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U.K. (FTSE) Market Analysis & Valuation

UpdatedAug 16, 2026
DataAggregated Company Financials
Companies1075
  • 7D-1.3%
  • 3M4.2%
  • 1Y17.6%
  • YTD8.3%

Over the past 7 days, the market has dropped 1.3% with the Materials sector contributing the most to the decline. In the last year, the market is actually up 18%. 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
Sun, 16 Aug 2026UK£3.0tUK£2.1tUK£173.7b16.2x17.5x1.4x
Tue, 14 Jul 2026UK£2.9tUK£2.0tUK£164.7b15.7x17.9x1.5x
Thu, 11 Jun 2026UK£2.9tUK£2.0tUK£165.1b15.7x17.5x1.4x
Sat, 09 May 2026UK£2.9tUK£2.0tUK£161.0b16.1x18.1x1.4x
Mon, 06 Apr 2026UK£2.9tUK£2.0tUK£158.5b15.1x18.5x1.5x
Wed, 04 Mar 2026UK£3.0tUK£2.0tUK£151.1b16.5x19.6x1.5x
Fri, 30 Jan 2026UK£2.9tUK£1.9tUK£136.4b17x21.5x1.5x
Sun, 28 Dec 2025UK£2.8tUK£2.0tUK£137.9b16.1x20.5x1.4x
Tue, 25 Nov 2025UK£2.7tUK£2.0tUK£139.2b15.9x19.6x1.4x
Thu, 23 Oct 2025UK£2.7tUK£1.9tUK£135.7b16.6x20.2x1.4x
Sat, 20 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.4x19.6x1.4x
Mon, 18 Aug 2025UK£2.7tUK£1.9tUK£133.8b15.9x19.8x1.4x
Wed, 16 Jul 2025UK£2.5tUK£1.9tUK£127.7b16x19.7x1.3x
Fri, 13 Jun 2025UK£2.5tUK£1.9tUK£127.2b16.4x19.8x1.3x
Sun, 11 May 2025UK£2.4tUK£2.0tUK£130.8b16x18.6x1.2x
Tue, 08 Apr 2025UK£2.2tUK£2.0tUK£137.3b14.1x16x1.1x
Thu, 06 Mar 2025UK£2.5tUK£2.0tUK£137.8b15.9x18.2x1.3x
Sat, 01 Feb 2025UK£2.5tUK£2.0tUK£123.8b15.9x20.4x1.2x
Mon, 30 Dec 2024UK£2.4tUK£2.0tUK£122.5b15.9x19.6x1.2x
Wed, 27 Nov 2024UK£2.4tUK£2.0tUK£123.5b16.2x19.6x1.2x
Fri, 25 Oct 2024UK£2.4tUK£2.0tUK£123.3b16.1x19.8x1.2x
Sun, 22 Sep 2024UK£2.4tUK£2.0tUK£118.1b16.9x19.9x1.2x
Tue, 20 Aug 2024UK£2.5tUK£2.0tUK£121.6b16.9x20.3x1.2x
Thu, 18 Jul 2024UK£2.4tUK£2.0tUK£128.8b16.9x18.7x1.2x
Sat, 15 Jun 2024UK£2.4tUK£2.1tUK£130.3b16.4x18.6x1.2x
Mon, 13 May 2024UK£2.5tUK£2.1tUK£136.5b16.9x18.4x1.2x
Wed, 10 Apr 2024UK£2.4tUK£2.1tUK£145.8b16x16.5x1.1x
Fri, 08 Mar 2024UK£2.3tUK£2.1tUK£145.6b15.9x16x1.1x
Sun, 04 Feb 2024UK£2.3tUK£2.1tUK£183.3b14.8x12.5x1.1x
Tue, 02 Jan 2024UK£2.3tUK£2.1tUK£193.7b15.1x12.1x1.1x
Thu, 30 Nov 2023UK£2.2tUK£2.1tUK£193.3b14.4x11.6x1.1x
Sat, 28 Oct 2023UK£2.2tUK£2.2tUK£186.4b13.4x11.8x1x
Mon, 25 Sep 2023UK£2.3tUK£2.2tUK£186.8b14.6x12.1x1x
Wed, 23 Aug 2023UK£2.2tUK£2.1tUK£184.1b14.3x12.2x1x
Price to Earnings Ratio

12.2x


Total Market Cap: UK£2.2tTotal Earnings: UK£184.1bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.9x202420252026
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 17.9x.
Past Earnings Growth
  • Both revenue and earnings for British listed companies have remained mostly flat over the last three years.
  • This means sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.

Sector Trends

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

GB Market-1.35%
Energy1.49%
Telecom0.85%
Real Estate0.078%
Utilities-0.22%
Financials-0.25%
Industrials-0.30%
Tech-0.34%
Consumer Discretionary-0.73%
Consumer Staples-3.23%
Healthcare-4.33%
Materials-4.54%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 50.9x.
    • 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 Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 17.6x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 3.1% per year.
  • In contrast, the Energy industry is expected to see its earnings growth to stay flat 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£33.201.3%
+UK£2.3b		25.8%PE9.6xEnergy
BA. BAE SystemsUK£22.581.7%
+UK£1.1b		28.3%PE30.3xIndustrials
RR. Rolls-Royce HoldingsUK£15.410.7%
+UK£912.9m		43.5%PE42.1xIndustrials
BP. BPUK£5.231.1%
+UK£880.8m		24.1%PE20.2xEnergy
KAP National Atomic Company Kazatomprom JSCUS$72.805.5%
+US$985.6m		61.8%PE16.1xEnergy
See more

Market Insights

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Investing in a theme primarily based on demand could come unstuck. As the European heatwave has shown, adoption can be far more complicated than whether a product is needed, which is exactly the part investors tend to skip.
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Latest News

BA.
UK£22.58
BAE Systems
7D
1.7%
1Y
28.3%
BATS
UK£42.14
British American Tobacco
7D
-4.7%
1Y
0.4%
BP.
UK£5.23
BP
7D
1.1%
1Y
24.1%
AZN
UK£114.60
AstraZeneca
7D
-3.7%
1Y
-1.1%
ANTO
UK£35.85
Antofagasta
7D
-9.9%
1Y
68.9%
SHEL
UK£33.20
Shell
7D
1.3%
1Y
25.8%
RIO
UK£70.59
Rio Tinto Group
7D
-6.2%
1Y
56.4%
Narrative Update • Aug 14

RIO: Fair Value View Weighs Cost Cuts Against China And Commodity Demand Risks

Analysts have trimmed the fair value estimate for Rio Tinto Group from £77.68 to £75.50. This reflects slightly lower revenue growth assumptions, partly offset by firmer profit margin expectations and a modestly lower future P/E multiple, in line with recent mixed price target moves and rating changes across the Street.
BGEO
UK£135.10
Lion Finance Group
7D
8.6%
1Y
74.8%
Narrative Update • Aug 12

BGEO: Expanded Buybacks Will Support Higher Future Multiple

Analysts have raised their fair value estimate for Lion Finance Group from £139.0 to £145.3, reflecting updated assumptions on discount rate, revenue growth, profit margin and future P/E, as well as a recent increase in the Street price target to £13,900 from £13,100. What’s in the News for Lion Finance Group On August 11, 2026, Lion Finance Group increased its equity buyback plan authority by GEL 59 million, bringing total authorization to GEL 424.7 million.
AAL
UK£38.50
Anglo American
7D
-4.3%
1Y
77.4%
Narrative Update • Aug 12

AAL: Copper Shift And De Beers Sale Will Drive Future Rerating

The Anglo American analyst price target has been revised modestly higher to reflect a fair value uplift to about £48.30 from roughly £47.32, with analysts pointing to mixed signals that include slightly lower assumed revenue growth, a small improvement in projected profit margins, and updated views on cost risks in iron ore and the relative role of copper across the mining sector. Analyst Commentary Recent Street research on Anglo American shows a split in opinion, with some firms turning more cautious and others raising price targets.
BARC
UK£5.21
Barclays
7D
0.9%
1Y
40.2%
KAP
US$72.80
National Atomic Company Kazatomprom JSC
7D
5.5%
1Y
61.8%
Narrative Update • Aug 11

KAP: Uranium Upcycle Exposure And Rising Dividend Payout Will Support Upside

Analysts have trimmed their fair value estimate for National Atomic Company Kazatomprom JSC from about $108.55 to $98.08, reflecting updated assumptions on growth, profitability and a lower future P/E multiple, despite recent Street research highlighting exposure to a uranium upcycle and pricing driven earnings momentum at what is viewed as an attractive valuation. What’s in the News for National Atomic Company Kazatomprom JSC National Atomic Company Kazatomprom JSC held its AGM on May 26, 2026 and approved a dividend allocation of KZT 335.2b for 2025, equal to 75% of free cash flow, in line with its stated dividend policy.
GSK
UK£18.18
GSK
7D
-7.3%
1Y
27.5%
RR.
UK£15.41
Rolls-Royce Holdings
7D
0.7%
1Y
43.5%
Narrative Update • Aug 06

RR.: Defence Strength And Cash Returns Will Support Measured Re Rating Potential

Analysts have raised their fair value estimate for Rolls-Royce Holdings to £16.27 from £14.72, reflecting higher price targets and expectations for stronger margins, which offset slightly more conservative growth and discount rate assumptions. Analyst Commentary Recent Street research on Rolls-Royce Holdings points to a firmly constructive tone, with several large banks lifting price targets and reassessing the company’s execution and earnings power.
WISE
UK£9.63
Wise Group
7D
5.2%
1Y
-8.5%
Narrative Update • Aug 04

WISE: Regulatory Lawsuit And Lower P/E Expectations Will Restrain Future Upside

Analysts have trimmed their price target on Wise Group to about £7.60 from roughly £7.87, citing updated assumptions for growth, margins, and a lower future P/E multiple. What's in the News for Wise Group Rosen Law Firm filed a class action lawsuit against Wise Group on behalf of investors who bought securities between May 11, 2026 and July 23, 2026.
LSEG
UK£85.36
London Stock Exchange Group
7D
-4.3%
1Y
-7.8%
REL
UK£25.26
RELX
7D
-3.8%
1Y
-28.3%
Narrative Update • Aug 03

REL: AI Data Assets And Buybacks Will Support Future Earnings Multiple

Analysts have nudged their fair value estimate for RELX lower to about £33.91 from roughly £35.83, reflecting slightly higher discount rate assumptions alongside updated views on revenue growth, profit margins and future P/E multiples, informed by recent price target increases and positive commentary on the durability of growth in key divisions and the role of new AI products. Analyst Commentary Recent Street research on RELX shows a mix of optimism about growth durability and AI opportunities, with some caution around valuation and segment level risks.