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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 16, 2025
DataAggregated Company Financials
Companies1210
  • 7D0.7%
  • 3M-1.7%
  • 1Y8.4%
  • YTD0.2%

The Energy sector gained 3.1% while the market remained flat over the last week. More promisingly, the market is up 8.4% over the past year. As for the next few years, earnings are expected to grow by 15% 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
Thu, 16 Jan 2025UK£2.4tUK£2.1tUK£124.8b15.7x19.5x1.2x
Sat, 14 Dec 2024UK£2.5tUK£2.0tUK£122.5b16.3x20.2x1.2x
Mon, 11 Nov 2024UK£2.4tUK£2.0tUK£118.2b16.3x20.2x1.2x
Wed, 09 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.3x20.2x1.2x
Fri, 06 Sep 2024UK£2.4tUK£2.0tUK£118.9b16.9x20.4x1.2x
Sun, 04 Aug 2024UK£2.4tUK£2.0tUK£124.9b16.7x19.3x1.2x
Tue, 02 Jul 2024UK£2.4tUK£2.0tUK£132.1b16.3x18.2x1.2x
Thu, 30 May 2024UK£2.4tUK£2.1tUK£129.4b17.1x18.9x1.2x
Sat, 27 Apr 2024UK£2.4tUK£2.1tUK£143.6b16x16.9x1.2x
Mon, 25 Mar 2024UK£2.4tUK£2.1tUK£147.6b16.3x16.4x1.1x
Wed, 21 Feb 2024UK£2.3tUK£2.0tUK£146.9b15.3x15.6x1.1x
Fri, 19 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.7x11.7x1.1x
Sun, 17 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.1x11.9x1.1x
Tue, 14 Nov 2023UK£2.2tUK£2.2tUK£195.0b14x11.5x1x
Thu, 12 Oct 2023UK£2.3tUK£2.2tUK£185.8b14x12.6x1.1x
Sat, 09 Sep 2023UK£2.3tUK£2.2tUK£185.4b14.5x12.4x1.1x
Mon, 07 Aug 2023UK£2.4tUK£2.2tUK£189.4b14.6x12.4x1.1x
Wed, 05 Jul 2023UK£2.3tUK£2.2tUK£208.0b14.2x11.2x1.1x
Fri, 02 Jun 2023UK£2.3tUK£2.2tUK£211.4b14.2x11.1x1.1x
Sun, 30 Apr 2023UK£2.5tUK£2.2tUK£179.2b14.5x13.8x1.1x
Tue, 28 Mar 2023UK£2.4tUK£2.2tUK£184.0b13.4x12.8x1.1x
Thu, 23 Feb 2023UK£2.5tUK£2.2tUK£200.4b13.7x12.7x1.2x
Sat, 21 Jan 2023UK£2.5tUK£2.1tUK£183.7b13.7x13.6x1.2x
Mon, 19 Dec 2022UK£2.4tUK£2.1tUK£185.8b13.2x12.8x1.1x
Wed, 16 Nov 2022UK£2.4tUK£2.3tUK£211.6b13x11.4x1.1x
Fri, 14 Oct 2022UK£2.3tUK£2.3tUK£206.6b11.8x11.1x1x
Sun, 11 Sep 2022UK£2.5tUK£2.3tUK£207.6b13.4x11.9x1.1x
Tue, 09 Aug 2022UK£2.5tUK£2.2tUK£197.0b14.2x12.9x1.1x
Thu, 07 Jul 2022UK£2.4tUK£2.2tUK£190.8b13.8x12.7x1.1x
Sat, 04 Jun 2022UK£2.6tUK£2.2tUK£189.7b15.2x13.7x1.2x
Mon, 02 May 2022UK£2.6tUK£2.1tUK£194.5b16.3x13.3x1.2x
Wed, 30 Mar 2022UK£2.6tUK£2.0tUK£196.1b16.5x13.4x1.3x
Fri, 25 Feb 2022UK£2.5tUK£1.9tUK£172.8b16.5x14.3x1.3x
Sun, 23 Jan 2022UK£2.7tUK£1.9tUK£163.1b18.9x16.8x1.5x
Price to Earnings Ratio

16.8x


Total Market Cap: UK£2.7tTotal Earnings: UK£163.1bTotal 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 19.5x which is higher than its 3-year average PE of 14.6x.
Past Earnings Growth
  • The earnings for British listed companies have declined 8.5% 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 Market0.72%
Energy3.14%
Real Estate3.09%
Materials3.01%
Financials2.04%
Industrials0.98%
Telecom0.86%
Utilities0.35%
Information Technology0%
Financials0%
Health Care0%
Industrials0%
Tech-0.019%
Consumer Discretionary-0.32%
Healthcare-0.83%
Consumer Staples-2.65%
Sector PE
  • Investors favour the Consumer Staples sector the most for future growth, which is trading above its 3-year average PE ratio of 37.6x.
    • Analysts expect its future annual earnings growth (13.2%) to be largely in line with prior year's earnings growth.
    • The market's confidence could indicate that the market believes that analysts are underestimating future growth.
  • 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 32% 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£26.824.0%
+UK£6.3b		12.7%PE13xEnergy
RIO Rio Tinto GroupUK£49.344.5%
+UK£3.4b		-8.3%PE9.1xMaterials
BARC BarclaysUK£2.816.0%
+UK£2.3b		99.7%PB0.6xFinancials
HSBA HSBC HoldingsUK£8.041.7%
+UK£2.3b		36.9%PB0.9xFinancials
LLOY Lloyds Banking GroupUK£0.576.1%
+UK£2.0b		35.1%PB0.7xFinancials
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Market Insights

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Sectors And Industries To Watch In 2025

Richard Bowman avatar
Richard Bowman
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5 comments

Last week we covered which markets would sink or swim in 2025, at least, according to analysts' estimates. This week, we wanted to go a layer deeper...

Continue reading

Which Markets Will Sink Or Swim In 2025
Last Week

Which Markets Will Sink Or Swim In 2025

Latest News

STAN

UK£10.57

Standard Chartered

7D

4.9%

1Y

83.7%

HLN

UK£3.67

Haleon

7D

-3.8%

1Y

11.4%

MKS

UK£3.37

Marks and Spencer Group

7D

-10.5%

1Y

33.0%

Marks and Spencer Group plc's (LON:MKS) Intrinsic Value Is Potentially 77% Above Its Share Price

Jan 14
Marks and Spencer Group plc's (LON:MKS) Intrinsic Value Is Potentially 77% Above Its Share Price

GSK

UK£13.28

GSK

7D

-2.4%

1Y

-15.7%

AZN

UK£106.48

AstraZeneca

7D

-1.0%

1Y

1.9%

BARC

UK£2.81

Barclays

7D

6.0%

1Y

99.7%

SHEL

UK£26.82

Shell

7D

4.0%

1Y

12.7%

HSBA

UK£8.04

HSBC Holdings

7D

1.7%

1Y

36.9%

RR.

UK£5.63

Rolls-Royce Holdings

7D

-2.5%

1Y

90.0%

Returns At Rolls-Royce Holdings (LON:RR.) Are On The Way Up

Jan 04
Returns At Rolls-Royce Holdings (LON:RR.) Are On The Way Up

NWG

UK£4.05

NatWest Group

7D

3.2%

1Y

96.9%

RIO

UK£49.34

Rio Tinto Group

7D

4.5%

1Y

-8.3%

ULVR

UK£44.64

Unilever

7D

-1.4%

1Y

18.7%

Capital Investments At Unilever (LON:ULVR) Point To A Promising Future

Dec 27
Capital Investments At Unilever (LON:ULVR) Point To A Promising Future

BATS

UK£29.05

British American Tobacco

7D

-2.2%

1Y

25.2%

British American Tobacco p.l.c. (LON:BATS) Not Lagging Industry On Growth Or Pricing

Dec 27
British American Tobacco p.l.c. (LON:BATS) Not Lagging Industry On Growth Or Pricing

AAL

UK£24.48

Anglo American

7D

3.7%

1Y

39.9%

LLOY

UK£0.57

Lloyds Banking Group

7D

6.1%

1Y

35.1%

DGE

UK£23.61

Diageo

7D

-6.6%

1Y

-14.1%