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U.K. (FTSE) Market Analysis & Valuation

UpdatedMay 20, 2025
DataAggregated Company Financials
Companies1170
  • 7D1.1%
  • 3M-0.8%
  • 1Y0.8%
  • YTD4.3%

The market has climbed 1.1% in the last 7 days, lead by the Industrials sector with a gain of 3.0%. As for last year, the market performance has been flat. 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
Tue, 20 May 2025UK£2.5tUK£2.0tUK£132.9b16.5x18.7x1.3x
Thu, 17 Apr 2025UK£2.4tUK£2.0tUK£134.8b15.3x17.5x1.2x
Sat, 15 Mar 2025UK£2.5tUK£2.0tUK£137.0b15x18.1x1.2x
Mon, 10 Feb 2025UK£2.5tUK£2.0tUK£123.9b16x20.3x1.2x
Wed, 08 Jan 2025UK£2.4tUK£2.1tUK£123.2b16.2x19.6x1.2x
Fri, 06 Dec 2024UK£2.5tUK£2.0tUK£122.4b16.3x20x1.2x
Sun, 03 Nov 2024UK£2.4tUK£2.0tUK£118.3b16.3x20.4x1.2x
Tue, 01 Oct 2024UK£2.4tUK£2.0tUK£117.8b16.8x20.6x1.2x
Thu, 29 Aug 2024UK£2.5tUK£2.0tUK£119.5b17x20.5x1.2x
Sat, 27 Jul 2024UK£2.4tUK£2.0tUK£126.6b16.5x19.3x1.2x
Mon, 24 Jun 2024UK£2.4tUK£2.0tUK£132.0b16.7x18.4x1.2x
Wed, 22 May 2024UK£2.5tUK£2.0tUK£125.6b17.2x20x1.2x
Fri, 19 Apr 2024UK£2.4tUK£2.1tUK£147.5b15.7x16.1x1.1x
Sun, 17 Mar 2024UK£2.3tUK£2.1tUK£144.9b16.1x16.1x1.1x
Tue, 13 Feb 2024UK£2.3tUK£2.0tUK£144.7b15x15.6x1.1x
Thu, 11 Jan 2024UK£2.3tUK£2.1tUK£193.5b15.1x12x1.1x
Sat, 09 Dec 2023UK£2.3tUK£2.1tUK£194.2b14.6x11.7x1.1x
Mon, 06 Nov 2023UK£2.2tUK£2.1tUK£193.8b14x11.6x1x
Wed, 04 Oct 2023UK£2.3tUK£2.2tUK£187.0b14.2x12.3x1.1x
Fri, 01 Sep 2023UK£2.3tUK£2.2tUK£186.5b14.5x12.5x1.1x
Sun, 30 Jul 2023UK£2.4tUK£2.2tUK£193.5b14.4x12.4x1.1x
Tue, 27 Jun 2023UK£2.3tUK£2.2tUK£208.5b14x11.1x1.1x
Thu, 25 May 2023UK£2.4tUK£2.2tUK£216.7b14.2x11.1x1.1x
Sat, 22 Apr 2023UK£2.5tUK£2.2tUK£178.9b14.1x13.8x1.1x
Mon, 20 Mar 2023UK£2.2tUK£2.2tUK£183.2b13.4x12.3x1x
Wed, 15 Feb 2023UK£2.5tUK£2.1tUK£194.6b13.8x13x1.2x
Fri, 13 Jan 2023UK£2.5tUK£2.1tUK£185.1b13.8x13.6x1.2x
Sun, 11 Dec 2022UK£2.4tUK£2.1tUK£185.6b13.4x13x1.1x
Tue, 08 Nov 2022UK£2.4tUK£2.3tUK£209.2b12.7x11.4x1x
Thu, 06 Oct 2022UK£2.3tUK£2.3tUK£208.4b12x11.3x1x
Sat, 03 Sep 2022UK£2.4tUK£2.3tUK£207.7b13.2x11.8x1.1x
Mon, 01 Aug 2022UK£2.5tUK£2.2tUK£192.6b14x13.1x1.1x
Wed, 29 Jun 2022UK£2.5tUK£2.3tUK£196.0b14.3x12.8x1.1x
Fri, 27 May 2022UK£2.5tUK£2.2tUK£187.2b15.3x13.6x1.2x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.5tTotal Earnings: UK£187.2bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 15.1x202320242025
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 18.7x which is higher than its 3-year average PE of 15.1x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 11% per year over the last three years.
  • Revenues have also declined 3.7% 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 Market1.15%
Utilities3.78%
Industrials3.03%
Telecom2.86%
Consumer Discretionary2.54%
Financials1.39%
Real Estate1.14%
Consumer Staples0.83%
Healthcare0.74%
Materials-1.04%
Tech-1.17%
Energy-1.66%
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 54.9x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 15.8%, which is higher than its past year's earnings growth of 4.6% 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 10.0x.
Forecasted Growth
  • Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings decline of 3.3% per year.
  • In contrast, the Utilities sector is expected to see its earnings grow by 9.6% 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
REL RELXUK£41.064.9%
+UK£3.5b		18.5%PE39xIndustrials
BA. BAE SystemsUK£17.776.7%
+UK£3.3b		29.5%PE27.2xIndustrials
BATS British American TobaccoUK£32.244.5%
+UK£3.0b		30.2%PE23.4xConsumer Staples
RR. Rolls-Royce HoldingsUK£8.194.4%
+UK£2.8b		87.5%PE27.2xIndustrials
NG. National GridUK£10.704.4%
+UK£2.2b		-5.4%PE18.6xUtilities
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UK£27.56

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UK£3.26

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4.0%

1Y

50.3%

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UK£32.24

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4.5%

1Y

30.2%

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-25.6%

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Shell

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