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

U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 04, 2026
DataAggregated Company Financials
Companies1092
  • 7D0.8%
  • 3M6.6%
  • 1Y21.2%
  • YTD4.4%

The Energy sector gained 3.1% while the market remained flat over the last week. As for the longer term, the market has risen 21% in the past 12 months. As for the next few years, earnings are expected to grow by 14% 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
Wed, 04 Feb 2026UK£3.0tUK£1.9tUK£137.7b17x21.5x1.5x
Fri, 02 Jan 2026UK£2.8tUK£2.0tUK£138.0b16.3x20.6x1.5x
Sun, 30 Nov 2025UK£2.8tUK£2.0tUK£139.6b16.3x20x1.4x
Tue, 28 Oct 2025UK£2.8tUK£1.9tUK£135.6b16.7x20.5x1.4x
Thu, 25 Sep 2025UK£2.7tUK£1.9tUK£136.0b16.5x19.7x1.4x
Sat, 23 Aug 2025UK£2.7tUK£1.9tUK£134.0b16.1x20.2x1.4x
Mon, 21 Jul 2025UK£2.5tUK£1.9tUK£127.4b16x19.9x1.3x
Wed, 18 Jun 2025UK£2.5tUK£1.9tUK£127.7b16.1x19.6x1.3x
Fri, 16 May 2025UK£2.5tUK£2.0tUK£132.6b16.4x18.6x1.3x
Sun, 13 Apr 2025UK£2.3tUK£2.0tUK£135.7b14.7x16.7x1.1x
Tue, 11 Mar 2025UK£2.5tUK£2.0tUK£137.7b15.2x17.9x1.2x
Thu, 06 Feb 2025UK£2.5tUK£2.0tUK£122.9b16x20.2x1.2x
Sat, 04 Jan 2025UK£2.4tUK£2.1tUK£123.5b15.9x19.6x1.2x
Mon, 02 Dec 2024UK£2.4tUK£2.0tUK£122.5b16.3x19.9x1.2x
Wed, 30 Oct 2024UK£2.4tUK£2.0tUK£120.4b16x20.1x1.2x
Fri, 27 Sep 2024UK£2.4tUK£2.0tUK£117.5b17x20.8x1.2x
Sun, 25 Aug 2024UK£2.5tUK£2.0tUK£119.5b16.9x20.5x1.2x
Tue, 23 Jul 2024UK£2.4tUK£2.0tUK£129.3b16.8x18.7x1.2x
Thu, 20 Jun 2024UK£2.4tUK£2.0tUK£131.7b16.6x18.4x1.2x
Sat, 18 May 2024UK£2.5tUK£2.1tUK£127.7b16.9x19.7x1.2x
Mon, 15 Apr 2024UK£2.4tUK£2.1tUK£148.4b16x16.3x1.1x
Wed, 13 Mar 2024UK£2.3tUK£2.1tUK£144.5b16x16.2x1.1x
Fri, 09 Feb 2024UK£2.3tUK£2.0tUK£144.0b15.2x15.7x1.1x
Sun, 07 Jan 2024UK£2.3tUK£2.1tUK£193.5b15x12.1x1.1x
Tue, 05 Dec 2023UK£2.3tUK£2.1tUK£193.3b14.5x11.8x1.1x
Thu, 02 Nov 2023UK£2.2tUK£2.2tUK£194.9b13.5x11.3x1x
Sat, 30 Sep 2023UK£2.3tUK£2.2tUK£185.5b14.5x12.6x1.1x
Mon, 28 Aug 2023UK£2.3tUK£2.2tUK£183.8b14.5x12.3x1.1x
Wed, 26 Jul 2023UK£2.4tUK£2.2tUK£206.2b14.2x11.6x1.1x
Fri, 23 Jun 2023UK£2.3tUK£2.2tUK£208.2b14.2x11.2x1.1x
Sun, 21 May 2023UK£2.4tUK£2.2tUK£216.9b14.3x11.2x1.1x
Tue, 18 Apr 2023UK£2.5tUK£2.2tUK£180.2b14x13.7x1.1x
Thu, 16 Mar 2023UK£2.4tUK£2.2tUK£188.4b13.2x12.5x1.1x
Sat, 11 Feb 2023UK£2.5tUK£2.1tUK£194.7b13.8x12.9x1.2x
Price to Earnings Ratio

12.9x


Total Market Cap: UK£2.5tTotal Earnings: UK£194.7bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.8x202420252026
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 21.5x which is higher than its 3-year average PE of 16.8x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 11% per year over the last three years.
  • Revenues have also declined 3.1% 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 Market0.80%
Energy3.11%
Consumer Staples3.10%
Materials2.57%
Utilities2.06%
Financials1.43%
Healthcare0.75%
Real Estate0.66%
Telecom-1.00%
Consumer Discretionary-1.82%
Industrials-3.39%
Tech-4.09%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 20.0x.
    • Analysts expect its future annual earnings growth (31.9%) 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.
Forecasted Growth
  • Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 32% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.5% 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£27.903.4%
+UK£5.1b		5.2%PE14.9xEnergy
RIO Rio Tinto GroupUK£70.384.6%
+UK£5.0b		44.3%PE15.3xMaterials
LLOY Lloyds Banking GroupUK£1.137.0%
+UK£4.3b		82.9%PB1.4xFinancials
HSBA HSBC HoldingsUK£13.011.9%
+UK£4.1b		56.9%PB1.6xFinancials
ULVR UnileverUK£50.453.7%
+UK£4.0b		-2.6%PE23.3xConsumer Staples
See more

Market Insights

Header cover image
Why longer lifespans could reshape portfolios 🧓
Stella Ong avatar
Stella Ong
|
|
There’s the Great Wealth Transfer and Longevity Effect. Here’s how our changing demographic and wealth is set to shape future markets.
Continue reading
How to invest when commodity prices get messy ⚖️
Last Week

How to invest when commodity prices get messy ⚖️

Latest News

EXPN
UK£25.55
Experian
7D
-8.3%
1Y
-35.5%
REL
UK£22.14
RELX
7D
-18.6%
1Y
-44.7%
SGE
UK£8.71
Sage Group
7D
-12.0%
1Y
-35.0%

SGE: Mixed Rating Signals And Execution Risks Will Shape Future Fair Value Outlook

The analyst price target for Sage Group has shifted to £12.50 from £13.50, as analysts balance softer assumptions around future P/E with still supportive views on revenue growth, margins and recent upgrades that present current growth as attractively priced and the shares as undervalued. Analyst Commentary Recent Street research shows a mixed but generally constructive stance on Sage Group, with several firms adjusting price targets while reiterating positive views on the business model and revenue profile.
AZN
UK£138.16
AstraZeneca
7D
-0.5%
1Y
25.3%

AZN: Oncology Pipeline And Manufacturing Investments Will Shape Balanced Long-Term Outlook

Analysts have lifted their AstraZeneca fair value estimate to £152.79 from £150.26, reflecting higher price targets from several firms and updated views on the company’s revenue growth, profit margins and future P/E assumptions. Analyst Commentary Recent Street research on AstraZeneca has been active, with several bullish analysts lifting price targets and initiating positive coverage.
HSBA
UK£13.01
HSBC Holdings
7D
1.9%
1Y
56.9%

HSBA: Future Returns Will Hinge On Chair Succession Rather Than Execution

Analysts have nudged their fair value estimate for HSBC Holdings higher to £11.54 from £11.25, citing updated assumptions for slightly faster revenue growth, a modestly higher profit margin, and a P/E multiple that lines up with recent price target moves and rating changes from Citi, Erste Group, and Morgan Stanley. Analyst Commentary Recent Street research on HSBC Holdings points to a mix of optimism around execution in the next few years and some caution on how much of that is already reflected in the share price.
RIO
UK£70.38
Rio Tinto Group
7D
4.6%
1Y
44.3%

RIO: Potential Glencore Deal And Asset Sales Will Drive Future Upside

The latest Narrative Update on Rio Tinto Group reflects a higher implied fair value of about $83.33 per share, up from roughly $74.17, as analysts adjust their price targets to account for tweaked discount rates, slightly stronger revenue growth and profit margin assumptions, and a higher future P/E multiple. Analyst Commentary Recent Street research on Rio Tinto Group has been mixed, but there are several clear positives that bullish analysts are highlighting when they adjust their models and targets.
LLOY
UK£1.13
Lloyds Banking Group
7D
7.0%
1Y
82.9%

LLOY: Buybacks And Dividend Policy Will Support Measured Future Return Profile

Analysts have lifted their price target for Lloyds Banking Group to £1.08 from £0.96, citing adjusted assumptions for revenue growth, profit margins and future P/E multiples that point to a higher assessed fair value. What's in the News The Board of Directors has authorized a new share buyback plan, approved on 30 January 2026.
LSEG
UK£71.80
London Stock Exchange Group
7D
-13.1%
1Y
-40.2%

LSEG: Private Markets Data Partnership Will Support Long-Term Upside Potential

Analysts have nudged their price target on London Stock Exchange Group slightly higher to £123.06 from £122.84, reflecting updated views on fair value, discount rate, revenue growth, profit margins and future P/E assumptions. What's in the News LSEG agreed a partnership with Nasdaq to distribute institutional-grade private markets intelligence through LSEG Workspace and Datafeeds, broadening the range of private investment data available to users (Key Developments).
AAF
UK£3.24
Airtel Africa
7D
-10.1%
1Y
121.5%

Market Participants Recognise Airtel Africa Plc's (LON:AAF) Revenues

Feb 02
Market Participants Recognise Airtel Africa Plc's (LON:AAF) Revenues
GSK
UK£19.46
GSK
7D
4.5%
1Y
41.0%
ULVR
UK£50.45
Unilever
7D
3.7%
1Y
-2.6%
FRES
UK£39.02
Fresnillo
7D
-5.7%
1Y
446.9%

FRES: Higher Metal Price Optimism Will Likely Mask Execution And Margin Risks

Analysts have modestly revised their fair value estimate for Fresnillo to £16.62 per share, reflecting updated assumptions around revenue, profit margins and a slightly lower future P/E multiple following recent price target increases from several banks. Analyst Commentary Recent Street research on Fresnillo points to a mixed stance, with some high profile price target adjustments sitting alongside more cautious views on the shares.
BATS
UK£45.06
British American Tobacco
7D
3.9%
1Y
39.9%

BATS: Future Returns Will Balance ITC Stake Deleveraging And Modest Revenue Outlook

Analysts have inched up their fair value estimate for British American Tobacco to £45.19 from £44.88, reflecting small adjustments to discount rate assumptions, slightly different revenue growth expectations, a marginally lower profit margin input, and a modestly higher future P/E multiple. What's in the News Issued earnings guidance for 2025, with the company expecting around 2% Group revenue growth at constant rates and mid single digit revenue growth from New Categories at constant rates (Corporate guidance).
BA.
UK£19.32
BAE Systems
7D
-4.0%
1Y
59.6%

BA.: Higher Defence Orders And Guidance Will Support Earnings Repricing

We are nudging our BAE Systems fair value estimate higher to £25.51 from £25.00. This reflects analysts' higher price targets in the £1,860 to £2,400 range, supported by updated assumptions on revenue growth and P/E multiples, even as margin expectations are slightly lower.
AAL
UK£37.00
Anglo American
7D
7.3%
1Y
39.1%

AAL: Iron Ore Outlook And Teck Merger Path Will Shape Rerating Prospects

Anglo American's analyst fair value estimate has increased from £35.01 to £36.92, as analysts factor in updated assumptions on growth, margins and a higher implied future P/E multiple, alongside recent Street price target increases to £30.00 and £31.00. Analyst Commentary Recent Street commentary has tilted more optimistic on Anglo American, with bullish analysts lifting price targets into the £30.00 range.
SHEL
UK£27.90
Shell
7D
3.4%
1Y
5.2%

SHEL: Future Returns Will Reflect LNG Strength And Refining Cash Generation

Our Shell fair value estimate edges up to €31.04 from €31.03 as analysts lift price targets across US dollar and GBp lines, pointing to expectations for resilient refining conditions, disciplined capital allocation and LNG driven growth targets, even as views on crude and valuation remain mixed. Analyst Commentary Bullish Takeaways Bullish analysts lifting US dollar and GBp targets point to confidence in Shell's ability to keep capital allocation disciplined, with a focus on cost control and shareholder returns that they view as supportive for equity value.