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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 07, 2026
DataAggregated Company Financials
Companies1082
  • 7D1.7%
  • 3M3.0%
  • 1Y19.6%
  • YTD6.6%

The market is up 1.9% over the last week, with the Financials sector leading the way, up 3.6%. As for the past 12 months, the market is up 20%. Looking forward, earnings are forecast to grow by 11% annually.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 07 Jul 2026UK£3.0tUK£2.0tUK£164.6b15.9x18.2x1.5x
Thu, 04 Jun 2026UK£2.9tUK£2.0tUK£164.9b15.8x17.7x1.4x
Sat, 02 May 2026UK£3.0tUK£2.0tUK£160.1b15.9x18.5x1.5x
Mon, 30 Mar 2026UK£2.8tUK£2.0tUK£157.6b14.6x17.7x1.4x
Wed, 25 Feb 2026UK£3.0tUK£2.0tUK£148.3b16.6x20.5x1.6x
Fri, 23 Jan 2026UK£2.9tUK£2.0tUK£137.5b16.8x21.2x1.5x
Sun, 21 Dec 2025UK£2.8tUK£2.0tUK£138.3b16x20.4x1.4x
Tue, 18 Nov 2025UK£2.8tUK£2.0tUK£139.2b16.3x19.9x1.4x
Thu, 16 Oct 2025UK£2.7tUK£1.9tUK£135.6b16.6x20x1.4x
Sat, 13 Sep 2025UK£2.7tUK£1.9tUK£135.4b16.4x19.8x1.4x
Mon, 11 Aug 2025UK£2.6tUK£1.9tUK£134.0b16.2x19.7x1.4x
Wed, 09 Jul 2025UK£2.5tUK£1.9tUK£127.1b16.3x19.7x1.3x
Fri, 06 Jun 2025UK£2.5tUK£1.9tUK£127.0b16.2x19.7x1.3x
Sun, 04 May 2025UK£2.4tUK£2.0tUK£130.7b15.8x18.7x1.2x
Tue, 01 Apr 2025UK£2.4tUK£2.0tUK£136.1b15.3x17.9x1.2x
Thu, 27 Feb 2025UK£2.5tUK£2.0tUK£137.4b16.1x18.3x1.3x
Sat, 25 Jan 2025UK£2.5tUK£2.1tUK£123.3b15.8x20.1x1.2x
Mon, 23 Dec 2024UK£2.4tUK£2.0tUK£122.8b16x19.4x1.2x
Wed, 20 Nov 2024UK£2.4tUK£2.0tUK£121.8b16.3x19.6x1.2x
Fri, 18 Oct 2024UK£2.4tUK£2.0tUK£118.9b16.6x20.5x1.2x
Sun, 15 Sep 2024UK£2.4tUK£2.0tUK£119.3b16.5x20.4x1.2x
Tue, 13 Aug 2024UK£2.4tUK£2.0tUK£123.3b16.3x19.7x1.2x
Thu, 11 Jul 2024UK£2.4tUK£2.0tUK£131.2b16.8x18.5x1.2x
Sat, 08 Jun 2024UK£2.5tUK£2.0tUK£129.9b16.8x18.9x1.2x
Mon, 06 May 2024UK£2.4tUK£2.1tUK£141.9b16.5x17.3x1.2x
Wed, 03 Apr 2024UK£2.4tUK£2.1tUK£146.2b16.2x16.4x1.1x
Fri, 01 Mar 2024UK£2.3tUK£2.0tUK£140.5b15.2x16.3x1.1x
Sun, 28 Jan 2024UK£2.3tUK£2.1tUK£193.0b15x12x1.1x
Tue, 26 Dec 2023UK£2.3tUK£2.1tUK£193.8b15.2x12.1x1.1x
Thu, 23 Nov 2023UK£2.3tUK£2.1tUK£194.6b14.3x11.6x1.1x
Sat, 21 Oct 2023UK£2.3tUK£2.2tUK£187.3b13.5x12.1x1x
Mon, 18 Sep 2023UK£2.4tUK£2.2tUK£185.6b14.8x12.8x1.1x
Wed, 16 Aug 2023UK£2.3tUK£2.1tUK£184.5b14.3x12.4x1.1x
Fri, 14 Jul 2023UK£2.3tUK£2.2tUK£204.3b14x11.4x1.1x
Price to Earnings Ratio

11.4x


Total Market Cap: UK£2.3tTotal Earnings: UK£204.3bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.7x202420252026
Current Market PE
  • Investors are relatively neutral on the British market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
  • The market is trading close to its 3-year average PE ratio of 17.7x.
Past Earnings Growth
  • The earnings for British listed companies have declined 6.9% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

Which sectors have driven the changes within the U.K. Market?

GB Market1.66%
Industrials4.88%
Financials4.52%
Tech2.09%
Materials1.37%
Energy0.16%
Real Estate-0.25%
Healthcare-0.49%
Utilities-0.62%
Consumer Staples-1.01%
Consumer Discretionary-1.32%
Telecom-1.48%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.7x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.8%, which is higher than its past year's earnings growth of 7.6% 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 10.2x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings growth rate of 3.1% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.9% 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
RR. Rolls-Royce HoldingsUK£15.046.3%
+UK£7.3b		55.1%PE21.3xIndustrials
HSBA HSBC HoldingsUK£14.662.9%
+UK£7.2b		64.0%PB1.7xFinancials
BA. BAE SystemsUK£20.2512.0%
+UK£6.2b		8.0%PE27.9xIndustrials
LSEG London Stock Exchange GroupUK£88.529.6%
+UK£3.8b		-18.0%PE34.5xFinancials
LLOY Lloyds Banking GroupUK£1.156.0%
+UK£3.8b		52.4%PB1.4xFinancials
See more

Market Insights

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Markets are supposed to reprice risk when it changes. This time they've repriced the promise, but left the threat largely untouched. Whether that's an oversight or a fair call is worth thinking through.
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Latest News

IHG
US$164.65
InterContinental Hotels Group
7D
-4.7%
1Y
39.6%
Narrative Update • Jul 06

IHG: Future Returns Will Hinge On RevPAR Trends And Net Unit Acceleration

InterContinental Hotels Group's analyst price targets have moved higher into a $188 to $195 range as analysts point to stronger than expected RevPAR momentum in the U.S., improving net unit growth and a healthier pipeline as key supports for the updated valuation. Analyst Commentary Recent research on InterContinental Hotels Group highlights a cluster of higher price targets, with analysts focusing on RevPAR trends, net unit growth and the development pipeline as key drivers behind their views on the stock's valuation and execution risk.
BP.
UK£4.68
BP
7D
-1.0%
1Y
25.8%
NG.
UK£12.31
National Grid
7D
-1.9%
1Y
18.9%
RR.
UK£15.04
Rolls-Royce Holdings
7D
6.3%
1Y
55.1%
AZN
UK£141.00
AstraZeneca
7D
-1.4%
1Y
38.0%
HSBA
UK£14.66
HSBC Holdings
7D
2.9%
1Y
64.0%
BT.A
UK£1.87
BT Group
7D
-4.7%
1Y
-4.7%
BATS
UK£45.82
British American Tobacco
7D
-2.9%
1Y
28.6%
VOD
UK£0.98
Vodafone Group
7D
-5.2%
1Y
21.1%
Narrative Update • Jul 02

VOD: German Competition And Inorganic Investment Needs Will Pressure Future Returns

Vodafone Group's analyst price targets have generally shifted lower, with cuts such as £1.55 to £1.50 and £1.20 to £1.10. These changes reflect analyst concerns about German competitive pressures and the balance between UK growth, elevated spending, and German EBITDA trends.
NWG
UK£6.86
NatWest Group
7D
4.6%
1Y
40.7%
DGE
UK£15.12
Diageo
7D
-3.5%
1Y
-20.4%
Narrative Update • Jul 01

DGE: Cost Cuts And Margin Discipline Will Shape Future Earnings Multiple

Analysts have reduced Diageo's implied fair value to £14.25 from £14.60, reflecting a slightly higher discount rate and modest adjustments to revenue growth, profit margin and future P/E assumptions. Analyst Commentary Recent research on consumer staples and discretionary companies highlights how quickly sentiment can shift when growth visibility, pricing power, or margins come into question.
BA.
UK£20.25
BAE Systems
7D
12.0%
1Y
8.0%
LLOY
UK£1.15
Lloyds Banking Group
7D
6.0%
1Y
52.4%
BARC
UK£5.30
Barclays
7D
4.8%
1Y
58.4%
Narrative Update • Jun 25

BARC: Buyback And Youth Platform Acquisition Are Expected To Support Steady Returns

Analysts have nudged their fair value estimate for Barclays stock from £5.39 to £5.49, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E that together support a slightly higher price target. What’s in the News for Barclays Barclays is under scrutiny over its previous dealings with Market Financial Solutions, after reportedly reducing exposure and blocking transactions when financial irregularities were identified, while some creditors question why other banks were not warned about concerns ahead of the lender’s collapse and £1.3b fraud allegations (source: recent investigative reporting).
CPG
US$31.57
Compass Group
7D
-2.2%
1Y
-7.9%
Narrative Update • Jun 22

CPG: BNP Upgrade And Premium P/E Will Drive Future Upside

Analysts have nudged their price target for Compass Group slightly higher to $38.30 from $38.28, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E following recent research, including a BNP Paribas upgrade. What's in the News for Compass Group Recent research on Compass Group includes updated assumptions for fair value, discount rate, revenue growth, profit margin, and future P/E.
LSEG
UK£88.52
London Stock Exchange Group
7D
9.6%
1Y
-18.0%
Narrative Update • Jun 17

LSEG: Digital Expansion And Share Buybacks Will Support Future Share Price Upside

Analysts have nudged their price targets for London Stock Exchange Group higher, with one recent move adding £1.00 to the prior level. The change reflects updated views on fair value, discount rate, revenue growth, profit margin and future P/E assumptions.