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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 13, 2026
DataAggregated Company Financials
Companies1081
  • 7D-1.4%
  • 3M-1.3%
  • 1Y15.6%
  • YTD5.1%

Over the last 7 days, the market has dropped 1.4%, driven by a decline of 5.8% in the Healthcare sector. Meanwhile, the Energy sector has outperformed, gaining 3.5% in that time. In the last year, the market is actually up 16%. Earnings are forecast to grow by 12% 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
Mon, 13 Jul 2026UK£2.9tUK£2.0tUK£164.4b15.6x17.9x1.5x
Wed, 10 Jun 2026UK£2.9tUK£2.0tUK£164.9b15.9x17.5x1.4x
Fri, 08 May 2026UK£3.0tUK£2.0tUK£160.3b16.1x18.4x1.5x
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
Price to Earnings Ratio

11.5x


Total Market Cap: UK£2.4tTotal Earnings: UK£206.6bTotal 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 companies in the British industry have declined 7.3% per year over the last three years.
  • Revenues have also declined 2.3% 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-1.38%
Energy3.49%
Telecom2.28%
Consumer Discretionary0.77%
Real Estate0.36%
Consumer Staples-0.26%
Utilities-0.67%
Financials-0.88%
Tech-2.98%
Industrials-3.06%
Materials-3.36%
Healthcare-5.76%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.6x.
    • 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 7.7% 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 10.3x.
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 1.5% 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
SHEL ShellUK£30.394.3%
+UK£7.0b		15.2%PE12.1xEnergy
VOD Vodafone GroupUK£1.1012.3%
+UK£2.8b		35.0%PS0.7xTelecom
BP. BPUK£4.833.2%
+UK£2.3b		21.5%PE31.1xEnergy
HSBA HSBC HoldingsUK£14.710.4%
+UK£926.0m		59.4%PB1.7xFinancials
ULVR UnileverUK£45.990.9%
+UK£908.0m		-10.0%PE20.5xConsumer Staples
See more

Market Insights

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Latest News

VOD
UK£1.16
Vodafone Group
7D
18.4%
1Y
42.4%
BARC
UK£5.10
Barclays
7D
-3.7%
1Y
48.3%
LLOY
UK£1.11
Lloyds Banking Group
7D
-3.9%
1Y
44.8%
Narrative Update • Jul 10

LLOY: Relaxed Leverage Rules And Buybacks Will Support Future Upside

Analysts have nudged their price target for Lloyds Banking Group to £1.35 from £1.30, citing updated assumptions around discount rates, revenue growth, profit margins, and the stock’s future P/E multiple. What’s in the News for Lloyds Banking Group Bank of England plans to relax UK bank leverage rules, removing an additional leverage buffer that applies mainly to larger domestic focused lenders such as Lloyds Banking Group, according to recent central bank announcements.
BT.A
UK£1.97
BT Group
7D
5.4%
1Y
0.7%
BA.
UK£18.48
BAE Systems
7D
-8.7%
1Y
-3.3%
Narrative Update • Jul 09

BA.: Growing NATO And U.S. Exposure Should Support Future Earnings Repricing

Analysts have trimmed the blended fair value estimate for BAE Systems from £26.62 to £26.00, reflecting slightly lower future P/E expectations alongside mixed research views that weigh strong NATO demand and U.S. and Middle East exposure against comparatively softer profit and EPS growth relative to some defense peers. Analyst Commentary Recent research on BAE Systems highlights a split in opinion, but bullish analysts continue to see upside potential tied to defense spending, a valuation reset after the recent de rating, and the company’s exposure to key end markets such as NATO, the U.S., and the Middle East.
BP.
UK£5.05
BP
7D
8.0%
1Y
27.1%
RR.
UK£14.15
Rolls-Royce Holdings
7D
-5.9%
1Y
41.8%
Narrative Update • Jul 09

RR.: Defence Upside And Buybacks Will Shape Balanced Future Re Rating Potential

The updated analyst price target for Rolls-Royce Holdings has increased by about £0.54 per share. Analysts cite refreshed fair value assumptions, along with expectations for revenue growth and future P/E, as key drivers of this change.
AZN
UK£126.10
AstraZeneca
7D
-10.6%
1Y
18.3%
LSEG
UK£90.10
London Stock Exchange Group
7D
1.8%
1Y
-17.1%
SHEL
UK£31.09
Shell
7D
6.7%
1Y
17.9%
DGE
UK£15.47
Diageo
7D
2.3%
1Y
-18.1%
REL
UK£24.78
RELX
7D
3.6%
1Y
-38.2%
Narrative Update • Jul 06

REL: AI Data Moat And Workflow Integration Will Support Future Upside

Analysts have trimmed their fair value estimate for RELX to about £47 from roughly £52, reflecting a slightly higher discount rate, while also highlighting resilient revenue growth expectations, stable profit margins and growing confidence in the company’s AI products following recent Street research. Analyst Commentary Recent Street research on RELX points to a split in opinion, but bullish analysts are leaning into the idea that the company is being miscategorized as an AI risk rather than an AI beneficiary.
CPG
US$32.28
Compass Group
7D
2.2%
1Y
-4.7%
Narrative Update • Jul 06

nan

Analysts have trimmed their price target on Compass Group to about $47.17 from roughly $48.91, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E that collectively point to a slightly lower fair value estimate. What’s in the News for Compass Group No recent Compass Group news items were identified in the provided sources.
RIO
UK£67.33
Rio Tinto Group
7D
-4.3%
1Y
52.1%
Narrative Update • Jul 02

RIO: Copper Projects And Logistics Savings Will Support Future Upside

The analyst price target for Rio Tinto Group is updated modestly higher to reflect a fair value move from £91.63 to £93.88, as analysts factor in slightly stronger revenue growth assumptions, a higher profit margin profile and a lower projected future P/E multiple, while also weighing mixed rating actions and valuation concerns across recent research. Analyst Commentary Recent research on Rio Tinto Group shows a mix of views, but several bullish analysts have lifted their price targets, pointing to what they see as supportive sector conditions and solid project execution.
BATS
UK£43.81
British American Tobacco
7D
-4.4%
1Y
13.8%
NWG
UK£6.55
NatWest Group
7D
-4.6%
1Y
32.1%