Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 06, 2026
DataAggregated Company Financials
Companies1096
  • 7D1.5%
  • 3M5.5%
  • 1Y20.6%
  • YTD0.7%

The market has climbed 1.5% over the last week, with theFinancials and Consumer Staples sectors leading the way. 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
Tue, 06 Jan 2026UK£2.9tUK£2.0tUK£137.6b16.5x20.8x1.5x
Thu, 04 Dec 2025UK£2.8tUK£2.0tUK£139.2b16.2x20x1.4x
Sat, 01 Nov 2025UK£2.8tUK£2.0tUK£139.2b16.5x20x1.4x
Mon, 29 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.6x19.7x1.4x
Wed, 27 Aug 2025UK£2.7tUK£1.9tUK£134.5b16x20x1.4x
Fri, 25 Jul 2025UK£2.6tUK£1.9tUK£127.0b16.1x20.3x1.3x
Sun, 22 Jun 2025UK£2.5tUK£1.9tUK£127.6b16.4x19.5x1.3x
Tue, 20 May 2025UK£2.5tUK£2.0tUK£132.9b16.5x18.7x1.3x
Thu, 17 Apr 2025UK£2.4tUK£2.0tUK£134.8b15.3x17.5x1.2x
Sat, 15 Mar 2025UK£2.5tUK£2.0tUK£137.0b15x18.1x1.2x
Mon, 10 Feb 2025UK£2.5tUK£2.0tUK£123.9b16x20.3x1.2x
Wed, 08 Jan 2025UK£2.4tUK£2.1tUK£123.2b16.2x19.6x1.2x
Fri, 06 Dec 2024UK£2.5tUK£2.0tUK£122.4b16.3x20x1.2x
Sun, 03 Nov 2024UK£2.4tUK£2.0tUK£118.3b16.3x20.4x1.2x
Tue, 01 Oct 2024UK£2.4tUK£2.0tUK£117.8b16.8x20.6x1.2x
Thu, 29 Aug 2024UK£2.5tUK£2.0tUK£119.5b17x20.5x1.2x
Sat, 27 Jul 2024UK£2.4tUK£2.0tUK£126.6b16.5x19.3x1.2x
Mon, 24 Jun 2024UK£2.4tUK£2.0tUK£132.0b16.7x18.4x1.2x
Wed, 22 May 2024UK£2.5tUK£2.0tUK£125.6b17.2x20x1.2x
Fri, 19 Apr 2024UK£2.4tUK£2.1tUK£147.5b15.7x16.1x1.1x
Sun, 17 Mar 2024UK£2.3tUK£2.1tUK£144.9b16.1x16.1x1.1x
Tue, 13 Feb 2024UK£2.3tUK£2.0tUK£144.7b15x15.6x1.1x
Thu, 11 Jan 2024UK£2.3tUK£2.1tUK£193.5b15.1x12x1.1x
Sat, 09 Dec 2023UK£2.3tUK£2.1tUK£194.2b14.6x11.7x1.1x
Mon, 06 Nov 2023UK£2.2tUK£2.1tUK£193.8b14x11.6x1x
Wed, 04 Oct 2023UK£2.3tUK£2.2tUK£187.0b14.2x12.3x1.1x
Fri, 01 Sep 2023UK£2.3tUK£2.2tUK£186.5b14.5x12.5x1.1x
Sun, 30 Jul 2023UK£2.4tUK£2.2tUK£193.5b14.4x12.4x1.1x
Tue, 27 Jun 2023UK£2.3tUK£2.2tUK£208.5b14x11.1x1.1x
Thu, 25 May 2023UK£2.4tUK£2.2tUK£216.7b14.2x11.1x1.1x
Sat, 22 Apr 2023UK£2.5tUK£2.2tUK£178.9b14.1x13.8x1.1x
Mon, 20 Mar 2023UK£2.2tUK£2.2tUK£183.2b13.4x12.3x1x
Wed, 15 Feb 2023UK£2.5tUK£2.1tUK£194.6b13.8x13x1.2x
Fri, 13 Jan 2023UK£2.5tUK£2.1tUK£185.1b13.8x13.6x1.2x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.5tTotal Earnings: UK£185.1bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.6x202420252026
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 20.8x which is higher than its 3-year average PE of 16.6x.
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 Market1.49%
Materials4.48%
Industrials4.04%
Financials2.46%
Utilities1.66%
Energy1.63%
Telecom1.10%
Tech0.30%
Real Estate0.28%
Consumer Discretionary0.18%
Consumer Staples-1.43%
Healthcare-1.66%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 18.9x.
    • Analysts are expecting annual earnings growth of 27.3%, 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 5.5% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.3% 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£12.457.9%
+UK£7.7b		115.8%PE18xIndustrials
HSBA HSBC HoldingsUK£12.173.6%
+UK£7.2b		56.9%PB1.5xFinancials
BA. BAE SystemsUK£18.829.8%
+UK£5.0b		63.0%PE28.3xIndustrials
AZN AstraZenecaUK£140.382.1%
+UK£4.5b		31.6%PE31.3xHealthcare
RIO Rio Tinto GroupUK£62.914.4%
+UK£4.3b		34.8%PE13.5xMaterials
See more

Market Insights

Header cover image
Three Sectors Expected to Rally in 2026 📈
With the backdrop of consistently strong broad market returns over the last few years, analysts are now looking at sector-specific plays that could outperform in 2026.
Continue reading
🤖 AI Companies Hit The Bond Market
Last Week

🤖 AI Companies Hit The Bond Market

Latest News

IHG
US$136.55
InterContinental Hotels Group
7D
-2.9%
1Y
11.4%
HSBA
UK£12.17
HSBC Holdings
7D
3.6%
1Y
56.9%
GSK
UK£19.00
GSK
7D
3.8%
1Y
39.9%
RR.
UK£12.45
Rolls-Royce Holdings
7D
7.9%
1Y
115.8%
ANTO
UK£35.42
Antofagasta
7D
6.8%
1Y
116.8%
RIO
UK£62.91
Rio Tinto Group
7D
4.4%
1Y
34.8%

RIO: Higher Commodity Exposure And Asset Sales Will Drive Future Upside

Analyst price targets for Rio Tinto Group have shifted higher overall, with recent moves such as Citi lifting its target to £57.00 from £46.00 and other banks adjusting into the £52.00 to £61.70 range, reflecting updated views on revenue growth, profit margins, and future P/E assumptions. Analyst Commentary Recent research updates point to a generally constructive tone around Rio Tinto Group, with several bullish analysts adjusting their price targets into a higher £52.00 to £61.70 band.
CCH
UK£36.92
Coca-Cola HBC
7D
-4.2%
1Y
33.1%

Returns Are Gaining Momentum At Coca-Cola HBC (LON:CCH)

Jan 04
Returns Are Gaining Momentum At Coca-Cola HBC (LON:CCH)
IMB
UK£30.42
Imperial Brands
7D
-2.8%
1Y
16.7%
CPG
UK£23.05
Compass Group
7D
-2.7%
1Y
-12.3%

If EPS Growth Is Important To You, Compass Group (LON:CPG) Presents An Opportunity

Jan 01
If EPS Growth Is Important To You, Compass Group (LON:CPG) Presents An Opportunity
BATS
UK£40.36
British American Tobacco
7D
-3.8%
1Y
36.3%
ADM
UK£30.24
Admiral Group
7D
-5.3%
1Y
14.5%

ADM: Future Returns Will Be Driven By Depressed Multiple Re-Rating

Analysts have raised their price target on Admiral Group to £41.00 from £25.50, citing its status as a resilient growth compounder trading on what they view as a still depressed valuation profile. Analyst Commentary Bullish Takeaways Bullish analysts highlight Admiral Group's track record as a growth compounder, pointing to consistent earnings expansion despite macro headwinds.
AZN
UK£140.38
AstraZeneca
7D
2.1%
1Y
31.6%
BA.
UK£18.82
BAE Systems
7D
9.8%
1Y
63.0%

BA.: NATO-Fueled Demand Will Face Execution And Budget Uncertainty

Analysts have raised their price target on BAE Systems by approximately 12 percent to reflect stronger expected revenue growth, slightly higher margins, and robust, geographically diversified demand from NATO countries. This demand is anticipated to support a higher future valuation multiple.
GLEN
UK£4.28
Glencore
7D
5.3%
1Y
18.5%
ULVR
UK£47.44
Unilever
7D
-2.3%
1Y
-6.2%

ULVR: Ice Cream Demerger Delay Will Still Support Future Pricing Power

Analysts have modestly reduced their price target on Unilever to approximately $53.37 from about $56.02, citing slightly lower long term revenue growth expectations and a marginally softer profit margin and valuation outlook, while the discount rate remains broadly unchanged. What's in the News Unilever delayed the planned demerger of its Magnum ice cream unit, attributing the timing change to the U.S. government shutdown, but reiterated confidence in completing the spin off later this year (Reuters).
ZEG
UK£13.40
Zegona Communications
7D
-4.3%
1Y
216.0%