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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 15, 2026
DataAggregated Company Financials
Companies1094
  • 7D1.3%
  • 3M7.9%
  • 1Y22.7%
  • YTD2.6%

Over the last 7 days, the market has risen 1.3%, driven by gains of 5.4% in the Materials sector. The market is up 23% over the last 12 months. Earnings are forecast to grow by 14% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 16 Jan 2026UK£2.9tUK£2.0tUK£137.9b16.6x21.1x1.5x
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
Sat, 25 Feb 2023UK£2.5tUK£2.2tUK£194.7b13.7x13x1.2x
Mon, 23 Jan 2023UK£2.5tUK£2.1tUK£183.6b13.7x13.6x1.2x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.5tTotal Earnings: UK£183.6bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.7x202420252026
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 21.1x which is higher than its 3-year average PE of 16.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.1% per year over the last three years.
  • Revenues have also declined 2.1% 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 Market1.35%
Materials5.37%
Energy4.56%
Consumer Staples2.89%
Financials0.66%
Telecom0.49%
Industrials0.16%
Healthcare0.023%
Tech-0.46%
Real Estate-0.78%
Utilities-1.31%
Consumer Discretionary-1.36%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 19.2x.
    • Analysts are expecting annual earnings growth of 29.9%, which is lower than the prior year's growth of 33.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings growth rate of 5.9% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.2% 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
SHEL ShellUK£27.477.2%
+UK£10.3b		2.1%PE14.3xEnergy
GLEN GlencoreUK£4.9118.9%
+UK£9.1b		32.7%PS0.3xMaterials
BATS British American TobaccoUK£43.398.2%
+UK£7.1b		49.1%PE30.9xConsumer Staples
HSBA HSBC HoldingsUK£12.373.5%
+UK£7.1b		51.2%PB1.5xFinancials
RIO Rio Tinto GroupUK£64.684.4%
+UK£4.5b		31.2%PE13.7xMaterials
See more

Market Insights

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EXPN
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Experian
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HSBA
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GLEN
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Glencore
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1Y
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Jan 14
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IAG
UK£4.11
International Consolidated Airlines Group
7D
-5.8%
1Y
31.4%

IAG: Heathrow Strength And Capital Returns Will Support Stronger Future Shareholder Returns

Narrative Update Overview The updated analyst price target for International Consolidated Airlines Group moves higher to a range signaled by recent Street research, with targets increasing to £5.00 and £6.20, supported by analysts citing IAG's role as a top pick in European airlines and its dominant position at London Heathrow, alongside modest shifts in fair value estimates, discount rate, revenue growth and profit margin assumptions. Analyst Commentary Recent Street research around International Consolidated Airlines Group has focused on refreshed price targets and the role of the group within the European airline peer set, with views clustering around valuation support and execution risks tied to the broader sector backdrop.
HLN
UK£3.62
Haleon
7D
-2.6%
1Y
-2.0%

HLN: Modest Uplift In Outlook Will Balance Execution And Valuation Risks

Analysts have raised their Haleon price target by £0.10, from 507 GBp to 517 GBp. This change reflects updated assumptions for slightly higher revenue growth, a small adjustment to profit margins, and a modestly lower future P/E. Analyst Commentary The latest price target move to 517 GBp signals that at least one research house still sees room for upside in Haleon, but the change is relatively modest.
BATS
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British American Tobacco
7D
8.2%
1Y
49.1%

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CPG
UK£22.81
Compass Group
7D
-3.2%
1Y
-14.7%

CPG: Strengthened European Platform And Better Returns Profile Should Drive Future Upside

Analysts have inched their blended price target higher to about £31.00 per share, supported by updated assumptions for slightly stronger revenue growth, modestly improved profit margins, and a marginally higher future P/E multiple, which align with recent Street research highlighting a stronger long term growth platform and improved returns profile. Analyst Commentary Recent Street research on Compass Group has focused on fine tuning upside potential and reassessing how much of the long term growth and returns story is already reflected in the share price.
RIO
UK£64.68
Rio Tinto Group
7D
4.4%
1Y
31.2%
SHEL
UK£27.47
Shell
7D
7.2%
1Y
2.1%

SHEL: Future Returns Will Reflect Resilient Cash Flow And Shareholder Distributions

Our updated view on Shell reflects a small trim in fair value to €31.03 from €31.31, as analysts balance slightly softer growth and margin assumptions with higher price targets associated with resilient cash generation, tighter refining conditions, and a more disciplined focus on costs and shareholder returns. Analyst Commentary Street research on Shell is mixed, with several price target increases reflecting confidence in execution and cash generation, while a few more cautious voices highlight valuation and medium term growth constraints.
VOD
UK£1.01
Vodafone Group
7D
-2.8%
1Y
45.0%

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ULVR
UK£47.81
Unilever
7D
2.5%
1Y
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ANTO
UK£36.65
Antofagasta
7D
9.9%
1Y
110.9%
AHT
UK£53.24
Ashtead Group
7D
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1Y
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