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U.K. (FTSE) Market Analysis & Valuation

UpdatedMar 01, 2026
DataAggregated Company Financials
Companies1094
  • 7D1.9%
  • 3M12.3%
  • 1Y24.8%
  • YTD9.8%

The market has climbed 1.9% in the last 7 days, lead by the Financials sector with a gain of 2.9%. As for the past 12 months, the market is up 25%. Earnings are forecast to grow by 13% 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, 01 Mar 2026UK£3.1tUK£2.0tUK£151.3b17x20.5x1.6x
Tue, 27 Jan 2026UK£2.9tUK£1.9tUK£136.7b16.8x21.4x1.5x
Thu, 25 Dec 2025UK£2.8tUK£2.0tUK£138.7b16.1x20.4x1.4x
Sat, 22 Nov 2025UK£2.7tUK£2.0tUK£139.0b16x19.7x1.4x
Mon, 20 Oct 2025UK£2.7tUK£1.9tUK£135.4b16.4x19.9x1.4x
Wed, 17 Sep 2025UK£2.7tUK£1.9tUK£135.1b16.4x19.7x1.4x
Fri, 15 Aug 2025UK£2.7tUK£1.9tUK£133.9b15.9x19.9x1.4x
Sun, 13 Jul 2025UK£2.5tUK£1.9tUK£127.3b16.1x19.8x1.3x
Tue, 10 Jun 2025UK£2.5tUK£1.9tUK£127.3b16.5x19.6x1.3x
Thu, 08 May 2025UK£2.4tUK£2.0tUK£130.6b16x18.7x1.2x
Sat, 05 Apr 2025UK£2.3tUK£2.0tUK£136.6b14.5x16.8x1.1x
Mon, 03 Mar 2025UK£2.5tUK£2.0tUK£139.0b15.7x18.2x1.2x
Wed, 29 Jan 2025UK£2.5tUK£2.1tUK£123.6b16x20.1x1.2x
Fri, 27 Dec 2024UK£2.4tUK£2.0tUK£123.1b15.9x19.4x1.2x
Sun, 24 Nov 2024UK£2.4tUK£2.1tUK£124.0b16.4x19.6x1.2x
Tue, 22 Oct 2024UK£2.4tUK£2.0tUK£119.0b16.3x20.4x1.2x
Thu, 19 Sep 2024UK£2.4tUK£2.0tUK£118.7b16.7x20.4x1.2x
Sat, 17 Aug 2024UK£2.4tUK£2.0tUK£121.7b16.8x20.1x1.2x
Mon, 15 Jul 2024UK£2.4tUK£2.0tUK£129.8b17x18.8x1.2x
Wed, 12 Jun 2024UK£2.4tUK£2.0tUK£129.8b16.5x18.7x1.2x
Fri, 10 May 2024UK£2.5tUK£2.1tUK£136.4b16.8x18.3x1.2x
Sun, 07 Apr 2024UK£2.4tUK£2.1tUK£146.0b16x16.4x1.1x
Tue, 05 Mar 2024UK£2.3tUK£2.0tUK£141.9b15.2x16.2x1.1x
Thu, 01 Feb 2024UK£2.3tUK£2.1tUK£191.9b14.9x12x1.1x
Sat, 30 Dec 2023UK£2.4tUK£2.1tUK£193.5b15x12.2x1.1x
Mon, 27 Nov 2023UK£2.3tUK£2.1tUK£193.6b14.4x11.7x1.1x
Wed, 25 Oct 2023UK£2.3tUK£2.2tUK£187.3b13.4x12x1x
Fri, 22 Sep 2023UK£2.4tUK£2.2tUK£186.2b14.6x12.7x1.1x
Sun, 20 Aug 2023UK£2.2tUK£2.1tUK£184.1b14.2x12.2x1x
Tue, 18 Jul 2023UK£2.3tUK£2.2tUK£204.9b13.8x11.3x1.1x
Thu, 15 Jun 2023UK£2.4tUK£2.2tUK£208.6b14.3x11.4x1.1x
Sat, 13 May 2023UK£2.4tUK£2.2tUK£212.0b14.4x11.5x1.1x
Mon, 10 Apr 2023UK£2.4tUK£2.2tUK£179.9b13.8x13.5x1.1x
Wed, 08 Mar 2023UK£2.5tUK£2.2tUK£190.8b13.8x13.3x1.1x
Price to Earnings Ratio

13.3x


Total Market Cap: UK£2.5tTotal Earnings: UK£190.8bTotal 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 7.4% per year over the last three years.
  • Revenues have also declined 3.8% 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 Market1.91%
Materials4.18%
Utilities3.59%
Energy3.53%
Financials2.90%
Tech2.78%
Consumer Discretionary1.09%
Telecom1.01%
Healthcare0.79%
Industrials0.74%
Real Estate-0.0014%
Consumer Staples-0.11%
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 17.5%, 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 31% over the next 5 years.
  • This is better than its past earnings growth rate of 5.1% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 8.4% 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£13.948.0%
+UK£17.7b		49.3%PB1.6xFinancials
SHEL ShellUK£30.744.5%
+UK£7.4b		16.6%PE13.2xEnergy
LSEG London Stock Exchange GroupUK£88.6012.1%
+UK£4.8b		-25.2%PE35.8xFinancials
REL RELXUK£25.8411.3%
+UK£4.7b		-32.3%PE22.5xIndustrials
AZN AstraZenecaUK£155.421.8%
+UK£4.2b		29.9%PE31.8xHealthcare
See more

Market Insights

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Alternatives part 2: 2026 and beyond 🔭
Last Week

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Latest News

LSEG
UK£88.60
London Stock Exchange Group
7D
12.1%
1Y
-25.2%
BA.
UK£21.12
BAE Systems
7D
-2.4%
1Y
50.2%
MRO
UK£5.66
Melrose Industries
7D
-15.9%
1Y
-11.7%
HIK
UK£13.14
Hikma Pharmaceuticals
7D
-19.5%
1Y
-39.2%

Rising CMO And Injectable Pipelines Will Support A Stronger Long Term Outlook

Catalysts About Hikma Pharmaceuticals Hikma Pharmaceuticals develops, manufactures, and supplies branded, generic, and injectable medicines across MENA, Europe, and North America. What are the underlying business or industry changes driving this perspective?
HSBA
UK£13.94
HSBC Holdings
7D
8.0%
1Y
49.3%
DGE
UK£16.63
Diageo
7D
-10.2%
1Y
-23.1%
GLEN
UK£5.34
Glencore
7D
5.3%
1Y
67.3%

GLEN: Fair Outlook Balances Ended Megamerger Talks With Refined Earnings Assumptions

Analysts have lifted their price target on Glencore to £5.50 per share from £5.25, citing updated assumptions around fair value, revenue growth, discount rate and future P/E that together support a modestly higher valuation. Analyst Commentary Recent Street research on Glencore has been active, with several major banks updating their price targets and ratings in quick succession.
AZN
UK£155.42
AstraZeneca
7D
1.8%
1Y
29.9%
TSCO
UK£4.81
Tesco
7D
-2.8%
1Y
26.4%

TSCO: Execution On Store Partnerships And Margins Will Shape Future Returns

Narrative Update Analysts have trimmed their Tesco price target to £4.80 from £5.00, reflecting slightly lower discount rate and future P/E assumptions while keeping their broader positive stance on the shares intact. Analyst Commentary Bullish and bearish analysts are reacting to the revised £4.80 price target with a focus on how Tesco can execute against its current valuation, rather than a wholesale change in view on the company.
REL
UK£25.84
RELX
7D
11.3%
1Y
-32.3%

REL: AI Execution Risk Repricing Will Support Future Multiple Re Rating Potential

Analysts have trimmed their fair value estimate for RELX, cutting the price target by £4.48 to reflect slightly lower assumed profit margins and a reduced future P/E. Revenue growth expectations, however, remain in line with recent ranges reported in Street research.
RIO
UK£73.35
Rio Tinto Group
7D
3.0%
1Y
53.0%

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£42.40
Fresnillo
7D
10.0%
1Y
471.0%

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.
III
UK£33.22
3i Group
7D
-2.3%
1Y
-16.0%

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.
SHEL
UK£30.74
Shell
7D
4.5%
1Y
16.6%
BARC
UK£4.53
Barclays
7D
-4.4%
1Y
45.5%

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).
LLOY
UK£1.02
Lloyds Banking Group
7D
-1.6%
1Y
40.4%

LLOY: Buybacks And Progressive Dividend Policy Will Shape A Balanced Return Outlook

Analysts have raised their fair value estimate for Lloyds Banking Group from £1.08 to about £1.11, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E. What's in the News The Board has authorized a new share buyback plan dated January 30, 2026, indicating formal approval for additional capital returns via repurchases (Key Developments).