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U.K. (FTSE) Market Analysis & Valuation

UpdatedSep 05, 2025
DataAggregated Company Financials
Companies1120
  • 7D0.5%
  • 3M8.5%
  • 1Y18.7%
  • YTD17.6%

The market has been flat in the last week, however the Utilities sector is down 3.8%. More promisingly, the market is up 19% over the past year. Looking forward, earnings are forecast to grow by 11% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 05 Sep 2025UK£2.7tUK£2.0tUK£135.8b16.2x19.6x1.4x
Sun, 03 Aug 2025UK£2.6tUK£2.0tUK£134.5b16.3x19.5x1.3x
Tue, 01 Jul 2025UK£2.5tUK£1.9tUK£126.6b16.4x19.6x1.3x
Thu, 29 May 2025UK£2.5tUK£1.9tUK£125.7b16.4x19.7x1.3x
Sat, 26 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.7x1.2x
Mon, 24 Mar 2025UK£2.5tUK£2.0tUK£136.4b15.7x18.1x1.2x
Wed, 19 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.5x18.2x1.3x
Fri, 17 Jan 2025UK£2.5tUK£2.1tUK£124.5b15.8x19.7x1.2x
Sun, 15 Dec 2024UK£2.4tUK£2.0tUK£122.5b16.3x19.9x1.2x
Tue, 12 Nov 2024UK£2.4tUK£2.0tUK£118.4b16.3x20.2x1.2x
Thu, 10 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.5x20.3x1.2x
Sat, 07 Sep 2024UK£2.4tUK£2.0tUK£119.2b16.7x20.2x1.2x
Mon, 05 Aug 2024UK£2.4tUK£2.0tUK£124.8b16.7x19.3x1.2x
Wed, 03 Jul 2024UK£2.4tUK£2.0tUK£131.8b16.3x18.3x1.2x
Fri, 31 May 2024UK£2.5tUK£2.0tUK£129.4b17.3x19x1.2x
Sun, 28 Apr 2024UK£2.4tUK£2.1tUK£143.0b16x16.9x1.2x
Tue, 26 Mar 2024UK£2.4tUK£2.1tUK£147.5b16.1x16.4x1.2x
Thu, 22 Feb 2024UK£2.3tUK£2.1tUK£150.5b15.4x15.3x1.1x
Sat, 20 Jan 2024UK£2.3tUK£2.1tUK£193.6b14.6x11.7x1.1x
Mon, 18 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.1x11.9x1.1x
Wed, 15 Nov 2023UK£2.2tUK£2.1tUK£193.3b14.2x11.6x1.1x
Fri, 13 Oct 2023UK£2.3tUK£2.2tUK£186.7b13.9x12.5x1.1x
Sun, 10 Sep 2023UK£2.3tUK£2.2tUK£185.6b14.5x12.4x1.1x
Tue, 08 Aug 2023UK£2.3tUK£2.2tUK£189.1b14.5x12.4x1.1x
Thu, 06 Jul 2023UK£2.3tUK£2.2tUK£208.1b14.1x11.1x1.1x
Sat, 03 Jun 2023UK£2.4tUK£2.2tUK£211.9b14.3x11.2x1.1x
Mon, 01 May 2023UK£2.5tUK£2.2tUK£179.2b14.5x13.8x1.1x
Wed, 29 Mar 2023UK£2.4tUK£2.2tUK£183.7b13.4x12.8x1.1x
Fri, 24 Feb 2023UK£2.5tUK£2.2tUK£200.8b13.7x12.7x1.2x
Sun, 22 Jan 2023UK£2.5tUK£2.1tUK£183.6b13.7x13.6x1.2x
Tue, 20 Dec 2022UK£2.4tUK£2.1tUK£185.3b13.3x12.8x1.1x
Thu, 17 Nov 2022UK£2.4tUK£2.3tUK£210.7b12.8x11.4x1.1x
Sat, 15 Oct 2022UK£2.3tUK£2.3tUK£208.1b11.9x11x1x
Mon, 12 Sep 2022UK£2.5tUK£2.3tUK£207.6b13.4x11.9x1.1x
Price to Earnings Ratio

11.9x


Total Market Cap: UK£2.5tTotal Earnings: UK£207.6bTotal Revenue: UK£2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 15.7x202320242025
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 19.6x which is higher than its 3-year average PE of 15.7x.
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 5.1% 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 Market0.47%
Healthcare2.23%
Consumer Staples1.42%
Energy0.69%
Materials0.40%
Industrials0.052%
Financials-0.68%
Tech-0.75%
Consumer Discretionary-1.32%
Telecom-1.40%
Real Estate-3.05%
Utilities-3.75%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.2x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 20.3%, which is higher than its past year's earnings growth of 9.6% 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 6.4% 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£121.883.2%
+UK£5.9b		-2.8%PE30.6xHealthcare
ULVR UnileverUK£48.014.1%
+UK£4.7b		-3.7%PE24.8xConsumer Staples
FRES FresnilloUK£20.9019.2%
+UK£2.5b		307.4%PE45.4xMaterials
RKT Reckitt Benckiser GroupUK£56.783.2%
+UK£1.2b		26.2%PE30.7xConsumer Staples
TSCO TescoUK£4.393.9%
+UK£1.0b		19.8%PE17.8xConsumer Staples
See more

Market Insights

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FRES
UK£20.90
Fresnillo
7D
19.2%
1Y
307.4%
LLOY
UK£0.80
Lloyds Banking Group
7D
-2.2%
1Y
39.8%

Digital Transformation And UK Demographics Will Expand Opportunities

Lloyds Banking Group's analyst price target and key valuation metrics, including future P/E and revenue growth forecasts, remained effectively unchanged, with the consensus fair value steady at £0.893. What's in the News Lloyds Banking Group became the first UK financial services benefactor of the MITRE ATT&CK framework to strengthen its cyber defense strategy.
HSBA
UK£9.61
HSBC Holdings
7D
0.6%
1Y
45.5%

Asian Wealth Management And Trade Networks Will Sustain Future Resilience

Despite an effectively unchanged analyst price target, HSBC Holdings’ future P/E ratio has dropped sharply, indicating improved earnings expectations or reduced valuation risk. What's in the News Hackers attempted to steal $77.4M from Brazilian financial institutions, including HSBC’s local operations; HSBC confirmed no customer accounts or funds were impacted and security measures have been implemented (Bloomberg).
BT.A
UK£2.04
BT Group
7D
-5.9%
1Y
42.7%

UK Fiber And 5G Expansion Will Drive Future Customer Acquisition

Analysts maintain a cautious view on BT Group due to persistent concerns over Openreach’s declining external revenue and ongoing business uncertainty, resulting in an unchanged consensus price target of £2.10. Analyst Commentary Bearish analysts highlight continued concerns about Openreach's external revenue, which transitioned to decline in 2024/25 with expectations for further deterioration.
GLEN
UK£2.85
Glencore
7D
-3.1%
1Y
-24.8%

Normalized Copper Production And Argentina Projects Will Shape Future Success

Despite near-term concerns over coal price weakness and commodity volatility, analysts remain divided on Glencore, with operational resilience and medium-term prospects balancing cautious views and leaving the consensus price target unchanged at £3.71. Analyst Commentary Bearish analysts highlight near-term pressure on Glencore's free cash flow resulting from weakness in coal prices.
III
UK£39.08
3i Group
7D
-3.2%
1Y
27.0%
TSCO
UK£4.39
Tesco
7D
3.9%
1Y
19.8%

Digital Investments And Clubcard Offers Will Transform Retail Experiences

Tesco’s fair value estimate was marginally revised upward to £4.29, primarily reflecting a modest increase in its future P/E multiple while revenue growth forecasts remained steady. What's in the News Tractor Supply is expanding its final-mile delivery network by hiring drivers and renting vehicles to serve rural customers more effectively, aiming to boost digital and B2B sales (WSJ).
NG.
UK£10.21
National Grid
7D
-2.6%
1Y
0%

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Sep 01
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AZN
UK£121.88
AstraZeneca
7D
3.2%
1Y
-2.8%

Breakthrough Pipeline Therapies And Emerging Markets Will Create Lasting Success

Despite ongoing pipeline progress and bullish long-term forecasts, AstraZeneca’s consensus price target was revised modestly downward to £135.55, as analysts balanced positive R&D developments against short-term revenue headwinds and market reactions. Analyst Commentary Bullish analysts increased long-term revenue forecasts, citing substantial pipeline progress achieved this year.
RR.
UK£10.70
Rolls-Royce Holdings
7D
1.0%
1Y
123.8%

Rising Supply Chain Risks And Slowing Demand Will Undercut Margins

Analysts have raised their price target for Rolls-Royce Holdings to £11.19, citing improved fundamentals, robust aerospace demand, stronger cash flow, and enhanced profitability, though some caution about valuation after recent gains. Analyst Commentary Bullish analysts have increased price targets based on improving company fundamentals and sustained earnings momentum.
SSE
UK£16.22
SSE
7D
-7.6%
1Y
-17.7%
NWG
UK£5.18
NatWest Group
7D
-3.5%
1Y
52.7%

Digital Transformation And Sustainable Finance Will Drive Progress

NatWest Group’s consensus price target has been modestly raised to £5.91, reflecting analyst confidence in improved earnings visibility, stable UK economic conditions, operational efficiency, and capital return potential. Analyst Commentary Bullish analysts cite improved earnings visibility and confidence in NatWest’s underlying profitability as drivers for higher price targets.
ULVR
UK£48.01
Unilever
7D
4.1%
1Y
-3.7%

Emerging Markets And Digital Commerce Will Transform Future Landscape

Analysts have modestly raised Unilever’s price target to £50.27, largely driven by confidence in emerging markets growth offsetting U.S. weakness and reflecting positive adjustments after strong first half results. Analyst Commentary Bullish analysts expect growth in emerging markets such as India, Indonesia, and China to offset slower growth in the U.S. Some analysts have increased price targets following Unilever's first half results, reflecting adjustments to their financial models.
WISE
UK£11.32
Wise
7D
7.1%
1Y
72.3%
RKT
UK£56.78
Reckitt Benckiser Group
7D
3.2%
1Y
26.2%

An Intrinsic Calculation For Reckitt Benckiser Group plc (LON:RKT) Suggests It's 48% Undervalued

Aug 21
An Intrinsic Calculation For Reckitt Benckiser Group plc (LON:RKT) Suggests It's 48% Undervalued
SHEL
UK£26.88
Shell
7D
-1.0%
1Y
4.4%

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