Investing IdeasBrowse All StocksMarkets

Have your own idea? Try our Stock Screener

Header cover image

U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 18, 2025
DataAggregated Company Financials
Companies1209
  • 7D3.2%
  • 3M0.7%
  • 1Y10.9%
  • YTD2.4%

The Real Estate sector gained 3.4% while the market remained flat over the last week. As for the longer term, the market has risen 9.5% in the past 12 months. Looking forward, earnings are forecast to grow by 15% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Tue, 02 May 2023UK£2.5tUK£2.2tUK£179.2b14.4x13.8x1.1x
Thu, 30 Mar 2023UK£2.4tUK£2.2tUK£182.8b13.6x13x1.1x
Sat, 25 Feb 2023UK£2.5tUK£2.2tUK£194.7b13.7x13x1.2x
Mon, 23 Jan 2023UK£2.5tUK£2.1tUK£183.6b13.7x13.6x1.2x
Wed, 21 Dec 2022UK£2.4tUK£2.1tUK£185.1b13.3x12.9x1.1x
Fri, 18 Nov 2022UK£2.4tUK£2.3tUK£209.2b12.8x11.5x1x
Sun, 16 Oct 2022UK£2.3tUK£2.3tUK£208.1b11.9x11x1x
Tue, 13 Sep 2022UK£2.5tUK£2.3tUK£206.5b13.4x12.1x1.1x
Thu, 11 Aug 2022UK£2.5tUK£2.3tUK£201.9b14.3x12.6x1.1x
Sat, 09 Jul 2022UK£2.4tUK£2.2tUK£189.8b14.2x12.9x1.1x
Mon, 06 Jun 2022UK£2.6tUK£2.2tUK£189.7b15.2x13.7x1.2x
Wed, 04 May 2022UK£2.6tUK£2.1tUK£175.7b16.3x14.7x1.2x
Fri, 01 Apr 2022UK£2.6tUK£2.1tUK£197.4b16.4x13.3x1.3x
Sun, 27 Feb 2022UK£2.6tUK£1.9tUK£178.3b16.9x14.5x1.4x
Tue, 25 Jan 2022UK£2.6tUK£1.9tUK£162.9b18x16.3x1.4x
Price to Earnings Ratio

16.3x


Total Market Cap: UK£2.6tTotal Earnings: UK£162.9bTotal Revenue: UK£1.9tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 14.6x202320242025
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 19.7x which is higher than its 3-year average PE of 14.6x.
Past Earnings Growth
  • The earnings for British listed companies have declined 8.6% per year over the last three years.
  • Meanwhile revenues for these companies have grown 3.5% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Sector Trends

Which sectors have driven the changes within the U.K. Market?

GB Market3.17%
Real Estate5.69%
Financials4.93%
Materials4.59%
Utilities4.28%
Industrials4.11%
Telecom3.52%
Energy3.39%
Tech3.00%
Consumer Discretionary1.58%
Consumer Staples0.93%
Healthcare0.39%
Information Technology0%
Financials0%
Health Care0%
Industrials0%
Sector PE
  • Investors favour the Real Estate 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 32.8%, which is higher than its past year's earnings growth of 22.9% per year.
  • The Financials sector is the least preferred by investors for future growth, which is trading close to its 3-year average of 9.9x.
Forecasted Growth
  • Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 33% over the next 5 years.
  • This is better than its past earnings growth rate of 23% per year.
  • In contrast, the Financials sector is expected to see its earnings grow by 9.3% 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£27.213.6%
+UK£5.9b		14.8%PE13.1xEnergy
BARC BarclaysUK£2.8912.1%
+UK£4.5b		105.2%PB0.6xFinancials
HSBA HSBC HoldingsUK£8.233.0%
+UK£4.0b		39.8%PB0.9xFinancials
RIO Rio Tinto GroupUK£50.414.6%
+UK£3.6b		-6.3%PE9.3xMaterials
LLOY Lloyds Banking GroupUK£0.5910.7%
+UK£3.4b		37.2%PB0.8xFinancials
See more
Simply Wall St™
Simply Wall Street Pty Ltd
Level 7, 320 Pitt Street, Sydney
Download on the App StoreGet it on Google Play
Popular Markets
USAUUKINCAZA
About UsCareersPlans & PricingLogin
Help CenterLatest CoveragePodcastsAffiliate ProgramBusiness & EnterpriseWhat's New
Financial Services GuideTerms and ConditionsPrivacy Policy
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Market Insights

Header cover image

Understanding Analyst Expectations For 2025

Richard Bowman avatar
Richard Bowman
|
|

5 comments

Earnings season is underway, which means analysts will probably be adjusting their earnings estimates and price targets over the next few months. As it stands, there’s a big difference between...

Continue reading

Sectors And Industries To Watch In 2025
Last Week

Sectors And Industries To Watch In 2025

Latest News

WISE

UK£10.27

Wise

7D

-5.3%

1Y

23.5%

BARC

UK£2.89

Barclays

7D

12.1%

1Y

105.2%

RIO

UK£50.41

Rio Tinto Group

7D

4.6%

1Y

-6.3%

GLEN

UK£3.80

Glencore

7D

6.0%

1Y

-7.8%

AZN

UK£109.38

AstraZeneca

7D

-0.4%

1Y

4.1%

JD.

UK£0.85

JD Sports Fashion

7D

-12.0%

1Y

-23.6%

GAMA

UK£13.00

Gamma Communications

7D

-9.0%

1Y

11.5%

HCM

UK£2.34

HUTCHMED (China)

7D

-6.0%

1Y

5.4%

DATA

UK£1.86

GlobalData

7D

-7.5%

1Y

-5.1%

CPG

UK£26.75

Compass Group

7D

-0.8%

1Y

23.3%

Compass Group PLC's (LON:CPG) Share Price Matching Investor Opinion

Jan 10
Compass Group PLC's (LON:CPG) Share Price Matching Investor Opinion

EXPN

UK£37.37

Experian

7D

8.1%

1Y

17.4%

SHEL

UK£27.21

Shell

7D

3.6%

1Y

14.8%

HSBA

UK£8.23

HSBC Holdings

7D

3.0%

1Y

39.8%

NWG

UK£4.14

NatWest Group

7D

10.7%

1Y

99.2%

LLOY

UK£0.59

Lloyds Banking Group

7D

10.7%

1Y

37.2%

DGE

UK£24.35

Diageo

7D

-0.5%

1Y

-10.3%