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U.K. (FTSE) Market Analysis & Valuation

UpdatedMay 28, 2026
DataAggregated Company Financials
Companies1090
  • 7D0.9%
  • 3M-3.2%
  • 1Y19.8%
  • YTD5.8%

In the last week, the market has stayed flat, however the Information Technology sector stood out, gaining 3.3%. More promisingly, the market is up 20% over the past year. As for the next few years, earnings are expected to grow by 12% 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
Thu, 28 May 2026UK£3.0tUK£2.0tUK£164.7b16x18x1.5x
Sat, 25 Apr 2026UK£2.9tUK£2.0tUK£157.4b16x18.6x1.5x
Mon, 23 Mar 2026UK£2.8tUK£2.0tUK£156.8b14.8x17.8x1.4x
Wed, 18 Feb 2026UK£3.0tUK£1.9tUK£146.1b16.6x20.7x1.6x
Fri, 16 Jan 2026UK£2.9tUK£2.0tUK£138.2b16.7x21.2x1.5x
Sun, 14 Dec 2025UK£2.8tUK£2.0tUK£138.2b15.9x20x1.4x
Tue, 11 Nov 2025UK£2.8tUK£2.0tUK£138.1b16.4x20.3x1.4x
Thu, 09 Oct 2025UK£2.7tUK£1.9tUK£135.6b16.8x20.3x1.4x
Sat, 06 Sep 2025UK£2.7tUK£1.9tUK£135.6b16.4x19.7x1.4x
Mon, 04 Aug 2025UK£2.6tUK£2.0tUK£134.5b16.3x19.5x1.3x
Wed, 02 Jul 2025UK£2.5tUK£1.9tUK£126.6b16.4x19.6x1.3x
Fri, 30 May 2025UK£2.5tUK£1.9tUK£127.3b16.1x19.4x1.3x
Sun, 27 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.7x1.2x
Tue, 25 Mar 2025UK£2.5tUK£2.0tUK£136.0b15.6x18.1x1.2x
Thu, 20 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.5x18.2x1.3x
Sat, 18 Jan 2025UK£2.5tUK£2.1tUK£125.0b16x19.9x1.2x
Mon, 16 Dec 2024UK£2.4tUK£2.0tUK£122.5b16.3x19.9x1.2x
Wed, 13 Nov 2024UK£2.4tUK£2.0tUK£119.1b16.3x19.9x1.2x
Fri, 11 Oct 2024UK£2.4tUK£2.0tUK£118.9b16.3x20.2x1.2x
Sun, 08 Sep 2024UK£2.4tUK£2.0tUK£119.2b16.7x20.2x1.2x
Tue, 06 Aug 2024UK£2.4tUK£2.0tUK£125.3b16.2x18.8x1.2x
Thu, 04 Jul 2024UK£2.4tUK£2.0tUK£131.0b16.7x18.4x1.2x
Sat, 01 Jun 2024UK£2.5tUK£2.0tUK£129.3b17.3x19.1x1.2x
Mon, 29 Apr 2024UK£2.4tUK£2.1tUK£143.7b16x16.9x1.2x
Wed, 27 Mar 2024UK£2.4tUK£2.1tUK£146.3b16.3x16.4x1.1x
Fri, 23 Feb 2024UK£2.3tUK£2.0tUK£143.2b15.4x16.1x1.1x
Sun, 21 Jan 2024UK£2.3tUK£2.1tUK£193.6b14.6x11.7x1.1x
Tue, 19 Dec 2023UK£2.3tUK£2.1tUK£194.1b14.9x11.8x1.1x
Thu, 16 Nov 2023UK£2.3tUK£2.1tUK£193.7b14.3x11.7x1.1x
Sat, 14 Oct 2023UK£2.3tUK£2.2tUK£187.0b13.8x12.4x1.1x
Mon, 11 Sep 2023UK£2.3tUK£2.2tUK£185.6b14.5x12.4x1.1x
Wed, 09 Aug 2023UK£2.3tUK£2.2tUK£189.4b14.4x12.3x1.1x
Fri, 07 Jul 2023UK£2.3tUK£2.2tUK£208.2b13.9x10.9x1x
Sun, 04 Jun 2023UK£2.4tUK£2.2tUK£212.0b14.3x11.2x1.1x
Price to Earnings Ratio

11.2x


Total Market Cap: UK£2.4tTotal Earnings: UK£212.0bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.4x202420252026
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 17.4x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 8.1% per year over the last three years.
  • Revenues have also declined 2.8% 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 Market0.93%
Tech3.29%
Materials3.21%
Industrials2.59%
Real Estate2.21%
Consumer Discretionary2.07%
Financials1.97%
Utilities1.68%
Healthcare0.83%
Consumer Staples-0.28%
Telecom-1.90%
Energy-4.98%
Sector PE
  • Investors favour the Telecom sector the most for future growth which is trading above its 3-year average PE ratio.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 30.7%, which is higher than its past year's earnings growth of 4.6% 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 10.1x.
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 4.6% per year.
  • In contrast, the Energy 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
HSBA HSBC HoldingsUK£14.043.2%
+UK£7.5b		62.2%PB1.6xFinancials
RR. Rolls-Royce HoldingsUK£12.975.9%
+UK£6.0b		51.2%PE18.4xIndustrials
RIO Rio Tinto GroupUK£79.083.5%
+UK£4.4b		77.7%PE17.3xMaterials
ANTO AntofagastaUK£40.937.1%
+UK£2.7b		130.5%PE40.8xMaterials
BARC BarclaysUK£4.563.6%
+UK£2.1b		40.8%PB0.8xFinancials
See more

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Latest News

III
UK£23.15
3i Group
7D
6.2%
1Y
-43.1%
SHEL
UK£31.20
Shell
7D
-4.1%
1Y
27.6%
BP.
UK£5.15
BP
7D
-8.7%
1Y
43.6%
RR.
UK£12.97
Rolls-Royce Holdings
7D
5.9%
1Y
51.2%
Narrative Update • May 26

RR.: FY25 Beat And Buyback Programme Will Support Higher Future P E

Rolls-Royce Holdings' analyst price target has been maintained at £17.40, with analysts citing a mix of higher sector price targets from several banks and adjustments to growth, discount rate and margin assumptions. Analyst Commentary Recent research updates on Rolls-Royce show a cluster of bullish analysts lifting their price targets, which helps explain why the consensus target has held steady at £17.40 despite mixed adjustments elsewhere.
GSK
UK£19.40
GSK
7D
2.2%
1Y
34.1%
Narrative Update • May 25

GSK: Legal Dispute And Mixed Pipeline Outlook Will Shape Long Term Returns

GSK's analyst fair value has been adjusted from £18.83 to £20.32 as analysts factor in a slightly higher discount rate, more measured revenue growth, a modestly higher profit margin and an updated future P/E assumption, while also keeping an eye on the ongoing Jemperli related dispute highlighted in recent research on AnaptysBio. Analyst Commentary Recent Street research around Jemperli and the linked AnaptysBio dispute is feeding directly into how analysts frame GSK's valuation, risk profile and execution priorities.
BT.A
UK£2.17
BT Group
7D
-6.0%
1Y
24.2%
CPG
US$31.00
Compass Group
7D
-2.1%
1Y
-13.3%
Analysis Article • May 23

With EPS Growth And More, Compass Group (LON:CPG) Makes An Interesting Case

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...
RIO
UK£79.08
Rio Tinto Group
7D
3.5%
1Y
77.7%
AAL
UK£39.50
Anglo American
7D
4.9%
1Y
59.3%
TSCO
UK£4.44
Tesco
7D
-3.5%
1Y
15.2%
HSBA
UK£14.04
HSBC Holdings
7D
3.2%
1Y
62.2%
BARC
UK£4.56
Barclays
7D
3.6%
1Y
40.8%
ANTO
UK£40.93
Antofagasta
7D
7.1%
1Y
130.5%
Narrative Update • May 15

ANTO: Geopolitical And Sector Risks Will Likely Pressure Copper Upside Potential

Analysts have nudged the fair value estimate for Antofagasta slightly lower to £23.50 from about £23.72, reflecting a modestly higher discount rate and mixed price target revisions, with several recent moves in the £100 to £600 range across the broker community. Analyst Commentary Recent Street research on Antofagasta shows a wide spread of views, with some firms lifting price targets while others turn more cautious.
BATS
UK£47.73
British American Tobacco
7D
-2.4%
1Y
43.2%
PRU
UK£11.11
Prudential
7D
-3.1%
1Y
33.3%
Narrative Update • May 10

PRU: Future Buybacks And Dividend Progress Will Support Re Rating Potential

Prudential’s implied fair value has shifted from £13.73 to £14.12 as analysts lift price targets by £0.30 to £1.50, following updated assumptions for revenue growth, profitability and forward P/E multiples. Analyst Commentary Recent research activity around Prudential has been active, with several price target changes clustered over a short period.
LSEG
UK£91.36
London Stock Exchange Group
7D
-2.5%
1Y
-19.9%
Narrative Update • May 03

LSEG: Activist Pressure And AI Partnerships Will Support Future Share Upside

Analysts have nudged their price targets on London Stock Exchange Group higher, with one recent move adding £1.00. This reflects updated views on fair value, discount rate, revenue growth assumptions, profit margin and future P/E levels.