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

U.K. (FTSE) Market Analysis & Valuation

UpdatedAug 22, 2025
DataAggregated Company Financials
Companies1123
  • 7D-2.8%
  • 3M9.8%
  • 1Y14.7%
  • YTD13.8%

Over the last 7 days, the market has dropped 2.8%, driven by a decline of 4.7% in the Energy sector. Meanwhile, the Consumer Staples sector has outperformed, gaining 3.4% in that time. In contrast to the last week, the market is actually up 15% over the past year. Earnings are forecast to grow by 15% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 23 Aug 2025UK£2.7tUK£2.0tUK£134.4b16.1x20x1.4x
Mon, 21 Jul 2025UK£2.5tUK£1.9tUK£127.4b16x19.9x1.3x
Wed, 18 Jun 2025UK£2.5tUK£1.9tUK£127.7b16.1x19.6x1.3x
Fri, 16 May 2025UK£2.5tUK£2.0tUK£132.6b16.4x18.6x1.3x
Sun, 13 Apr 2025UK£2.3tUK£2.0tUK£135.7b14.7x16.7x1.1x
Tue, 11 Mar 2025UK£2.5tUK£2.0tUK£137.7b15.2x17.9x1.2x
Thu, 06 Feb 2025UK£2.5tUK£2.0tUK£122.9b16x20.2x1.2x
Sat, 04 Jan 2025UK£2.4tUK£2.1tUK£123.5b15.9x19.6x1.2x
Mon, 02 Dec 2024UK£2.4tUK£2.0tUK£122.5b16.3x19.9x1.2x
Wed, 30 Oct 2024UK£2.4tUK£2.0tUK£120.4b16x20.1x1.2x
Fri, 27 Sep 2024UK£2.4tUK£2.0tUK£117.5b17x20.8x1.2x
Sun, 25 Aug 2024UK£2.5tUK£2.0tUK£119.5b16.9x20.5x1.2x
Tue, 23 Jul 2024UK£2.4tUK£2.0tUK£129.3b16.8x18.7x1.2x
Thu, 20 Jun 2024UK£2.4tUK£2.0tUK£131.7b16.6x18.4x1.2x
Sat, 18 May 2024UK£2.5tUK£2.1tUK£127.7b16.9x19.7x1.2x
Mon, 15 Apr 2024UK£2.4tUK£2.1tUK£148.4b16x16.3x1.1x
Wed, 13 Mar 2024UK£2.3tUK£2.1tUK£144.5b16x16.2x1.1x
Fri, 09 Feb 2024UK£2.3tUK£2.0tUK£144.0b15.2x15.7x1.1x
Sun, 07 Jan 2024UK£2.3tUK£2.1tUK£193.5b15x12.1x1.1x
Tue, 05 Dec 2023UK£2.3tUK£2.1tUK£193.3b14.5x11.8x1.1x
Thu, 02 Nov 2023UK£2.2tUK£2.2tUK£194.9b13.5x11.3x1x
Sat, 30 Sep 2023UK£2.3tUK£2.2tUK£185.5b14.5x12.6x1.1x
Mon, 28 Aug 2023UK£2.3tUK£2.2tUK£183.8b14.5x12.3x1.1x
Wed, 26 Jul 2023UK£2.4tUK£2.2tUK£206.2b14.2x11.6x1.1x
Fri, 23 Jun 2023UK£2.3tUK£2.2tUK£208.2b14.2x11.2x1.1x
Sun, 21 May 2023UK£2.4tUK£2.2tUK£216.9b14.3x11.2x1.1x
Tue, 18 Apr 2023UK£2.5tUK£2.2tUK£180.2b14x13.7x1.1x
Thu, 16 Mar 2023UK£2.4tUK£2.2tUK£188.4b13.2x12.5x1.1x
Sat, 11 Feb 2023UK£2.5tUK£2.1tUK£194.7b13.8x12.9x1.2x
Mon, 09 Jan 2023UK£2.5tUK£2.1tUK£185.1b13.7x13.4x1.2x
Wed, 07 Dec 2022UK£2.4tUK£2.1tUK£185.7b13.5x13.1x1.2x
Fri, 04 Nov 2022UK£2.3tUK£2.3tUK£210.9b12.5x11.1x1x
Sun, 02 Oct 2022UK£2.3tUK£2.4tUK£209.9b11.9x10.9x1x
Tue, 30 Aug 2022UK£2.5tUK£2.3tUK£206.2b13.5x12.1x1.1x
Price to Earnings Ratio

12.1x


Total Market Cap: UK£2.5tTotal Earnings: UK£206.2bTotal 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 20.0x 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 4.9% 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 Market-2.77%
Healthcare3.92%
Consumer Staples3.40%
Tech0.94%
Consumer Discretionary0.83%
Materials0.82%
Utilities0.78%
Telecom0.72%
Financials0.52%
Real Estate-0.43%
Industrials-0.76%
Energy-4.70%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.1x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 20.1%, which is higher than its past year's earnings growth of 9.0% 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 6.3% 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
AZN AstraZenecaUK£120.864.3%
+UK£7.7b		-7.6%PE30.3xHealthcare
ULVR UnileverUK£46.954.7%
+UK£5.3b		-2.4%PE24.4xConsumer Staples
HSBA HSBC HoldingsUK£9.703.3%
+UK£5.2b		48.1%PB1.2xFinancials
SHEL ShellUK£27.002.3%
+UK£3.4b		-0.8%PE15.6xEnergy
BATS British American TobaccoUK£43.933.7%
+UK£3.4b		58.8%PE31.5xConsumer Staples
See more

Market Insights

Header cover image
📊 Leveraged Upside and Downside With Bitcoin Treasury Companies
Michael Paige avatar
Michael Paige
|
|
Market sentiment on BTC treasury companies is moving, and with volatility rising, disagreements over their future prospects are as heated as ever.
Continue reading
₿ Bitcoin ETFs: Success Comes With Risks
Last Week

₿ Bitcoin ETFs: Success Comes With Risks

Latest News

SMWH
UK£7.17
WH Smith
7D
-33.7%
1Y
-43.3%
KAP
US$43.95
National Atomic Company Kazatomprom JSC
7D
-2.3%
1Y
13.6%
IWG
UK£2.02
International Workplace Group
7D
-12.3%
1Y
12.3%
MRO
UK£5.87
Melrose Industries
7D
-1.8%
1Y
14.9%

Is Now An Opportune Moment To Examine Melrose Industries PLC (LON:MRO)?

Aug 21
Is Now An Opportune Moment To Examine Melrose Industries PLC (LON:MRO)?
GLEN
UK£2.92
Glencore
7D
-2.7%
1Y
-29.0%
AZN
UK£120.86
AstraZeneca
7D
4.3%
1Y
-7.6%
ULVR
UK£46.95
Unilever
7D
4.7%
1Y
-2.4%

Is Unilever (LON:ULVR) Using Too Much Debt?

Aug 17
Is Unilever (LON:ULVR) Using Too Much Debt?
GSK
UK£14.93
GSK
7D
5.5%
1Y
-6.5%
LGEN
UK£2.57
Legal & General Group
7D
-2.1%
1Y
13.6%
STAN
UK£13.60
Standard Chartered
7D
-3.3%
1Y
79.9%
BATS
UK£43.93
British American Tobacco
7D
3.7%
1Y
58.8%

Emerging Markets And Digital Transformation Will Enable Long-Term Stability

British American Tobacco’s consensus price target and future P/E both saw negligible changes, reflecting market stability in valuation expectations, with fair value ticking up slightly from £40.33 to £40.67. What's in the News Completed repurchase of 41,467,587 shares (1.87%) for £1,148 million under ongoing buyback program; latest tranche: 14,075,158 shares for £450 million.
SHEL
UK£27.00
Shell
7D
2.3%
1Y
-0.8%

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
DGE
UK£21.30
Diageo
7D
4.8%
1Y
-15.8%
RR.
UK£10.41
Rolls-Royce Holdings
7D
-3.1%
1Y
108.6%

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.
HSBA
UK£9.70
HSBC Holdings
7D
3.3%
1Y
48.1%
NWG
UK£5.62
NatWest Group
7D
3.4%
1Y
62.7%

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

Jul 28
NatWest Group (LON:NWG) Has Announced A Dividend Of £0.095