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U.K. (FTSE) Market Analysis & Valuation

UpdatedAug 18, 2026
DataAggregated Company Financials
Companies1064
  • 7D-1.4%
  • 3M3.9%
  • 1Y17.0%
  • YTD7.9%

Over the last 7 days, the market has dropped 1.4%, driven by a decline of 4.5% in the Materials sector. As for the longer term, the market has actually risen by 17% in the last year. Earnings are forecast to grow by 12% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 18 Aug 2026UK£3.0tUK£2.1tUK£173.7b16.4x17.5x1.4x
Thu, 16 Jul 2026UK£2.9tUK£2.0tUK£163.8b15.8x18x1.5x
Sat, 13 Jun 2026UK£3.0tUK£2.0tUK£164.6b15.9x18x1.5x
Mon, 11 May 2026UK£2.9tUK£2.0tUK£161.0b16.1x18.1x1.4x
Wed, 08 Apr 2026UK£2.9tUK£2.0tUK£158.1b15.1x18.4x1.4x
Fri, 06 Mar 2026UK£2.9tUK£2.0tUK£152.0b16.4x19.3x1.5x
Sun, 01 Feb 2026UK£2.9tUK£1.9tUK£137.7b16.9x21.3x1.5x
Tue, 30 Dec 2025UK£2.8tUK£2.0tUK£138.0b16.1x20.5x1.4x
Thu, 27 Nov 2025UK£2.8tUK£2.0tUK£139.6b16.2x19.9x1.4x
Sat, 25 Oct 2025UK£2.8tUK£1.9tUK£135.3b16.7x20.5x1.4x
Mon, 22 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.4x19.6x1.4x
Wed, 20 Aug 2025UK£2.7tUK£1.9tUK£134.2b15.9x19.8x1.4x
Fri, 18 Jul 2025UK£2.5tUK£1.9tUK£127.6b15.9x19.8x1.3x
Sun, 15 Jun 2025UK£2.5tUK£1.9tUK£127.3b16.1x19.7x1.3x
Tue, 13 May 2025UK£2.5tUK£2.0tUK£131.3b15.9x18.7x1.2x
Thu, 10 Apr 2025UK£2.2tUK£2.0tUK£137.0b14.3x16x1.1x
Sat, 08 Mar 2025UK£2.5tUK£2.0tUK£137.6b15.5x18.1x1.2x
Mon, 03 Feb 2025UK£2.5tUK£2.0tUK£124.1b15.9x20.3x1.2x
Wed, 01 Jan 2025UK£2.4tUK£2.0tUK£122.7b15.9x19.6x1.2x
Fri, 29 Nov 2024UK£2.4tUK£2.0tUK£122.9b16.4x19.8x1.2x
Sun, 27 Oct 2024UK£2.4tUK£2.0tUK£123.6b16.2x19.7x1.2x
Tue, 24 Sep 2024UK£2.4tUK£2.0tUK£118.1b16.9x19.9x1.2x
Thu, 22 Aug 2024UK£2.4tUK£2.0tUK£120.1b17x20.3x1.2x
Sat, 20 Jul 2024UK£2.4tUK£2.0tUK£129.3b16.7x18.7x1.2x
Mon, 17 Jun 2024UK£2.4tUK£2.0tUK£130.3b16.4x18.6x1.2x
Wed, 15 May 2024UK£2.5tUK£2.1tUK£135.8b17x18.5x1.2x
Fri, 12 Apr 2024UK£2.4tUK£2.1tUK£147.6b15.9x16.2x1.1x
Sun, 10 Mar 2024UK£2.3tUK£2.1tUK£144.3b15.8x16.2x1.1x
Tue, 06 Feb 2024UK£2.3tUK£2.1tUK£178.7b14.8x12.7x1.1x
Thu, 04 Jan 2024UK£2.3tUK£2.1tUK£194.1b15.1x12x1.1x
Sat, 02 Dec 2023UK£2.3tUK£2.1tUK£193.0b14.4x11.8x1.1x
Mon, 30 Oct 2023UK£2.2tUK£2.2tUK£186.2b13.4x11.8x1x
Wed, 27 Sep 2023UK£2.3tUK£2.2tUK£187.2b14.3x12.5x1.1x
Fri, 25 Aug 2023UK£2.3tUK£2.2tUK£184.8b14.4x12.2x1.1x
Price to Earnings Ratio

12.2x


Total Market Cap: UK£2.3tTotal Earnings: UK£184.8bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.9x202420252026
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 17.9x.
Past Earnings Growth
  • The earnings for British listed companies have declined 2.0% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

Which sectors have driven the changes within the U.K. Market?

GB Market-1.36%
Telecom1.39%
Utilities0.54%
Energy0.47%
Tech0.16%
Financials-0.079%
Real Estate-0.49%
Industrials-0.74%
Consumer Discretionary-1.45%
Consumer Staples-3.25%
Healthcare-3.49%
Materials-4.46%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 50.9x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 18.0%, which is higher than its past year's earnings growth of 7.6% per year.
  • The Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 17.6x.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 3.1% per year.
  • In contrast, the Energy industry is expected to see its earnings growth to stay flat 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£15.641.5%
+UK£2.0b		44.5%PE42.7xIndustrials
SHEL ShellUK£33.301.0%
+UK£1.7b		26.5%PE9.6xEnergy
NG. National GridUK£11.901.2%
+UK£696.6m		14.4%PE18.3xUtilities
AV. AvivaUK£7.303.3%
+UK£687.9m		10.7%PE39.1xFinancials
HSBA HSBC HoldingsUK£15.310.3%
+UK£675.8m		62.9%PB1.8xFinancials
See more

Market Insights

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Latest News

AZN
UK£115.60
AstraZeneca
7D
-3.6%
1Y
-1.5%
IHG
US$159.90
InterContinental Hotels Group
7D
2.8%
1Y
33.7%
Narrative Update • Aug 17

IHG: RevPAR Momentum Will Drive Future Repricing Toward US Peers

InterContinental Hotels Group's updated analyst price target of $195, increased from the recent $160 to $188 range highlighted in Street research, reflects analysts' focus on RevPAR momentum, improving net unit growth and brand strategy execution as key drivers for the new fair value view. Analyst Commentary Recent Street research on InterContinental Hotels Group shows a cluster of bullish analysts lifting price targets and pointing to specific operating drivers that they see as supporting the current valuation case.
AV.
UK£7.30
Aviva
7D
3.3%
1Y
10.7%
BATS
UK£41.41
British American Tobacco
7D
-2.1%
1Y
-2.8%
Narrative Update • Aug 16

BATS: AI Technology Partnership And Buybacks Will Support Future Returns

The analyst price target for British American Tobacco has been revised from £50.27 to £51.50, with analysts citing updated assumptions for discount rate, revenue growth, profit margin and future P/E to support the new view. What’s in the News for British American Tobacco ITC Infotech expanded its multi year technology partnership with British American Tobacco to support AI driven transformation of the company’s technology systems across Poland, Romania, India, Malaysia and Mexico, building on an existing relationship.
ANTO
UK£36.16
Antofagasta
7D
-10.0%
1Y
72.0%
SHEL
UK£33.30
Shell
7D
1.0%
1Y
26.5%
RIO
UK£71.26
Rio Tinto Group
7D
-5.1%
1Y
60.2%
Narrative Update • Aug 14

RIO: Fair Value View Weighs Cost Cuts Against China And Commodity Demand Risks

Analysts have trimmed the fair value estimate for Rio Tinto Group from £77.68 to £75.50. This reflects slightly lower revenue growth assumptions, partly offset by firmer profit margin expectations and a modestly lower future P/E multiple, in line with recent mixed price target moves and rating changes across the Street.
VOD
UK£1.20
Vodafone Group
7D
2.4%
1Y
37.5%
Narrative Update • Aug 13

VOD: Fair Value View Balances German Pressures And UK Deal Opportunity

Analysts have raised their fair value estimate for Vodafone Group from £1.04 to £1.14 per share, reflecting recent Street research that includes higher price targets from Morgan Stanley at £1.15 and Deutsche Bank at £1.50, alongside mixed views on execution in key markets. Analyst Commentary Recent Street research on Vodafone Group presents a mixed picture.
BGEO
UK£133.20
Lion Finance Group
7D
6.6%
1Y
72.7%
Narrative Update • Aug 12

BGEO: Expanded Buybacks Will Support Higher Future Multiple

Analysts have raised their fair value estimate for Lion Finance Group from £139.0 to £145.3, reflecting updated assumptions on discount rate, revenue growth, profit margin and future P/E, as well as a recent increase in the Street price target to £13,900 from £13,100. What’s in the News for Lion Finance Group On August 11, 2026, Lion Finance Group increased its equity buyback plan authority by GEL 59 million, bringing total authorization to GEL 424.7 million.
GSK
UK£18.52
GSK
7D
-3.9%
1Y
28.7%
DGE
UK£17.04
Diageo
7D
-4.9%
1Y
-16.3%
ULVR
UK£45.13
Unilever
7D
-2.7%
1Y
-11.2%
HSBA
UK£15.31
HSBC Holdings
7D
0.3%
1Y
62.9%
RR.
UK£15.64
Rolls-Royce Holdings
7D
1.5%
1Y
44.5%
Narrative Update • Aug 06

RR.: Defence Strength And Cash Returns Will Support Measured Re Rating Potential

Analysts have raised their fair value estimate for Rolls-Royce Holdings to £16.27 from £14.72, reflecting higher price targets and expectations for stronger margins, which offset slightly more conservative growth and discount rate assumptions. Analyst Commentary Recent Street research on Rolls-Royce Holdings points to a firmly constructive tone, with several large banks lifting price targets and reassessing the company’s execution and earnings power.
NG.
UK£11.90
National Grid
7D
1.2%
1Y
14.4%
REL
UK£24.70
RELX
7D
-5.3%
1Y
-30.2%
Narrative Update • Aug 03

REL: AI Data Assets And Buybacks Will Support Future Earnings Multiple

Analysts have nudged their fair value estimate for RELX lower to about £33.91 from roughly £35.83, reflecting slightly higher discount rate assumptions alongside updated views on revenue growth, profit margins and future P/E multiples, informed by recent price target increases and positive commentary on the durability of growth in key divisions and the role of new AI products. Analyst Commentary Recent Street research on RELX shows a mix of optimism about growth durability and AI opportunities, with some caution around valuation and segment level risks.