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U.K. (FTSE) Market Analysis & Valuation

UpdatedDec 26, 2025
DataAggregated Company Financials
Companies1098
  • 7D0.3%
  • 3M6.0%
  • 1Y20.2%
  • YTD18.7%

In the last week, the market has been flat. Meanwhile, the market is actually up 20% over the past year. Looking forward, earnings are forecast to grow by 14% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 26 Dec 2025UK£2.8tUK£2.0tUK£138.7b16.1x20.4x1.4x
Sun, 23 Nov 2025UK£2.7tUK£2.0tUK£139.0b16x19.7x1.4x
Tue, 21 Oct 2025UK£2.7tUK£1.9tUK£135.5b16.5x20x1.4x
Thu, 18 Sep 2025UK£2.7tUK£1.9tUK£135.2b16.3x19.7x1.4x
Sat, 16 Aug 2025UK£2.7tUK£1.9tUK£133.8b15.7x19.8x1.4x
Mon, 14 Jul 2025UK£2.5tUK£1.9tUK£127.3b16.1x19.8x1.3x
Wed, 11 Jun 2025UK£2.5tUK£1.9tUK£127.5b16.4x19.7x1.3x
Fri, 09 May 2025UK£2.4tUK£2.0tUK£130.8b16x18.6x1.2x
Sun, 06 Apr 2025UK£2.3tUK£2.0tUK£136.6b14.5x16.8x1.1x
Tue, 04 Mar 2025UK£2.5tUK£2.0tUK£138.5b15.7x18.3x1.3x
Thu, 30 Jan 2025UK£2.5tUK£2.1tUK£123.6b16.1x20.2x1.2x
Sat, 28 Dec 2024UK£2.4tUK£2.0tUK£122.6b15.9x19.5x1.2x
Mon, 25 Nov 2024UK£2.4tUK£2.1tUK£124.0b16.4x19.6x1.2x
Wed, 23 Oct 2024UK£2.4tUK£2.0tUK£119.0b16.3x20.3x1.2x
Fri, 20 Sep 2024UK£2.4tUK£2.0tUK£118.2b16.9x20.7x1.2x
Sun, 18 Aug 2024UK£2.4tUK£2.0tUK£121.8b16.8x20.1x1.2x
Tue, 16 Jul 2024UK£2.4tUK£2.0tUK£130.0b16.9x18.6x1.2x
Thu, 13 Jun 2024UK£2.4tUK£2.0tUK£129.6b16.4x18.7x1.2x
Sat, 11 May 2024UK£2.5tUK£2.1tUK£136.5b16.9x18.4x1.2x
Mon, 08 Apr 2024UK£2.4tUK£2.1tUK£146.0b16x16.4x1.1x
Wed, 06 Mar 2024UK£2.3tUK£2.0tUK£142.0b15.4x16.2x1.1x
Fri, 02 Feb 2024UK£2.3tUK£2.1tUK£182.6b14.8x12.6x1.1x
Sun, 31 Dec 2023UK£2.3tUK£2.1tUK£193.5b15.1x12.1x1.1x
Tue, 28 Nov 2023UK£2.3tUK£2.1tUK£193.6b14.3x11.7x1.1x
Thu, 26 Oct 2023UK£2.3tUK£2.2tUK£187.6b13.4x12.1x1x
Sat, 23 Sep 2023UK£2.4tUK£2.2tUK£186.6b14.5x12.6x1.1x
Mon, 21 Aug 2023UK£2.2tUK£2.1tUK£184.1b14.2x12.2x1x
Wed, 19 Jul 2023UK£2.3tUK£2.2tUK£205.2b13.8x11.4x1.1x
Fri, 16 Jun 2023UK£2.4tUK£2.2tUK£208.1b14.4x11.4x1.1x
Sun, 14 May 2023UK£2.4tUK£2.2tUK£211.7b14.4x11.5x1.1x
Tue, 11 Apr 2023UK£2.4tUK£2.2tUK£179.9b13.8x13.5x1.1x
Thu, 09 Mar 2023UK£2.5tUK£2.2tUK£191.2b13.8x13.3x1.1x
Sat, 04 Feb 2023UK£2.5tUK£2.1tUK£185.4b14.2x13.7x1.2x
Mon, 02 Jan 2023UK£2.4tUK£2.1tUK£185.2b13.4x13x1.1x
Price to Earnings Ratio

13x


Total Market Cap: UK£2.4tTotal Earnings: UK£185.2bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.5x20242025
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 20.4x which is higher than its 3-year average PE of 16.5x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.2% per year over the last three years.
  • Revenues have also declined 2.5% 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 Market0.35%
Materials2.98%
Energy1.29%
Financials1.13%
Healthcare0.47%
Real Estate0.41%
Telecom0.36%
Utilities-0.17%
Tech-0.39%
Industrials-0.46%
Consumer Discretionary-1.61%
Consumer Staples-1.64%
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 52.7x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.7%, which is higher than its past year's earnings growth of 8.4% per year.
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 5.5% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 6.8% 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£11.752.2%
+UK£4.3b		52.3%PB1.4xFinancials
RIO Rio Tinto GroupUK£59.823.3%
+UK£3.1b		27.3%PE12.8xMaterials
AZN AstraZenecaUK£136.740.9%
+UK£2.0b		31.0%PE30.5xHealthcare
SHEL ShellUK£26.981.4%
+UK£1.9b		11.1%PE14.3xEnergy
AAL Anglo AmericanUK£30.123.6%
+UK£1.1b		11.4%PS1.6xMaterials
See more

Market Insights

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Three Sectors Expected to Rally in 2026 📈
With the backdrop of consistently strong broad market returns over the last few years, analysts are now looking at sector-specific plays that could outperform in 2026.
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Latest News

BATS
UK£42.15
British American Tobacco
7D
-1.6%
1Y
46.4%

BATS: Future Returns Will Reflect Gradual Expansion And Ongoing Deleveraging Efforts

Analysts have raised their price target on British American Tobacco slightly to approximately 44.88 dollars from 44.71 dollars, citing a modestly higher expected profit margin and valuation multiple that more than offset a small downgrade to long term revenue growth assumptions and a marginally higher discount rate. What's in the News Issued new 2025 guidance, targeting around 2% Group revenue growth at constant rates and mid single digit revenue growth in New Categories, signaling modest near term expansion.
IMB
UK£31.26
Imperial Brands
7D
-2.2%
1Y
22.1%

IMB: Future Returns Will Depend On Execution And Ongoing Share Repurchases

Analysts have modestly raised their consolidated price target range on Imperial Brands to approximately 2,700 to 3,650 GBp, reflecting increased confidence in the company’s valuation despite slightly higher discount rates and marginally softer revenue growth and margin assumptions. Analyst Commentary Recent price target revisions indicate that bullish analysts see improving risk reward for Imperial Brands, with upside potential supported by consistent execution on its strategic plan and disciplined capital allocation.
AZN
UK£136.74
AstraZeneca
7D
0.9%
1Y
31.0%
ANTO
UK£32.24
Antofagasta
7D
3.4%
1Y
99.3%

Antofagasta plc's (LON:ANTO) Intrinsic Value Is Potentially 95% Above Its Share Price

Dec 24
Antofagasta plc's (LON:ANTO) Intrinsic Value Is Potentially 95% Above Its Share Price
AAL
UK£30.12
Anglo American
7D
3.6%
1Y
11.4%

AAL: Iron Ore Upside And Merger Progress Will Drive Bullish Rerating

Analysts have lifted their price target on Anglo American to about $35 from roughly $28, reflecting improved expectations for revenue growth, higher margins, and a more favorable long term iron ore and valuation outlook following a series of recent target increases from major brokerages. Analyst Commentary Recent research updates highlight a clear shift toward a more constructive stance on Anglo American, with a series of price target increases signaling rising confidence in the company’s earnings trajectory and asset quality.
GLEN
UK£3.94
Glencore
7D
1.9%
1Y
11.0%
ULVR
UK£48.38
Unilever
7D
-1.1%
1Y
-5.8%

ULVR: Ice Cream Demerger Delay Will Still Support Future Pricing Power

Analysts have modestly reduced their price target on Unilever to approximately $53.37 from about $56.02, citing slightly lower long term revenue growth expectations and a marginally softer profit margin and valuation outlook, while the discount rate remains broadly unchanged. What's in the News Unilever delayed the planned demerger of its Magnum ice cream unit, attributing the timing change to the U.S. government shutdown, but reiterated confidence in completing the spin off later this year (Reuters).
FRES
UK£32.00
Fresnillo
7D
3.8%
1Y
402.7%

FRES: Higher Precious Metal Price Hopes Will Likely Overstate Future Earnings Potential

Fresnillo's analyst price target has been lifted sharply, rising from about 950 GBp to a range of 3,000 to 4,300 GBp, as analysts factor in stronger expected revenue growth, higher profit margins and a more constructive long-term precious metals price outlook. Analyst Commentary Recent target price revisions for Fresnillo highlight a wide dispersion in analyst expectations, reflecting divergent views on the sustainability of the company’s earnings recovery and leverage to higher precious metals prices.
AHT
UK£51.84
Ashtead Group
7D
-4.1%
1Y
4.8%

AHT: Share Buybacks And Dividends Will Mask Limited Rental Revenue Upside

Analysts have raised their price target on Ashtead Group to approximately £46.00 from about £40.46, reflecting improved expectations for revenue growth and profit margins, along with a slightly higher discount rate and a modestly lower future valuation multiple. What's in the News Ashtead Group has announced a new share repurchase program of up to $1.5 billion, valid until the end of April 2027 (Key Developments).
CPG
UK£23.70
Compass Group
7D
-1.6%
1Y
-10.4%

There's Reason For Concern Over Compass Group PLC's (LON:CPG) Price

Dec 20
There's Reason For Concern Over Compass Group PLC's (LON:CPG) Price
III
UK£32.24
3i Group
7D
-1.4%
1Y
-10.0%

III: Discount Retail Exposure Will Deliver Compounding Returns Despite Slower Momentum

Analysts have trimmed their price target on 3i Group from approximately £44.44 to about £43.94, citing slower momentum. Despite stronger projected revenue growth and a modestly higher future P/E, they argue this justifies a lower valuation and reduced fair value.
SHEL
UK£26.98
Shell
7D
1.4%
1Y
11.1%

SHEL: Future Returns Will Reflect Free Cash Flow Amid Buyback Funding Debate

Shell's analyst price target has edged lower by approximately $0.12, as analysts weigh still resilient free cash flow and recent target hikes against valuation concerns following the year-to-date rally, as well as medium-term growth and resource replenishment challenges. Analyst Commentary Recent Street research reflects a nuanced view on Shell, with a mix of target price increases and rating downgrades as the stock reprices higher and investors reassess medium term growth and capital return risks.
HSBA
UK£11.75
HSBC Holdings
7D
2.2%
1Y
52.3%

HSBA: Future Returns Will Depend On Succession Decisions And Capital Deployment Choices

Analysts have modestly raised their price target on HSBC Holdings, reflecting a slightly higher fair value estimate of approximately $10.88 versus $10.62 previously, supported by expectations for disciplined cost control, solid mid teens returns on equity, and resilient revenue growth despite only marginally higher forward valuation multiples. Analyst Commentary Recent Street research on HSBC Holdings reflects a generally constructive stance on the bank's execution and capital return story, tempered by selective concerns about deal making and capital deployment.
DGE
UK£15.90
Diageo
7D
-5.2%
1Y
-36.4%

DGE: Premium Positioning Will Cushion SNAP Headwinds And Support Share Rebound

Analysts have modestly trimmed their fair value estimate for Diageo by about $0.47 per share, citing higher perceived risk to consumer staples demand and slightly softer long term growth and margin assumptions. Analyst Commentary Bullish analysts acknowledge that reduced SNAP benefits and temporary payment disruptions create a near term headwind for staples demand, but they largely view the impact on Diageo as manageable given its premium positioning and global diversification.
RIO
UK£59.82
Rio Tinto Group
7D
3.3%
1Y
27.3%

RIO: Stronger Commodity Pricing And Cost Discipline Will Drive Upside Potential

Rio Tinto Group's analyst price target has been revised higher, with fair value estimates rising from approximately 65.08 to 74.18 as analysts factor in stronger expected revenue growth, wider profit margins, and a more favorable, though slightly higher risk-adjusted, earnings multiple implied by the latest round of target hikes across the Street. Analyst Commentary Recent research updates reflect a constructive tone on Rio Tinto, with a series of price target increases signaling growing confidence in the company’s earnings power and balance of risk and reward.
REL
UK£30.25
RELX
7D
-1.0%
1Y
-16.4%