Has the U.K. Market valuation changed over the past few years?

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 17.9x.

Which sectors have driven the changes within the U.K. Market?

Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 50.9x. The market's confidence is likely because analysts are expecting annual earnings growth of 18.0% which is higher than its past year's earnings decline of 1.7% per year. The Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 17.6x.

U.K. (FTSE) Market Analysis & Valuation

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Thu, 20 Aug 2026	UK£3.0t	UK£2.1t	UK£173.3b	16.4x	17.5x	1.4x
Sat, 18 Jul 2026	UK£3.0t	UK£2.0t	UK£164.5b	15.8x	18.1x	1.5x
Mon, 15 Jun 2026	UK£3.0t	UK£2.0t	UK£164.5b	15.9x	18x	1.5x
Wed, 13 May 2026	UK£2.9t	UK£2.0t	UK£161.2b	15.9x	18x	1.4x
Fri, 10 Apr 2026	UK£3.0t	UK£2.0t	UK£157.4b	15.6x	19x	1.5x
Sun, 08 Mar 2026	UK£2.9t	UK£2.0t	UK£154.0b	16.3x	18.9x	1.5x
Tue, 03 Feb 2026	UK£3.0t	UK£1.9t	UK£137.8b	17x	21.5x	1.5x
Thu, 01 Jan 2026	UK£2.8t	UK£2.0t	UK£138.1b	16.3x	20.6x	1.5x
Sat, 29 Nov 2025	UK£2.8t	UK£2.0t	UK£139.5b	16.3x	20x	1.4x
Mon, 27 Oct 2025	UK£2.8t	UK£1.9t	UK£135.7b	16.7x	20.4x	1.4x
Wed, 24 Sep 2025	UK£2.7t	UK£1.9t	UK£135.7b	16.6x	19.6x	1.4x
Fri, 22 Aug 2025	UK£2.7t	UK£2.0t	UK£134.4b	16.1x	20x	1.4x
Sun, 20 Jul 2025	UK£2.5t	UK£1.9t	UK£127.4b	16x	19.9x	1.3x
Tue, 17 Jun 2025	UK£2.5t	UK£1.9t	UK£127.3b	16.2x	19.7x	1.3x
Thu, 15 May 2025	UK£2.4t	UK£2.0t	UK£131.0b	16.3x	18.7x	1.2x
Sat, 12 Apr 2025	UK£2.3t	UK£2.0t	UK£135.6b	14.7x	16.7x	1.1x
Mon, 10 Mar 2025	UK£2.5t	UK£2.0t	UK£137.5b	15.5x	18.1x	1.2x
Wed, 05 Feb 2025	UK£2.5t	UK£2.0t	UK£123.0b	15.8x	20.3x	1.2x
Fri, 03 Jan 2025	UK£2.4t	UK£2.1t	UK£123.8b	16x	19.6x	1.2x
Sun, 01 Dec 2024	UK£2.4t	UK£2.0t	UK£122.5b	16.3x	19.9x	1.2x
Tue, 29 Oct 2024	UK£2.4t	UK£2.0t	UK£123.5b	16.2x	19.8x	1.2x
Thu, 26 Sep 2024	UK£2.4t	UK£2.0t	UK£118.0b	16.7x	20.6x	1.2x
Sat, 24 Aug 2024	UK£2.5t	UK£2.0t	UK£119.5b	16.9x	20.5x	1.2x
Mon, 22 Jul 2024	UK£2.4t	UK£2.0t	UK£129.4b	16.7x	18.6x	1.2x
Wed, 19 Jun 2024	UK£2.4t	UK£2.0t	UK£130.6b	16.6x	18.7x	1.2x
Fri, 17 May 2024	UK£2.5t	UK£2.0t	UK£127.0b	17.1x	19.8x	1.2x
Sun, 14 Apr 2024	UK£2.4t	UK£2.1t	UK£148.4b	16x	16.3x	1.1x
Tue, 12 Mar 2024	UK£2.3t	UK£2.1t	UK£144.5b	15.9x	16.2x	1.1x
Thu, 08 Feb 2024	UK£2.3t	UK£2.0t	UK£169.7b	14.9x	13.4x	1.1x
Sat, 06 Jan 2024	UK£2.3t	UK£2.1t	UK£193.4b	15x	12.1x	1.1x
Mon, 04 Dec 2023	UK£2.3t	UK£2.1t	UK£192.7b	14.4x	11.8x	1.1x
Wed, 01 Nov 2023	UK£2.2t	UK£2.2t	UK£194.7b	13.5x	11.3x	1x
Fri, 29 Sep 2023	UK£2.3t	UK£2.2t	UK£187.0b	14.4x	12.5x	1.1x
Sun, 27 Aug 2023	UK£2.3t	UK£2.2t	UK£183.8b	14.5x	12.3x	1.1x


GB Market	-0.83%
Energy	2.35%
Healthcare	2.23%
Telecom	1.10%
Consumer Staples	-0.77%
Tech	-0.85%
Real Estate	-1.32%
Utilities	-1.43%
Materials	-1.68%
Consumer Discretionary	-1.89%
Industrials	-1.92%
Financials	-2.23%

Company	Last Price	7D	1Y	Valuation	Sector
AZN AstraZeneca	UK£120.50	3.0% +UK£5.4b	0.6%	PE24.3x	Healthcare
SHEL Shell	UK£34.21	2.9% +UK£5.2b	28.3%	PE9.9x	Energy
GSK GSK	UK£19.16	2.5% +UK£1.9b	29.2%	PE15.9x	Healthcare
ULVR Unilever	UK£46.39	1.5% +UK£1.5b	-12.1%	PE20.8x	Consumer Staples
BP. BP	UK£5.39	1.6% +UK£1.3b	28.7%	PE20.9x	Energy

Announcement • Aug 19

Astrazeneca Reports Statistically Significant and Clinically Meaningful Improvements in Progression-Free and Overall Survival with Tagrisso Plus Savolitinib in Met-Driven Egfr-Mutated Lung Cancer After Tagrisso Progression

AstraZeneca issued positive high-level results from the SAFFRON Phase III trial showing TAGRISSO (osimertinib) plus savolitinib demonstrated a statistically significant and clinically meaningful improvement in both progression-free survival (PFS) and overall survival (OS) versus doublet platinum-based chemotherapy in patients with epidermal growth factor receptor-mutated (EGFRm) non-small cell lung cancer (NSCLC). Patients in the trial had tumors with high levels of MET overexpression or amplification and had progressed on prior treatment with TAGRISSO. Third-generation EGFR-tyrosine kinase inhibitors (TKIs) have significantly improved outcomes for patients with EGFRm NSCLC. However, one in three patients' tumors will develop MET overexpression or amplification, one of the most common mechanisms of resistance on third-generation EGFR-TKIs. MET-driven resistance is associated with poor prognosis, and there is a significant unmet need for effective and well-tolerated treatment options in later-line settings. The SAFFRON trial results reinforce TAGRISSO as the backbone therapy across EGFRm lung cancer. The safety profile for TAGRISSO plus savolitinib was consistent with the known profiles of each medicine, and there were no new safety findings. TAGRISSO plus savolitinib is approved in China for patients with locally advanced or metastatic EGFRm NSCLC with MET amplification after disease progression on EGFR-TKI therapy based on the SACHI Phase III trial. Savolitinib is being jointly developed by AstraZeneca and HUTCHMED and commercialized by AstraZeneca. SAFFRON is a randomized, open-label, multi-center, global Phase III trial studying the efficacy of savolitinib (300 mg twice daily) added to TAGRISSO (80 mg once daily) versus doublet platinum-based chemotherapy in 338 patients with EGFRm, locally advanced or metastatic NSCLC with MET overexpression or amplification whose disease progressed following 1st- or 2nd-line treatment with TAGRISSO. The trial enrolled patients in 230 centers across 29 countries, including in North America, Europe, South America and Asia. The primary endpoint is PFS and key secondary endpoints include OS and objective response rate. Patients were prospectively selected for SAFFRON using the high MET level cut-offs identified in the SAVANNAH Phase II trial. In SAVANNAH, MET overexpression or amplification levels were determined by two tests: immunohistochemistry (IHC), which detects if cancer cells have a particular protein or marker on their surface, and fluorescence in situ hybridization (FISH), which detects a specific DNA sequence from cancer cells. Savolitinib is an oral, potent and highly selective MET-TKI that has demonstrated clinical activity in advanced solid tumors. It blocks atypical activation of the MET receptor tyrosine kinase pathway that occurs because of mutations (such as exon 14 skipping alterations or other point mutations), gene amplification or protein overexpression. Savolitinib is approved in China for the treatment of adult patients with locally advanced or metastatic NSCLC with MET exon 14 skipping alteration, representing the first selective MET inhibitor approved in China. Savolitinib also received a conditional approval in China for the treatment of patients with locally advanced or metastatic gastric cancer or gastroesophageal junction adenocarcinoma with MET amplification who have failed at least two prior systemic treatments. Savolitinib in combination with TAGRISSO is approved in China for patients with locally advanced or metastatic EGFRm-positive non-squamous NSCLC with MET amplification after disease progression on EGFR-TKI therapy based on the SACHI Phase III trial. The combination was also granted a temporary authorization in Switzerland for the treatment of patients with locally advanced or metastatic EGFRm NSCLC and high levels of MET overexpression or amplification who progressed on prior treatment with TAGRISSO. This was based on results from the global SAVANNAH Phase II trial. TAGRISSO (osimertinib) is a third-generation, irreversible EGFR-TKI with proven clinical activity in NSCLC, including the treatment of central nervous system metastases. TAGRISSO (40 mg and 80 mg QD oral tablets) has been used to treat more than one million patients across its indications worldwide and AstraZeneca continues to explore TAGRISSO as a treatment for patients across multiple stages of EGFRm NSCLC. TAGRISSO is approved as monotherapy in more than 120 countries including the US, EU, China and Japan. Approved indications include for 1st-line treatment of patients with locally advanced or metastatic EGFRm NSCLC, locally advanced or metastatic EGFR T790M mutation-positive NSCLC, adjuvant treatment of early-stage EGFRm NSCLC and locally advanced, unresectable NSCLC following platinum-based chemoradiation therapy. TAGRISSO is also approved in combination with chemotherapy in more than 80 countries, including the US, EU, China and Japan, for 1st-line treatment of patients with locally advanced or metastatic EGFRm NSCLC. There is an extensive body of evidence supporting the use of TAGRISSO in EGFRm NSCLC, and it is the only targeted therapy shown to improve patient outcomes across all stages of the disease. In late-stage disease, TAGRISSO demonstrated improved outcomes as monotherapy in the FLAURA Phase III trial and in combination with chemotherapy in the FLAURA2 Phase III trial. TAGRISSO is also being investigated in this setting in combination with datopotamab deruxtecan-dlnk in the TROPION-Lung14 and TROPION-Lung15 Phase III trials. TAGRISSO also showed improved outcomes in early-stage disease in the NeoADAURA and ADAURA Phase III trials and in locally advanced stages in the LAURA Phase III trial. TAGRISSO is indicated as adjuvant therapy after tumor resection in adult patients with non-small cell lung cancer (NSCLC) whose tumors have epidermal growth factor receptor (EGFR) exon 19 deletions or exon 21 L858R mutations, as detected by an FDA-approved test. TAGRISSO is indicated for the treatment of adult patients with locally advanced, unresectable (stage III) NSCLC whose disease has not progressed during or following concurrent or sequential platinum-based chemoradiation therapy and whose tumors have epidermal growth factor receptor (EGFR) exon 19 deletions or exon 21 L858R mutations, as detected by an FDA-approved test. TAGRISSO is indicated for the first-line treatment of adult patients with metastatic non-small cell lung cancer (NSCLC) whose tumors have epidermal growth factor receptor (EGFR) exon 19 deletions or exon 21 L858R mutations, as detected by an FDA-approved test. TAGRISSO is indicated in combination with pemetrexed and platinum-based chemotherapy, for the first-line treatment of adult patients with locally advanced or metastatic NSCLC whose tumors have epidermal growth factor receptor (EGFR) exon 19 deletions or exon 21 L858R mutations, as detected by an FDA-approved test.

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Astrazeneca Reports Statistically Significant and Clinically Meaningful Improvements in Progression-Free and Overall Survival with Tagrisso Plus Savolitinib in Met-Driven Egfr-Mutated Lung Cancer After Tagrisso Progression

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Upcoming dividend of UK£0.059 per share