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U.K. (FTSE) Market Analysis & Valuation

UpdatedJun 05, 2026
DataAggregated Company Financials
Companies1089
  • 7D-0.6%
  • 3M0.8%
  • 1Y17.3%
  • YTD4.5%

Over the last 7 days, the market has dropped 1.5%, driven by losses in the Consumer Staples and Healthcare sectors of 5.2% and 5.3%, respectively. Meanwhile, the Energy sector has outperformed, gaining 4.6% in that time. As for the longer term, the market has actually risen by 17% in the last year. 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
Fri, 05 Jun 2026UK£2.9tUK£2.0tUK£164.7b15.9x17.8x1.4x
Sun, 03 May 2026UK£3.0tUK£2.0tUK£160.3b15.9x18.4x1.5x
Tue, 31 Mar 2026UK£2.8tUK£2.0tUK£158.1b14.6x17.9x1.4x
Thu, 26 Feb 2026UK£3.1tUK£2.0tUK£148.3b16.5x20.8x1.6x
Sat, 24 Jan 2026UK£2.9tUK£1.9tUK£137.1b16.8x21.3x1.5x
Mon, 22 Dec 2025UK£2.8tUK£2.0tUK£138.3b16x20.4x1.4x
Wed, 19 Nov 2025UK£2.7tUK£2.0tUK£139.3b16.1x19.7x1.4x
Fri, 17 Oct 2025UK£2.7tUK£1.9tUK£135.4b16.7x20.1x1.4x
Sun, 14 Sep 2025UK£2.7tUK£1.9tUK£135.4b16.4x19.8x1.4x
Tue, 12 Aug 2025UK£2.7tUK£1.9tUK£134.1b16.1x19.8x1.4x
Thu, 10 Jul 2025UK£2.5tUK£1.9tUK£127.0b16.2x19.7x1.3x
Sat, 07 Jun 2025UK£2.5tUK£1.9tUK£127.1b16.2x19.6x1.3x
Mon, 05 May 2025UK£2.4tUK£2.0tUK£130.7b15.8x18.7x1.2x
Wed, 02 Apr 2025UK£2.5tUK£2.0tUK£136.1b15.3x18x1.2x
Fri, 28 Feb 2025UK£2.5tUK£2.0tUK£138.4b15.9x18.2x1.2x
Sun, 26 Jan 2025UK£2.5tUK£2.1tUK£123.3b15.8x20.1x1.2x
Tue, 24 Dec 2024UK£2.4tUK£2.0tUK£123.0b15.9x19.4x1.2x
Thu, 21 Nov 2024UK£2.4tUK£2.0tUK£122.6b16.2x19.4x1.2x
Sat, 19 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.5x20.5x1.2x
Mon, 16 Sep 2024UK£2.4tUK£2.0tUK£119.3b16.5x20.4x1.2x
Wed, 14 Aug 2024UK£2.4tUK£2.0tUK£122.8b16.4x19.8x1.2x
Fri, 12 Jul 2024UK£2.4tUK£2.0tUK£130.2b16.8x18.7x1.2x
Sun, 09 Jun 2024UK£2.5tUK£2.0tUK£130.0b16.8x18.9x1.2x
Tue, 07 May 2024UK£2.4tUK£2.1tUK£141.7b16.5x17.3x1.2x
Thu, 04 Apr 2024UK£2.4tUK£2.1tUK£145.8b16.2x16.5x1.1x
Sat, 02 Mar 2024UK£2.3tUK£2.0tUK£140.7b15.3x16.4x1.1x
Mon, 29 Jan 2024UK£2.3tUK£2.1tUK£193.0b15x12x1.1x
Wed, 27 Dec 2023UK£2.3tUK£2.1tUK£193.8b15.2x12.1x1.1x
Fri, 24 Nov 2023UK£2.3tUK£2.1tUK£193.6b14.4x11.7x1.1x
Sun, 22 Oct 2023UK£2.3tUK£2.2tUK£187.2b13.5x12.1x1x
Tue, 19 Sep 2023UK£2.3tUK£2.2tUK£185.7b14.6x12.7x1.1x
Thu, 17 Aug 2023UK£2.3tUK£2.1tUK£184.1b14.3x12.4x1.1x
Sat, 15 Jul 2023UK£2.3tUK£2.2tUK£204.6b14x11.3x1.1x
Mon, 12 Jun 2023UK£2.4tUK£2.2tUK£209.9b14.3x11.3x1.1x
Price to Earnings Ratio

11.3x


Total Market Cap: UK£2.4tTotal Earnings: UK£209.9bTotal 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 7.7% per year over the last three years.
  • Revenues have also declined 2.6% 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-0.63%
Tech3.96%
Energy3.42%
Materials0.81%
Consumer Discretionary0.27%
Telecom-0.18%
Financials-0.69%
Healthcare-1.27%
Industrials-1.32%
Real Estate-1.37%
Utilities-1.67%
Consumer Staples-4.42%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.3x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 18.1%, 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 Energy 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£32.302.8%
+UK£4.7b		30.3%PE12.9xEnergy
BP. BPUK£5.455.8%
+UK£4.6b		52.2%PE35.2xEnergy
GLEN GlencoreUK£6.106.3%
+UK£4.3b		108.3%PE264.3xMaterials
REL RELXUK£25.835.6%
+UK£2.4b		-35.1%PE22.2xIndustrials
BARC BarclaysUK£4.642.5%
+UK£1.5b		41.8%PB0.8xFinancials
See more

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Latest News

HSBA
UK£13.67
HSBC Holdings
7D
-1.0%
1Y
56.5%
GLEN
UK£6.10
Glencore
7D
6.3%
1Y
108.3%
LSEG
UK£91.62
London Stock Exchange Group
7D
2.3%
1Y
-18.8%
AZN
UK£135.54
AstraZeneca
7D
-1.3%
1Y
26.7%
Narrative Update • Jun 03

AZN: Recent Drug Approvals And Key Readouts Will Support Bullish Repricing

Analysts have lifted their AstraZeneca price targets by up to £1,000 per share, pointing to updated valuation work that reflects Baxfendy's FDA approval, recent price target revisions from several banks, and slight tweaks to fair value, discount rate, revenue growth, profit margin, and future P/E assumptions. Analyst Commentary Recent research around AstraZeneca clusters into two camps, with some analysts leaning more optimistic after Baxfendy's approval and a series of price target moves, while others highlight execution and regulatory questions that could affect how those targets are met.
BP.
UK£5.45
BP
7D
5.8%
1Y
52.2%
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£19.16
BAE Systems
7D
-5.1%
1Y
-3.3%
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.
HLMA
UK£48.78
Halma
7D
5.0%
1Y
65.0%
Narrative Update • Jun 03

HLMA: Elevated P/E Expectations Will Likely Constrain Future Share Returns

Halma's updated analyst price target has moved in line with recent Street research, with new targets of £45.00 and £41.50 cited by analysts who point to adjusted fair value, revenue growth expectations, profit margin assumptions and future P/E estimates as key drivers of their revised views. Analyst Commentary Recent Street research on Halma focuses on how current valuation lines up with analysts' expectations for execution and growth, with price targets now referenced around £45.00 and £41.50, as well as 4,500 GBp and 4,150 GBp. Bullish Takeaways Bulllish analysts citing targets such as 4,500 GBp and £45.00 point to scope for the stock to better reflect their assessed fair value, assuming Halma can deliver on revenue and margin expectations already built into their models.
DGE
UK£14.73
Diageo
7D
-6.9%
1Y
-24.6%
Narrative Update • Jun 03

DGE: Margin Resilience And Overhaul Execution Will Support Future Share Rebound

Analysts have trimmed their Diageo price target slightly to £24.27 from £24.38, reflecting updated assumptions that combine more cautious revenue growth and a higher discount rate with somewhat stronger profit margin expectations and a modestly lower future P/E multiple. Analyst Commentary While the recent trim to the Diageo price target is modest, it still reflects a generally supportive stance from bullish analysts who see room for the company to execute on profitability and maintain a premium valuation within its sector.
SHEL
UK£32.30
Shell
7D
2.8%
1Y
30.3%
BARC
UK£4.64
Barclays
7D
2.5%
1Y
41.8%
New Narrative • Jun 03

Why Is Barclays Trading Below Book Value?

Barclays is currently trading at a price-to-book ratio of around 0.8, depending on the source used. In simple terms, this means that for every £100 of net assets attributable to shareholders on Barclays' balance sheet, the market is valuing those assets at approximately £80.
REL
UK£25.83
RELX
7D
5.6%
1Y
-35.1%
BATS
UK£43.20
British American Tobacco
7D
-8.2%
1Y
23.5%
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.
PRU
UK£9.75
Prudential
7D
-10.3%
1Y
12.3%
ULVR
UK£40.78
Unilever
7D
-4.4%
1Y
-21.9%
RR.
UK£12.63
Rolls-Royce Holdings
7D
-3.9%
1Y
44.1%
NWG
UK£6.01
NatWest Group
7D
1.9%
1Y
15.2%