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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 14, 2026
DataAggregated Company Financials
Companies1094
  • 7D0.2%
  • 3M7.5%
  • 1Y23.8%
  • YTD2.1%

The market has stayed flat over the 7 days. Meanwhile, the market is actually up 24% over the past year. As for the next few years, earnings are expected to grow by 14% 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
Wed, 14 Jan 2026UK£2.9tUK£2.0tUK£138.0b16.5x21x1.5x
Fri, 12 Dec 2025UK£2.8tUK£2.0tUK£138.1b15.9x20.1x1.4x
Sun, 09 Nov 2025UK£2.8tUK£2.0tUK£138.1b16.1x20.1x1.4x
Tue, 07 Oct 2025UK£2.7tUK£1.9tUK£135.3b16.6x20.2x1.4x
Thu, 04 Sep 2025UK£2.7tUK£2.0tUK£135.8b16x19.6x1.4x
Sat, 02 Aug 2025UK£2.6tUK£2.0tUK£134.0b16.1x19.6x1.3x
Mon, 30 Jun 2025UK£2.5tUK£1.9tUK£126.7b16.7x19.6x1.3x
Wed, 28 May 2025UK£2.5tUK£1.9tUK£125.8b16.4x19.8x1.3x
Fri, 25 Apr 2025UK£2.4tUK£2.0tUK£134.8b15.3x17.8x1.2x
Sun, 23 Mar 2025UK£2.5tUK£2.0tUK£136.4b15.7x18.1x1.2x
Tue, 18 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.4x18.2x1.3x
Thu, 16 Jan 2025UK£2.4tUK£2.1tUK£124.8b15.7x19.5x1.2x
Sat, 14 Dec 2024UK£2.5tUK£2.0tUK£122.5b16.3x20.2x1.2x
Mon, 11 Nov 2024UK£2.4tUK£2.0tUK£118.2b16.3x20.2x1.2x
Wed, 09 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.3x20.2x1.2x
Fri, 06 Sep 2024UK£2.4tUK£2.0tUK£118.9b16.9x20.4x1.2x
Sun, 04 Aug 2024UK£2.4tUK£2.0tUK£124.9b16.7x19.3x1.2x
Tue, 02 Jul 2024UK£2.4tUK£2.0tUK£132.1b16.3x18.2x1.2x
Thu, 30 May 2024UK£2.4tUK£2.1tUK£129.4b17.1x18.9x1.2x
Sat, 27 Apr 2024UK£2.4tUK£2.1tUK£143.6b16x16.9x1.2x
Mon, 25 Mar 2024UK£2.4tUK£2.1tUK£147.6b16.3x16.4x1.1x
Wed, 21 Feb 2024UK£2.3tUK£2.0tUK£146.9b15.3x15.6x1.1x
Fri, 19 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.7x11.7x1.1x
Sun, 17 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.1x11.9x1.1x
Tue, 14 Nov 2023UK£2.2tUK£2.2tUK£195.0b14x11.5x1x
Thu, 12 Oct 2023UK£2.3tUK£2.2tUK£185.8b14x12.6x1.1x
Sat, 09 Sep 2023UK£2.3tUK£2.2tUK£185.4b14.5x12.4x1.1x
Mon, 07 Aug 2023UK£2.4tUK£2.2tUK£189.4b14.6x12.4x1.1x
Wed, 05 Jul 2023UK£2.3tUK£2.2tUK£208.0b14.2x11.2x1.1x
Fri, 02 Jun 2023UK£2.3tUK£2.2tUK£211.4b14.2x11.1x1.1x
Sun, 30 Apr 2023UK£2.5tUK£2.2tUK£179.2b14.5x13.8x1.1x
Tue, 28 Mar 2023UK£2.4tUK£2.2tUK£184.0b13.4x12.8x1.1x
Thu, 23 Feb 2023UK£2.5tUK£2.2tUK£200.4b13.7x12.7x1.2x
Sat, 21 Jan 2023UK£2.5tUK£2.1tUK£183.7b13.7x13.6x1.2x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.5tTotal Earnings: UK£183.7bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.7x202420252026
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 21.0x which is higher than its 3-year average PE of 16.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.1% 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 Market0.19%
Industrials2.52%
Tech2.12%
Real Estate1.72%
Materials1.53%
Consumer Staples0.48%
Telecom0.40%
Energy0.31%
Consumer Discretionary0.28%
Healthcare-1.04%
Financials-1.39%
Utilities-1.48%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 19.2x.
    • Analysts are expecting annual earnings growth of 29.8%, which is lower than the prior year's growth of 33.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings growth rate of 5.5% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.1% 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
GLEN GlencoreUK£4.8414.5%
+UK£7.2b		31.3%PS0.3xMaterials
BATS British American TobaccoUK£42.406.9%
+UK£5.9b		46.0%PE30.2xConsumer Staples
SHEL ShellUK£27.393.1%
+UK£4.5b		2.1%PE14.4xEnergy
BP. BPUK£4.446.0%
+UK£4.5b		4.8%PE60.6xEnergy
ULVR UnileverUK£48.324.3%
+UK£4.4b		-3.8%PE22.2xConsumer Staples
See more

Market Insights

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What research teams agree on – and where they don’t – heading into 2026.
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Latest News

EXPN
UK£33.25
Experian
7D
-3.5%
1Y
-5.5%
HSBA
UK£12.13
HSBC Holdings
7D
1.9%
1Y
50.8%
BP.
UK£4.44
BP
7D
6.0%
1Y
4.8%
GLEN
UK£4.84
Glencore
7D
14.5%
1Y
31.3%

Glencore plc's (LON:GLEN) Shares Bounce 25% But Its Business Still Trails The Industry

Jan 14
Glencore plc's (LON:GLEN) Shares Bounce 25% But Its Business Still Trails The Industry
ABF
UK£18.67
Associated British Foods
7D
-13.2%
1Y
-5.9%
NG.
UK£11.67
National Grid
7D
-1.5%
1Y
24.7%

NG.: Dividend Reliability And Regulatory Outcomes Will Guide Balanced Return Potential

Narrative Update The analyst price target for National Grid has been revised slightly higher to about $12.08 from $11.96, as analysts factor in a modestly higher fair value estimate and a small adjustment to future P/E assumptions, while keeping their core growth and margin expectations effectively unchanged. Analyst Commentary Recent research on National Grid focuses on fine tuning valuation inputs rather than changing the core business view.
IAG
UK£4.04
International Consolidated Airlines Group
7D
-6.4%
1Y
27.5%

IAG: Heathrow Strength And Capital Returns Will Support Stronger Future Shareholder Returns

Narrative Update Overview The updated analyst price target for International Consolidated Airlines Group moves higher to a range signaled by recent Street research, with targets increasing to £5.00 and £6.20, supported by analysts citing IAG's role as a top pick in European airlines and its dominant position at London Heathrow, alongside modest shifts in fair value estimates, discount rate, revenue growth and profit margin assumptions. Analyst Commentary Recent Street research around International Consolidated Airlines Group has focused on refreshed price targets and the role of the group within the European airline peer set, with views clustering around valuation support and execution risks tied to the broader sector backdrop.
TSCO
UK£4.21
Tesco
7D
-6.9%
1Y
16.8%

TSCO: Higher Risk Assumptions And Stable Margins Will Shape Future Upside

Analysts have trimmed their Tesco fair value estimate slightly to £4.80 from about £4.84. They cite a modest reset in discount rate assumptions alongside steady expectations for revenue growth, profit margins and future P/E levels.
REL
UK£30.91
RELX
7D
-1.6%
1Y
-19.3%

REL: Earnings Guidance And Margin Outlook Will Support Future Generative AI Upside

Analysts have trimmed their fair value estimate for RELX from £44.18 to £43.85 per share, reflecting slightly adjusted assumptions around discount rates, revenue growth, profit margins, and future P/E levels. What's in the News RELX reaffirmed earnings guidance for the full year 2025, indicating expectations for continued underlying revenue growth.
BATS
UK£42.40
British American Tobacco
7D
6.9%
1Y
46.0%

There's Reason For Concern Over British American Tobacco p.l.c.'s (LON:BATS) Price

Jan 11
There's Reason For Concern Over British American Tobacco p.l.c.'s (LON:BATS) Price
BA.
UK£20.38
BAE Systems
7D
5.8%
1Y
71.5%

BA.: Sector Caution And U.S. Shutdown Risk Will Restrain Overheated Expectations

Narrative Update The updated analyst price targets for BAE Systems now center around £19.50 to £18.60 per share. This reflects a modestly lower fair value estimate and slightly adjusted growth, discount rate and P/E assumptions, as analysts balance sector wide caution with valuation driven support.
SHEL
UK£27.39
Shell
7D
3.1%
1Y
2.1%

SHEL: Future Returns Will Reflect Resilient Cash Flow And Shareholder Distributions

Our updated view on Shell reflects a small trim in fair value to €31.03 from €31.31, as analysts balance slightly softer growth and margin assumptions with higher price targets associated with resilient cash generation, tighter refining conditions, and a more disciplined focus on costs and shareholder returns. Analyst Commentary Street research on Shell is mixed, with several price target increases reflecting confidence in execution and cash generation, while a few more cautious voices highlight valuation and medium term growth constraints.
III
UK£30.35
3i Group
7D
-4.6%
1Y
-16.5%

III: Slower Momentum Will Still Deliver Compounding Returns And Dividend Support

Analysts have trimmed their 3i Group price target to £31.50 from £41.00, reflecting updated assumptions for the discount rate and earnings multiples as they factor in what they describe as slower momentum for the company. Analyst Commentary Recent research on 3i Group is skewed toward caution, with bearish analysts pointing to slower momentum and a valuation reset as key reasons for trimming expectations.
ULVR
UK£48.32
Unilever
7D
4.3%
1Y
-3.8%

ULVR: Margin Resilience And Q4 Volume Support A More Constructive Outlook

Narrative Update The updated analyst price target for Unilever reflects a shift from £40.00 to £41.00 per share, as analysts weigh contained earnings growth, pressure on pricing and operating margins, and potential sentiment risks around FY26 margin guidance and U.S. growth contributions. Analyst Commentary Recent research reflects a slightly higher price target of £41.00 per share, but with a cautious tone around earnings quality, valuation and medium term guidance.
DGE
UK£16.92
Diageo
7D
7.3%
1Y
-28.3%

DGE: Premium Portfolio And Cost Discipline Will Offset SNAP Benefits Pressure

Analysts have trimmed their fair value estimate for Diageo from $21.57 to $20.80, citing slightly softer long term assumptions for revenue growth and profit margins as consumer staples face pressure from reduced SNAP benefits and weaker lower income confidence. Analyst Commentary Analysts are incorporating the reduction in Supplemental Nutrition Assistance Program benefits into their thinking on Diageo, as pressure on lower income consumers feeds into expectations for the broader staples group.
AHT
UK£52.70
Ashtead Group
7D
-3.7%
1Y
2.1%

AHT: Share Buybacks And Dividend Policy Will Support A Higher Price

Analysts have lifted their fair value estimate for Ashtead Group from £66.00 to about £74.60. This reflects updated assumptions for revenue growth, profit margins and future P/E levels in their models.