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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 21, 2026
DataAggregated Company Financials
Companies1083
  • 7D0.3%
  • 3M-0.3%
  • 1Y16.0%
  • YTD5.5%

In the last week, the market has stayed flat, however the Energy sector stood out, gaining 3.1%. Meanwhile, the market is actually up 16% over the past year. As for the next few years, earnings are expected to grow by 11% per annum.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 21 Jul 2026UK£2.9tUK£2.0tUK£164.7b15.8x17.9x1.5x
Thu, 18 Jun 2026UK£3.0tUK£2.0tUK£165.1b16x17.9x1.5x
Sat, 16 May 2026UK£2.9tUK£2.0tUK£165.2b15.7x17.5x1.4x
Mon, 13 Apr 2026UK£3.0tUK£2.0tUK£157.4b15.6x19x1.5x
Wed, 11 Mar 2026UK£2.9tUK£2.0tUK£155.4b16.2x18.9x1.5x
Fri, 06 Feb 2026UK£2.9tUK£1.9tUK£138.5b16.9x21.3x1.5x
Sun, 04 Jan 2026UK£2.8tUK£2.0tUK£138.0b16.3x20.6x1.5x
Tue, 02 Dec 2025UK£2.8tUK£2.0tUK£139.7b16.2x20x1.4x
Thu, 30 Oct 2025UK£2.8tUK£2.0tUK£136.4b16.5x20.5x1.4x
Sat, 27 Sep 2025UK£2.7tUK£1.9tUK£136.0b16.6x19.7x1.4x
Mon, 25 Aug 2025UK£2.7tUK£1.9tUK£134.1b16.1x20.1x1.4x
Wed, 23 Jul 2025UK£2.5tUK£1.9tUK£127.0b16.2x20x1.3x
Fri, 20 Jun 2025UK£2.5tUK£1.9tUK£127.5b16.2x19.5x1.3x
Sun, 18 May 2025UK£2.5tUK£2.0tUK£133.0b16.5x18.6x1.3x
Tue, 15 Apr 2025UK£2.3tUK£2.0tUK£135.1b14.9x17.1x1.2x
Thu, 13 Mar 2025UK£2.5tUK£2.0tUK£137.3b15.1x17.8x1.2x
Sat, 08 Feb 2025UK£2.5tUK£2.0tUK£124.0b16x20.3x1.2x
Mon, 06 Jan 2025UK£2.4tUK£2.1tUK£123.5b15.9x19.6x1.2x
Wed, 04 Dec 2024UK£2.5tUK£2.0tUK£122.8b16.3x20x1.2x
Fri, 01 Nov 2024UK£2.4tUK£2.0tUK£118.5b16.2x20.4x1.2x
Sun, 29 Sep 2024UK£2.5tUK£2.0tUK£117.8b17x20.8x1.2x
Tue, 27 Aug 2024UK£2.5tUK£2.0tUK£119.6b16.9x20.5x1.2x
Thu, 25 Jul 2024UK£2.4tUK£2.0tUK£129.6b16.4x18.5x1.2x
Sat, 22 Jun 2024UK£2.4tUK£2.0tUK£132.0b16.6x18.4x1.2x
Mon, 20 May 2024UK£2.5tUK£2.0tUK£125.9b17x20x1.2x
Wed, 17 Apr 2024UK£2.4tUK£2.1tUK£148.4b16.1x16.3x1.1x
Fri, 15 Mar 2024UK£2.3tUK£2.1tUK£144.9b16.3x16.1x1.1x
Sun, 11 Feb 2024UK£2.3tUK£2.0tUK£144.7b15.2x15.6x1.1x
Tue, 09 Jan 2024UK£2.3tUK£2.1tUK£193.2b15.1x12.1x1.1x
Thu, 07 Dec 2023UK£2.3tUK£2.1tUK£193.5b14.6x11.8x1.1x
Sat, 04 Nov 2023UK£2.2tUK£2.1tUK£193.8b14x11.6x1x
Mon, 02 Oct 2023UK£2.3tUK£2.2tUK£186.2b14.6x12.6x1.1x
Wed, 30 Aug 2023UK£2.3tUK£2.2tUK£184.0b14.6x12.5x1.1x
Fri, 28 Jul 2023UK£2.4tUK£2.2tUK£206.4b14.3x11.7x1.1x
Price to Earnings Ratio

11.7x


Total Market Cap: UK£2.4tTotal Earnings: UK£206.4bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.8x202420252026
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 17.8x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 7.2% per year over the last three years.
  • Revenues have also declined 2.3% 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 Market0.26%
Energy3.07%
Consumer Staples2.85%
Real Estate2.28%
Financials0.22%
Industrials0.13%
Utilities0.069%
Tech-0.30%
Consumer Discretionary-0.46%
Telecom-0.48%
Healthcare-1.81%
Materials-2.75%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.4x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.2%, which is higher than its past year's earnings growth of 7.7% per year.
  • The Financials sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average of 10.3x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings decline of 1.2% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.8% 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
BATS British American TobaccoUK£46.606.4%
+UK£6.0b		21.5%PE13.1xConsumer Staples
SHEL ShellUK£32.203.6%
+UK£6.0b		23.2%PE12.8xEnergy
HSBA HSBC HoldingsUK£14.811.3%
+UK£3.2b		57.1%PB1.7xFinancials
BP. BPUK£5.223.3%
+UK£2.6b		30.2%PE33.8xEnergy
ROR RotorkUK£4.8567.1%
+UK£1.6b		50.0%PE34.2xIndustrials
See more

Market Insights

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Latest News

ULVR
UK£46.39
Unilever
7D
1.2%
1Y
-6.7%
GSK
UK£18.82
GSK
7D
-3.7%
1Y
40.0%
SHEL
UK£32.20
Shell
7D
3.6%
1Y
23.2%
Narrative Update • Jul 20

SHEL: Future Returns Will Reflect ARC Deal And LNG Expansion Shift

Shell's analyst fair value has been trimmed by around £0.86 per share. This reflects slightly softer revenue growth assumptions, offset in part by firmer profit margin and P/E expectations that keep the overall risk/reward profile broadly balanced in recent research.
BP.
UK£5.22
BP
7D
3.3%
1Y
30.2%
ROR
UK£4.85
Rotork
7D
67.1%
1Y
50.0%
Narrative Update • Jul 17

ROR: Future Upside Will Depend On Closing The ABB Takeover

Rotork's updated analyst price target edges higher from £3.90 to £4.11. This reflects a slightly lower discount rate, broadly steady revenue growth and margin assumptions, and a modestly higher future P/E multiple, even as several firms have recently shifted their ratings to Hold with a £5.03 target.
NWG
UK£6.65
NatWest Group
7D
1.6%
1Y
32.2%
Narrative Update • Jul 17

NWG: Structural Hedge Reinvestment And Buybacks Will Drive Future Upside Re Rating

NatWest Group's analyst price target has been nudged higher to around £7.61 from about £7.44, with analysts pointing to updated assumptions on fair value, discount rate and P/E alongside recent target increases and ratings support from several banks. Analyst Commentary Recent research on NatWest Group highlights a split between more optimistic analysts, who see room for the shares to reflect higher fair value, and more cautious voices, who are focused on execution and sector level risks.
RIO
UK£66.28
Rio Tinto Group
7D
-1.6%
1Y
43.8%
Narrative Update • Jul 16

RIO: Iron Ore And Copper Project Execution Will Support Future Upside

The analyst price target for Rio Tinto Group has been trimmed by £2.10, as analysts factor in slightly higher discount rates, more cautious revenue growth assumptions, and recent shifts in sentiment around valuation and key commodity fundamentals. Analyst Commentary Recent research on Rio Tinto Group shows a mix of caution and optimism, with price targets adjusted in both directions as analysts reassess valuation, commodity exposure and project execution.
AZN
UK£123.80
AstraZeneca
7D
-1.8%
1Y
21.0%
Narrative Update • Jul 16

AZN: Trial Setbacks And Oncology Deals Will Shape Medium Term Credibility

AstraZeneca's updated analyst price targets show a modest reset lower, with recent research pointing to greater uncertainty around medium term revenue catalysts and mixed trial outcomes, even as some analysts continue to highlight areas of support within the broader pipeline and existing portfolio. Analyst Commentary Recent research on AstraZeneca highlights a mix of caution and support, with several firms revisiting their models after the CARDIO TTRansform outcome and reassessing how much risk investors are taking on around the medium term growth story.
ANTO
UK£34.65
Antofagasta
7D
-8.2%
1Y
77.1%
AAL
UK£33.65
Anglo American
7D
-6.1%
1Y
45.9%
Narrative Update • Jul 15

AAL: Copper Shift And Chile Projects Will Drive Future Rerating

Analysts have nudged the fair value estimate for Anglo American slightly lower to around £48 from about £50, even as external price targets have been raised into the £33.50 to £45.00 range. They cite a mix of higher assumed revenue growth, modestly softer profit margins, and ongoing cost and freight risks in key iron ore markets, balanced against stronger copper driven expectations.
RR.
UK£13.58
Rolls-Royce Holdings
7D
-4.1%
1Y
35.8%
Narrative Update • Jul 09

RR.: Defence Upside And Buybacks Will Shape Balanced Future Re Rating Potential

The updated analyst price target for Rolls-Royce Holdings has increased by about £0.54 per share. Analysts cite refreshed fair value assumptions, along with expectations for revenue growth and future P/E, as key drivers of this change.
HSBA
UK£14.81
HSBC Holdings
7D
1.3%
1Y
57.1%
IAG
UK£4.38
International Consolidated Airlines Group
7D
-4.8%
1Y
15.4%
Narrative Update • Jul 07

IAG: Dividend Restart And Updated Earnings Assumptions Will Shape Future Returns

The analyst price target for International Consolidated Airlines Group has been raised by approximately £0.23. Analysts point to updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E, alongside recent target increases from several brokers, as the main drivers of the change.
BATS
UK£46.60
British American Tobacco
7D
6.4%
1Y
21.5%
IMB
UK£28.45
Imperial Brands
7D
6.2%
1Y
-2.9%
III
UK£25.12
3i Group
7D
-6.5%
1Y
-42.2%