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

U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 25, 2026
DataAggregated Company Financials
Companies1094
  • 7D1.2%
  • 3M10.8%
  • 1Y23.9%
  • YTD7.7%

The market has climbed 1.2% in the last 7 days, lead by the Materials sector with a gain of 5.5%. The market is up 24% over the last 12 months. As for the next few years, earnings are expected to grow by 13% 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, 25 Feb 2026UK£3.0tUK£2.0tUK£148.3b16.6x20.5x1.6x
Fri, 23 Jan 2026UK£2.9tUK£2.0tUK£137.5b16.8x21.2x1.5x
Sun, 21 Dec 2025UK£2.8tUK£2.0tUK£138.3b16x20.4x1.4x
Tue, 18 Nov 2025UK£2.8tUK£2.0tUK£139.2b16.3x19.9x1.4x
Thu, 16 Oct 2025UK£2.7tUK£1.9tUK£135.6b16.6x20x1.4x
Sat, 13 Sep 2025UK£2.7tUK£1.9tUK£135.4b16.4x19.8x1.4x
Mon, 11 Aug 2025UK£2.6tUK£1.9tUK£134.0b16.2x19.7x1.4x
Wed, 09 Jul 2025UK£2.5tUK£1.9tUK£127.1b16.3x19.7x1.3x
Fri, 06 Jun 2025UK£2.5tUK£1.9tUK£127.0b16.2x19.7x1.3x
Sun, 04 May 2025UK£2.4tUK£2.0tUK£130.7b15.8x18.7x1.2x
Tue, 01 Apr 2025UK£2.4tUK£2.0tUK£136.1b15.3x17.9x1.2x
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
Price to Earnings Ratio

13.4x


Total Market Cap: UK£2.5tTotal Earnings: UK£189.8bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17x202420252026
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 20.5x which is higher than its 3-year average PE of 17.0x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 7.9% per year over the last three years.
  • Revenues have also declined 4.0% 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 Market1.22%
Materials5.51%
Energy3.22%
Consumer Staples2.18%
Consumer Discretionary1.31%
Industrials1.29%
Tech0.81%
Telecom0.62%
Financials-0.078%
Utilities-0.70%
Healthcare-1.12%
Real Estate-1.38%
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 53.3x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.7%, which is higher than its past year's earnings growth of 7.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings growth rate of 5.5% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.3% 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
ANTO AntofagastaUK£42.1316.5%
+UK£5.9b		143.5%PE42.3xMaterials
SHEL ShellUK£29.723.6%
+UK£5.8b		13.0%PE12.8xEnergy
BATS British American TobaccoUK£45.575.4%
+UK£5.0b		50.7%PE12.9xConsumer Staples
GLEN GlencoreUK£5.196.9%
+UK£3.9b		64.5%PE226.4xMaterials
HSBA HSBC HoldingsUK£12.911.7%
+UK£3.6b		43.6%PB1.6xFinancials
See more

Market Insights

Header cover image
Alternatives part 2: 2026 and beyond 🔭
Richard Bowman avatar
Richard Bowman
|
|
Deep dive into the exciting world of Private Equity, Real Estate, Private Credit, Infrastructure & Transport and Hedge Funds.
Continue reading
Dotcom Bubble vs. Now 🫧
Last Week

Dotcom Bubble vs. Now 🫧

Latest News

AZN
UK£153.26
AstraZeneca
7D
-1.3%
1Y
28.4%
UTG
UK£4.95
Unite Group
7D
-16.7%
1Y
-42.0%
ANTO
UK£42.13
Antofagasta
7D
16.5%
1Y
143.5%
RIO
UK£72.69
Rio Tinto Group
7D
2.2%
1Y
50.2%

Rio Tinto (RIO): Cash Machine with a China Beta Problem — and a Copper Glow-Up

If I had to summarise Rio Tinto in one line, I would describe it as a world-class iron ore franchise that is now being forced to adapt to a changing China and a changing commodity landscape. For years, Rio’s investment case has been built on the strength of its Pilbara iron ore operations.
FRES
UK£40.32
Fresnillo
7D
8.0%
1Y
445.6%

FRES: Mixed Rating Shifts Will Likely Expose Mounting Execution Risk

The Fresnillo analyst price target has been reduced by about £0.17 per share, as analysts factor in slightly higher projected revenue growth and profit margins, together with a modestly lower P/E and discount rate following recent mixed rating and target changes across the Street. Analyst Commentary Recent Street research on Fresnillo shows a split view, with some firms lifting targets while others trim expectations or ratings.
IHG
US$139.00
InterContinental Hotels Group
7D
-4.9%
1Y
14.3%
III
UK£32.88
3i Group
7D
-4.1%
1Y
-19.0%

III: Stable Forecasts Suggest Durable Returns And Ongoing Dividend Visibility

Analysts have slightly adjusted their price targets on 3i Group, with recent research showing moves of £1.00 higher and £0.95 lower. These changes leave our fair value estimate essentially unchanged at £42.01, supported by broadly stable assumptions for discount rate, revenue growth, profit margin and future P/E.
BATS
UK£45.57
British American Tobacco
7D
5.4%
1Y
50.7%

BATS: Future Returns Will Reflect ITC Stake Sale And Measured Revenue Outlook

Analysts now set their fair value estimate for British American Tobacco at £45.81, compared with £45.19 previously. This reflects updated assumptions around discount rates, revenue growth, profit margins and future P/E.
BA.
UK£21.41
BAE Systems
7D
5.5%
1Y
56.7%

BA.: Defence Order Momentum And 2026 Visibility Will Support Earnings Repricing

The updated analyst price target for BAE Systems edges up from £25.51 to £26.00. This change reflects analysts' mixed but generally constructive research in recent weeks, including higher price targets after slightly ahead of expectation fiscal 2025 results and revised outlooks into 2026.
SHEL
UK£29.72
Shell
7D
3.6%
1Y
13.0%
GSK
UK£22.01
GSK
7D
-1.7%
1Y
48.4%

GSK: Limited Late Stage Data Will Restrain Future Multiple Expansion

GSK's updated analyst price target edges higher by £0.15 to £14.70, as analysts factor in slightly adjusted growth assumptions, a modestly higher discount rate, firmer profit margins, and a lower future P/E multiple. This is reflected in recent target increases from Citi, BofA, TD Cowen, Deutsche Bank, and Morgan Stanley.
NWG
UK£6.04
NatWest Group
7D
-1.6%
1Y
33.3%

NWG: Future Capital Returns And Evelyn Deal Will Support Fair Value Upside

Analysts have nudged their fair value estimate for NatWest Group higher to reflect a slightly lower future P/E assumption and updated expectations following recent price target moves, including Citi's lift to £8.40 from £8.10 and mixed adjustments from JPMorgan and Barclays. Analyst Commentary Bullish Takeaways Bullish analysts see room for upside in the valuation, with some price targets set at £8.40, which they link to updated assumptions on earnings and capital deployment.
JMAT
UK£19.59
Johnson Matthey
7D
-14.3%
1Y
36.0%

JMAT: Future Outlook Will Stay Measured As New Leadership Supports Neutral Repricing

Analysts have lifted their fair value estimate for Johnson Matthey from £21.03 to £22.42, citing updated assumptions around profit margins and future P/E multiples, alongside recent Street research that raised the price target to £24.00. Analyst Commentary Bullish Takeaways Bullish analysts see the £24.00 price target as consistent with the updated fair value range, suggesting the market is willing to recognise higher earnings power if profit margins align with current assumptions.
GLEN
UK£5.19
Glencore
7D
6.9%
1Y
64.5%
BARC
UK£4.60
Barclays
7D
-3.0%
1Y
54.9%

BARC: Evelyn Bid And Capital Returns Will Likely Keep Shares Fairly Priced

Analysts have nudged their price target on Barclays higher, lifting fair value from £3.93 to £4.47 as they factor in updated assumptions for revenue growth, profit margins and a lower future P/E. What's in the News Barclays completed the repurchase of 311,571,616 shares, around 2.19% of its share capital, for £1,232m under the buyback program announced on July 30, 2025, with purchases occurring between July 30, 2025 and December 31, 2025 (company announcement).
HSBA
UK£12.91
HSBC Holdings
7D
1.7%
1Y
43.6%

HSBA: Future Returns Will Depend On Cost Discipline And Return On Equity

HSBC Holdings' updated fair value has edged higher, supporting a modest uplift in the implied analyst price target to about £11.74, as analysts cite recent target increases, resumed coverage and upgrades following what they describe as good Q3 results and progress toward cost growth and return-on-equity goals. Analyst Commentary Recent research updates on HSBC point to a generally constructive tone, with several large firms revisiting their views after the latest Q3 report and revised internal targets.