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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 31, 2026
DataAggregated Company Financials
Companies1092
  • 7D0.6%
  • 3M6.0%
  • 1Y18.8%
  • YTD3.5%

The Energy sector gained 4.4% while the market remained flat over the last week. Meanwhile, the market is actually up 19% over the past year. 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
Sat, 31 Jan 2026UK£2.9tUK£1.9tUK£136.7b16.9x21.5x1.5x
Mon, 29 Dec 2025UK£2.8tUK£2.0tUK£137.9b16.1x20.5x1.4x
Wed, 26 Nov 2025UK£2.8tUK£2.0tUK£138.9b16.2x19.8x1.4x
Fri, 24 Oct 2025UK£2.8tUK£1.9tUK£135.8b16.6x20.3x1.4x
Sun, 21 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.4x19.6x1.4x
Tue, 19 Aug 2025UK£2.7tUK£1.9tUK£134.1b16.1x19.8x1.4x
Thu, 17 Jul 2025UK£2.5tUK£1.9tUK£127.6b16x19.7x1.3x
Sat, 14 Jun 2025UK£2.5tUK£1.9tUK£127.3b16.1x19.7x1.3x
Mon, 12 May 2025UK£2.4tUK£2.0tUK£130.8b16x18.6x1.2x
Wed, 09 Apr 2025UK£2.3tUK£2.0tUK£137.0b14.4x16.5x1.1x
Fri, 07 Mar 2025UK£2.5tUK£2.0tUK£137.6b15.6x18.1x1.2x
Sun, 02 Feb 2025UK£2.5tUK£2.0tUK£124.1b15.9x20.3x1.2x
Tue, 31 Dec 2024UK£2.4tUK£2.0tUK£122.8b15.9x19.4x1.2x
Thu, 28 Nov 2024UK£2.4tUK£2.0tUK£122.7b16.3x19.8x1.2x
Sat, 26 Oct 2024UK£2.4tUK£2.0tUK£123.5b16.2x19.7x1.2x
Mon, 23 Sep 2024UK£2.4tUK£2.0tUK£118.1b16.9x19.9x1.2x
Wed, 21 Aug 2024UK£2.4tUK£2.0tUK£121.4b17x20.1x1.2x
Fri, 19 Jul 2024UK£2.4tUK£2.0tUK£129.2b16.7x18.8x1.2x
Sun, 16 Jun 2024UK£2.4tUK£2.1tUK£130.6b16.4x18.6x1.2x
Tue, 14 May 2024UK£2.5tUK£2.1tUK£136.0b16.9x18.4x1.2x
Thu, 11 Apr 2024UK£2.4tUK£2.1tUK£147.3b16x16.3x1.1x
Sat, 09 Mar 2024UK£2.3tUK£2.1tUK£145.3b16x16.1x1.1x
Mon, 05 Feb 2024UK£2.3tUK£2.1tUK£183.3b14.8x12.5x1.1x
Wed, 03 Jan 2024UK£2.4tUK£2.1tUK£194.3b15.1x12.2x1.1x
Fri, 01 Dec 2023UK£2.3tUK£2.1tUK£193.6b14.3x11.7x1.1x
Sun, 29 Oct 2023UK£2.2tUK£2.2tUK£186.2b13.4x11.8x1x
Tue, 26 Sep 2023UK£2.3tUK£2.2tUK£186.8b14.4x12.5x1.1x
Thu, 24 Aug 2023UK£2.3tUK£2.1tUK£184.2b14.4x12.3x1.1x
Sat, 22 Jul 2023UK£2.4tUK£2.2tUK£206.7b14.1x11.6x1.1x
Mon, 19 Jun 2023UK£2.4tUK£2.2tUK£207.5b14.3x11.5x1.1x
Wed, 17 May 2023UK£2.4tUK£2.2tUK£218.8b14.4x11.1x1.1x
Fri, 14 Apr 2023UK£2.5tUK£2.2tUK£179.3b13.9x13.7x1.1x
Sun, 12 Mar 2023UK£2.5tUK£2.2tUK£189.2b13.5x13.1x1.1x
Tue, 07 Feb 2023UK£2.5tUK£2.1tUK£185.7b14x13.5x1.2x
Price to Earnings Ratio

13.5x


Total Market Cap: UK£2.5tTotal Earnings: UK£185.7bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.8x202420252026
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 21.5x which is higher than its 3-year average PE of 16.8x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.7% 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 Market0.65%
Energy4.40%
Utilities3.68%
Financials2.37%
Real Estate1.41%
Consumer Staples1.29%
Healthcare0.95%
Materials-0.17%
Consumer Discretionary-1.30%
Telecom-1.33%
Tech-1.91%
Industrials-4.05%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 19.8x.
    • Analysts expect its future annual earnings growth (31.5%) to be largely in line with prior year's earnings growth.
    • The market's confidence could indicate that the market believes that analysts are underestimating future growth.
Forecasted Growth
  • Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 31% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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
HSBA HSBC HoldingsUK£12.854.4%
+UK£9.3b		52.0%PB1.6xFinancials
SHEL ShellUK£27.944.0%
+UK£5.9b		4.3%PE14.9xEnergy
LLOY Lloyds Banking GroupUK£1.097.2%
+UK£4.3b		74.8%PB1.4xFinancials
BP. BPUK£4.644.5%
+UK£3.0b		9.8%PE64.6xEnergy
GSK GSKUK£18.774.2%
+UK£3.0b		33.6%PE13.7xHealthcare
See more

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Latest News

LLOY
UK£1.09
Lloyds Banking Group
7D
7.2%
1Y
74.8%
RR.
UK£12.11
Rolls-Royce Holdings
7D
-3.4%
1Y
99.8%
HSBA
UK£12.85
HSBC Holdings
7D
4.4%
1Y
52.0%

Hang Seng Privatization And Hong Kong Real Estate Pressures Will Weigh On Future Returns

Catalysts About HSBC Holdings HSBC Holdings is a global banking and financial services group with a large presence in Hong Kong, the U.K., Asia and the Middle East. What are the underlying business or industry changes driving this perspective?
NG.
UK£12.35
National Grid
7D
3.6%
1Y
26.0%

NG.: Dividend Outlook And Regulation Will Shape Steady Long Term Returns

Narrative Update Overview Analysts have modestly raised their fair value estimate for National Grid to £12.31 from £12.08, citing updated assumptions for future revenue growth, profit margins and P/E. These updates still use an unchanged 7.07% discount rate.
ULVR
UK£49.41
Unilever
7D
1.6%
1Y
-5.2%
GSK
UK£18.77
GSK
7D
4.2%
1Y
33.6%
REL
UK£25.79
RELX
7D
-11.7%
1Y
-35.9%

REL: Neutral AI Stance Will Support Future Multiple Re Rating Potential

Analysts have trimmed their fair value estimate for RELX to about €42.83 from €43.85, reflecting slightly adjusted assumptions for revenue growth, profit margins and future P/E following recent research that highlights uncertainty around artificial intelligence and a Neutral stance from new Street coverage. Analyst Commentary Recent Street research frames RELX as a solid business with a balanced risk and reward profile, especially around how artificial intelligence could affect its valuation and growth outlook.
EXPN
UK£27.58
Experian
7D
-8.9%
1Y
-31.2%

EXPN: AI Mortgage Scoring Opportunities Will Support Upside In Credit Score Competition

Narrative Update on Experian Analysts have modestly reduced their fair value estimate for Experian to £42.35 from £42.57, as they factor in slightly higher discount rates, a small adjustment to profit margins, and ongoing interest in the company's artificial intelligence driven mortgage opportunities highlighted in recent Street research. Analyst Commentary Recent Street research reflects a mix of optimism around Experian's AI related mortgage initiatives and some caution around valuation and execution risks.
FRES
UK£37.02
Fresnillo
7D
-11.2%
1Y
431.9%

FRES: Higher Metal Price Optimism Will Likely Mask Execution And Margin Risks

Analysts have modestly revised their fair value estimate for Fresnillo to £16.62 per share, reflecting updated assumptions around revenue, profit margins and a slightly lower future P/E multiple following recent price target increases from several banks. Analyst Commentary Recent Street research on Fresnillo points to a mixed stance, with some high profile price target adjustments sitting alongside more cautious views on the shares.
BA.
UK£19.74
BAE Systems
7D
-2.6%
1Y
61.3%

BA.: Higher Defence Orders And Guidance Will Support Earnings Repricing

We are nudging our BAE Systems fair value estimate higher to £25.51 from £25.00. This reflects analysts' higher price targets in the £1,860 to £2,400 range, supported by updated assumptions on revenue growth and P/E multiples, even as margin expectations are slightly lower.
SHEL
UK£27.94
Shell
7D
4.0%
1Y
4.3%

SHEL: Future Returns Will Reflect LNG Strength And Refining Cash Generation

Our Shell fair value estimate edges up to €31.04 from €31.03 as analysts lift price targets across US dollar and GBp lines, pointing to expectations for resilient refining conditions, disciplined capital allocation and LNG driven growth targets, even as views on crude and valuation remain mixed. Analyst Commentary Bullish Takeaways Bullish analysts lifting US dollar and GBp targets point to confidence in Shell's ability to keep capital allocation disciplined, with a focus on cost control and shareholder returns that they view as supportive for equity value.
BP.
UK£4.64
BP
7D
4.5%
1Y
9.8%

BP.: Future Returns Will Reflect Portfolio Sales Crude Outlook And Leadership Change

Analysts have slightly trimmed their blended price target for BP by adjusting revenue growth and margin assumptions and by applying a marginally higher future P/E. This reflects mixed recent research, with some firms cutting targets in light of a bearish crude outlook and the CEO transition, while others have lifted targets based on balance sheet strength and the refreshed company strategy.
AAF
UK£3.19
Airtel Africa
7D
-11.4%
1Y
121.1%

AAF: Recent Downgrade And Full P/E Will Curb Near-Term Upside

Analysts have trimmed their price target for Airtel Africa to £4.00 per share, reflecting a more cautious stance after recent research updates while still incorporating updated fair value assumptions and P/E expectations. Analyst Commentary Recent research has shifted to a more neutral stance on Airtel Africa, with the new £4.00 price target aligning closely with the updated 400 GBp target.
RIO
UK£67.38
Rio Tinto Group
7D
2.5%
1Y
37.8%

RIO: Megamerger Talks And Critical Mineral Moves Will Shape Medium Term Outlook

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AHT
UK£46.87
Ashtead Group
7D
-10.3%
1Y
-11.7%

AHT: Buybacks And Rising Dividend Policy Will Drive Future Upside

The latest analyst update nudges the Ashtead Group fair value estimate from £57.25 to £58.85, with analysts pointing to revised assumptions for revenue growth, profit margins and future P/E as the key drivers behind the change. What's in the News Ashtead Group has an authorized share repurchase program of up to US$1,500m, running until the end of April 2027, as previously announced.
LSEG
UK£81.22
London Stock Exchange Group
7D
-7.4%
1Y
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LSEG: Data Partnerships And AI Integration Will Support Long-Term Upside Potential

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