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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 09, 2026
DataAggregated Company Financials
Companies1094
  • 7D1.3%
  • 3M6.6%
  • 1Y20.8%
  • YTD1.1%

The market is up 1.3% over the last week, with the Industrials sector leading the way, up 7.1%. On the other hand, with a decline of 4.7%, the Energy sector is lagging behind. As for the past 12 months, the market is up 21%. 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, 09 Jan 2026UK£2.9tUK£2.0tUK£138.0b16.6x20.8x1.5x
Sun, 07 Dec 2025UK£2.8tUK£2.0tUK£138.5b16.1x20.1x1.4x
Tue, 04 Nov 2025UK£2.8tUK£2.0tUK£138.7b16.4x20.1x1.4x
Thu, 02 Oct 2025UK£2.7tUK£1.9tUK£135.5b16.5x20.1x1.4x
Sat, 30 Aug 2025UK£2.7tUK£1.9tUK£135.3b15.9x19.7x1.4x
Mon, 28 Jul 2025UK£2.6tUK£1.9tUK£125.2b16.4x20.5x1.3x
Wed, 25 Jun 2025UK£2.5tUK£1.9tUK£126.9b16.3x19.5x1.3x
Fri, 23 May 2025UK£2.5tUK£2.0tUK£126.6b16.3x19.6x1.3x
Sun, 20 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Tue, 18 Mar 2025UK£2.5tUK£2.0tUK£136.0b15.2x18.3x1.2x
Thu, 13 Feb 2025UK£2.5tUK£2.0tUK£121.9b16.4x20.9x1.3x
Sat, 11 Jan 2025UK£2.4tUK£2.1tUK£124.7b15.8x19.3x1.2x
Mon, 09 Dec 2024UK£2.4tUK£2.0tUK£122.3b16.5x20x1.2x
Wed, 06 Nov 2024UK£2.4tUK£2.0tUK£118.0b16.3x20.4x1.2x
Fri, 04 Oct 2024UK£2.4tUK£2.0tUK£118.5b16.6x20.5x1.2x
Sun, 01 Sep 2024UK£2.5tUK£2.0tUK£119.2b16.9x20.7x1.2x
Tue, 30 Jul 2024UK£2.4tUK£2.0tUK£127.1b16.5x19.2x1.2x
Thu, 27 Jun 2024UK£2.4tUK£2.0tUK£132.3b16.3x18.3x1.2x
Sat, 25 May 2024UK£2.5tUK£2.0tUK£126.3b17.2x19.6x1.2x
Mon, 22 Apr 2024UK£2.4tUK£2.1tUK£149.1b15.6x16x1.1x
Wed, 20 Mar 2024UK£2.3tUK£2.1tUK£145.0b15.9x16.1x1.1x
Fri, 16 Feb 2024UK£2.3tUK£2.0tUK£144.9b15.2x15.6x1.1x
Sun, 14 Jan 2024UK£2.3tUK£2.1tUK£193.4b14.9x12x1.1x
Tue, 12 Dec 2023UK£2.3tUK£2.1tUK£194.1b14.7x11.8x1.1x
Thu, 09 Nov 2023UK£2.2tUK£2.2tUK£194.8b13.8x11.5x1x
Sat, 07 Oct 2023UK£2.3tUK£2.2tUK£186.2b13.9x12.3x1.1x
Mon, 04 Sep 2023UK£2.3tUK£2.2tUK£184.9b14.5x12.5x1.1x
Wed, 02 Aug 2023UK£2.4tUK£2.2tUK£194.8b14.5x12.2x1.1x
Fri, 30 Jun 2023UK£2.3tUK£2.2tUK£209.0b14.1x11.1x1.1x
Sun, 28 May 2023UK£2.4tUK£2.2tUK£213.9b14x11.2x1.1x
Tue, 25 Apr 2023UK£2.5tUK£2.2tUK£178.6b14.2x13.9x1.1x
Thu, 23 Mar 2023UK£2.3tUK£2.2tUK£182.7b13.7x12.6x1.1x
Sat, 18 Feb 2023UK£2.6tUK£2.2tUK£202.9b13.8x12.7x1.2x
Mon, 16 Jan 2023UK£2.5tUK£2.1tUK£184.7b13.8x13.7x1.2x
Price to Earnings Ratio

13.7x


Total Market Cap: UK£2.5tTotal Earnings: UK£184.7bTotal 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 9.3% 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 Market1.28%
Industrials7.07%
Utilities3.80%
Real Estate3.37%
Healthcare2.61%
Materials2.39%
Tech1.95%
Consumer Discretionary1.20%
Telecom0.70%
Financials0.59%
Consumer Staples-2.78%
Energy-4.72%
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 52.9x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.2%, which is higher than its past year's earnings growth of 8.4% 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 7.2% 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
RR. Rolls-Royce HoldingsUK£12.7310.7%
+UK£10.3b		118.9%PE18.4xIndustrials
BA. BAE SystemsUK£20.2318.0%
+UK£9.2b		70.5%PE30.5xIndustrials
AZN AstraZenecaUK£141.762.8%
+UK£6.0b		29.0%PE31.4xHealthcare
HSBA HSBC HoldingsUK£11.951.8%
+UK£3.7b		49.0%PB1.4xFinancials
RIO Rio Tinto GroupUK£61.943.3%
+UK£3.2b		28.9%PE13.2xMaterials
See more

Market Insights

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Latest News

RIO
UK£61.94
Rio Tinto Group
7D
3.3%
1Y
28.9%
ABF
UK£18.50
Associated British Foods
7D
-13.0%
1Y
-5.9%
BA.
UK£20.23
BAE Systems
7D
18.0%
1Y
70.5%
AZN
UK£141.76
AstraZeneca
7D
2.8%
1Y
29.0%
IMB
UK£30.20
Imperial Brands
7D
-3.2%
1Y
14.7%
SHEL
UK£25.62
Shell
7D
-6.5%
1Y
-2.0%
HSBA
UK£11.95
HSBC Holdings
7D
1.8%
1Y
49.0%
III
UK£31.50
3i Group
7D
-3.5%
1Y
-13.7%

III: Slower Momentum Will Still Deliver Compounding Returns And Dividend Support

Analysts have trimmed their 3i Group price target to £31.50 from £41.00, reflecting updated assumptions for the discount rate and earnings multiples as they factor in what they describe as slower momentum for the company. Analyst Commentary Recent research on 3i Group is skewed toward caution, with bearish analysts pointing to slower momentum and a valuation reset as key reasons for trimming expectations.
TSCO
UK£4.22
Tesco
7D
-4.5%
1Y
14.7%
BP.
UK£4.16
BP
7D
-4.0%
1Y
-1.7%

BP.: Future Returns Will Reflect Portfolio Reset Divestments And Leadership Transition

Analysts have trimmed their overall price expectations for BP, reflected in a slightly lower fair value estimate and a modestly higher future P/E assumption. Recent target cuts and rating changes are balancing more upbeat views that reference an unchanged or higher price target across both US$ and £ share lines.
GSK
UK£18.91
GSK
7D
3.6%
1Y
40.1%

GSK: Limited Pipeline Readouts Will Cap Multiple Expansion Potential

Analysts have lifted their implied fair value for GSK from £11.20 to £14.55 per share, while trimming long term revenue growth and margin assumptions. They have also assigned a higher future P/E in light of recent price target moves and concerns about limited pipeline readouts and the new CEO's room to maneuver.
ULVR
UK£46.65
Unilever
7D
-4.0%
1Y
-9.5%

ULVR: Margin Resilience And Q4 Volume Support A More Constructive Outlook

Narrative Update The updated analyst price target for Unilever reflects a shift from £40.00 to £41.00 per share, as analysts weigh contained earnings growth, pressure on pricing and operating margins, and potential sentiment risks around FY26 margin guidance and U.S. growth contributions. Analyst Commentary Recent research reflects a slightly higher price target of £41.00 per share, but with a cautious tone around earnings quality, valuation and medium term guidance.
RR.
UK£12.73
Rolls-Royce Holdings
7D
10.7%
1Y
118.9%
NG.
UK£11.83
National Grid
7D
3.6%
1Y
26.6%

Investors Appear Satisfied With National Grid plc's (LON:NG.) Prospects

Jan 05
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BATS
UK£40.10
British American Tobacco
7D
-4.8%
1Y
34.1%
REL
UK£31.48
RELX
7D
4.2%
1Y
-17.3%

Shareholders Would Enjoy A Repeat Of RELX's (LON:REL) Recent Growth In Returns

Dec 29
Shareholders Would Enjoy A Repeat Of RELX's (LON:REL) Recent Growth In Returns