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U.K. (FTSE) Market Analysis & Valuation

UpdatedMar 04, 2025
DataAggregated Company Financials
Companies1195
  • 7D1.4%
  • 3M4.2%
  • 1Y12.3%
  • YTD5.4%

Over the last 7 days, the market has risen 1.4%, driven by gains of 4.6% in the Financials sector. As for the past 12 months, the market is up 12%. 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
Tue, 04 Mar 2025UK£2.5tUK£2.0tUK£138.5b15.7x18.3x1.3x
Thu, 30 Jan 2025UK£2.5tUK£2.1tUK£123.6b16.1x20.2x1.2x
Sat, 28 Dec 2024UK£2.4tUK£2.0tUK£122.6b15.9x19.5x1.2x
Mon, 25 Nov 2024UK£2.4tUK£2.1tUK£124.0b16.4x19.6x1.2x
Wed, 23 Oct 2024UK£2.4tUK£2.0tUK£119.0b16.3x20.3x1.2x
Fri, 20 Sep 2024UK£2.4tUK£2.0tUK£118.2b16.9x20.7x1.2x
Sun, 18 Aug 2024UK£2.4tUK£2.0tUK£121.8b16.8x20.1x1.2x
Tue, 16 Jul 2024UK£2.4tUK£2.0tUK£130.0b16.9x18.6x1.2x
Thu, 13 Jun 2024UK£2.4tUK£2.0tUK£129.6b16.4x18.7x1.2x
Sat, 11 May 2024UK£2.5tUK£2.1tUK£136.5b16.9x18.4x1.2x
Mon, 08 Apr 2024UK£2.4tUK£2.1tUK£146.0b16x16.4x1.1x
Wed, 06 Mar 2024UK£2.3tUK£2.0tUK£142.0b15.4x16.2x1.1x
Fri, 02 Feb 2024UK£2.3tUK£2.1tUK£182.6b14.8x12.6x1.1x
Sun, 31 Dec 2023UK£2.3tUK£2.1tUK£193.5b15.1x12.1x1.1x
Tue, 28 Nov 2023UK£2.3tUK£2.1tUK£193.6b14.3x11.7x1.1x
Thu, 26 Oct 2023UK£2.3tUK£2.2tUK£187.6b13.4x12.1x1x
Sat, 23 Sep 2023UK£2.4tUK£2.2tUK£186.6b14.5x12.6x1.1x
Mon, 21 Aug 2023UK£2.2tUK£2.1tUK£184.1b14.2x12.2x1x
Wed, 19 Jul 2023UK£2.3tUK£2.2tUK£205.2b13.8x11.4x1.1x
Fri, 16 Jun 2023UK£2.4tUK£2.2tUK£208.1b14.4x11.4x1.1x
Sun, 14 May 2023UK£2.4tUK£2.2tUK£211.7b14.4x11.5x1.1x
Tue, 11 Apr 2023UK£2.4tUK£2.2tUK£179.9b13.8x13.5x1.1x
Thu, 09 Mar 2023UK£2.5tUK£2.2tUK£191.2b13.8x13.3x1.1x
Sat, 04 Feb 2023UK£2.5tUK£2.1tUK£185.4b14.2x13.7x1.2x
Mon, 02 Jan 2023UK£2.4tUK£2.1tUK£185.2b13.4x13x1.1x
Wed, 30 Nov 2022UK£2.4tUK£2.1tUK£187.7b13.5x12.9x1.1x
Fri, 28 Oct 2022UK£2.4tUK£2.3tUK£208.1b12.3x11.3x1x
Sun, 25 Sep 2022UK£2.3tUK£2.3tUK£212.0b12.3x11x1x
Tue, 23 Aug 2022UK£2.5tUK£2.3tUK£205.9b13.8x12.2x1.1x
Thu, 21 Jul 2022UK£2.5tUK£2.3tUK£191.7b13.8x13x1.1x
Sat, 18 Jun 2022UK£2.4tUK£2.3tUK£194.1b14.1x12.5x1.1x
Mon, 16 May 2022UK£2.5tUK£2.2tUK£181.3b15.3x13.9x1.2x
Wed, 13 Apr 2022UK£2.6tUK£2.0tUK£187.3b16.7x14x1.3x
Fri, 11 Mar 2022UK£2.5tUK£2.0tUK£188.4b16x13.1x1.2x
Price to Earnings Ratio

13.1x


Total Market Cap: UK£2.5tTotal Earnings: UK£188.4bTotal Revenue: UK£2.0tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 14.8x202320242025
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 14.8x.
Past Earnings Growth
  • The earnings for British listed companies have declined 9.8% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

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

GB Market1.41%
Financials4.57%
Industrials2.43%
Healthcare1.81%
Consumer Staples0.71%
Information Technology0%0
Financials0%0
Health Care0%0
Industrials0%0
Consumer Discretionary-0.0088%
Energy-0.36%
Telecom-0.83%
Materials-1.01%
Real Estate-1.75%
Utilities-1.99%
Tech-2.56%
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 14.2%, 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 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 33% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 9.8% 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
RR. Rolls-Royce HoldingsUK£7.7728.1%
+UK£14.4b		106.4%PE26xIndustrials
HSBA HSBC HoldingsUK£9.437.4%
+UK£11.4b		54.9%PB1.2xFinancials
BA. BAE SystemsUK£16.1223.5%
+UK£9.1b		27.9%PE24.5xIndustrials
LLOY Lloyds Banking GroupUK£0.727.5%
+UK£3.0b		52.6%PB1xFinancials
NWG NatWest GroupUK£4.808.2%
+UK£2.9b		93.4%PB1xFinancials
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⛓️ Supply Chain Opportunities In Oil and Gas
Last Week

⛓️ Supply Chain Opportunities In Oil and Gas

Latest News

NWG

UK£4.80

NatWest Group

7D

8.2%

1Y

93.4%

NatWest Group (LON:NWG) Is Paying Out A Larger Dividend Than Last Year

Mar 04
NatWest Group (LON:NWG) Is Paying Out A Larger Dividend Than Last Year

RR.

UK£7.77

Rolls-Royce Holdings

7D

28.1%

1Y

106.4%

Subdued Growth No Barrier To Rolls-Royce Holdings plc (LON:RR.) With Shares Advancing 28%

Mar 04
Subdued Growth No Barrier To Rolls-Royce Holdings plc (LON:RR.) With Shares Advancing 28%

BA.

UK£16.12

BAE Systems

7D

23.5%

1Y

27.9%

BAE Systems plc's (LON:BA.) 32% Price Boost Is Out Of Tune With Earnings

Mar 04
BAE Systems plc's (LON:BA.) 32% Price Boost Is Out Of Tune With Earnings

BNZL

UK£30.72

Bunzl

7D

-8.8%

1Y

0.2%

AZN

UK£119.04

AstraZeneca

7D

1.1%

1Y

18.5%

RIO

UK£48.77

Rio Tinto Group

7D

-2.6%

1Y

-4.2%

WPP

UK£6.39

WPP

7D

-16.0%

1Y

-10.3%

LSEG

UK£117.50

London Stock Exchange Group

7D

4.0%

1Y

29.5%

BP.

UK£4.33

BP

7D

-3.1%

1Y

-7.9%

LLOY

UK£0.72

Lloyds Banking Group

7D

7.5%

1Y

52.6%

NG.

UK£9.57

National Grid

7D

-2.0%

1Y

-7.9%

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

III

UK£40.13

3i Group

7D

-1.7%

1Y

61.5%

REL

UK£38.32

RELX

7D

-1.7%

1Y

12.4%

STAN

UK£12.69

Standard Chartered

7D

7.8%

1Y

85.9%

HSBA

UK£9.43

HSBC Holdings

7D

7.4%

1Y

54.9%

DGE

UK£21.66

Diageo

7D

-1.5%

1Y

-26.1%