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U.K. (FTSE) Market Analysis & Valuation

UpdatedMay 21, 2026
DataAggregated Company Financials
Companies1086
  • 7D0.5%
  • 3M-2.2%
  • 1Y18.0%
  • YTD4.9%

In the last week, the market has been flat, with a notable exception in the Materials sector dropping 7.3%. As for the longer term, the market has risen 18% in the past 12 months. Looking forward, earnings are forecast to grow by 12% annually.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 21 May 2026UK£2.9tUK£2.0tUK£164.8b15.8x17.9x1.5x
Sat, 18 Apr 2026UK£3.0tUK£2.0tUK£157.4b16.3x19.2x1.5x
Mon, 16 Mar 2026UK£2.9tUK£2.0tUK£156.8b16x18.4x1.4x
Wed, 11 Feb 2026UK£3.0tUK£1.9tUK£140.5b16.7x21.2x1.5x
Fri, 09 Jan 2026UK£2.9tUK£2.0tUK£138.0b16.6x20.8x1.5x
Sun, 07 Dec 2025UK£2.8tUK£2.0tUK£138.5b16.1x20.1x1.4x
Tue, 04 Nov 2025UK£2.8tUK£2.0tUK£138.7b16.4x20.1x1.4x
Thu, 02 Oct 2025UK£2.7tUK£1.9tUK£135.5b16.5x20.1x1.4x
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
Price to Earnings Ratio

11.2x


Total Market Cap: UK£2.4tTotal Earnings: UK£213.9bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.4x202420252026
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 17.4x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 8.3% per year over the last three years.
  • Revenues have also declined 3.1% 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 Market0.52%
Energy2.88%
Consumer Staples2.41%
Financials1.94%
Industrials1.68%
Real Estate1.54%
Healthcare1.47%
Consumer Discretionary1.19%
Tech-0.092%
Telecom-0.39%
Utilities-2.49%
Materials-7.29%
Sector PE
  • Investors favour the Telecom sector the most for future growth which is trading above its 3-year average PE ratio.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 30.6%, which is higher than its past year's earnings growth of 5.1% 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 10.0x.
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 Consumer Staples 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
SHEL ShellUK£32.523.4%
+UK£5.8b		31.3%PE13xEnergy
HSBA HSBC HoldingsUK£13.601.6%
+UK£3.6b		53.7%PB1.6xFinancials
BP. BPUK£5.643.6%
+UK£3.0b		55.6%PE36.5xEnergy
AZN AstraZenecaUK£139.501.3%
+UK£2.9b		33.0%PE28xHealthcare
LLOY Lloyds Banking GroupUK£1.005.0%
+UK£2.7b		28.1%PB1.2xFinancials
See more

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Latest News

NG.
UK£12.55
National Grid
7D
-1.6%
1Y
14.7%
Analysis Article • 9h

We Think That There Are Some Issues For National Grid (LON:NG.) Beyond Its Promising Earnings

National Grid plc's ( LON:NG. ) healthy profit numbers didn't contain any surprises for investors. We think this is due...
DGE
UK£15.76
Diageo
7D
6.0%
1Y
-26.1%
BP.
UK£5.64
BP
7D
3.6%
1Y
55.6%
AZN
UK£139.50
AstraZeneca
7D
1.3%
1Y
33.0%
RIO
UK£76.40
Rio Tinto Group
7D
-7.6%
1Y
64.2%
AAL
UK£37.67
Anglo American
7D
-7.6%
1Y
55.0%
SHEL
UK£32.52
Shell
7D
3.4%
1Y
31.3%
III
UK£21.79
3i Group
7D
-10.0%
1Y
-46.3%
Analysis Article • May 19

Growth Investors: Industry Analysts Just Upgraded Their 3i Group plc (LON:III) Revenue Forecasts By 13%

Shareholders in 3i Group plc ( LON:III ) may be thrilled to learn that the analysts have just delivered a major upgrade...
FRES
UK£33.23
Fresnillo
7D
-12.2%
1Y
206.3%
Narrative Update • May 18

FRES: Production Slippage And Diverging Street Views Will Pressure Future Returns

Fresnillo’s updated analyst price target has shifted to reflect mixed recent moves, including a £4.00 increase at Citi and several reductions of £1.00 to £4.00 at other firms, as analysts factor in revised assumptions for discount rate, revenue growth, profit margin, and future P/E. Analyst Commentary Recent Street research on Fresnillo shows a split view, with some higher price targets sitting alongside a series of reductions.
HSBA
UK£13.60
HSBC Holdings
7D
1.6%
1Y
53.7%
LLOY
UK£1.00
Lloyds Banking Group
7D
5.0%
1Y
28.1%
BARC
UK£4.41
Barclays
7D
4.3%
1Y
34.3%
ANTO
UK£38.22
Antofagasta
7D
-11.1%
1Y
114.6%
Narrative Update • May 15

ANTO: Geopolitical And Sector Risks Will Likely Pressure Copper Upside Potential

Analysts have nudged the fair value estimate for Antofagasta slightly lower to £23.50 from about £23.72, reflecting a modestly higher discount rate and mixed price target revisions, with several recent moves in the £100 to £600 range across the broker community. Analyst Commentary Recent Street research on Antofagasta shows a wide spread of views, with some firms lifting price targets while others turn more cautious.
SSE
UK£23.37
SSE
7D
-4.6%
1Y
33.1%
Narrative Update • May 14

SSE: Higher Discount Rate Will Still Support Bullish Long Term Outlook

Analysts have nudged their average price target on SSE higher, with a modest uplift supported by updated assumptions on fair value, discount rate and future P/E, alongside recent price target moves to £28.50 from Deutsche Bank and a £3.45 increase from JPMorgan. Analyst Commentary Bullish Takeaways Bullish analysts highlight the lift in the average price target, with moves such as the increase to £28.50 and the £3.45 rise at JPMorgan, as support for a higher fair value framework on the stock.
GLEN
UK£5.66
Glencore
7D
-4.4%
1Y
111.9%
REL
UK£24.82
RELX
7D
6.4%
1Y
-39.9%
Narrative Update • May 08

REL: Q4 Earnings Resilience And Buybacks Will Support Future Multiple

Analysts have slightly reduced their fair value estimate for RELX to £36.18 from £36.42. This change reflects modestly lower revenue growth assumptions and a marginally lower future P/E multiple, while still pointing to Q4 earnings resilience and limited observable impact from AI concerns.