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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 16, 2026
DataAggregated Company Financials
Companies1082
  • 7D0.7%
  • 3M-0.9%
  • 1Y16.8%
  • YTD5.4%

In the last week, the market has stayed flat, however the Communication Services sector stood out, gaining 6.2%. As for the longer term, the market has risen 17% in the past 12 months. 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
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
Sun, 23 Jul 2023UK£2.4tUK£2.2tUK£206.7b14.1x11.6x1.1x
Price to Earnings Ratio

11.6x


Total Market Cap: UK£2.4tTotal Earnings: UK£206.7bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.7x202420252026
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 17.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 7.3% 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 Market0.70%
Telecom6.27%
Materials4.82%
Tech3.15%
Financials3.03%
Consumer Discretionary2.18%
Energy2.02%
Real Estate1.55%
Industrials0.31%
Utilities0.24%
Consumer Staples-1.56%
Healthcare-7.95%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.5x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.1%, which is higher than its past year's earnings growth of 7.6% 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 growth rate of 1.5% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.9% 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£14.804.1%
+UK£9.9b		61.1%PB1.7xFinancials
RIO Rio Tinto GroupUK£68.675.8%
+UK£6.1b		56.1%PE15.2xMaterials
BARC BarclaysUK£5.255.5%
+UK£3.7b		53.1%PB0.9xFinancials
VOD Vodafone GroupUK£1.1214.5%
+UK£3.3b		37.0%PS0.8xTelecom
GLEN GlencoreUK£5.185.5%
+UK£3.1b		68.7%PE226.1xMaterials
See more

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Latest News

AZN
UK£125.66
AstraZeneca
7D
-11.8%
1Y
20.4%
RIO
UK£68.67
Rio Tinto Group
7D
5.8%
1Y
56.1%
BARC
UK£5.25
Barclays
7D
5.5%
1Y
53.1%
GSK
UK£19.17
GSK
7D
-3.2%
1Y
34.8%
BP.
UK£5.08
BP
7D
3.3%
1Y
28.2%
BA.
UK£18.13
BAE Systems
7D
-5.8%
1Y
-2.6%
VOD
UK£1.12
Vodafone Group
7D
14.5%
1Y
37.0%
RR.
UK£13.91
Rolls-Royce Holdings
7D
-0.6%
1Y
40.8%
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£14.80
HSBC Holdings
7D
4.1%
1Y
61.1%
ULVR
UK£45.59
Unilever
7D
-1.7%
1Y
-9.0%
Narrative Update • Jul 08

ULVR: Mid Term Volume And Margin Pressures Will Likely Cap Shares

Unilever's analyst price target has edged up by £100 to £3,800, as analysts point to improving revenue growth and slightly stronger profit margins, while still flagging risks to mid term volumes and valuation. Analyst Commentary Recent research on Unilever reflects a mixed backdrop, with the latest price target move to £3,800 framed within ongoing concerns about volume momentum, margin delivery and how the stock is valued relative to peers.
SHEL
UK£31.30
Shell
7D
1.6%
1Y
20.0%
CPG
US$31.54
Compass Group
7D
-1.8%
1Y
-6.1%
Narrative Update • Jul 06

nan

Analysts have trimmed their price target on Compass Group to about $47.17 from roughly $48.91, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E that collectively point to a slightly lower fair value estimate. What’s in the News for Compass Group No recent Compass Group news items were identified in the provided sources.
NG.
UK£12.35
National Grid
7D
-1.0%
1Y
18.2%
STAN
UK£21.35
Standard Chartered
7D
4.9%
1Y
63.7%
Narrative Update • Jul 02

STAN: Fair Value Thesis Will Test Upgrades Against Indonesia Exposure And Execution

The analyst price target for Standard Chartered has been revised higher to £21.71 from £21.08, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E as analysts factor in a series of recent upgrades and target increases across the Street. Analyst Commentary Recent Street research on Standard Chartered points to a cluster of target price upgrades and rating changes.
BATS
UK£43.90
British American Tobacco
7D
-4.8%
1Y
13.3%
GLEN
UK£5.18
Glencore
7D
5.5%
1Y
68.7%
Narrative Update • Jun 29

GLEN: Copper Shift And Rising Fair Value Will Drive Medium Term Rerating

Glencore's analyst price targets have moved in both directions, with several banks raising estimates toward the £5.60 to £6.10 range, while others, citing a shift toward copper and earnings pressure in iron ore, have trimmed targets to around £5.30. Analyst Commentary Recent research on Glencore shows a split in opinion, but the most optimistic commentary highlights higher price targets and confidence in the company’s ability to execute on its portfolio mix, particularly around copper exposure and capital allocation.