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U.K. (FTSE) Market Analysis & Valuation

UpdatedAug 27, 2026
DataAggregated Company Financials
Companies1062
  • 7D1.4%
  • 3M4.4%
  • 1Y17.8%
  • YTD9.7%

The market has climbed 1.4% in the last 7 days, lead by the Materials sector with a gain of 4.6%. As for the past 12 months, the market is up 18%. Earnings are forecast to grow by 12% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 27 Aug 2026UK£3.1tUK£2.1tUK£173.4b16.4x17.7x1.4x
Sat, 25 Jul 2026UK£3.0tUK£2.0tUK£166.2b16x18.1x1.5x
Mon, 22 Jun 2026UK£2.9tUK£2.0tUK£165.4b15.9x17.6x1.4x
Wed, 20 May 2026UK£2.9tUK£2.0tUK£165.0b15.6x17.7x1.4x
Fri, 17 Apr 2026UK£3.0tUK£2.0tUK£157.1b16x19x1.5x
Sun, 15 Mar 2026UK£2.9tUK£2.0tUK£156.8b16x18.4x1.4x
Tue, 10 Feb 2026UK£3.0tUK£1.9tUK£140.4b16.8x21.2x1.5x
Thu, 08 Jan 2026UK£2.9tUK£2.0tUK£137.8b16.6x20.9x1.5x
Sat, 06 Dec 2025UK£2.8tUK£2.0tUK£139.2b16x20x1.4x
Mon, 03 Nov 2025UK£2.8tUK£2.0tUK£138.8b16.5x20.1x1.4x
Wed, 01 Oct 2025UK£2.7tUK£1.9tUK£135.7b16.6x19.9x1.4x
Fri, 29 Aug 2025UK£2.7tUK£1.9tUK£135.3b15.9x19.7x1.4x
Sun, 27 Jul 2025UK£2.6tUK£1.9tUK£125.2b16.4x20.5x1.3x
Tue, 24 Jun 2025UK£2.5tUK£1.9tUK£127.2b16.4x19.5x1.3x
Thu, 22 May 2025UK£2.5tUK£2.0tUK£127.2b16.4x19.7x1.3x
Sat, 19 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Mon, 17 Mar 2025UK£2.5tUK£2.0tUK£137.0b15x18.1x1.2x
Wed, 12 Feb 2025UK£2.5tUK£2.0tUK£123.9b16.1x20.5x1.2x
Fri, 10 Jan 2025UK£2.4tUK£2.1tUK£124.2b15.8x19.6x1.2x
Sun, 08 Dec 2024UK£2.4tUK£2.0tUK£122.3b16.5x20x1.2x
Tue, 05 Nov 2024UK£2.4tUK£2.0tUK£114.9b16.3x21x1.2x
Thu, 03 Oct 2024UK£2.4tUK£2.0tUK£117.8b16.6x20.6x1.2x
Sat, 31 Aug 2024UK£2.5tUK£2.0tUK£119.2b16.9x20.7x1.2x
Mon, 29 Jul 2024UK£2.4tUK£2.0tUK£127.1b16.5x19.2x1.2x
Wed, 26 Jun 2024UK£2.4tUK£2.0tUK£131.8b16.4x18.4x1.2x
Fri, 24 May 2024UK£2.5tUK£2.0tUK£127.0b17.2x19.6x1.2x
Sun, 21 Apr 2024UK£2.4tUK£2.1tUK£148.4b15.6x16.1x1.1x
Tue, 19 Mar 2024UK£2.3tUK£2.1tUK£145.0b15.9x16x1.1x
Thu, 15 Feb 2024UK£2.3tUK£2.0tUK£144.4b15.1x15.6x1.1x
Sat, 13 Jan 2024UK£2.3tUK£2.1tUK£193.4b14.9x12x1.1x
Mon, 11 Dec 2023UK£2.3tUK£2.1tUK£194.1b14.6x11.8x1.1x
Wed, 08 Nov 2023UK£2.2tUK£2.2tUK£194.5b13.8x11.5x1x
Fri, 06 Oct 2023UK£2.3tUK£2.2tUK£187.0b14.1x12.2x1x
Sun, 03 Sep 2023UK£2.3tUK£2.2tUK£184.9b14.5x12.5x1.1x
Price to Earnings Ratio

12.5x


Total Market Cap: UK£2.3tTotal Earnings: UK£184.9bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 18x202420252026
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 18.0x.
Past Earnings Growth
  • The earnings for British listed companies have declined 2.1% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

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

GB Market1.37%
Materials4.60%
Consumer Staples2.78%
Real Estate1.58%
Financials1.36%
Healthcare1.23%
Tech1.17%
Utilities0.96%
Industrials0.85%
Telecom0.18%
Consumer Discretionary-0.15%
Energy-1.63%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 50.8x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.9% 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 17.7x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 3.1% per year.
  • In contrast, the Energy industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuationSector
RIO Rio Tinto GroupUK£77.224.5%
+UK£5.4b		69.0%PE14.1xMaterials
HSBA HSBC HoldingsUK£15.221.7%
+UK£4.2b		59.5%PB1.8xFinancials
ANTO AntofagastaUK£40.248.7%
+UK£3.2b		88.2%PE32.6xMaterials
BATS British American TobaccoUK£42.383.5%
+UK£3.1b		0.6%PE14.4xConsumer Staples
ULVR UnileverUK£47.722.9%
+UK£2.9b		-8.2%PE21.4xConsumer Staples
See more

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Latest News

SHEL
UK£33.11
Shell
7D
-3.8%
1Y
21.9%
AAL
UK£42.43
Anglo American
7D
7.0%
1Y
87.3%
Narrative Update • Aug 26

AAL: Elevated Freight And Iron Ore Pressures Will Cap Future Upside

Analysts have lifted the fair value estimate for Anglo American from £21.89 to £24.11, reflecting higher price targets that balance expectations for improved revenue trends with concerns about cost risks in key iron ore operations and mixed views on valuation. Analyst Commentary Recent Street research on Anglo American points to a split backdrop, with several price target lifts offset by more cautious views on costs, earnings mix and valuation.
KAP
US$76.50
National Atomic Company Kazatomprom JSC
7D
9.9%
1Y
71.3%
Narrative Update • Aug 25

KAP: Uranium Upside And New Supply Deals Will Shape A Balanced Outlook

Analysts have lifted their price target on National Atomic Company Kazatomprom JSC to $73.51 from $68.84, citing fresh coverage that highlights direct exposure to the uranium upcycle and what they describe as visible, pricing driven earnings momentum. This is said to support the revised fair value and higher future P/E assumptions.
GSK
UK£18.52
GSK
7D
-3.6%
1Y
26.9%
LLOY
UK£1.09
Lloyds Banking Group
7D
-0.4%
1Y
32.8%
Narrative Update • Aug 21

LLOY: Capital Returns And Accelerate 2030 Plan Will Constrain Future Upside

Analysts have lifted their fair value estimate for Lloyds Banking Group from about £0.81 to about £0.83, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E expectations. What’s in the News for Lloyds Banking Group Lloyds Banking Group announced a 30% rise in its interim dividend and a new £1b share buyback, supported by half year profit of £4.29b.
RR.
UK£15.30
Rolls-Royce Holdings
7D
2.0%
1Y
44.5%
Narrative Update • Aug 21

RR.: Widebody Reliance And Execution Concerns Will Likely Cap Future Upside

Analysts have lifted the fair value estimate for Rolls-Royce Holdings from £11.12 to £13.61 as they factor in higher price targets across the Street, modestly higher profit margin assumptions and a richer future P/E profile, while applying a slightly higher discount rate and more measured revenue growth expectations. Analyst Commentary Recent Street research on Rolls-Royce Holdings shows a cluster of higher price targets and generally positive ratings, including several Buy, Overweight and Outperform stances from large global banks.
RIO
UK£76.88
Rio Tinto Group
7D
2.5%
1Y
65.8%
DGE
UK£17.02
Diageo
7D
-1.3%
1Y
-17.5%
ULVR
UK£47.52
Unilever
7D
2.2%
1Y
-8.4%
Narrative Update • Aug 19

ULVR: Mid Term Volume And Margin Risks Will Likely Restrain Upside

Unilever's analyst fair value estimate has been lifted by about £1 to £40.73. Analysts point to recent price target increases that reflect stronger volume-led sales, slightly higher revenue growth and profit margin assumptions, and a modestly lower future P/E.
ANTO
UK£40.39
Antofagasta
7D
9.0%
1Y
87.2%
Narrative Update • Aug 19

ANTO: Copper Output Resilience And 2028 Free Cash Flow Timing Will Shape Returns

Antofagasta's analyst fair value has been trimmed from £38.80 to £37.87 as analysts factor in slightly lower revenue growth expectations, a modestly higher discount rate, and updated Street price targets that have recently shifted both up and down between roughly £33.40 and £44.00 per share. Analyst Commentary Recent Street research on Antofagasta shows a wide spread of views on both valuation and execution.
CPG
US$30.49
Compass Group
7D
-1.0%
1Y
-11.0%
Narrative Update • Aug 18

CPG: Updated Fair Value And P/E Framework Will Guide Future Returns

Analysts have lifted their fair value estimate for Compass Group to $32.00, with the modest change supported by updated assumptions on discount rate, revenue growth, profit margin and future P/E, even as one recent price target moved slightly lower to $40.00 from $40.50. What’s in the News for Compass Group No recent Compass Group specific news stories or key developments were provided in the available sources up to 17 Aug 2026.
BA.
UK£20.92
BAE Systems
7D
-2.5%
1Y
18.4%
BP.
UK£5.15
BP
7D
-6.7%
1Y
20.1%
NG.
UK£11.60
National Grid
7D
-2.2%
1Y
10.7%
LSEG
UK£89.80
London Stock Exchange Group
7D
5.1%
1Y
-2.8%
REL
UK£26.68
RELX
7D
3.1%
1Y
-23.7%
Narrative Update • Aug 03

REL: AI Data Assets And Buybacks Will Support Future Earnings Multiple

Analysts have nudged their fair value estimate for RELX lower to about £33.91 from roughly £35.83, reflecting slightly higher discount rate assumptions alongside updated views on revenue growth, profit margins and future P/E multiples, informed by recent price target increases and positive commentary on the durability of growth in key divisions and the role of new AI products. Analyst Commentary Recent Street research on RELX shows a mix of optimism about growth durability and AI opportunities, with some caution around valuation and segment level risks.