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U.K. (FTSE) Market Analysis & Valuation

UpdatedMar 23, 2026
DataAggregated Company Financials
Companies1087
  • 7D-3.9%
  • 3M0.2%
  • 1Y14.8%
  • YTD-0.6%

In the last week, the market has fallen 3.9%, dragged down most by the Financials. As for the longer term, the market has actually risen by 15% in the last year. Looking forward, 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
Mon, 23 Mar 2026UK£2.8tUK£2.0tUK£156.8b14.8x17.8x1.4x
Wed, 18 Feb 2026UK£3.0tUK£1.9tUK£146.1b16.6x20.7x1.6x
Fri, 16 Jan 2026UK£2.9tUK£2.0tUK£138.2b16.7x21.2x1.5x
Sun, 14 Dec 2025UK£2.8tUK£2.0tUK£138.2b15.9x20x1.4x
Tue, 11 Nov 2025UK£2.8tUK£2.0tUK£138.1b16.4x20.3x1.4x
Thu, 09 Oct 2025UK£2.7tUK£1.9tUK£135.6b16.8x20.3x1.4x
Sat, 06 Sep 2025UK£2.7tUK£1.9tUK£135.6b16.4x19.7x1.4x
Mon, 04 Aug 2025UK£2.6tUK£2.0tUK£134.5b16.3x19.5x1.3x
Wed, 02 Jul 2025UK£2.5tUK£1.9tUK£126.6b16.4x19.6x1.3x
Fri, 30 May 2025UK£2.5tUK£1.9tUK£127.3b16.1x19.4x1.3x
Sun, 27 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.7x1.2x
Tue, 25 Mar 2025UK£2.5tUK£2.0tUK£136.0b15.6x18.1x1.2x
Thu, 20 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.5x18.2x1.3x
Sat, 18 Jan 2025UK£2.5tUK£2.1tUK£125.0b16x19.9x1.2x
Mon, 16 Dec 2024UK£2.4tUK£2.0tUK£122.5b16.3x19.9x1.2x
Wed, 13 Nov 2024UK£2.4tUK£2.0tUK£119.1b16.3x19.9x1.2x
Fri, 11 Oct 2024UK£2.4tUK£2.0tUK£118.9b16.3x20.2x1.2x
Sun, 08 Sep 2024UK£2.4tUK£2.0tUK£119.2b16.7x20.2x1.2x
Tue, 06 Aug 2024UK£2.4tUK£2.0tUK£125.3b16.2x18.8x1.2x
Thu, 04 Jul 2024UK£2.4tUK£2.0tUK£131.0b16.7x18.4x1.2x
Sat, 01 Jun 2024UK£2.5tUK£2.0tUK£129.3b17.3x19.1x1.2x
Mon, 29 Apr 2024UK£2.4tUK£2.1tUK£143.7b16x16.9x1.2x
Wed, 27 Mar 2024UK£2.4tUK£2.1tUK£146.3b16.3x16.4x1.1x
Fri, 23 Feb 2024UK£2.3tUK£2.0tUK£143.2b15.4x16.1x1.1x
Sun, 21 Jan 2024UK£2.3tUK£2.1tUK£193.6b14.6x11.7x1.1x
Tue, 19 Dec 2023UK£2.3tUK£2.1tUK£194.1b14.9x11.8x1.1x
Thu, 16 Nov 2023UK£2.3tUK£2.1tUK£193.7b14.3x11.7x1.1x
Sat, 14 Oct 2023UK£2.3tUK£2.2tUK£187.0b13.8x12.4x1.1x
Mon, 11 Sep 2023UK£2.3tUK£2.2tUK£185.6b14.5x12.4x1.1x
Wed, 09 Aug 2023UK£2.3tUK£2.2tUK£189.4b14.4x12.3x1.1x
Fri, 07 Jul 2023UK£2.3tUK£2.2tUK£208.2b13.9x10.9x1x
Sun, 04 Jun 2023UK£2.4tUK£2.2tUK£212.0b14.3x11.2x1.1x
Tue, 02 May 2023UK£2.5tUK£2.2tUK£179.2b14.4x13.8x1.1x
Thu, 30 Mar 2023UK£2.4tUK£2.2tUK£182.8b13.6x13x1.1x
Price to Earnings Ratio

13x


Total Market Cap: UK£2.4tTotal Earnings: UK£182.8bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.1x202420252026
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 17.1x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 5.0% 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-3.88%
Energy1.63%
Telecom-1.80%
Healthcare-3.30%
Tech-3.37%
Industrials-3.82%
Financials-3.89%
Real Estate-4.86%
Consumer Discretionary-5.44%
Consumer Staples-5.59%
Materials-6.27%
Utilities-7.62%
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 53.4x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.6%, which is higher than its past year's earnings growth of 7.1% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 32% over the next 5 years.
  • This is better than its past earnings growth rate of 0.7% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.6% 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
BP. BPUK£5.624.1%
+UK£3.4b		27.6%PE2128.8xEnergy
DPLM DiplomaUK£57.2514.2%
+UK£952.1m		43.8%PE41.5xIndustrials
SHEL ShellUK£34.340.6%
+UK£899.4m		26.0%PE14.5xEnergy
GLEN GlencoreUK£5.200.8%
+UK£480.3m		71.7%PE223.3xMaterials
IGG IG Group HoldingsUK£14.507.1%
+UK£314.4m		52.0%PE9.6xFinancials
See more

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Latest News

IGG
UK£14.50
IG Group Holdings
7D
7.1%
1Y
52.0%
SCT
UK£12.41
Softcat
7D
6.5%
1Y
-24.7%

SCT: Buybacks And Rising Dividends Will Support Strong Future Returns

Analysts have slightly adjusted their view on Softcat, trimming the indicative fair value from £17.43 to £17.18 as they update assumptions around revenue growth, profit margins, discount rate and future P/E expectations. What's in the News Softcat recommended an interim ordinary dividend of 9.9 pence per share for H1 FY2026, aligned with its policy of paying one third of the previous year's total ordinary dividend as the interim dividend (Key Developments).
BATS
UK£43.11
British American Tobacco
7D
-5.7%
1Y
36.8%

BATS: Future Returns Will Reflect Dividend Dependability And Measured Revenue Outlook

Analysts have made a small upward adjustment to their British American Tobacco price target to reflect modest tweaks to assumptions on fair value, discount rate, revenue growth, profit margin and future P/E, lifting the target from about £45.81 to roughly £45.85. What's in the News Reaffirmed full year 2026 earnings guidance, with constant currency revenue growth targeted at the lower end of a 3% to 5% range (company guidance).
ULVR
UK£45.96
Unilever
7D
-5.8%
1Y
-9.2%
BP.
UK£5.62
BP
7D
5.2%
1Y
25.0%

BP.: Future Returns Will Depend On Elevated Middle East Oil Supply Risks

Narrative Update The analyst price target for BP has been raised by £0.22. Analysts point to higher oil and gas price assumptions, tighter projected crude balances, and stronger valuation support for integrated energy majors as the key drivers of their updated view.
DPLM
UK£57.25
Diploma
7D
14.2%
1Y
43.8%
HSBA
UK£11.44
HSBC Holdings
7D
-4.3%
1Y
29.1%

HSBC Holdings (HSBA): The "East-West" Pivot and the Wealth Supercycle

Vestra has increased revenue growth from 5.4% to 166.9%.
SHEL
UK£34.34
Shell
7D
0.6%
1Y
26.0%
TRST
UK£2.36
Trustpilot Group
7D
34.0%
1Y
3.3%

TRST: Buybacks And Higher Guidance Will Shape A More Balanced Outlook

Analysts have raised their price target on Trustpilot to £2.20 from £2.16, citing updated assumptions around fair value, discount rates, revenue growth, profit margins and P/E expectations reflected in recent research and rating changes. Analyst Commentary Recent research points to a mixed but generally more constructive stance on Trustpilot, with some analysts adjusting ratings and price targets to reflect their latest views on valuation, execution and growth assumptions.
AZN
UK£138.96
AstraZeneca
7D
-3.3%
1Y
21.3%

AZN: Oncology Pipeline And Breast Cancer Trial Readouts Will Support Re Rating

Analysts have lifted AstraZeneca's fair value estimate from £182.81 to £205.97 and raised several price targets, citing updated models, a higher assumed profit margin and a more constructive view on the earnings pipeline. Analyst Commentary Recent Street research points to a cluster of upbeat views on AstraZeneca, with several bullish analysts revisiting their models and adjusting price targets after fresh company updates and sector readthroughs.
ANTO
UK£31.43
Antofagasta
7D
-10.7%
1Y
68.3%

ANTO: Copper Optimism Will Likely Underestimate Geopolitical And Project Execution Risks

Antofagasta's analyst fair value estimate has edged up from £23.49 to £23.72, as analysts weigh higher revenue growth assumptions, a slightly lower profit margin outlook, and a higher discount rate against a mixed set of recent price target changes that reflect both upgraded and downgraded views on the shares. Analyst Commentary Recent Street research on Antofagasta shows a split in opinion, with upbeat price target moves and upgrades offset by a cluster of downgrades and more conservative assumptions on copper and iron ore.
RIO
UK£62.46
Rio Tinto Group
7D
-6.7%
1Y
29.4%

RIO: Ended Glencore Talks Will Refocus On Copper And Asset Sales

Analysts have trimmed the blended price target for Rio Tinto Group by roughly £400 to around £7,200, reflecting updated views on commodity risk, iron ore seasonality and valuation after recent share gains. Analyst Commentary Recent research shows a mixed but generally cautious stance on Rio Tinto, with several firms trimming price targets and shifting ratings toward more neutral positions after a strong share price run.
RR.
UK£11.61
Rolls-Royce Holdings
7D
-5.6%
1Y
47.0%

RR.: FY25 Beat And New Buyback Program Will Support Stronger Long Term Prospects

The analyst price target for Rolls-Royce Holdings is updated to a fair value of £17.70 from £16.25, based on Street research where analysts have raised targets to £12.50 and £16.00 following an FY25 beat and higher 2026 guidance. This also incorporates a slightly higher assumed discount rate, a higher revenue growth outlook, and a revised future P/E of 38.93x.
GLEN
UK£5.20
Glencore
7D
0.3%
1Y
73.8%

GLEN: Fair Outlook Weighs Ended Megamerger Talks And Mixed Earnings Expectations

Glencore's updated analyst price target edges lower to £4.60, reflecting a mix of recent target cuts and raises as analysts factor in slightly higher discount rates, modestly softer revenue growth and profit margin assumptions, and a higher assumed future P/E multiple. Analyst Commentary Recent research on Glencore shows a split in views, with some high profile firms lifting their targets and others turning more cautious.
NG.
UK£12.33
National Grid
7D
-10.2%
1Y
25.6%

NG.: Margin Resilience And P/E Expectations Will Shape Predictable Future Returns

Analysts have nudged their National Grid fair value estimate higher from £12.47 to £13.14, pointing to slightly firmer profit margin expectations and a modestly higher future P/E multiple, even as revenue growth assumptions are trimmed. Analyst Commentary Bullish Takeaways Bullish analysts view the uplift in fair value to £13.14 as consistent with a business that can sustain firmer profit margins over time, which they see as supportive of the overall earnings quality story.
HBR
UK£3.02
Harbour Energy
7D
3.9%
1Y
54.7%