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U.K. (FTSE) Market Analysis & Valuation

UpdatedApr 05, 2026
DataAggregated Company Financials
Companies1084
  • 7D4.5%
  • 3M3.6%
  • 1Y29.0%
  • YTD4.3%

Over the last 7 days, the market has risen 4.5%, driven by gains of 6.0% in the Financials sector. As for the past 12 months, the market is up 29%. 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
Sun, 05 Apr 2026UK£2.9tUK£2.0tUK£158.5b15.1x18.5x1.5x
Tue, 03 Mar 2026UK£3.1tUK£2.0tUK£151.4b17x20.5x1.6x
Thu, 29 Jan 2026UK£2.9tUK£1.9tUK£136.4b17x21.4x1.5x
Sat, 27 Dec 2025UK£2.8tUK£2.0tUK£138.0b16.1x20.5x1.4x
Mon, 24 Nov 2025UK£2.7tUK£2.0tUK£139.1b15.9x19.6x1.4x
Wed, 22 Oct 2025UK£2.7tUK£1.9tUK£135.6b16.5x20x1.4x
Fri, 19 Sep 2025UK£2.7tUK£1.9tUK£135.5b16.4x19.7x1.4x
Sun, 17 Aug 2025UK£2.7tUK£1.9tUK£133.8b15.8x19.8x1.4x
Tue, 15 Jul 2025UK£2.5tUK£1.9tUK£127.6b16x19.8x1.3x
Thu, 12 Jun 2025UK£2.5tUK£1.9tUK£127.4b16.5x19.7x1.3x
Sat, 10 May 2025UK£2.4tUK£2.0tUK£130.8b16x18.6x1.2x
Mon, 07 Apr 2025UK£2.3tUK£2.0tUK£136.6b14.5x16.8x1.1x
Wed, 05 Mar 2025UK£2.5tUK£2.0tUK£138.5b15.6x18.1x1.2x
Fri, 31 Jan 2025UK£2.5tUK£2.1tUK£123.5b15.9x20.2x1.2x
Sun, 29 Dec 2024UK£2.4tUK£2.0tUK£122.5b15.9x19.6x1.2x
Tue, 26 Nov 2024UK£2.4tUK£2.0tUK£123.9b16.3x19.7x1.2x
Thu, 24 Oct 2024UK£2.4tUK£2.0tUK£119.2b16.2x20.2x1.2x
Sat, 21 Sep 2024UK£2.4tUK£2.0tUK£118.0b17x20.5x1.2x
Mon, 19 Aug 2024UK£2.4tUK£2.0tUK£121.8b16.8x20.1x1.2x
Wed, 17 Jul 2024UK£2.4tUK£2.0tUK£129.9b16.8x18.6x1.2x
Fri, 14 Jun 2024UK£2.5tUK£2.0tUK£129.8b16.6x18.9x1.2x
Sun, 12 May 2024UK£2.5tUK£2.1tUK£136.5b16.9x18.4x1.2x
Tue, 09 Apr 2024UK£2.4tUK£2.1tUK£145.9b16.1x16.5x1.1x
Thu, 07 Mar 2024UK£2.3tUK£2.0tUK£142.2b15.6x16.3x1.1x
Sat, 03 Feb 2024UK£2.3tUK£2.1tUK£183.4b14.8x12.5x1.1x
Mon, 01 Jan 2024UK£2.3tUK£2.1tUK£193.5b15.1x12.1x1.1x
Wed, 29 Nov 2023UK£2.3tUK£2.1tUK£192.8b14.4x11.7x1.1x
Fri, 27 Oct 2023UK£2.2tUK£2.2tUK£188.7b13.4x11.9x1x
Sun, 24 Sep 2023UK£2.3tUK£2.2tUK£186.8b14.6x12.1x1x
Tue, 22 Aug 2023UK£2.2tUK£2.1tUK£184.1b14.1x12.2x1x
Thu, 20 Jul 2023UK£2.4tUK£2.2tUK£206.6b14.2x11.5x1.1x
Sat, 17 Jun 2023UK£2.4tUK£2.2tUK£207.5b14.3x11.5x1.1x
Mon, 15 May 2023UK£2.4tUK£2.2tUK£211.7b14.4x11.5x1.1x
Wed, 12 Apr 2023UK£2.4tUK£2.2tUK£180.0b13.8x13.6x1.1x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.4tTotal Earnings: UK£180.0bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.2x202420252026
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 17.2x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 4.1% per year over the last three years.
  • Revenues have also declined 2.4% 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 Market4.54%
Utilities7.53%
Materials6.81%
Industrials6.08%
Financials5.98%
Healthcare5.69%
Tech5.22%
Consumer Discretionary4.30%
Real Estate3.97%
Telecom3.91%
Energy1.56%
Consumer Staples-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 53.3x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.0%, which is higher than its past year's earnings growth of 7.8% 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 0.7% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.8% 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£153.167.1%
+UK£15.7b		41.7%PE30.7xHealthcare
HSBA HSBC HoldingsUK£12.736.1%
+UK£12.5b		67.5%PB1.5xFinancials
RIO Rio Tinto GroupUK£71.028.5%
+UK£9.1b		67.5%PE15.3xMaterials
BA. BAE SystemsUK£22.8910.7%
+UK£6.6b		50.8%PE33.2xIndustrials
RR. Rolls-Royce HoldingsUK£11.897.2%
+UK£6.6b		80.3%PE16.9xIndustrials
See more

Market Insights

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Latest News

BA.
UK£22.89
BAE Systems
7D
10.7%
1Y
50.8%

BA.: Sector Caution Around Softer 2026 Outlook Will Restrain Overheated Expectations

BAE Systems' analyst fair value has moved from £15.83 to £18.76 per share, with the change supported by higher Street price targets clustered around £19.50 to £24.38 and analyst commentary referencing recent results that were slightly ahead of expectations and updated outlooks. Analyst Commentary Recent research points to a mixed tone around BAE Systems, with several price target increases sitting alongside rating downgrades and more cautious framing of future results.
GSK
UK£21.44
GSK
7D
4.6%
1Y
51.3%

GSK: Limited Pipeline Readouts Will Continue To Cap Future Multiple Repricing

GSK's analyst price target has moved higher by £100, with analysts pointing to slightly stronger long term revenue growth and profit margin assumptions, alongside modestly lower future P/E expectations. Analyst Commentary Recent research on GSK reflects a mix of higher price targets and ongoing caution around the company’s execution and growth profile.
BKG
UK£31.68
Berkeley Group Holdings
7D
-7.6%
1Y
-12.5%

Brownfield Regeneration And Build To Rent Platform Will Drive Long Term Opportunity

Catalysts About Berkeley Group Holdings Berkeley Group Holdings is a UK homebuilder focused on residential-led developments, primarily in London and the South East. What are the underlying business or industry changes driving this perspective?
ULVR
UK£41.73
Unilever
7D
-6.9%
1Y
-21.0%

ULVR: Planned Foods Separation And Margin Focus Are Expected To Support Upside

Unilever's analyst price target has been trimmed by £0.85, as analysts factor in slightly softer revenue growth, a modestly lower profit margin and a reduced future P/E assumption following recent research updates and downgrades to more neutral ratings. Analyst Commentary Recent research on Unilever has shifted toward more neutral stances, with several firms moving ratings to Hold or Neutral and moderating price targets.
AZN
UK£153.16
AstraZeneca
7D
7.1%
1Y
41.7%
FUTR
UK£2.86
Future
7D
-26.6%
1Y
-59.4%
DGE
UK£13.92
Diageo
7D
-0.8%
1Y
-30.8%

DGE: Margin Resilience And Portfolio Breadth Will Support Future Share Rebound

Analysts have trimmed their implied fair value estimate for Diageo to about £24.38 from roughly £26.55. This reflects a slightly higher discount rate, more moderate revenue growth assumptions and a lower future P/E multiple, even as margin expectations are a touch stronger.
HBR
UK£2.87
Harbour Energy
7D
-1.7%
1Y
65.3%
LLOY
UK£0.98
Lloyds Banking Group
7D
8.3%
1Y
50.7%
HSBA
UK£12.73
HSBC Holdings
7D
6.1%
1Y
67.5%

HSBA: Future Returns Will Hinge On Cost Discipline And Execution Quality

Analysts have raised their price targets on HSBC Holdings, reflecting a higher internal fair value estimate of £13.53 from £13.17, supported by updated assumptions for revenue growth, profit margins and future P/E, as well as recent target increases from several major banks. Analyst Commentary Recent research updates on HSBC Holdings show a cluster of higher price targets from major banks, giving you a clearer picture of how the market is thinking about the shares on valuation, execution and growth potential.
FXPO
UK£0.37
Ferrexpo
7D
-23.6%
1Y
-23.1%
RIO
UK£71.02
Rio Tinto Group
7D
8.5%
1Y
67.5%

RIO: Cautious Outlook As Copper And Iron Ore Assumptions Turn More Conservative

Analysts have raised the fair value estimate for Rio Tinto Group to £58.52 from £41.00. This change reflects updated views on revenue growth, profit margins and sector valuation following a series of mixed price target revisions and rating downgrades across the Street.
RR.
UK£11.89
Rolls-Royce Holdings
7D
7.2%
1Y
80.3%

RR.: FY25 Beat And New Buyback Plan Will Support Stronger Outlook

Narrative Update The updated analyst price target for Rolls-Royce Holdings reflects a shift in valuation inputs, with a slightly lower fair value estimate and P/E assumption, alongside higher projected revenue growth and profit margins. Analysts are responding to recent price target increases to £12.50 and £16.00 following the company's FY25 performance and 2026 guidance.
TW.
UK£0.85
Taylor Wimpey
7D
-2.4%
1Y
-18.4%
NG.
UK£13.23
National Grid
7D
7.0%
1Y
27.9%

NG.: Execution On Regulated Projects Will Shape Future Earnings Resilience And P/E Framework

Analysts have lifted their price target for National Grid to £13.53 from £13.14, citing slightly higher assumptions for revenue growth, profit margins and future P/E expectations. Analyst Commentary Bullish Takeaways Bullish analysts see the higher price target of £13.53 as better aligned with their updated assumptions for revenue and margin potential, which they view as more supportive of the current P/E framework.
GAW
UK£176.50
Games Workshop Group
7D
-0.8%
1Y
34.2%