Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 25, 2026
DataAggregated Company Financials
Companies1083
  • 7D1.2%
  • 3M2.8%
  • 1Y17.0%
  • YTD7.5%

In the last week, the market has stayed flat, however the Energy sector stood out, gaining 6.5%. More promisingly, the market is up 16% over the past year. As for the next few years, earnings are expected to grow by 11% per annum.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 25 Jul 2026UK£3.0tUK£2.0tUK£166.2b16x18.1x1.5x
Mon, 22 Jun 2026UK£2.9tUK£2.0tUK£165.4b15.9x17.6x1.4x
Wed, 20 May 2026UK£2.9tUK£2.0tUK£165.0b15.6x17.7x1.4x
Fri, 17 Apr 2026UK£3.0tUK£2.0tUK£157.1b16x19x1.5x
Sun, 15 Mar 2026UK£2.9tUK£2.0tUK£156.8b16x18.4x1.4x
Tue, 10 Feb 2026UK£3.0tUK£1.9tUK£140.4b16.8x21.2x1.5x
Thu, 08 Jan 2026UK£2.9tUK£2.0tUK£137.8b16.6x20.9x1.5x
Sat, 06 Dec 2025UK£2.8tUK£2.0tUK£139.2b16x20x1.4x
Mon, 03 Nov 2025UK£2.8tUK£2.0tUK£138.8b16.5x20.1x1.4x
Wed, 01 Oct 2025UK£2.7tUK£1.9tUK£135.7b16.6x19.9x1.4x
Fri, 29 Aug 2025UK£2.7tUK£1.9tUK£135.3b15.9x19.7x1.4x
Sun, 27 Jul 2025UK£2.6tUK£1.9tUK£125.2b16.4x20.5x1.3x
Tue, 24 Jun 2025UK£2.5tUK£1.9tUK£127.2b16.4x19.5x1.3x
Thu, 22 May 2025UK£2.5tUK£2.0tUK£127.2b16.4x19.7x1.3x
Sat, 19 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Mon, 17 Mar 2025UK£2.5tUK£2.0tUK£137.0b15x18.1x1.2x
Wed, 12 Feb 2025UK£2.5tUK£2.0tUK£123.9b16.1x20.5x1.2x
Fri, 10 Jan 2025UK£2.4tUK£2.1tUK£124.2b15.8x19.6x1.2x
Sun, 08 Dec 2024UK£2.4tUK£2.0tUK£122.3b16.5x20x1.2x
Tue, 05 Nov 2024UK£2.4tUK£2.0tUK£114.9b16.3x21x1.2x
Thu, 03 Oct 2024UK£2.4tUK£2.0tUK£117.8b16.6x20.6x1.2x
Sat, 31 Aug 2024UK£2.5tUK£2.0tUK£119.2b16.9x20.7x1.2x
Mon, 29 Jul 2024UK£2.4tUK£2.0tUK£127.1b16.5x19.2x1.2x
Wed, 26 Jun 2024UK£2.4tUK£2.0tUK£131.8b16.4x18.4x1.2x
Fri, 24 May 2024UK£2.5tUK£2.0tUK£127.0b17.2x19.6x1.2x
Sun, 21 Apr 2024UK£2.4tUK£2.1tUK£148.4b15.6x16.1x1.1x
Tue, 19 Mar 2024UK£2.3tUK£2.1tUK£145.0b15.9x16x1.1x
Thu, 15 Feb 2024UK£2.3tUK£2.0tUK£144.4b15.1x15.6x1.1x
Sat, 13 Jan 2024UK£2.3tUK£2.1tUK£193.4b14.9x12x1.1x
Mon, 11 Dec 2023UK£2.3tUK£2.1tUK£194.1b14.6x11.8x1.1x
Wed, 08 Nov 2023UK£2.2tUK£2.2tUK£194.5b13.8x11.5x1x
Fri, 06 Oct 2023UK£2.3tUK£2.2tUK£187.0b14.1x12.2x1x
Sun, 03 Sep 2023UK£2.3tUK£2.2tUK£184.9b14.5x12.5x1.1x
Tue, 01 Aug 2023UK£2.4tUK£2.2tUK£194.0b14.6x12.3x1.1x
Price to Earnings Ratio

12.3x


Total Market Cap: UK£2.4tTotal Earnings: UK£194.0bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.8x202420252026
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 17.8x.
Past Earnings Growth
  • The earnings for British listed companies have declined 5.1% 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 Market1.20%
Materials3.65%
Energy3.14%
Industrials2.53%
Real Estate2.18%
Financials2.01%
Tech1.86%
Healthcare0.051%
Consumer Discretionary-1.23%
Consumer Staples-1.65%
Utilities-2.04%
Telecom-2.08%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.3x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.5%, 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 decline of 1.8% per year.
  • In contrast, the Energy 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
HSBA HSBC HoldingsUK£15.534.1%
+UK£10.4b		62.0%PB1.8xFinancials
BP. BPUK£5.486.1%
+UK£4.8b		37.9%PE35.2xEnergy
RR. Rolls-Royce HoldingsUK£14.163.7%
+UK£4.0b		44.9%PE19.9xIndustrials
SHEL ShellUK£33.062.1%
+UK£3.9b		23.9%PE13.1xEnergy
AAL Anglo AmericanUK£37.219.4%
+UK£3.4b		62.1%PS2.9xMaterials
See more

Market Insights

Header cover image
Healthcare just hit its lowest market weight since 1994. But dig deeper into the sector, and the collapse starts to look like a costume in some ways.
Continue reading
A brand’s strength doesn’t always last

Latest News

ULVR
UK£45.76
Unilever
7D
-2.1%
1Y
-8.9%
NG.
UK£12.38
National Grid
7D
-1.6%
1Y
16.5%
BP.
UK£5.48
BP
7D
6.1%
1Y
37.9%
HSBA
UK£15.53
HSBC Holdings
7D
4.1%
1Y
62.0%
RIO
UK£68.69
Rio Tinto Group
7D
2.1%
1Y
46.8%
RR.
UK£14.16
Rolls-Royce Holdings
7D
3.7%
1Y
44.9%
Narrative Update • Jul 23

RR.: Widebody Flight-Hour Momentum Will Support Higher Future P/E

Analysts have raised the fair value estimate for Rolls-Royce Holdings by about £1.10 per share, citing higher price targets such as £16.25 and £15.00, and pointing to continued momentum across its divisions and strong widebody engine flight-hour trends as key supports for the new outlook. Analyst Commentary Recent research on Rolls-Royce Holdings points to a cluster of supportive views, with several bullish analysts highlighting the company’s widebody engine exposure, current flight-hour trends, and a series of higher fair value markers, including price targets such as £16.25, £15.00, £15.00 and £14.30 per share.
AAL
UK£37.21
Anglo American
7D
9.4%
1Y
62.1%
BA.
UK£19.71
BAE Systems
7D
4.8%
1Y
6.7%
SHEL
UK£33.06
Shell
7D
2.1%
1Y
23.9%
LSEG
UK£87.74
London Stock Exchange Group
7D
-2.3%
1Y
-13.0%
CPG
US$30.29
Compass Group
7D
-4.1%
1Y
-14.2%
Narrative Update • Jul 20

CPG: Revised Fair Value And P/E Assumptions Will Shape Returns

Analysts have lifted their price target on Compass Group from $28.57 to $31.00, citing updated assumptions for fair value, discount rate, revenue, profit margin, and future P/E that modestly adjust the risk and return profile investors may want to consider. What’s in the News for Compass Group No recent Compass Group company specific news items were identified in the provided sources, so the updated price target currently reflects analyst model adjustments rather than newly disclosed events.
SSE
UK£24.22
SSE
7D
-2.7%
1Y
30.7%
GLEN
UK£5.37
Glencore
7D
4.0%
1Y
68.8%
Narrative Update • Jul 15

GLEN: Copper Mix And Lithium Offtake Will Support Future Rerating Potential

Glencore's analyst price target has been lowered to around £5.90 to £6.35 per share from prior levels closer to £6.10 to £6.60, as analysts factor in higher required returns, updated views on commodity mix and earnings potential, and a moderation in assumed future P/E multiples, despite slightly stronger revenue growth and margin inputs. Analyst Commentary Recent research on Glencore shows a mix of optimism and caution, with several bullish analysts still highlighting upside potential around earnings power, commodity exposure and current valuation, even as headline price targets edge lower in some cases.
BATS
UK£45.72
British American Tobacco
7D
-2.1%
1Y
17.2%
HLN
UK£3.64
Haleon
7D
-2.6%
1Y
-0.5%
Narrative Update • Jul 01

HLN: Lower Forward P E Assumptions Will Pressure Future Share Price

Haleon’s analyst price target has been trimmed by £0.10 to £3.15, as analysts factor in a slightly lower assumed future P/E, alongside recent Street moves that have reduced targets and, in one case, shifted the stock to a Neutral stance. Analyst Commentary Recent Street research on Haleon points to a more cautious tone, with several bearish analysts trimming price targets and reassessing risk around valuation, execution and future growth assumptions.
RKT
UK£49.50
Reckitt Benckiser Group
7D
-2.7%
1Y
-14.9%
Narrative Update • Jun 24

RKT: Future Returns Will Rely On Resilient Margins And Share Repurchases

Reckitt Benckiser Group’s analyst fair value estimate has edged down slightly, in line with a series of recent price target trims that include Morgan Stanley’s move from £62.00 to £58.00 and Citi’s £8.00 reduction, as analysts reassess assumptions while broadly maintaining a constructive stance on the stock. Analyst Commentary Recent research on Reckitt Benckiser Group has centered on adjustments to price targets and ratings, giving you a clearer picture of how the Street is weighing valuation support against execution risks.