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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 18, 2026
DataAggregated Company Financials
Companies1092
  • 7D1.3%
  • 3M9.6%
  • 1Y20.7%
  • YTD3.2%

The market is up 1.3% over the last week, with the Financials sector leading the way, up 2.5%. As for the past 12 months, the market is up 21%. 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
Sun, 18 Jan 2026UK£2.9tUK£2.0tUK£137.9b16.7x21.3x1.5x
Tue, 16 Dec 2025UK£2.8tUK£2.0tUK£138.2b16x20.2x1.4x
Thu, 13 Nov 2025UK£2.8tUK£2.0tUK£138.0b16.5x20.5x1.4x
Sat, 11 Oct 2025UK£2.7tUK£1.9tUK£135.8b16.8x20x1.4x
Mon, 08 Sep 2025UK£2.7tUK£1.9tUK£135.5b16.4x19.7x1.4x
Wed, 06 Aug 2025UK£2.6tUK£2.0tUK£135.0b16.3x19.6x1.4x
Fri, 04 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.2x19.6x1.3x
Sun, 01 Jun 2025UK£2.5tUK£1.9tUK£126.0b16.2x19.7x1.3x
Tue, 29 Apr 2025UK£2.4tUK£2.0tUK£134.4b15.3x17.8x1.2x
Thu, 27 Mar 2025UK£2.5tUK£2.0tUK£135.8b15.7x18.2x1.2x
Sat, 22 Feb 2025UK£2.5tUK£2.0tUK£137.5b16.2x18.2x1.2x
Mon, 20 Jan 2025UK£2.5tUK£2.1tUK£125.0b16x19.9x1.2x
Wed, 18 Dec 2024UK£2.4tUK£2.0tUK£122.0b15.9x19.7x1.2x
Fri, 15 Nov 2024UK£2.4tUK£2.0tUK£120.5b16.4x19.8x1.2x
Sun, 13 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.3x20.2x1.2x
Tue, 10 Sep 2024UK£2.4tUK£2.0tUK£119.5b16.5x20.3x1.2x
Thu, 08 Aug 2024UK£2.4tUK£2.0tUK£126.0b16.4x19x1.2x
Sat, 06 Jul 2024UK£2.4tUK£2.0tUK£130.7b16.8x18.5x1.2x
Mon, 03 Jun 2024UK£2.5tUK£2.0tUK£129.3b17.3x19.1x1.2x
Wed, 01 May 2024UK£2.4tUK£2.1tUK£143.4b16.3x17x1.2x
Fri, 29 Mar 2024UK£2.4tUK£2.1tUK£145.9b16.4x16.5x1.1x
Sun, 25 Feb 2024UK£2.3tUK£2.1tUK£196.4b15.6x11.8x1.1x
Tue, 23 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.6x11.7x1.1x
Thu, 21 Dec 2023UK£2.3tUK£2.1tUK£194.0b15.1x12.1x1.1x
Sat, 18 Nov 2023UK£2.3tUK£2.1tUK£194.6b14.4x11.6x1.1x
Mon, 16 Oct 2023UK£2.3tUK£2.2tUK£187.0b13.8x12.4x1.1x
Wed, 13 Sep 2023UK£2.3tUK£2.2tUK£185.5b14.5x12.5x1.1x
Fri, 11 Aug 2023UK£2.4tUK£2.1tUK£184.3b14.5x12.8x1.1x
Sun, 09 Jul 2023UK£2.3tUK£2.2tUK£207.1b14x10.9x1x
Tue, 06 Jun 2023UK£2.4tUK£2.2tUK£212.1b14.3x11.2x1.1x
Thu, 04 May 2023UK£2.4tUK£2.2tUK£208.2b14.4x11.7x1.1x
Sat, 01 Apr 2023UK£2.4tUK£2.2tUK£181.4b13.8x13.2x1.1x
Mon, 27 Feb 2023UK£2.5tUK£2.2tUK£195.0b13.7x13x1.1x
Wed, 25 Jan 2023UK£2.5tUK£2.1tUK£184.0b13.9x13.5x1.2x
Price to Earnings Ratio

13.5x


Total Market Cap: UK£2.5tTotal Earnings: UK£184.0bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.7x202420252026
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 21.3x which is higher than its 3-year average PE of 16.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.2% per year over the last three years.
  • Revenues have also declined 2.1% 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 Market1.33%
Materials4.52%
Energy4.51%
Financials2.47%
Consumer Staples2.06%
Real Estate1.74%
Telecom0.53%
Utilities0.45%
Tech0.38%
Industrials-0.79%
Healthcare-1.47%
Consumer Discretionary-2.52%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 19.3x.
    • Analysts are expecting annual earnings growth of 30.0%, which is lower than the prior year's growth of 33.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 30% 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 7.0% 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£12.323.2%
+UK£6.5b		49.8%PB1.5xFinancials
SHEL ShellUK£27.534.3%
+UK£6.3b		1.2%PE14.4xEnergy
BATS British American TobaccoUK£43.266.6%
+UK£5.8b		46.1%PE30.8xConsumer Staples
RIO Rio Tinto GroupUK£63.475.7%
+UK£5.5b		25.9%PE13.4xMaterials
GLEN GlencoreUK£4.795.7%
+UK£3.0b		25.9%PS0.3xMaterials
See more

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Latest News

GLEN
UK£4.79
Glencore
7D
5.7%
1Y
25.9%
BP.
UK£4.40
BP
7D
3.4%
1Y
1.4%
PSON
UK£9.39
Pearson
7D
-11.4%
1Y
-27.2%
GSK
UK£18.17
GSK
7D
-3.7%
1Y
33.7%
EXPN
UK£32.96
Experian
7D
-5.2%
1Y
-11.8%
HSBA
UK£12.32
HSBC Holdings
7D
3.2%
1Y
49.8%
AZN
UK£140.52
AstraZeneca
7D
-1.2%
1Y
28.5%
REL
UK£30.94
RELX
7D
-2.6%
1Y
-21.7%

REL: Earnings Guidance And Margin Outlook Will Support Future Generative AI Upside

Analysts have trimmed their fair value estimate for RELX from £44.18 to £43.85 per share, reflecting slightly adjusted assumptions around discount rates, revenue growth, profit margins, and future P/E levels. What's in the News RELX reaffirmed earnings guidance for the full year 2025, indicating expectations for continued underlying revenue growth.
BATS
UK£43.26
British American Tobacco
7D
6.6%
1Y
46.1%

There's Reason For Concern Over British American Tobacco p.l.c.'s (LON:BATS) Price

Jan 11
There's Reason For Concern Over British American Tobacco p.l.c.'s (LON:BATS) Price
STAN
UK£18.79
Standard Chartered
7D
4.7%
1Y
74.5%

STAN: Future Returns Will Depend On Steady Execution And Balanced Risk Reward

Analysts have made a small upward adjustment to their fair value estimate for Standard Chartered, supported by recent price target increases from Citi and JPMorgan to £17.75, £16.75 and £16.90. This also reflects slightly updated assumptions for the discount rate, revenue growth, profit margin and forward P/E.
CPG
UK£22.91
Compass Group
7D
-2.3%
1Y
-14.4%

CPG: Strengthened European Platform And Better Returns Profile Should Drive Future Upside

Analysts have inched their blended price target higher to about £31.00 per share, supported by updated assumptions for slightly stronger revenue growth, modestly improved profit margins, and a marginally higher future P/E multiple, which align with recent Street research highlighting a stronger long term growth platform and improved returns profile. Analyst Commentary Recent Street research on Compass Group has focused on fine tuning upside potential and reassessing how much of the long term growth and returns story is already reflected in the share price.
RIO
UK£63.47
Rio Tinto Group
7D
5.7%
1Y
25.9%
SHEL
UK£27.53
Shell
7D
4.3%
1Y
1.2%

SHEL: Future Returns Will Reflect Resilient Cash Flow And Shareholder Distributions

Our updated view on Shell reflects a small trim in fair value to €31.03 from €31.31, as analysts balance slightly softer growth and margin assumptions with higher price targets associated with resilient cash generation, tighter refining conditions, and a more disciplined focus on costs and shareholder returns. Analyst Commentary Street research on Shell is mixed, with several price target increases reflecting confidence in execution and cash generation, while a few more cautious voices highlight valuation and medium term growth constraints.
III
UK£33.61
3i Group
7D
7.7%
1Y
-10.3%

III: Slower Momentum Will Still Deliver Compounding Returns And Dividend Support

Analysts have trimmed their 3i Group price target to £31.50 from £41.00, reflecting updated assumptions for the discount rate and earnings multiples as they factor in what they describe as slower momentum for the company. Analyst Commentary Recent research on 3i Group is skewed toward caution, with bearish analysts pointing to slower momentum and a valuation reset as key reasons for trimming expectations.
RR.
UK£12.86
Rolls-Royce Holdings
7D
-0.6%
1Y
118.6%
AHT
UK£53.02
Ashtead Group
7D
-5.2%
1Y
-0.4%

AHT: Share Buybacks And Dividend Policy Will Support A Higher Price

Analysts have lifted their fair value estimate for Ashtead Group from £66.00 to about £74.60. This reflects updated assumptions for revenue growth, profit margins and future P/E levels in their models.