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U.K. (FTSE) Market Analysis & Valuation

UpdatedMar 28, 2026
DataAggregated Company Financials
Companies1085
  • 7D0.4%
  • 3M0.7%
  • 1Y15.0%
  • YTD-0.2%

In the last week, the market has stayed flat, however the Materials sector stood out, gaining 4.3%. More promisingly, the market is up 15% over the past year. As for the next few years, earnings are expected to grow by 12% 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
Sun, 29 Mar 2026UK£2.8tUK£2.0tUK£157.6b14.6x17.7x1.4x
Tue, 24 Feb 2026UK£3.0tUK£2.0tUK£148.5b16.7x20.5x1.6x
Thu, 22 Jan 2026UK£2.9tUK£2.0tUK£137.8b16.6x21.1x1.5x
Sat, 20 Dec 2025UK£2.8tUK£2.0tUK£138.3b16x20.4x1.4x
Mon, 17 Nov 2025UK£2.8tUK£2.0tUK£139.2b16.4x20x1.4x
Wed, 15 Oct 2025UK£2.7tUK£1.9tUK£135.9b16.7x20.1x1.4x
Fri, 12 Sep 2025UK£2.7tUK£1.9tUK£135.5b16.3x19.8x1.4x
Sun, 10 Aug 2025UK£2.6tUK£1.9tUK£134.0b16.2x19.7x1.4x
Tue, 08 Jul 2025UK£2.5tUK£1.9tUK£127.0b16.2x19.6x1.3x
Thu, 05 Jun 2025UK£2.5tUK£1.9tUK£127.1b16.2x19.6x1.3x
Sat, 03 May 2025UK£2.4tUK£2.0tUK£131.6b15.8x18.6x1.2x
Mon, 31 Mar 2025UK£2.5tUK£2.0tUK£135.5b15.5x18.2x1.2x
Wed, 26 Feb 2025UK£2.5tUK£2.0tUK£137.3b16x18.2x1.2x
Fri, 24 Jan 2025UK£2.5tUK£2.1tUK£124.0b15.9x20.1x1.2x
Sun, 22 Dec 2024UK£2.4tUK£2.0tUK£122.8b16x19.4x1.2x
Tue, 19 Nov 2024UK£2.4tUK£2.0tUK£121.9b16.4x19.6x1.2x
Thu, 17 Oct 2024UK£2.4tUK£2.0tUK£119.0b16.7x20.4x1.2x
Sat, 14 Sep 2024UK£2.4tUK£2.0tUK£119.3b16.5x20.4x1.2x
Mon, 12 Aug 2024UK£2.4tUK£2.0tUK£123.3b16.4x19.6x1.2x
Wed, 10 Jul 2024UK£2.4tUK£2.0tUK£131.6b16.7x18.3x1.2x
Fri, 07 Jun 2024UK£2.5tUK£2.0tUK£129.4b16.7x19.1x1.2x
Sun, 05 May 2024UK£2.4tUK£2.1tUK£141.9b16.5x17.3x1.2x
Tue, 02 Apr 2024UK£2.4tUK£2.1tUK£146.0b16.4x16.5x1.1x
Thu, 29 Feb 2024UK£2.3tUK£2.0tUK£140.8b15.1x16.3x1.1x
Sat, 27 Jan 2024UK£2.3tUK£2.1tUK£193.0b15x11.9x1.1x
Mon, 25 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.2x12.1x1.1x
Wed, 22 Nov 2023UK£2.3tUK£2.1tUK£194.2b14.1x11.7x1.1x
Fri, 20 Oct 2023UK£2.3tUK£2.2tUK£187.3b13.6x12.2x1x
Sun, 17 Sep 2023UK£2.4tUK£2.2tUK£185.6b14.8x12.8x1.1x
Tue, 15 Aug 2023UK£2.3tUK£2.1tUK£184.6b14.4x12.6x1.1x
Thu, 13 Jul 2023UK£2.3tUK£2.2tUK£205.6b14x11.2x1.1x
Sat, 10 Jun 2023UK£2.4tUK£2.2tUK£210.0b14.3x11.3x1.1x
Mon, 08 May 2023UK£2.4tUK£2.2tUK£209.8b14.4x11.6x1.1x
Wed, 05 Apr 2023UK£2.4tUK£2.2tUK£180.2b13.6x13.3x1.1x
Price to Earnings Ratio

13.3x


Total Market Cap: UK£2.4tTotal Earnings: UK£180.2bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.1x202420252026
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 17.1x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 4.4% 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 Market0.41%
Materials4.32%
Healthcare2.48%
Energy2.16%
Financials0.72%
Consumer Staples-0.31%
Utilities-0.63%
Tech-0.82%
Telecom-1.14%
Consumer Discretionary-1.76%
Industrials-3.53%
Real Estate-3.68%
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 53.3x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.6%, which is higher than its past year's earnings growth of 7.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 32% over the next 5 years.
  • This is better than its past earnings growth rate of 0.7% 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
HSBA HSBC HoldingsUK£12.004.9%
+UK£9.6b		35.5%PB1.4xFinancials
AZN AstraZenecaUK£143.022.9%
+UK£6.3b		25.3%PE28.8xHealthcare
RIO Rio Tinto GroupUK£65.454.8%
+UK£4.9b		38.8%PE14.2xMaterials
GSK GSKUK£20.495.1%
+UK£3.9b		37.7%PE14.3xHealthcare
BP. BPUK£5.843.9%
+UK£3.4b		34.1%PE2206.5xEnergy
See more

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Latest News

GSK
UK£20.49
GSK
7D
5.1%
1Y
37.7%
AZN
UK£143.02
AstraZeneca
7D
2.9%
1Y
25.3%
CPG
UK£20.38
Compass Group
7D
-3.5%
1Y
-20.5%

CPG: Premium P/E And Margins Will Support Upside After Modest Discount Rate Shift

Compass Group's analyst price target has been trimmed by £1.00, as analysts factor in updated fair value and discount rate assumptions alongside refreshed views on revenue growth, margins and future P/E, consistent with the recent target cut reported by RBC Capital. Analyst Commentary Analysts cutting the price target by £1.00 are mainly fine tuning their models rather than signaling a major change in view.
III
UK£23.23
3i Group
7D
-14.0%
1Y
-37.4%
RIO
UK£65.45
Rio Tinto Group
7D
4.8%
1Y
38.8%
BA.
UK£20.67
BAE Systems
7D
-8.1%
1Y
32.1%
HSBA
UK£12.00
HSBC Holdings
7D
4.9%
1Y
35.5%
EXPN
UK£25.03
Experian
7D
-5.4%
1Y
-30.9%

EXPN: Data And AI Capabilities Will Support Future Upside Despite Higher Required Returns

Narrative Update The analyst price target for Experian has been trimmed to £4,100. This modest fair value adjustment reflects analysts' updated assumptions on the discount rate and P/E, alongside recent target cuts from major firms.
REL
UK£23.93
RELX
7D
-4.0%
1Y
-38.4%

REL: Q4 Resilience To AI Concerns Will Support Future Multiple Re Rating

Narrative Update on RELX The analyst price target for RELX has been adjusted slightly, with recent Street research pointing to mixed moves in implied £ price levels as analysts weigh resilient Q4 results against ongoing uncertainty around artificial intelligence impacts. Analyst Commentary Recent Street commentary on RELX reflects a split view, with some analysts highlighting resilient execution around Q4 results and others focusing on valuation and ongoing uncertainty around artificial intelligence.
AAL
UK£30.61
Anglo American
7D
6.8%
1Y
19.6%
ULVR
UK£44.80
Unilever
7D
-2.5%
1Y
-13.2%
BP.
UK£5.84
BP
7D
3.9%
1Y
34.1%

BP.: Future Returns Will Depend On Elevated Middle East Oil Supply Risks

Narrative Update The analyst price target for BP has been raised by £0.22. Analysts point to higher oil and gas price assumptions, tighter projected crude balances, and stronger valuation support for integrated energy majors as the key drivers of their updated view.
SHEL
UK£34.82
Shell
7D
1.4%
1Y
24.5%
LSEG
UK£82.46
London Stock Exchange Group
7D
-4.8%
1Y
-28.5%

LSEG: Activist Review And Buybacks Will Drive Future Share Price Upside

Analysts have trimmed their fair value estimate for London Stock Exchange Group slightly to £122.32 from £123.11, reflecting modestly lower assumptions for revenue growth, profit margins and future P/E multiples. What's in the News Elliott Investment Management is pressing London Stock Exchange Group to conduct a full review of its portfolio, which includes its data business, exchange operations and a 51% stake in Tradeweb Markets, and is urging up to £5b of share buybacks over the next 12 months (Bloomberg report).
RR.
UK£11.09
Rolls-Royce Holdings
7D
-4.5%
1Y
43.7%

RR.: FY25 Beat And New Buyback Program Will Support Stronger Long Term Prospects

The analyst price target for Rolls-Royce Holdings is updated to a fair value of £17.70 from £16.25, based on Street research where analysts have raised targets to £12.50 and £16.00 following an FY25 beat and higher 2026 guidance. This also incorporates a slightly higher assumed discount rate, a higher revenue growth outlook, and a revised future P/E of 38.93x.
GLEN
UK£5.38
Glencore
7D
3.5%
1Y
84.0%

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

Glencore's updated analyst price target edges lower to £4.60, reflecting a mix of recent target cuts and raises as analysts factor in slightly higher discount rates, modestly softer revenue growth and profit margin assumptions, and a higher assumed future P/E multiple. Analyst Commentary Recent research on Glencore shows a split in views, with some high profile firms lifting their targets and others turning more cautious.