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

U.K. (FTSE) Market Analysis & Valuation

UpdatedApr 25, 2026
DataAggregated Company Financials
Companies1081
  • 7D-2.7%
  • 3M1.7%
  • 1Y23.3%
  • YTD4.5%

The market has dropped by 23% in the last 7 days, with the Industrials sector leading declines. In contrast, the Energy sector has actually gained 4.0%. In contrast to the last week, the market is actually up 23% over the past year. As for the next few years, earnings are expected to grow by 13% 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
Sat, 25 Apr 2026UK£2.9tUK£2.0tUK£157.4b16x18.6x1.5x
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
Price to Earnings Ratio

13.8x


Total Market Cap: UK£2.5tTotal Earnings: UK£179.2bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.3x202420252026
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 17.3x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 4.2% per year over the last three years.
  • Revenues have also declined 2.6% 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-2.67%
Energy4.03%
Utilities2.68%
Tech0.22%
Telecom-0.44%
Consumer Staples-0.58%
Consumer Discretionary-1.88%
Materials-2.43%
Real Estate-3.32%
Financials-3.51%
Healthcare-6.56%
Industrials-7.13%
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 53.1x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.6%, which is higher than its past year's earnings growth of 7.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 47% over the next 5 years.
  • This is better than its past earnings growth rate of 5.1% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.7% 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£33.083.5%
+UK£6.1b		34.2%PE14.1xEnergy
BP. BPUK£5.725.7%
+UK£4.7b		56.9%PE2202.5xEnergy
BATS British American TobaccoUK£43.023.9%
+UK£3.4b		37.0%PE12.1xConsumer Staples
LSEG London Stock Exchange GroupUK£99.925.7%
+UK£2.6b		-12.7%PE39.5xFinancials
CPG Compass GroupUS$30.085.7%
+US$2.8b		-8.1%PE27.4xConsumer Discretionary
See more

Market Insights

Header cover image
China's next winners have been chosen
Stella Ong avatar
Stella Ong
Alibaba, Baidu, Xiaomi and BYD became global names thanks to China’s support. The next 5-year plan has now been revealed and will show where growth may be concentrated next.
Continue reading
A (virtual) reality check for VR, Web3 and Metaverse

Latest News

HSBA
UK£13.21
HSBC Holdings
7D
-3.2%
1Y
58.4%
AZN
UK£139.56
AstraZeneca
7D
-7.7%
1Y
34.2%
SHEL
UK£33.08
Shell
7D
3.5%
1Y
34.2%
GSK
UK£20.20
GSK
7D
-5.8%
1Y
45.4%
SSE
UK£26.35
SSE
7D
6.7%
1Y
63.1%

SSE: Fair Value View Balances Mixed Rating Shifts And Execution Risks

The updated analyst price target for SSE has moved higher to reflect a fair value of about £27.34 per share, up from roughly £26.98, with analysts pointing to slightly stronger assumptions for revenue growth, profit margins and a modestly lower future P/E multiple to support the change. Analyst Commentary Recent Street research on SSE reflects a mix of optimism and caution, with several firms updating price targets and at least one high profile downgrade.
NG.
UK£12.95
National Grid
7D
1.6%
1Y
20.8%

NG.: Grid AI Collaboration And Margin Discipline Will Shape Earnings Resilience

Analysts have nudged their fair value estimate for National Grid to £13.78, reflecting updated assumptions around slightly lower revenue growth, a modestly higher profit margin, and a marginally richer future P/E multiple. Analyst Commentary Bullish Takeaways Bullish analysts point to the updated fair value estimate of £13.78 as support for National Grid's role as a regulated utility with relatively visible earnings, which can help anchor valuation assumptions.
BA.
UK£20.21
BAE Systems
7D
-10.4%
1Y
20.1%
BP.
UK£5.72
BP
7D
5.7%
1Y
56.9%
BATS
UK£43.02
British American Tobacco
7D
3.9%
1Y
37.0%

BATS: Future Returns Will Reflect Dividend Dependability And Strengthened Leadership Outlook

Analysts have nudged their price target for British American Tobacco up slightly to £46.21 from £45.85, reflecting updated assumptions around discount rates, revenue growth, profit margins and future P/E multiples. What's in the News British American Tobacco appointed Dragos Constantinescu as Chief Financial Officer, effective 1 September 2026, with Javed Iqbal to continue as Interim CFO until then and thereafter remain Director, Digital & Information (company announcement).
CPG
US$30.08
Compass Group
7D
5.7%
1Y
-8.1%
NWG
UK£5.79
NatWest Group
7D
-7.4%
1Y
22.1%

NWG: Evelyn Acquisition And Buybacks Will Support Future Share Upside

NatWest Group's updated analyst price target has inched higher to £7.32 from £7.31. This reflects a blend of recent target increases from several banks and more cautious expectations from others, as analysts factor in slightly different views on revenue growth, profitability and valuation multiples.
LSEG
UK£99.92
London Stock Exchange Group
7D
5.7%
1Y
-12.7%

LSEG: Activist Buybacks And AI Partnerships Will Support Future Upside Potential

Narrative update The analyst price target for London Stock Exchange Group has been raised by £1.00. Analysts point to updated assumptions for revenue growth, profit margins and future P/E as key drivers for the change.
RR.
UK£11.29
Rolls-Royce Holdings
7D
-13.8%
1Y
49.5%
BARC
UK£4.24
Barclays
7D
-6.3%
1Y
44.8%

BARC: Evelyn Bid And Wealth Expansion Will Support Stronger Future Returns

Analysts have nudged their price target on Barclays slightly higher, from £5.30 to roughly £5.30, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E levels as support for the revised view. What's in the News Barclays and Sage agreed a new partnership aimed at helping UK small businesses manage day-to-day administration, improve visibility of their finances and keep up with Making Tax Digital requirements through combined banking and accounting tools (Client announcement).
LLOY
UK£0.98
Lloyds Banking Group
7D
-7.0%
1Y
33.9%

LLOY: Buyback And Dividend Policy Will Support A More Attractive Return Profile

Analysts have lifted their price target for Lloyds Banking Group by around £0.02, reflecting small adjustments to fair value estimates, discount rate assumptions, revenue growth expectations, and a lower future P/E multiple in their models. What's in the News The Board of Lloyds Banking Group has authorized a share buyback plan, allowing the company to repurchase its own shares as part of a capital management program, subject to regulatory approval (Key Developments).
GLEN
UK£5.58
Glencore
7D
1.9%
1Y
107.7%

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

The analyst price target for Glencore has been revised higher, with recent moves such as Morgan Stanley’s £0.40 increase and several other target lifts pointing to analysts factoring in slightly stronger revenue growth, modestly higher profit margins and a marginally richer future P/E assumption, despite a higher discount rate. Analyst Commentary Recent research on Glencore shows a mix of optimism and caution, with several target changes and rating adjustments reflecting differing views on how execution, commodity exposure and capital allocation might influence the share price over time.