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U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 27, 2026
DataAggregated Company Financials
Companies1093
  • 7D1.9%
  • 3M11.8%
  • 1Y24.6%
  • YTD9.2%

The market is up 1.9% over the last week, with the Financials sector leading the way, up 4.3%. In the last year, the market has climbed 25%. 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
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
Thu, 11 May 2023UK£2.4tUK£2.2tUK£209.9b14.4x11.6x1.1x
Sat, 08 Apr 2023UK£2.4tUK£2.2tUK£180.0b13.8x13.5x1.1x
Mon, 06 Mar 2023UK£2.5tUK£2.2tUK£189.4b14x13.4x1.2x
Price to Earnings Ratio

13.4x


Total Market Cap: UK£2.5tTotal Earnings: UK£189.4bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17x202420252026
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 20.2x which is higher than its 3-year average PE of 17.0x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 6.9% per year over the last three years.
  • Revenues have also declined 3.6% 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 Market1.92%
Financials4.32%
Utilities3.88%
Materials3.83%
Tech3.10%
Industrials2.10%
Consumer Discretionary1.49%
Energy1.47%
Real Estate0.55%
Telecom0.40%
Consumer Staples-0.17%
Healthcare-1.65%
Sector PE
  • Investors favour the Tech sector the most for future growth even though it's trading below its 3-year average PE ratio of 53.3x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.5%, which is higher than its past year's earnings growth of 7.7% 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 3.8% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.2% 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
HSBA HSBC HoldingsUK£13.989.1%
+UK£20.0b		53.2%PB1.6xFinancials
SHEL ShellUK£30.242.7%
+UK£4.4b		14.0%PE13xEnergy
REL RELXUK£25.2510.1%
+UK£4.0b		-33.3%PE22xIndustrials
ANTO AntofagastaUK£42.609.9%
+UK£3.8b		139.7%PE42.7xMaterials
LSEG London Stock Exchange GroupUK£85.009.3%
+UK£3.6b		-27.8%PE43.3xFinancials
See more

Market Insights

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In many ways, the market is upside down. This new setting might offer some unexpected opportunities for investors.
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Alternatives part 2: 2026 and beyond 🔭
Last Week

Alternatives part 2: 2026 and beyond 🔭

Latest News

HSBA
UK£13.98
HSBC Holdings
7D
9.1%
1Y
53.2%
DGE
UK£15.86
Diageo
7D
-11.0%
1Y
-25.6%
GSK
UK£21.67
GSK
7D
-2.7%
1Y
48.3%
HLN
UK£3.94
Haleon
7D
-3.2%
1Y
3.1%
AZN
UK£151.10
AstraZeneca
7D
-1.2%
1Y
25.7%
ANTO
UK£42.60
Antofagasta
7D
9.9%
1Y
139.7%
TSCO
UK£4.85
Tesco
7D
-2.4%
1Y
27.8%

TSCO: Execution On Store Partnerships And Margins Will Shape Future Returns

Narrative Update Analysts have trimmed their Tesco price target to £4.80 from £5.00, reflecting slightly lower discount rate and future P/E assumptions while keeping their broader positive stance on the shares intact. Analyst Commentary Bullish and bearish analysts are reacting to the revised £4.80 price target with a focus on how Tesco can execute against its current valuation, rather than a wholesale change in view on the company.
REL
UK£25.25
RELX
7D
10.1%
1Y
-33.3%

REL: AI Execution Risk Repricing Will Support Future Multiple Re Rating Potential

Analysts have trimmed their fair value estimate for RELX, cutting the price target by £4.48 to reflect slightly lower assumed profit margins and a reduced future P/E. Revenue growth expectations, however, remain in line with recent ranges reported in Street research.
RIO
UK£72.82
Rio Tinto Group
7D
2.3%
1Y
51.1%

Rio Tinto (RIO): Cash Machine with a China Beta Problem — and a Copper Glow-Up

If I had to summarise Rio Tinto in one line, I would describe it as a world-class iron ore franchise that is now being forced to adapt to a changing China and a changing commodity landscape. For years, Rio’s investment case has been built on the strength of its Pilbara iron ore operations.
III
UK£32.72
3i Group
7D
-3.4%
1Y
-18.3%

III: Stable Forecasts Suggest Durable Returns And Ongoing Dividend Visibility

Analysts have slightly adjusted their price targets on 3i Group, with recent research showing moves of £1.00 higher and £0.95 lower. These changes leave our fair value estimate essentially unchanged at £42.01, supported by broadly stable assumptions for discount rate, revenue growth, profit margin and future P/E.
BATS
UK£46.29
British American Tobacco
7D
3.5%
1Y
50.9%

BATS: Future Returns Will Reflect ITC Stake Sale And Measured Revenue Outlook

Analysts now set their fair value estimate for British American Tobacco at £45.81, compared with £45.19 previously. This reflects updated assumptions around discount rates, revenue growth, profit margins and future P/E.
LSEG
UK£85.00
London Stock Exchange Group
7D
9.3%
1Y
-27.8%
BA.
UK£21.18
BAE Systems
7D
-2.1%
1Y
52.2%

BA.: Defence Order Momentum And 2026 Visibility Will Support Earnings Repricing

The updated analyst price target for BAE Systems edges up from £25.51 to £26.00. This change reflects analysts' mixed but generally constructive research in recent weeks, including higher price targets after slightly ahead of expectation fiscal 2025 results and revised outlooks into 2026.
SHEL
UK£30.24
Shell
7D
2.7%
1Y
14.0%
BP.
UK£4.74
BP
7D
-1.0%
1Y
8.3%

BP.: Future Returns Will Reflect Portfolio Sales Refining Strength And CEO Transition

Analysts have trimmed their average price target on BP by £0.10, citing more cautious revenue growth assumptions, a slightly higher discount rate, and continued sector wide downgrades that have only been partially offset by firmer margin expectations. Analyst Commentary Recent Street research on BP points to a mixed backdrop, with several downgrades and price target cuts offset by a smaller group of more constructive voices focusing on balance sheet strength and refining exposure.
GLEN
UK£5.26
Glencore
7D
4.1%
1Y
65.9%