Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Market Analysis & Valuation

UpdatedAug 29, 2025
DataAggregated Company Financials
Companies1122
  • 7D2.8%
  • 3M12.4%
  • 1Y16.0%
  • YTD17.0%

The market has climbed 2.8% in the last 7 days, lead by the Energy sector with a gain of 4.9%. On the other hand, with a decline of 3.1%, the Consumer Staples sector is lagging behind. As for the past 12 months, the market is up 16%. Looking forward, earnings are forecast to grow by 12% 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, 29 Aug 2025UK£2.7tUK£1.9tUK£135.3b15.9x19.7x1.4x
Sun, 27 Jul 2025UK£2.6tUK£1.9tUK£125.2b16.4x20.5x1.3x
Tue, 24 Jun 2025UK£2.5tUK£1.9tUK£127.2b16.4x19.5x1.3x
Thu, 22 May 2025UK£2.5tUK£2.0tUK£127.2b16.4x19.7x1.3x
Sat, 19 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Mon, 17 Mar 2025UK£2.5tUK£2.0tUK£137.0b15x18.1x1.2x
Wed, 12 Feb 2025UK£2.5tUK£2.0tUK£123.9b16.1x20.5x1.2x
Fri, 10 Jan 2025UK£2.4tUK£2.1tUK£124.2b15.8x19.6x1.2x
Sun, 08 Dec 2024UK£2.4tUK£2.0tUK£122.3b16.5x20x1.2x
Tue, 05 Nov 2024UK£2.4tUK£2.0tUK£114.9b16.3x21x1.2x
Thu, 03 Oct 2024UK£2.4tUK£2.0tUK£117.8b16.6x20.6x1.2x
Sat, 31 Aug 2024UK£2.5tUK£2.0tUK£119.2b16.9x20.7x1.2x
Mon, 29 Jul 2024UK£2.4tUK£2.0tUK£127.1b16.5x19.2x1.2x
Wed, 26 Jun 2024UK£2.4tUK£2.0tUK£131.8b16.4x18.4x1.2x
Fri, 24 May 2024UK£2.5tUK£2.0tUK£127.0b17.2x19.6x1.2x
Sun, 21 Apr 2024UK£2.4tUK£2.1tUK£148.4b15.6x16.1x1.1x
Tue, 19 Mar 2024UK£2.3tUK£2.1tUK£145.0b15.9x16x1.1x
Thu, 15 Feb 2024UK£2.3tUK£2.0tUK£144.4b15.1x15.6x1.1x
Sat, 13 Jan 2024UK£2.3tUK£2.1tUK£193.4b14.9x12x1.1x
Mon, 11 Dec 2023UK£2.3tUK£2.1tUK£194.1b14.6x11.8x1.1x
Wed, 08 Nov 2023UK£2.2tUK£2.2tUK£194.5b13.8x11.5x1x
Fri, 06 Oct 2023UK£2.3tUK£2.2tUK£187.0b14.1x12.2x1x
Sun, 03 Sep 2023UK£2.3tUK£2.2tUK£184.9b14.5x12.5x1.1x
Tue, 01 Aug 2023UK£2.4tUK£2.2tUK£194.0b14.6x12.3x1.1x
Thu, 29 Jun 2023UK£2.3tUK£2.2tUK£209.2b14.2x11.1x1.1x
Sat, 27 May 2023UK£2.4tUK£2.2tUK£214.0b14x11.2x1.1x
Mon, 24 Apr 2023UK£2.5tUK£2.2tUK£178.7b14.1x13.9x1.1x
Wed, 22 Mar 2023UK£2.3tUK£2.2tUK£182.7b13.7x12.6x1.1x
Fri, 17 Feb 2023UK£2.6tUK£2.2tUK£202.9b13.8x12.7x1.2x
Sun, 15 Jan 2023UK£2.5tUK£2.1tUK£184.7b13.8x13.7x1.2x
Tue, 13 Dec 2022UK£2.4tUK£2.1tUK£185.8b13.3x12.9x1.1x
Thu, 10 Nov 2022UK£2.4tUK£2.3tUK£207.9b12.8x11.6x1.1x
Sat, 08 Oct 2022UK£2.3tUK£2.4tUK£208.8b11.9x11.1x1x
Mon, 05 Sep 2022UK£2.4tUK£2.3tUK£207.5b13.2x11.7x1.1x
Price to Earnings Ratio

11.7x


Total Market Cap: UK£2.4tTotal Earnings: UK£207.5bTotal Revenue: UK£2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 15.6x202320242025
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 19.7x which is higher than its 3-year average PE of 15.6x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 13% per year over the last three years.
  • Revenues have also declined 5.1% 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 Market2.82%
Energy4.89%
Materials1.99%
Tech0.60%
Telecom0.35%
Industrials-0.017%
Consumer Discretionary-0.82%
Real Estate-1.05%
Financials-1.49%
Utilities-1.65%
Healthcare-1.96%
Consumer Staples-3.07%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.2x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 20.3%, which is higher than its past year's earnings growth of 9.6% 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 7.0% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 6.7% 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£27.161.4%
+UK£2.1b		0.2%PE15.8xEnergy
RIO Rio Tinto GroupUK£46.372.3%
+UK£1.7b		-3.3%PE9.9xMaterials
RR. Rolls-Royce HoldingsUK£10.591.7%
+UK£1.5b		111.6%PE15.4xIndustrials
BP. BPUK£4.292.3%
+UK£1.5b		-1.3%PE159.6xEnergy
AAL Anglo AmericanUK£22.653.9%
+UK£906.5m		-10.9%PS1.2xMaterials
See more

Market Insights

Header cover image
🌊 The 2025 IPO Wave: Winners, Losers, and What Investors Should Watch
Richard Bowman avatar
Richard Bowman
|
|
The number of IPOs and the capital raised this year are on track to outpace the last three years combined. And the thing is, successful IPOs attract more IPOs. Some will be genuine gems, while others, not so much. That’s why this week, we’re digging into the IPO market, and more importantly, how you can improve your odds of spotting a winner.
Continue reading
📊 Leveraged Upside and Downside With Bitcoin Treasury Companies
Last Week

📊 Leveraged Upside and Downside With Bitcoin Treasury Companies

Latest News

FRES
UK£17.53
Fresnillo
7D
4.9%
1Y
216.1%

After Leaping 26% Fresnillo plc (LON:FRES) Shares Are Not Flying Under The Radar

Aug 28
After Leaping 26% Fresnillo plc (LON:FRES) Shares Are Not Flying Under The Radar
ULVR
UK£46.10
Unilever
7D
-1.8%
1Y
-6.1%

Emerging Markets And Digital Commerce Will Transform Future Landscape

Analysts have modestly raised Unilever’s price target to £50.27, largely driven by confidence in emerging markets growth offsetting U.S. weakness and reflecting positive adjustments after strong first half results. Analyst Commentary Bullish analysts expect growth in emerging markets such as India, Indonesia, and China to offset slower growth in the U.S. Some analysts have increased price targets following Unilever's first half results, reflecting adjustments to their financial models.
BATS
UK£41.46
British American Tobacco
7D
-5.6%
1Y
47.2%
AHT
UK£54.72
Ashtead Group
7D
2.2%
1Y
2.6%

Here's Why We Think Ashtead Group plc's (LON:AHT) CEO Compensation Looks Fair for the time being

Aug 26
Here's Why We Think Ashtead Group plc's (LON:AHT) CEO Compensation Looks Fair for the time being
AZN
UK£118.10
AstraZeneca
7D
-2.0%
1Y
-11.0%
GSK
UK£14.60
GSK
7D
-2.2%
1Y
-11.6%
LSEG
UK£92.36
London Stock Exchange Group
7D
-2.5%
1Y
-9.7%
SHEL
UK£27.16
Shell
7D
1.4%
1Y
0.2%

Shell's (LON:SHEL) Soft Earnings Don't Show The Whole Picture

Aug 07
Shell's (LON:SHEL) Soft Earnings Don't Show The Whole Picture
BP.
UK£4.29
BP
7D
2.3%
1Y
-1.3%

Upstream Breakthroughs And Cost Cuts Will Reshape Global Energy Markets

Buoyed by stronger-than-expected margins and improved outlook for core refining and integrated oil operations, analysts have raised BP’s consensus price target from £4.24 to £5.37. Analyst Commentary Bullish analysts are increasing earnings estimates for BP driven by stronger-than-expected margins, particularly in the most recent quarter.
RR.
UK£10.59
Rolls-Royce Holdings
7D
1.7%
1Y
111.6%

Rising Supply Chain Risks And Slowing Demand Will Undercut Margins

Analysts have raised their price target for Rolls-Royce Holdings to £9.97, citing stronger cash flow forecasts, sustained operational improvements, and a more optimistic long-term aerospace outlook. Analyst Commentary Valuation concerns leading to a more cautious outlook after strong share price appreciation.
AAL
UK£22.65
Anglo American
7D
3.9%
1Y
-10.9%
HSBA
UK£9.56
HSBC Holdings
7D
-1.2%
1Y
44.6%
RIO
UK£46.37
Rio Tinto Group
7D
2.3%
1Y
-3.3%
BT.A
UK£2.17
BT Group
7D
2.5%
1Y
57.2%
NWG
UK£5.37
NatWest Group
7D
-4.7%
1Y
56.4%

NatWest Group (LON:NWG) Has Announced A Dividend Of £0.095

Jul 28
NatWest Group (LON:NWG) Has Announced A Dividend Of £0.095
REL
UK£34.95
RELX
7D
-2.9%
1Y
-2.3%

RELX (LON:REL) Will Pay A Dividend Of £0.195

Jul 27
RELX (LON:REL) Will Pay A Dividend Of £0.195