptions around revenue growth, profit margins, discount rates and future P/E expectations following recent Street research, including a £0.50 price target increase from UBS. What's in the News MDA Space has been selected by BAE Systems to provide antennas and control electronics for the U.S. Space Development Agency's Medium Earth Orbit EPOCH 2 Constellation, supporting national security satellite architecture and missile defense capabilities.
SHEL
UK£32.28
Shell
7D
3.5%
1Y
28.7%
REL
UK£26.16
RELX
7D
6.8%
1Y
-34.2%
TSCO
UK£4.54
Tesco
7D
5.6%
1Y
16.3%
Narrative Update • Jun 01

TSCO: Ecosystem Advantage And £750m Buyback Will Drive Future Upside

Analysts have nudged Tesco’s fair value estimate slightly higher to £5.15 from £5.12, reflecting updated views on its role in the UK grocery "ecosystem war" and recent price target increases from several banks. Analyst Commentary Recent research points toward a generally constructive stance on Tesco, with several price targets adjusted higher and new coverage framed around its position in what some describe as an "ecosystem war" in UK grocery rather than a simple price battle.
BATS
UK£44.04
British American Tobacco
7D
-4.1%
1Y
25.1%
Narrative Update • Jun 01

BATS: Smokeless Transition And 2035 Objectives Will Limit Near Term Upside

Analysts have nudged their fair value estimate for British American Tobacco slightly lower to about £39.07 from roughly £39.19, reflecting updated assumptions around the discount rate, revenue growth, profit margin and future P/E. What's in the News British American Tobacco has highlighted a long term goal to become predominantly smokeless by 2035, focusing on products such as vapes and nicotine pouches, according to recent coverage of its upcoming half year results.
LLOY
UK£0.99
Lloyds Banking Group
7D
-2.7%
1Y
28.9%
Narrative Update • May 28

LLOY: Recent Buyback Will Still Not Justify Richer Future Multiple

Analysts have made a small upward adjustment to their Lloyds Banking Group price target in £ terms, citing updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E that are now slightly different from prior estimates. What's in the News Lloyds Banking Group completed a share buyback tranche covering 600,000,000 shares, described as 1.02% of the company, between January 30, 2026 and March 31, 2026 (Key Developments).