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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 25, 2025
DataAggregated Company Financials
Companies1141
  • 7D2.1%
  • 3M8.5%
  • 1Y8.4%
  • YTD9.0%

The market is up 1.6% over the last week, with the Materials sector leading the way, up 5.8%. The market is up 7.9% over the last 12 months. 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
Fri, 25 Jul 2025UK£2.6tUK£1.9tUK£127.0b16.1x20.3x1.3x
Sun, 22 Jun 2025UK£2.5tUK£1.9tUK£127.6b16.4x19.5x1.3x
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
Price to Earnings Ratio

13.1x


Total Market Cap: UK£2.5tTotal Earnings: UK£192.6bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 15.4x202320242025
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 20.1x which is higher than its 3-year average PE of 15.4x.
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 4.6% 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 Market2.08%
Materials5.43%
Telecom4.98%
Healthcare3.58%
Consumer Staples3.19%
Consumer Discretionary2.90%
Energy1.45%
Real Estate1.11%
Utilities1.06%
Financials0.85%
Industrials0.015%
Tech-0.56%
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 51.8x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings growth of 10.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 9.9% per year.
  • In contrast, the Utilities sector is expected to see its earnings grow by 10% 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£109.065.8%
+UK£9.2b		-9.6%PE29.4xHealthcare
HSBA HSBC HoldingsUK£9.613.0%
+UK£4.7b		45.4%PB1.2xFinancials
RIO Rio Tinto GroupUK£47.206.5%
+UK£4.7b		-5.1%PE9xMaterials
RKT Reckitt Benckiser GroupUK£55.4211.2%
+UK£3.8b		26.6%PE26.3xConsumer Staples
SHEL ShellUK£26.632.1%
+UK£3.0b		-3.6%PE15.6xEnergy
See more

Market Insights

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🇪🇺 🇬🇧 Momentum Is Returning to European and UK Markets
Last Week

🇪🇺 🇬🇧 Momentum Is Returning to European and UK Markets

Latest News

BT.A
UK£2.20
BT Group
7D
11.3%
1Y
56.9%

BT Group (LON:BT.A) Has Announced That It Will Be Increasing Its Dividend To £0.0576

Jul 24
BT Group (LON:BT.A) Has Announced That It Will Be Increasing Its Dividend To £0.0576
RKT
UK£55.42
Reckitt Benckiser Group
7D
11.2%
1Y
26.6%
BPT
UK£3.21
Bridgepoint Group
7D
-9.6%
1Y
24.3%
CPG
UK£26.39
Compass Group
7D
5.9%
1Y
14.4%
RR.
UK£9.86
Rolls-Royce Holdings
7D
-2.4%
1Y
128.7%

Some Confidence Is Lacking In Rolls-Royce Holdings plc's (LON:RR.) P/E

Jul 22
Some Confidence Is Lacking In Rolls-Royce Holdings plc's (LON:RR.) P/E
AZN
UK£109.06
AstraZeneca
7D
5.8%
1Y
-9.6%
RIO
UK£47.20
Rio Tinto Group
7D
6.5%
1Y
-5.1%
BA.
UK£18.50
BAE Systems
7D
-2.6%
1Y
48.0%
GSK
UK£13.91
GSK
7D
-1.6%
1Y
-8.7%
HSBA
UK£9.61
HSBC Holdings
7D
3.0%
1Y
45.4%
IMB
UK£29.05
Imperial Brands
7D
-0.3%
1Y
35.0%

Is Imperial Brands PLC (LON:IMB) Trading At A 44% Discount?

Jul 18
Is Imperial Brands PLC (LON:IMB) Trading At A 44% Discount?
GLEN
UK£3.23
Glencore
7D
6.4%
1Y
-25.3%
SHEL
UK£26.63
Shell
7D
2.1%
1Y
-3.6%
REL
UK£39.72
RELX
7D
-0.5%
1Y
10.9%

RELX PLC's (LON:REL) Popularity With Investors Is Under Threat From Overpricing

Jul 07
RELX PLC's (LON:REL) Popularity With Investors Is Under Threat From Overpricing
IAG
UK£3.78
International Consolidated Airlines Group
7D
-1.5%
1Y
129.4%
LSEG
UK£102.45
London Stock Exchange Group
7D
-5.6%
1Y
9.3%