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U.K. (FTSE) Market Analysis & Valuation

UpdatedApr 26, 2026
DataAggregated Company Financials
Companies1081
  • 7D-2.7%
  • 3M1.4%
  • 1Y23.2%
  • YTD4.5%

The market has dropped by 23% in the last 7 days, with the Industrials sector leading declines. In contrast, the Energy sector has actually gained 4.0%. As for the longer term, the market has actually risen by 23% in the last year. As for the next few years, earnings are expected to grow by 13% 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
Mon, 27 Apr 2026UK£2.9tUK£2.0tUK£157.4b16x18.6x1.5x
Wed, 25 Mar 2026UK£2.8tUK£2.0tUK£156.6b14.7x17.8x1.4x
Fri, 20 Feb 2026UK£3.0tUK£2.0tUK£148.6b16.7x20.4x1.5x
Sun, 18 Jan 2026UK£2.9tUK£2.0tUK£137.9b16.7x21.3x1.5x
Tue, 16 Dec 2025UK£2.8tUK£2.0tUK£138.2b16x20.2x1.4x
Thu, 13 Nov 2025UK£2.8tUK£2.0tUK£138.0b16.5x20.5x1.4x
Sat, 11 Oct 2025UK£2.7tUK£1.9tUK£135.8b16.8x20x1.4x
Mon, 08 Sep 2025UK£2.7tUK£1.9tUK£135.5b16.4x19.7x1.4x
Wed, 06 Aug 2025UK£2.6tUK£2.0tUK£135.0b16.3x19.6x1.4x
Fri, 04 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.2x19.6x1.3x
Sun, 01 Jun 2025UK£2.5tUK£1.9tUK£126.0b16.2x19.7x1.3x
Tue, 29 Apr 2025UK£2.4tUK£2.0tUK£134.4b15.3x17.8x1.2x
Thu, 27 Mar 2025UK£2.5tUK£2.0tUK£135.8b15.7x18.2x1.2x
Sat, 22 Feb 2025UK£2.5tUK£2.0tUK£137.5b16.2x18.2x1.2x
Mon, 20 Jan 2025UK£2.5tUK£2.1tUK£125.0b16x19.9x1.2x
Wed, 18 Dec 2024UK£2.4tUK£2.0tUK£122.0b15.9x19.7x1.2x
Fri, 15 Nov 2024UK£2.4tUK£2.0tUK£120.5b16.4x19.8x1.2x
Sun, 13 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.3x20.2x1.2x
Tue, 10 Sep 2024UK£2.4tUK£2.0tUK£119.5b16.5x20.3x1.2x
Thu, 08 Aug 2024UK£2.4tUK£2.0tUK£126.0b16.4x19x1.2x
Sat, 06 Jul 2024UK£2.4tUK£2.0tUK£130.7b16.8x18.5x1.2x
Mon, 03 Jun 2024UK£2.5tUK£2.0tUK£129.3b17.3x19.1x1.2x
Wed, 01 May 2024UK£2.4tUK£2.1tUK£143.4b16.3x17x1.2x
Fri, 29 Mar 2024UK£2.4tUK£2.1tUK£145.9b16.4x16.5x1.1x
Sun, 25 Feb 2024UK£2.3tUK£2.1tUK£196.4b15.6x11.8x1.1x
Tue, 23 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.6x11.7x1.1x
Thu, 21 Dec 2023UK£2.3tUK£2.1tUK£194.0b15.1x12.1x1.1x
Sat, 18 Nov 2023UK£2.3tUK£2.1tUK£194.6b14.4x11.6x1.1x
Mon, 16 Oct 2023UK£2.3tUK£2.2tUK£187.0b13.8x12.4x1.1x
Wed, 13 Sep 2023UK£2.3tUK£2.2tUK£185.5b14.5x12.5x1.1x
Fri, 11 Aug 2023UK£2.4tUK£2.1tUK£184.3b14.5x12.8x1.1x
Sun, 09 Jul 2023UK£2.3tUK£2.2tUK£207.1b14x10.9x1x
Tue, 06 Jun 2023UK£2.4tUK£2.2tUK£212.1b14.3x11.2x1.1x
Thu, 04 May 2023UK£2.4tUK£2.2tUK£208.2b14.4x11.7x1.1x
Price to Earnings Ratio

11.7x


Total Market Cap: UK£2.4tTotal Earnings: UK£208.2bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.3x202420252026
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 17.3x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.0% 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 Market-2.67%
Energy4.03%
Utilities2.68%
Tech0.22%
Telecom-0.44%
Consumer Staples-0.58%
Consumer Discretionary-1.88%
Materials-2.44%
Real Estate-3.32%
Financials-3.51%
Healthcare-6.56%
Industrials-7.23%
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 53.1x.
    • 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 7.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 47% over the next 5 years.
  • This is better than its past earnings growth rate of 5.1% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.7% 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£33.083.5%
+UK£6.0b		34.2%PE14.1xEnergy
BP. BPUK£5.725.7%
+UK£4.7b		56.9%PE2202.5xEnergy
BATS British American TobaccoUK£43.023.9%
+UK£3.4b		37.0%PE12.1xConsumer Staples
LSEG London Stock Exchange GroupUK£99.925.7%
+UK£2.6b		-12.7%PE39.5xFinancials
CPG Compass GroupUS$30.085.7%
+US$2.8b		-8.1%PE27.4xConsumer Discretionary
See more

Market Insights

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Latest News

IMI
UK£28.78
IMI
7D
-1.0%
1Y
61.5%
HSBA
UK£13.21
HSBC Holdings
7D
-3.2%
1Y
58.4%
AZN
UK£139.56
AstraZeneca
7D
-7.7%
1Y
34.2%
SHEL
UK£33.08
Shell
7D
3.5%
1Y
34.2%
GSK
UK£20.20
GSK
7D
-5.8%
1Y
45.4%
SSE
UK£26.35
SSE
7D
6.7%
1Y
63.1%

SSE: Fair Value View Balances Mixed Rating Shifts And Execution Risks

The updated analyst price target for SSE has moved higher to reflect a fair value of about £27.34 per share, up from roughly £26.98, with analysts pointing to slightly stronger assumptions for revenue growth, profit margins and a modestly lower future P/E multiple to support the change. Analyst Commentary Recent Street research on SSE reflects a mix of optimism and caution, with several firms updating price targets and at least one high profile downgrade.
NG.
UK£12.95
National Grid
7D
1.6%
1Y
20.8%

NG.: Grid AI Collaboration And Margin Discipline Will Shape Earnings Resilience

Analysts have nudged their fair value estimate for National Grid to £13.78, reflecting updated assumptions around slightly lower revenue growth, a modestly higher profit margin, and a marginally richer future P/E multiple. Analyst Commentary Bullish Takeaways Bullish analysts point to the updated fair value estimate of £13.78 as support for National Grid's role as a regulated utility with relatively visible earnings, which can help anchor valuation assumptions.
BA.
UK£20.21
BAE Systems
7D
-10.4%
1Y
20.1%
BP.
UK£5.72
BP
7D
5.7%
1Y
56.9%
BATS
UK£43.02
British American Tobacco
7D
3.9%
1Y
37.0%

BATS: Future Returns Will Reflect Dividend Dependability And Strengthened Leadership Outlook

Analysts have nudged their price target for British American Tobacco up slightly to £46.21 from £45.85, reflecting updated assumptions around discount rates, revenue growth, profit margins and future P/E multiples. What's in the News British American Tobacco appointed Dragos Constantinescu as Chief Financial Officer, effective 1 September 2026, with Javed Iqbal to continue as Interim CFO until then and thereafter remain Director, Digital & Information (company announcement).
CPG
US$30.08
Compass Group
7D
5.7%
1Y
-8.1%
LSEG
UK£99.92
London Stock Exchange Group
7D
5.7%
1Y
-12.7%

LSEG: Activist Buybacks And AI Partnerships Will Support Future Upside Potential

Narrative update The analyst price target for London Stock Exchange Group has been raised by £1.00. Analysts point to updated assumptions for revenue growth, profit margins and future P/E as key drivers for the change.
RR.
UK£11.29
Rolls-Royce Holdings
7D
-13.8%
1Y
49.5%
BARC
UK£4.24
Barclays
7D
-6.3%
1Y
44.8%

BARC: Evelyn Bid And Wealth Expansion Will Support Stronger Future Returns

Analysts have nudged their price target on Barclays slightly higher, from £5.30 to roughly £5.30, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E levels as support for the revised view. What's in the News Barclays and Sage agreed a new partnership aimed at helping UK small businesses manage day-to-day administration, improve visibility of their finances and keep up with Making Tax Digital requirements through combined banking and accounting tools (Client announcement).
LLOY
UK£0.98
Lloyds Banking Group
7D
-7.0%
1Y
33.9%

LLOY: Buyback And Dividend Policy Will Support A More Attractive Return Profile

Analysts have lifted their price target for Lloyds Banking Group by around £0.02, reflecting small adjustments to fair value estimates, discount rate assumptions, revenue growth expectations, and a lower future P/E multiple in their models. What's in the News The Board of Lloyds Banking Group has authorized a share buyback plan, allowing the company to repurchase its own shares as part of a capital management program, subject to regulatory approval (Key Developments).
GLEN
UK£5.58
Glencore
7D
1.9%
1Y
107.7%

GLEN: Fair Outlook Weighs Ended Megamerger Talks And Mixed Earnings Expectations

The analyst price target for Glencore has been revised higher, with recent moves such as Morgan Stanley’s £0.40 increase and several other target lifts pointing to analysts factoring in slightly stronger revenue growth, modestly higher profit margins and a marginally richer future P/E assumption, despite a higher discount rate. Analyst Commentary Recent research on Glencore shows a mix of optimism and caution, with several target changes and rating adjustments reflecting differing views on how execution, commodity exposure and capital allocation might influence the share price over time.