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

U.K. (FTSE) Market Analysis & Valuation

UpdatedSep 15, 2025
DataAggregated Company Financials
Companies1117
  • 7D0.5%
  • 3M5.0%
  • 1Y10.7%
  • YTD11.8%

The market has stayed flat over the 7 days. More promisingly, the market is up 11% over the past year. 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
Tue, 16 Sep 2025UK£2.7tUK£1.9tUK£135.4b16.4x19.8x1.4x
Thu, 14 Aug 2025UK£2.7tUK£1.9tUK£133.5b15.8x19.9x1.4x
Sat, 12 Jul 2025UK£2.5tUK£1.9tUK£127.0b16.2x19.9x1.3x
Mon, 09 Jun 2025UK£2.5tUK£1.9tUK£127.0b16.2x19.6x1.3x
Wed, 07 May 2025UK£2.4tUK£2.0tUK£130.3b16.1x18.8x1.3x
Fri, 04 Apr 2025UK£2.4tUK£2.0tUK£135.5b15x17.8x1.2x
Sun, 02 Mar 2025UK£2.5tUK£2.0tUK£139.0b15.7x18.2x1.2x
Tue, 28 Jan 2025UK£2.5tUK£2.1tUK£123.4b15.9x20.1x1.2x
Thu, 26 Dec 2024UK£2.4tUK£2.0tUK£122.9b15.9x19.5x1.2x
Sat, 23 Nov 2024UK£2.4tUK£2.1tUK£123.9b16.4x19.6x1.2x
Mon, 21 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.5x20.5x1.2x
Wed, 18 Sep 2024UK£2.4tUK£2.0tUK£118.8b16.7x20.6x1.2x
Fri, 16 Aug 2024UK£2.5tUK£2.0tUK£122.2b16.6x20.1x1.2x
Sun, 14 Jul 2024UK£2.4tUK£2.0tUK£129.8b17x18.8x1.2x
Tue, 11 Jun 2024UK£2.5tUK£2.0tUK£129.9b16.7x18.9x1.2x
Thu, 09 May 2024UK£2.5tUK£2.1tUK£137.4b16.7x18.1x1.2x
Sat, 06 Apr 2024UK£2.4tUK£2.1tUK£146.0b16x16.4x1.1x
Mon, 04 Mar 2024UK£2.3tUK£2.0tUK£142.0b15.3x16.3x1.1x
Wed, 31 Jan 2024UK£2.3tUK£2.1tUK£192.5b14.9x12x1.1x
Fri, 29 Dec 2023UK£2.3tUK£2.1tUK£193.6b15x12.1x1.1x
Sun, 26 Nov 2023UK£2.3tUK£2.1tUK£193.7b14.4x11.7x1.1x
Tue, 24 Oct 2023UK£2.3tUK£2.2tUK£186.6b13.5x12.1x1x
Thu, 21 Sep 2023UK£2.4tUK£2.2tUK£185.2b14.6x12.8x1.1x
Sat, 19 Aug 2023UK£2.2tUK£2.1tUK£184.2b14.2x12.2x1.1x
Mon, 17 Jul 2023UK£2.3tUK£2.2tUK£204.7b14x11.3x1.1x
Wed, 14 Jun 2023UK£2.4tUK£2.2tUK£209.6b14.3x11.3x1.1x
Fri, 12 May 2023UK£2.4tUK£2.2tUK£210.8b14.4x11.5x1.1x
Sun, 09 Apr 2023UK£2.4tUK£2.2tUK£180.0b13.8x13.5x1.1x
Tue, 07 Mar 2023UK£2.5tUK£2.2tUK£189.3b13.9x13.4x1.2x
Thu, 02 Feb 2023UK£2.5tUK£2.1tUK£184.4b14x13.5x1.2x
Sat, 31 Dec 2022UK£2.4tUK£2.1tUK£185.6b13.4x13x1.1x
Mon, 28 Nov 2022UK£2.4tUK£2.1tUK£186.9b13.4x13x1.1x
Wed, 26 Oct 2022UK£2.3tUK£2.3tUK£204.1b12x11.3x1x
Fri, 23 Sep 2022UK£2.4tUK£2.3tUK£208.9b12.4x11.3x1x
Price to Earnings Ratio

11.3x


Total Market Cap: UK£2.4tTotal Earnings: UK£208.9bTotal Revenue: UK£2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 15.8x202320242025
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 19.8x which is higher than its 3-year average PE of 15.8x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 13% per year over the last three years.
  • Revenues have also declined 5.6% 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 Market0.46%
Utilities1.79%
Materials1.70%
Financials1.63%
Industrials1.04%
Energy0.23%
Telecom0.18%
Healthcare-0.31%
Tech-0.33%
Real Estate-0.48%
Consumer Discretionary-0.86%
Consumer Staples-1.36%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.4x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 20.3%, which is higher than its past year's earnings growth of 10.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings growth rate of 5.9% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 6.2% 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
HSBA HSBC HoldingsUK£10.134.5%
+UK£7.4b		54.8%PB1.2xFinancials
BA. BAE SystemsUK£20.1612.3%
+UK£6.6b		51.0%PE30.4xIndustrials
RR. Rolls-Royce HoldingsUK£11.464.9%
+UK£4.4b		131.0%PE16.6xIndustrials
AAL Anglo AmericanUK£25.6012.1%
+UK£3.0b		7.4%PS1.4xMaterials
LLOY Lloyds Banking GroupUK£0.845.4%
+UK£2.5b		45.2%PB1.1xFinancials
See more

Market Insights

Header cover image
💸 Finding Quality Dividend Yields in a Rate-Cutting Environment
Richard Bowman avatar
Richard Bowman
|
|
The market has already priced in a 25bps rate cut from the Fed next week like it’s a done deal. So this week, we’re zooming in on what’s really been going on in the bond market, and what it all means for dividend investors who want to maintain yield.
Continue reading
💸 How to Navigate Lofty Valuations in 2025
Last Week

💸 How to Navigate Lofty Valuations in 2025

Latest News

LSEG
UK£87.42
London Stock Exchange Group
7D
-5.6%
1Y
-16.7%
ABF
UK£19.62
Associated British Foods
7D
-12.3%
1Y
-12.1%

Associated British Foods' (LON:ABF) Returns Have Hit A Wall

Sep 12
Associated British Foods' (LON:ABF) Returns Have Hit A Wall
AHT
UK£53.32
Ashtead Group
7D
-4.6%
1Y
-0.3%

US Mega Projects And Telematics Will Support Modern Rental Markets

Ashtead Group's consensus price target saw a slight upward revision to £56.12 as analysts remain cautious due to muted near-term earnings momentum and macroeconomic uncertainties, despite some long-term optimism. Analyst Commentary Bearish analysts cite muted near-term earnings momentum and limited prospects for an imminent recovery as reasons for cautious sentiment.
RR.
UK£11.46
Rolls-Royce Holdings
7D
4.9%
1Y
131.0%
AZN
UK£114.14
AstraZeneca
7D
-4.6%
1Y
-5.0%
AAL
UK£25.60
Anglo American
7D
12.1%
1Y
7.4%

Electrification And Decarbonization Will Boost Copper And Iron Ore Demand

The consensus price target for Anglo American has been raised to £23.13 as analysts cite the transformative merger with Teck Resources—making it a top-five global copper producer—as a catalyst for improved scale, growth prospects, and earnings outlook. Analyst Commentary The merger of equals between Anglo American and Teck Resources transforms the company into the world’s fifth-largest copper producer, significantly improving scale and growth prospects.
DGE
UK£18.47
Diageo
7D
-5.8%
1Y
-25.1%
BARC
UK£3.85
Barclays
7D
4.9%
1Y
74.0%
BA.
UK£20.16
BAE Systems
7D
12.3%
1Y
51.0%

BAE Systems' (LON:BA.) Dividend Will Be £0.135

Sep 05
BAE Systems' (LON:BA.) Dividend Will Be £0.135
LLOY
UK£0.84
Lloyds Banking Group
7D
5.4%
1Y
45.2%

Digital Transformation And UK Demographics Will Expand Opportunities

Lloyds Banking Group's analyst price target and key valuation metrics, including future P/E and revenue growth forecasts, remained effectively unchanged, with the consensus fair value steady at £0.893. What's in the News Lloyds Banking Group became the first UK financial services benefactor of the MITRE ATT&CK framework to strengthen its cyber defense strategy.
HSBA
UK£10.13
HSBC Holdings
7D
4.5%
1Y
54.8%

Asian Wealth Management And Trade Networks Will Sustain Future Resilience

Despite an effectively unchanged analyst price target, HSBC Holdings’ future P/E ratio has dropped sharply, indicating improved earnings expectations or reduced valuation risk. What's in the News Hackers attempted to steal $77.4M from Brazilian financial institutions, including HSBC’s local operations; HSBC confirmed no customer accounts or funds were impacted and security measures have been implemented (Bloomberg).
GLEN
UK£3.07
Glencore
7D
7.1%
1Y
-18.8%

Normalized Copper Production And Argentina Projects Will Shape Future Success

Despite near-term concerns over coal price weakness and commodity volatility, analysts remain divided on Glencore, with operational resilience and medium-term prospects balancing cautious views and leaving the consensus price target unchanged at £3.71. Analyst Commentary Bearish analysts highlight near-term pressure on Glencore's free cash flow resulting from weakness in coal prices.
III
UK£38.62
3i Group
7D
-3.0%
1Y
19.2%
EXPN
UK£38.20
Experian
7D
-4.1%
1Y
1.2%
NWG
UK£5.38
NatWest Group
7D
5.0%
1Y
59.8%

Digital Transformation And Sustainable Finance Will Drive Progress

NatWest Group’s consensus price target has been modestly raised to £5.91, reflecting analyst confidence in improved earnings visibility, stable UK economic conditions, operational efficiency, and capital return potential. Analyst Commentary Bullish analysts cite improved earnings visibility and confidence in NatWest’s underlying profitability as drivers for higher price targets.
ULVR
UK£45.87
Unilever
7D
-2.3%
1Y
-7.3%

Emerging Markets And Digital Commerce Will Transform Future Landscape

Analysts have modestly raised Unilever’s price target to £50.27, largely driven by confidence in emerging markets growth offsetting U.S. weakness and reflecting positive adjustments after strong first half results. Analyst Commentary Bullish analysts expect growth in emerging markets such as India, Indonesia, and China to offset slower growth in the U.S. Some analysts have increased price targets following Unilever's first half results, reflecting adjustments to their financial models.