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U.K. (FTSE) Market Analysis & Valuation

UpdatedDec 21, 2025
DataAggregated Company Financials
Companies1101
  • 7D2.5%
  • 3M6.9%
  • 1Y21.2%
  • YTD18.7%

The market has climbed 2.5% in the last 7 days, lead by the Financials sector with a gain of 4.6%. As for the past 12 months, the market is up 21%. 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
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
Mon, 30 Jan 2023UK£2.5tUK£2.1tUK£183.5b14x13.6x1.2x
Wed, 28 Dec 2022UK£2.4tUK£2.1tUK£185.7b13.3x13x1.1x
Price to Earnings Ratio

13x


Total Market Cap: UK£2.4tTotal Earnings: UK£185.7bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.5x202320242025
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 20.4x which is higher than its 3-year average PE of 16.5x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.4% per year over the last three years.
  • Revenues have also declined 2.4% 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 Market2.51%
Materials5.00%
Financials4.58%
Industrials2.88%
Consumer Discretionary2.50%
Real Estate2.23%
Utilities2.17%
Healthcare1.52%
Tech1.07%
Consumer Staples0.97%
Telecom0.46%
Energy-1.11%
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 52.7x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.6%, which is higher than its past year's earnings growth of 8.4% 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 5.5% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 6.8% 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£11.675.0%
+UK£9.5b		53.4%PB1.4xFinancials
RR. Rolls-Royce HoldingsUK£11.706.7%
+UK£6.2b		103.3%PE16.9xIndustrials
RIO Rio Tinto GroupUK£58.384.5%
+UK£4.0b		25.1%PE12.4xMaterials
AZN AstraZenecaUK£136.721.7%
+UK£3.5b		33.3%PE30.2xHealthcare
BARC BarclaysUK£4.695.5%
+UK£3.3b		80.2%PB0.8xFinancials
See more

Market Insights

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Latest News

GSK
UK£18.22
GSK
7D
-0.1%
1Y
38.0%
BP.
UK£4.25
BP
7D
-3.3%
1Y
12.1%
KAP
US$51.20
National Atomic Company Kazatomprom JSC
7D
-12.0%
1Y
36.5%

KAP: Higher Revenue Guidance Will Drive Improved Profitability Outlook

Analysts have raised their price target for National Atomic Company Kazatomprom JSC by approximately 11 percent to the equivalent of about 62, reflecting expectations of slightly improved profitability despite a marginally lower long term revenue growth outlook and a higher anticipated future price to earnings multiple. What's in the News Kazatomprom raised its consolidated revenue guidance for 2025 to KZT 1,750 billion to KZT 1,850 billion, up from a prior range of KZT 1,600 billion to KZT 1,700 billion (company guidance) The company confirmed its 2025 production guidance, keeping expected total production at 25,000 tU to 26,500 tU on a 100 percent basis and 13,000 tU to 14,000 tU on an attributable basis, with group sales volume unchanged at 17,500 tU to 18,500 tU (company guidance) Kazatomprom scheduled a special or extraordinary shareholders meeting for December 19, 2025 in Astana to consider approval of a new edition of its Corporate Governance Code (company announcement) Valuation Changes The Fair Value Estimate has risen moderately, from approximately 56.39 to 62.37, reflecting a higher intrinsic value assessment for the shares.
BARC
UK£4.69
Barclays
7D
5.5%
1Y
80.2%

BARC: Modest Wealth Expansion Plans Will Support A Balanced Future Outlook

Analysts have raised their price target for Barclays slightly to reflect a modest uptick in fair value, supported by incremental improvements in projected revenue growth, profit margins, and future earnings multiples. What's in the News Priority Technology Holdings appointed Barclays as financial advisor to a committee of independent and disinterested directors overseeing strategic matters, underscoring ongoing demand for Barclays advisory capabilities (company announcement).
HSBA
UK£11.67
HSBC Holdings
7D
5.0%
1Y
53.4%

HSBA: Future Returns Will Depend On Succession Decisions And Capital Deployment Choices

Analysts have modestly raised their price target on HSBC Holdings, reflecting a slightly higher fair value estimate of approximately $10.88 versus $10.62 previously, supported by expectations for disciplined cost control, solid mid teens returns on equity, and resilient revenue growth despite only marginally higher forward valuation multiples. Analyst Commentary Recent Street research on HSBC Holdings reflects a generally constructive stance on the bank's execution and capital return story, tempered by selective concerns about deal making and capital deployment.
LSEG
UK£89.18
London Stock Exchange Group
7D
5.4%
1Y
-21.2%

LSEG: Future Data Partnerships Will Drive Medium-Term Upside Potential

Analysts have made a modest downward adjustment to their price target on London Stock Exchange Group, trimming it by roughly GBP 0.25. They are balancing slightly lower fair value and discount rate assumptions against marginally higher revenue growth and profit margin expectations.
INF
UK£8.79
Informa
7D
-1.1%
1Y
9.5%

INF: Future Returns Will Be Driven By Compounding B2B Events Recovery

Analysts have nudged their price target for Informa higher, reflecting a modest uptick in estimated fair value to about $10.93 and a higher future P E multiple, even as they factor in slightly lower revenue growth and profit margin forecasts. Analyst Commentary Recent research updates point to a constructive stance on Informa, with price targets moving higher as analysts refine their views on the group’s recovery trajectory and earnings power.
AZN
UK£136.72
AstraZeneca
7D
1.7%
1Y
33.3%
BNZL
UK£20.94
Bunzl
7D
-2.6%
1Y
-35.9%
LLOY
UK£0.97
Lloyds Banking Group
7D
3.9%
1Y
79.7%

LLOY: Future Earnings Upgrades Will Not Justify Richer Multiple

Analysts have raised their price target on Lloyds Banking Group by approximately 7 percent, citing a slightly lower discount rate, marginally stronger revenue growth expectations, and improved forecast profit margins that together support a modest uplift in the bank's future price to earnings multiple. What's in the News Lloyds raised its 2025 net interest income guidance to around GBP 13.6 billion, signaling slightly stronger profitability expectations than previously indicated (company guidance).
RIO
UK£58.38
Rio Tinto Group
7D
4.5%
1Y
25.1%

RIO: Stronger Commodity Pricing And Cost Discipline Will Drive Upside Potential

Rio Tinto Group's analyst price target has been revised higher, with fair value estimates rising from approximately 65.08 to 74.18 as analysts factor in stronger expected revenue growth, wider profit margins, and a more favorable, though slightly higher risk-adjusted, earnings multiple implied by the latest round of target hikes across the Street. Analyst Commentary Recent research updates reflect a constructive tone on Rio Tinto, with a series of price target increases signaling growing confidence in the company’s earnings power and balance of risk and reward.
RR.
UK£11.70
Rolls-Royce Holdings
7D
6.7%
1Y
103.3%

RR.: Future Engine Ambitions Will Likely Expose Downside Risk Ahead

Analysts have raised their price target for Rolls-Royce Holdings to approximately £12.90 from around £5.80. This reflects greater confidence in the company’s margin expansion, higher long term revenue growth, and upside from next generation engine programs.
ZEG
UK£13.30
Zegona Communications
7D
-8.0%
1Y
320.9%
NWG
UK£6.45
NatWest Group
7D
5.4%
1Y
63.0%

Here's Why NatWest Group (LON:NWG) Has Caught The Eye Of Investors

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DCC
UK£49.76
DCC
7D
-2.0%
1Y
-3.6%

DCC: Future Profit Margins And Dividend Policy Will Drive Upside Potential

Analysts have trimmed their price target on DCC by approximately $2.38 to $82.93, reflecting lower projected revenue growth, partly offset by expectations for improved profit margins and a slightly reduced discount rate. What's in the News DCC has scheduled a special shareholders meeting for December 11, 2025 in Dublin to seek authorization for on-market and overseas market purchases of its own shares in connection with a tender offer (Key Developments).
CWR
UK£2.21
Ceres Power Holdings
7D
-18.7%
1Y
34.3%

CWR: AI Data Center Demand Will Drive Stronger Long Term Revenue Visibility

Analysts have significantly raised their price target for Ceres Power Holdings, nearly doubling fair value estimates to about £4.60 per share. They cite stronger long term revenue visibility from new licensing agreements, improved profit margin expectations, and accelerating adoption of solid oxide fuel cells in AI data centers.