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U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 27, 2025
DataAggregated Company Financials
Companies1197
  • 7D0.2%
  • 3M4.2%
  • 1Y11.9%
  • YTD4.7%

In the last week, the market has been flat, with a notable exception in the Energy sector dropping 3.1%. More promisingly, the market is up 12% over the past year. Looking forward, earnings are forecast to grow by 14% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 27 Feb 2025UK£2.5tUK£2.0tUK£137.4b16.1x18.3x1.3x
Sat, 25 Jan 2025UK£2.5tUK£2.1tUK£123.3b15.8x20.1x1.2x
Mon, 23 Dec 2024UK£2.4tUK£2.0tUK£122.8b16x19.4x1.2x
Wed, 20 Nov 2024UK£2.4tUK£2.0tUK£121.8b16.3x19.6x1.2x
Fri, 18 Oct 2024UK£2.4tUK£2.0tUK£118.9b16.6x20.5x1.2x
Sun, 15 Sep 2024UK£2.4tUK£2.0tUK£119.3b16.5x20.4x1.2x
Tue, 13 Aug 2024UK£2.4tUK£2.0tUK£123.3b16.3x19.7x1.2x
Thu, 11 Jul 2024UK£2.4tUK£2.0tUK£131.2b16.8x18.5x1.2x
Sat, 08 Jun 2024UK£2.5tUK£2.0tUK£129.9b16.8x18.9x1.2x
Mon, 06 May 2024UK£2.4tUK£2.1tUK£141.9b16.5x17.3x1.2x
Wed, 03 Apr 2024UK£2.4tUK£2.1tUK£146.2b16.2x16.4x1.1x
Fri, 01 Mar 2024UK£2.3tUK£2.0tUK£140.5b15.2x16.3x1.1x
Sun, 28 Jan 2024UK£2.3tUK£2.1tUK£193.0b15x12x1.1x
Tue, 26 Dec 2023UK£2.3tUK£2.1tUK£193.8b15.2x12.1x1.1x
Thu, 23 Nov 2023UK£2.3tUK£2.1tUK£194.6b14.3x11.6x1.1x
Sat, 21 Oct 2023UK£2.3tUK£2.2tUK£187.3b13.5x12.1x1x
Mon, 18 Sep 2023UK£2.4tUK£2.2tUK£185.6b14.8x12.8x1.1x
Wed, 16 Aug 2023UK£2.3tUK£2.1tUK£184.5b14.3x12.4x1.1x
Fri, 14 Jul 2023UK£2.3tUK£2.2tUK£204.3b14x11.4x1.1x
Sun, 11 Jun 2023UK£2.4tUK£2.2tUK£209.9b14.3x11.3x1.1x
Tue, 09 May 2023UK£2.4tUK£2.2tUK£209.8b14.4x11.6x1.1x
Thu, 06 Apr 2023UK£2.4tUK£2.2tUK£180.3b13.6x13.3x1.1x
Sat, 04 Mar 2023UK£2.5tUK£2.2tUK£189.8b14.1x13.4x1.2x
Mon, 30 Jan 2023UK£2.5tUK£2.1tUK£183.5b14x13.6x1.2x
Wed, 28 Dec 2022UK£2.4tUK£2.1tUK£185.7b13.3x13x1.1x
Fri, 25 Nov 2022UK£2.4tUK£2.1tUK£186.4b13.2x13x1.1x
Sun, 23 Oct 2022UK£2.3tUK£2.3tUK£208.3b12x11.1x1x
Tue, 20 Sep 2022UK£2.4tUK£2.3tUK£207.5b12.7x11.6x1x
Thu, 18 Aug 2022UK£2.5tUK£2.2tUK£203.2b14.1x12.5x1.1x
Sat, 16 Jul 2022UK£6.5tUK£2.3tUK£193.2b13.7x33.7x2.9x
Mon, 13 Jun 2022UK£2.5tUK£2.2tUK£193.0b14.9x13.1x1.1x
Wed, 11 May 2022UK£2.5tUK£2.2tUK£177.5b15.1x13.9x1.1x
Fri, 08 Apr 2022UK£2.6tUK£2.0tUK£188.6b16.6x13.8x1.3x
Sun, 06 Mar 2022UK£2.3tUK£1.8tUK£172.8b15.9x13.2x1.2x
Price to Earnings Ratio

13.2x


Total Market Cap: UK£2.3tTotal Earnings: UK£172.8bTotal Revenue: UK£1.8tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 14.7x202320242025
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 18.3x which is higher than its 3-year average PE of 14.7x.
Past Earnings Growth
  • The earnings for British listed companies have declined 7.4% per year over the last three years.
  • Meanwhile revenues for these companies have grown 3.3% 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 Market0.20%
Utilities2.68%
Financials2.00%
Healthcare1.77%
Telecom1.16%
Consumer Staples1.04%
Information Technology0%0
Financials0%0
Health Care0%0
Industrials0%0
Real Estate-0.26%
Consumer Discretionary-0.60%
Materials-1.62%
Industrials-1.82%
Tech-2.76%
Energy-3.06%
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 55.4x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 13.8%, which is higher than its past year's earnings growth of 10.9% 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 9.9x.
Forecasted Growth
  • Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 28% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 9.7% 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
LLOY Lloyds Banking GroupUK£0.7214.2%
+UK£5.3b		54.1%PB0.9xFinancials
HSBA HSBC HoldingsUK£9.121.8%
+UK£2.8b		49.6%PB1.1xFinancials
AZN AstraZenecaUK£118.821.5%
+UK£2.8b		16.7%PE33.2xHealthcare
STAN Standard CharteredUK£12.499.5%
+UK£2.6b		92.3%PB0.8xFinancials
NWG NatWest GroupUK£4.676.2%
+UK£2.2b		97.5%PB1xFinancials
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Market Insights

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⛓️ Supply Chain Opportunities In Oil and Gas

Richard Bowman avatar
Richard Bowman
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Last week, we took a look at the evolving outlook for oil and gas, both in the near term, and in the long term. This week, we are taking a look at...
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🛢️🔥 Oil & Gas: Near-Term Volatility vs Long-Term Trends
Last Week

🛢️🔥 Oil & Gas: Near-Term Volatility vs Long-Term Trends

Latest News

NG.

UK£9.78

National Grid

7D

2.6%

1Y

-5.0%

We Think National Grid (LON:NG.) Is Taking Some Risk With Its Debt

Feb 27
We Think National Grid (LON:NG.) Is Taking Some Risk With Its Debt

LLOY

UK£0.72

Lloyds Banking Group

7D

14.2%

1Y

54.1%

AZN

UK£118.82

AstraZeneca

7D

1.5%

1Y

16.7%

BP.

UK£4.31

BP

7D

-7.0%

1Y

-6.8%

RIO

UK£48.85

Rio Tinto Group

7D

-3.0%

1Y

-3.1%

GSK

UK£14.67

GSK

7D

2.1%

1Y

-12.1%

SHEL

UK£26.47

Shell

7D

-1.5%

1Y

7.6%

Shell plc (LON:SHEL) Shares Could Be 38% Below Their Intrinsic Value Estimate

Feb 24
Shell plc (LON:SHEL) Shares Could Be 38% Below Their Intrinsic Value Estimate

REL

UK£38.05

RELX

7D

-4.8%

1Y

10.6%

STAN

UK£12.49

Standard Chartered

7D

9.5%

1Y

92.3%

HSBA

UK£9.12

HSBC Holdings

7D

1.8%

1Y

49.6%

GLEN

UK£3.22

Glencore

7D

-1.8%

1Y

-13.8%

NWG

UK£4.67

NatWest Group

7D

6.2%

1Y

97.5%

NatWest Group (LON:NWG) Will Pay A Larger Dividend Than Last Year At £0.155

Feb 17
NatWest Group (LON:NWG) Will Pay A Larger Dividend Than Last Year At £0.155

DGE

UK£21.83

Diageo

7D

3.3%

1Y

-27.3%

WISE

UK£10.02

Wise

7D

-8.2%

1Y

12.3%

RR.

UK£6.31

Rolls-Royce Holdings

7D

-1.8%

1Y

70.3%

An Intrinsic Calculation For Rolls-Royce Holdings plc (LON:RR.) Suggests It's 40% Undervalued

Jan 22
An Intrinsic Calculation For Rolls-Royce Holdings plc (LON:RR.) Suggests It's 40% Undervalued

LSEG

UK£111.00

London Stock Exchange Group

7D

-5.2%

1Y

24.6%