Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Market Analysis & Valuation

UpdatedMay 22, 2026
DataAggregated Company Financials
Companies1090
  • 7D0.3%
  • 3M-2.6%
  • 1Y18.8%
  • YTD5.0%

In the last week, the market has been flat, with a notable exception in the Materials sector dropping 5.5%. Meanwhile, the market is actually up 19% over the past year. As for the next few years, earnings are expected to grow by 11% 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
Sat, 23 May 2026UK£3.0tUK£2.0tUK£165.2b15.9x17.9x1.5x
Mon, 20 Apr 2026UK£3.0tUK£2.0tUK£157.4b16.2x19.2x1.5x
Wed, 18 Mar 2026UK£2.9tUK£2.0tUK£156.5b15.7x18.7x1.5x
Fri, 13 Feb 2026UK£3.0tUK£1.9tUK£140.4b16.7x21.3x1.5x
Sun, 11 Jan 2026UK£2.9tUK£2.0tUK£138.1b16.8x21x1.5x
Tue, 09 Dec 2025UK£2.8tUK£2.0tUK£138.5b16.1x19.9x1.4x
Thu, 06 Nov 2025UK£2.8tUK£2.0tUK£139.8b16.4x20x1.4x
Sat, 04 Oct 2025UK£2.7tUK£1.9tUK£135.4b16.8x20.2x1.4x
Mon, 01 Sep 2025UK£2.7tUK£1.9tUK£135.2b16x19.7x1.4x
Wed, 30 Jul 2025UK£2.6tUK£1.9tUK£127.0b16.1x20.2x1.3x
Fri, 27 Jun 2025UK£2.5tUK£1.9tUK£126.6b16.5x19.5x1.3x
Sun, 25 May 2025UK£2.5tUK£1.9tUK£125.8b16.2x19.7x1.3x
Tue, 22 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Thu, 20 Mar 2025UK£2.5tUK£2.0tUK£135.3b15.5x18.5x1.3x
Sat, 15 Feb 2025UK£2.5tUK£2.0tUK£138.6b16.4x18.2x1.3x
Mon, 13 Jan 2025UK£2.4tUK£2.1tUK£124.6b15.8x19.3x1.2x
Wed, 11 Dec 2024UK£2.4tUK£2.0tUK£122.2b16.3x20x1.2x
Fri, 08 Nov 2024UK£2.4tUK£2.0tUK£118.3b16.3x20.3x1.2x
Sun, 06 Oct 2024UK£2.4tUK£2.0tUK£118.6b16.5x20.5x1.2x
Tue, 03 Sep 2024UK£2.5tUK£2.0tUK£119.1b17x20.7x1.2x
Thu, 01 Aug 2024UK£2.5tUK£2.0tUK£126.3b16.7x19.5x1.2x
Sat, 29 Jun 2024UK£2.4tUK£2.0tUK£132.2b16.2x18.2x1.2x
Mon, 27 May 2024UK£2.5tUK£2.0tUK£127.0b17.3x19.5x1.2x
Wed, 24 Apr 2024UK£2.4tUK£2.1tUK£148.6b15.9x16.4x1.2x
Fri, 22 Mar 2024UK£2.4tUK£2.0tUK£146.7b16.2x16.3x1.2x
Sun, 18 Feb 2024UK£2.3tUK£2.0tUK£147.0b15.2x15.6x1.1x
Tue, 16 Jan 2024UK£2.3tUK£2.1tUK£193.6b14.9x11.9x1.1x
Thu, 14 Dec 2023UK£2.3tUK£2.1tUK£194.4b14.8x11.8x1.1x
Sat, 11 Nov 2023UK£2.2tUK£2.2tUK£195.5b13.9x11.4x1x
Mon, 09 Oct 2023UK£2.3tUK£2.2tUK£186.3b13.9x12.3x1.1x
Wed, 06 Sep 2023UK£2.3tUK£2.2tUK£184.8b14.5x12.4x1.1x
Fri, 04 Aug 2023UK£2.3tUK£2.2tUK£189.9b14.6x12.3x1.1x
Sun, 02 Jul 2023UK£2.3tUK£2.2tUK£208.2b14.3x11.3x1.1x
Tue, 30 May 2023UK£2.4tUK£2.2tUK£213.9b14x11.2x1.1x
Price to Earnings Ratio

11.2x


Total Market Cap: UK£2.4tTotal Earnings: UK£213.9bTotal 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 8.2% per year over the last three years.
  • Revenues have also declined 3.0% 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 Market0.25%
Energy2.88%
Healthcare2.08%
Real Estate1.41%
Industrials1.21%
Financials1.17%
Consumer Staples1.14%
Consumer Discretionary-0.43%
Tech-1.27%
Utilities-1.27%
Telecom-3.70%
Materials-5.50%
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 29.3%, which is higher than its past year's earnings growth of 5.7% 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 29% over the next 5 years.
  • This is better than its past earnings growth rate of 5.7% 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
RR. Rolls-Royce HoldingsUK£12.499.5%
+UK£9.0b		49.4%PE17.7xIndustrials
HSBA HSBC HoldingsUK£13.743.8%
+UK£8.6b		58.2%PB1.6xFinancials
NG. National GridUK£12.817.8%
+UK£4.6b		17.4%PE19.7xUtilities
AZN AstraZenecaUK£139.162.1%
+UK£4.4b		33.3%PE27.9xHealthcare
BA. BAE SystemsUK£19.947.7%
+UK£4.0b		8.2%PE27.4xIndustrials
See more

Market Insights

Header cover image
30-year yields at 2007 highs. SpaceX filing at a $2 trillion valuation. SaaS stocks getting torched while their income statements paint a different story. We recap a noisy week, dig into the Q1 numbers behind the headlines, and lay out how to tell an AI value trap from a genuine opportunity.
Continue reading
Will Gold hit $6,000 this year? 🎢

Latest News

ITH
UK£2.44
Ithaca Energy
7D
-14.3%
1Y
87.8%
AUTO
UK£4.54
Autotrader Group
7D
-7.5%
1Y
-50.0%
GSK
UK£19.15
GSK
7D
2.8%
1Y
34.3%
CPG
US$31.13
Compass Group
7D
-2.6%
1Y
-14.3%
Narrative Update • May 21

CPG: Sector Positioning And Premium P/E Will Support Future Upside

Analysts have slightly reduced their average price target for Compass Group to about $38.28 from roughly $38.50, citing updated assumptions for growth, margins and future P/E, and reflecting recent supportive Street research. Analyst Commentary Bullish Takeaways Bullish analysts view the recent upgrade as support for Compass Group’s ability to execute on the growth assumptions that underpin current valuation models.
NG.
UK£12.81
National Grid
7D
7.8%
1Y
17.4%
Analysis Article • May 21

We Think That There Are Some Issues For National Grid (LON:NG.) Beyond Its Promising Earnings

National Grid plc's ( LON:NG. ) healthy profit numbers didn't contain any surprises for investors. We think this is due...
RR.
UK£12.49
Rolls-Royce Holdings
7D
9.5%
1Y
49.4%
AZN
UK£139.16
AstraZeneca
7D
2.1%
1Y
33.3%
BA.
UK£19.94
BAE Systems
7D
7.7%
1Y
8.2%
Narrative Update • May 19

BA.: Firmer Defence Backdrop Will Offset Softer 2026 Guidance Risks

Analysts have lifted BAE Systems' blended price target to £2,438, reflecting slightly firmer revenue growth and margin assumptions, along with recent target increases from several research houses. Analyst Commentary Recent research activity around BAE Systems has clustered around incremental price target moves, with some analysts highlighting execution and growth questions even as headline targets sit above current levels.
HOC
UK£5.72
Hochschild Mining
7D
-7.3%
1Y
97.5%
Narrative Update • May 19

HOC: Structurally Bullish Gold View Will Support Repricing Potential

Analysts have trimmed the fair value estimate for Hochschild Mining slightly, with the updated price target now implying a value of about £8.04 per share compared with £8.07 previously. This reflects recent cuts to Street targets in £40 to £110 increments, alongside only marginal tweaks to growth, margin and P/E assumptions.
FRES
UK£32.36
Fresnillo
7D
-3.0%
1Y
185.6%
Narrative Update • May 18

FRES: Production Slippage And Diverging Street Views Will Pressure Future Returns

Fresnillo’s updated analyst price target has shifted to reflect mixed recent moves, including a £4.00 increase at Citi and several reductions of £1.00 to £4.00 at other firms, as analysts factor in revised assumptions for discount rate, revenue growth, profit margin, and future P/E. Analyst Commentary Recent Street research on Fresnillo shows a split view, with some higher price targets sitting alongside a series of reductions.
HSBA
UK£13.74
HSBC Holdings
7D
3.8%
1Y
58.2%
LLOY
UK£1.00
Lloyds Banking Group
7D
5.9%
1Y
28.0%
BARC
UK£4.46
Barclays
7D
5.3%
1Y
37.9%
RTO
UK£4.64
Rentokil Initial
7D
-1.8%
1Y
31.2%
Narrative Update • May 16

RTO: Bolt On M&A And Progressive Dividend Will Likely Sustain High P/E

Analysts have adjusted their price target on Rentokil Initial to £4.54. The change reflects refreshed assumptions around discount rate, revenue growth, profit margins and future P/E rather than a shift in fair value.
GLEN
UK£5.69
Glencore
7D
-0.9%
1Y
111.4%
CTEC
UK£1.97
Convatec Group
7D
-5.3%
1Y
-31.0%