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U.K. (FTSE) Market Analysis & Valuation

UpdatedMay 31, 2026
DataAggregated Company Financials
Companies1088
  • 7D-0.3%
  • 3M-3.3%
  • 1Y18.3%
  • YTD5.1%

Over the last 7 days, the market has remained flat, although notably the Utilities sector declined by 5.4%. As for the longer term, the market has risen 18% in the past 12 months. Looking forward, earnings are forecast to grow by 12% annually.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 31 May 2026UK£2.9tUK£2.0tUK£164.7b16x17.9x1.5x
Tue, 28 Apr 2026UK£2.9tUK£2.0tUK£157.4b16x18.5x1.5x
Thu, 26 Mar 2026UK£2.8tUK£2.0tUK£157.0b15x18.1x1.4x
Sat, 21 Feb 2026UK£3.0tUK£2.0tUK£148.4b16.8x20.6x1.6x
Mon, 19 Jan 2026UK£2.9tUK£2.0tUK£137.9b16.7x21.3x1.5x
Wed, 17 Dec 2025UK£2.8tUK£2.0tUK£138.0b15.9x20.1x1.4x
Fri, 14 Nov 2025UK£2.8tUK£2.0tUK£137.6b16.6x20.4x1.4x
Sun, 12 Oct 2025UK£2.7tUK£1.9tUK£135.8b16.6x20x1.4x
Tue, 09 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.4x19.7x1.4x
Thu, 07 Aug 2025UK£2.7tUK£2.0tUK£134.9b16.2x19.8x1.4x
Sat, 05 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.3x19.6x1.3x
Mon, 02 Jun 2025UK£2.5tUK£1.9tUK£127.3b16.2x19.5x1.3x
Wed, 30 Apr 2025UK£2.4tUK£2.0tUK£131.4b15.5x18.3x1.2x
Fri, 28 Mar 2025UK£2.5tUK£2.0tUK£135.5b15.5x18.2x1.2x
Sun, 23 Feb 2025UK£2.5tUK£2.0tUK£137.6b16.2x18.2x1.2x
Tue, 21 Jan 2025UK£2.5tUK£2.1tUK£124.3b16x20x1.2x
Thu, 19 Dec 2024UK£2.4tUK£2.0tUK£122.1b16.1x19.7x1.2x
Sat, 16 Nov 2024UK£2.4tUK£2.0tUK£121.4b16.3x19.6x1.2x
Mon, 14 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.3x20.2x1.2x
Wed, 11 Sep 2024UK£2.4tUK£2.0tUK£119.4b16.5x20.2x1.2x
Fri, 09 Aug 2024UK£2.4tUK£2.0tUK£122.4b16.3x19.6x1.2x
Sun, 07 Jul 2024UK£2.4tUK£2.0tUK£130.7b16.8x18.5x1.2x
Tue, 04 Jun 2024UK£2.5tUK£2.0tUK£128.9b17.3x19.2x1.2x
Thu, 02 May 2024UK£2.4tUK£2.1tUK£143.0b16.4x16.9x1.2x
Sat, 30 Mar 2024UK£2.4tUK£2.1tUK£146.0b16.4x16.5x1.1x
Mon, 26 Feb 2024UK£2.3tUK£2.1tUK£196.4b15.6x11.8x1.1x
Wed, 24 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.8x11.7x1.1x
Fri, 22 Dec 2023UK£2.3tUK£2.1tUK£193.9b15.1x12x1.1x
Sun, 19 Nov 2023UK£2.3tUK£2.1tUK£194.4b14.4x11.7x1.1x
Tue, 17 Oct 2023UK£2.3tUK£2.2tUK£186.6b13.8x12.5x1.1x
Thu, 14 Sep 2023UK£2.3tUK£2.2tUK£185.2b14.6x12.5x1.1x
Sat, 12 Aug 2023UK£2.3tUK£2.1tUK£184.8b14.3x12.6x1.1x
Mon, 10 Jul 2023UK£2.3tUK£2.2tUK£207.1b14x10.9x1x
Wed, 07 Jun 2023UK£2.4tUK£2.2tUK£212.1b14.3x11.3x1.1x
Price to Earnings Ratio

11.3x


Total Market Cap: UK£2.4tTotal Earnings: UK£212.1bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.5x202420252026
Current Market PE
  • 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 17.5x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 8.1% per year over the last three years.
  • Revenues have also declined 2.9% 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 Market-0.27%
Industrials2.40%
Materials2.26%
Consumer Discretionary2.07%
Tech2.04%
Real Estate1.29%
Financials0.62%
Telecom-0.90%
Healthcare-1.07%
Energy-3.33%
Consumer Staples-3.36%
Utilities-5.36%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.4x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.3%, which is higher than its past year's earnings growth of 8.4% per year.
  • The Financials sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average of 10.1x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings growth rate of 4.6% per year.
  • In contrast, the Energy 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
RR. Rolls-Royce HoldingsUK£13.377.1%
+UK£7.3b		54.4%PE18.9xIndustrials
HSBA HSBC HoldingsUK£13.941.4%
+UK£3.3b		59.6%PB1.6xFinancials
RIO Rio Tinto GroupUK£79.682.5%
+UK£3.1b		81.0%PE17.5xMaterials
ANTO AntofagastaUK£40.984.2%
+UK£1.6b		131.5%PE40.9xMaterials
AAL Anglo AmericanUK£39.884.0%
+UK£1.6b		59.3%PS3.1xMaterials
See more

Market Insights

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Japan was the world's source of cheap money for decades. Now its bond yields are at a generational high, a shift with potential implications that extend well beyond Tokyo.
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Earnings Season vs. AI

Latest News

BT.A
UK£2.09
BT Group
7D
-7.1%
1Y
16.4%
Analysis Article • 14h

BT Group (LON:BT.A) Is Posting Promising Earnings But The Good News Doesn’t Stop There

The market seemed underwhelmed by last week's earnings announcement from BT Group plc ( LON:BT.A ) despite the healthy...
BP.
UK£5.22
BP
7D
-5.3%
1Y
45.0%
RIO
UK£79.68
Rio Tinto Group
7D
2.5%
1Y
81.0%
AZN
UK£138.02
AstraZeneca
7D
-0.8%
1Y
28.7%
RR.
UK£13.37
Rolls-Royce Holdings
7D
7.1%
1Y
54.4%
HSBA
UK£13.94
HSBC Holdings
7D
1.4%
1Y
59.6%
LLOY
UK£1.02
Lloyds Banking Group
7D
2.3%
1Y
32.0%
Narrative Update • May 28

LLOY: Recent Buyback Will Still Not Justify Richer Future Multiple

Analysts have made a small upward adjustment to their Lloyds Banking Group price target in £ terms, citing updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E that are now slightly different from prior estimates. What's in the News Lloyds Banking Group completed a share buyback tranche covering 600,000,000 shares, described as 1.02% of the company, between January 30, 2026 and March 31, 2026 (Key Developments).
BARC
UK£4.58
Barclays
7D
2.7%
1Y
39.8%
Narrative Update • May 27

BARC: Buyback And Small Business Partnership Will Support Stronger Future Returns

Analysts have nudged their fair value estimate for Barclays to £5.39, up from £5.30, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E expectations. What's in the News Barclays PLC has announced a share repurchase program of up to £500 million, with all repurchased ordinary shares to be cancelled and the program scheduled to end no later than October 24, 2026 (Key Developments).
SHEL
UK£31.18
Shell
7D
-2.7%
1Y
27.3%
IAG
UK£4.30
International Consolidated Airlines Group
7D
8.4%
1Y
31.9%
Narrative Update • May 26

IAG: Dividend And Buyback Plans Will Support Future Repricing Potential

Analysts have slightly lifted the blended price target for International Consolidated Airlines Group, with ongoing revisions in the range of £0.15 to £0.40 per share as they factor in updated fair value estimates, revenue expectations and margin assumptions. Analyst Commentary Recent research on International Consolidated Airlines Group is mixed, but you can see a clear group of bullish analysts who are focusing on valuation support, execution on current plans and potential for revenue growth.
NG.
UK£11.96
National Grid
7D
-6.7%
1Y
14.2%
Analysis Article • May 21

We Think That There Are Some Issues For National Grid (LON:NG.) Beyond Its Promising Earnings

National Grid plc's ( LON:NG. ) healthy profit numbers didn't contain any surprises for investors. We think this is due...
AAL
UK£39.88
Anglo American
7D
4.0%
1Y
59.3%
TSCO
UK£4.30
Tesco
7D
-7.0%
1Y
10.9%
ANTO
UK£40.98
Antofagasta
7D
4.2%
1Y
131.5%
Narrative Update • May 15

ANTO: Geopolitical And Sector Risks Will Likely Pressure Copper Upside Potential

Analysts have nudged the fair value estimate for Antofagasta slightly lower to £23.50 from about £23.72, reflecting a modestly higher discount rate and mixed price target revisions, with several recent moves in the £100 to £600 range across the broker community. Analyst Commentary Recent Street research on Antofagasta shows a wide spread of views, with some firms lifting price targets while others turn more cautious.
BATS
UK£45.91
British American Tobacco
7D
-5.8%
1Y
37.7%
LSEG
UK£90.22
London Stock Exchange Group
7D
-3.3%
1Y
-20.0%
Narrative Update • May 03

LSEG: Activist Pressure And AI Partnerships Will Support Future Share Upside

Analysts have nudged their price targets on London Stock Exchange Group higher, with one recent move adding £1.00. This reflects updated views on fair value, discount rate, revenue growth assumptions, profit margin and future P/E levels.