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U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 21, 2026
DataAggregated Company Financials
Companies1092
  • 7D2.1%
  • 3M12.8%
  • 1Y23.9%
  • YTD7.8%

The market has climbed 2.1% in the last 7 days, lead by the Financials sector with a gain of 3.5%. The market is up 24% over the last 12 months. As for the next few years, earnings are expected to grow by 13% 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
Sat, 21 Feb 2026UK£3.0tUK£2.0tUK£148.4b16.8x20.6x1.6x
Mon, 19 Jan 2026UK£2.9tUK£2.0tUK£137.9b16.7x21.3x1.5x
Wed, 17 Dec 2025UK£2.8tUK£2.0tUK£138.0b15.9x20.1x1.4x
Fri, 14 Nov 2025UK£2.8tUK£2.0tUK£137.6b16.6x20.4x1.4x
Sun, 12 Oct 2025UK£2.7tUK£1.9tUK£135.8b16.6x20x1.4x
Tue, 09 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.4x19.7x1.4x
Thu, 07 Aug 2025UK£2.7tUK£2.0tUK£134.9b16.2x19.8x1.4x
Sat, 05 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.3x19.6x1.3x
Mon, 02 Jun 2025UK£2.5tUK£1.9tUK£127.3b16.2x19.5x1.3x
Wed, 30 Apr 2025UK£2.4tUK£2.0tUK£131.4b15.5x18.3x1.2x
Fri, 28 Mar 2025UK£2.5tUK£2.0tUK£135.5b15.5x18.2x1.2x
Sun, 23 Feb 2025UK£2.5tUK£2.0tUK£137.6b16.2x18.2x1.2x
Tue, 21 Jan 2025UK£2.5tUK£2.1tUK£124.3b16x20x1.2x
Thu, 19 Dec 2024UK£2.4tUK£2.0tUK£122.1b16.1x19.7x1.2x
Sat, 16 Nov 2024UK£2.4tUK£2.0tUK£121.4b16.3x19.6x1.2x
Mon, 14 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.3x20.2x1.2x
Wed, 11 Sep 2024UK£2.4tUK£2.0tUK£119.4b16.5x20.2x1.2x
Fri, 09 Aug 2024UK£2.4tUK£2.0tUK£122.4b16.3x19.6x1.2x
Sun, 07 Jul 2024UK£2.4tUK£2.0tUK£130.7b16.8x18.5x1.2x
Tue, 04 Jun 2024UK£2.5tUK£2.0tUK£128.9b17.3x19.2x1.2x
Thu, 02 May 2024UK£2.4tUK£2.1tUK£143.0b16.4x16.9x1.2x
Sat, 30 Mar 2024UK£2.4tUK£2.1tUK£146.0b16.4x16.5x1.1x
Mon, 26 Feb 2024UK£2.3tUK£2.1tUK£196.4b15.6x11.8x1.1x
Wed, 24 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.8x11.7x1.1x
Fri, 22 Dec 2023UK£2.3tUK£2.1tUK£193.9b15.1x12x1.1x
Sun, 19 Nov 2023UK£2.3tUK£2.1tUK£194.4b14.4x11.7x1.1x
Tue, 17 Oct 2023UK£2.3tUK£2.2tUK£186.6b13.8x12.5x1.1x
Thu, 14 Sep 2023UK£2.3tUK£2.2tUK£185.2b14.6x12.5x1.1x
Sat, 12 Aug 2023UK£2.3tUK£2.1tUK£184.8b14.3x12.6x1.1x
Mon, 10 Jul 2023UK£2.3tUK£2.2tUK£207.1b14x10.9x1x
Wed, 07 Jun 2023UK£2.4tUK£2.2tUK£212.1b14.3x11.3x1.1x
Fri, 05 May 2023UK£2.4tUK£2.1tUK£208.0b14.4x11.6x1.1x
Sun, 02 Apr 2023UK£2.4tUK£2.2tUK£181.3b13.8x13.3x1.1x
Tue, 28 Feb 2023UK£2.5tUK£2.2tUK£194.4b13.8x13.1x1.2x
Price to Earnings Ratio

13.1x


Total Market Cap: UK£2.5tTotal Earnings: UK£194.4bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.9x202420252026
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 20.6x which is higher than its 3-year average PE of 16.9x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 8.6% per year over the last three years.
  • Revenues have also declined 3.7% 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 Market2.09%
Industrials3.71%
Financials3.49%
Consumer Discretionary2.56%
Energy2.22%
Telecom1.40%
Materials1.28%
Healthcare1.17%
Tech1.07%
Real Estate1.04%
Consumer Staples0.97%
Utilities-1.48%
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 53.2x.
    • 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 29% 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 7.6% 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£12.904.1%
+UK£8.8b		45.6%PB1.6xFinancials
BA. BAE SystemsUK£21.6510.0%
+UK£5.9b		72.4%PE31.2xIndustrials
RR. Rolls-Royce HoldingsUK£13.365.1%
+UK£5.4b		118.5%PE19.3xIndustrials
BATS British American TobaccoUK£45.694.9%
+UK£4.6b		54.1%PE12.9xConsumer Staples
SHEL ShellUK£29.412.4%
+UK£3.8b		11.5%PE12.6xEnergy
See more

Market Insights

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BA.
UK£21.65
BAE Systems
7D
10.0%
1Y
72.4%
RIO
UK£71.22
Rio Tinto Group
7D
-0.9%
1Y
40.1%
IHG
US$142.10
InterContinental Hotels Group
7D
-2.9%
1Y
13.5%
ANTO
UK£39.92
Antofagasta
7D
7.6%
1Y
119.3%
SHEL
UK£29.41
Shell
7D
2.4%
1Y
11.5%
ULVR
UK£53.80
Unilever
7D
-1.0%
1Y
8.8%

ULVR: Raised Fair Value Hinges On Margin Delivery And Cost Execution

Analysts have nudged their fair value estimate for Unilever higher to about £60 from roughly £59, citing slightly firmer margin assumptions and a modestly higher future P/E. This comes even as several firms have shifted to Hold or Neutral ratings and highlighted a more balanced risk and reward profile at current levels.
BATS
UK£45.69
British American Tobacco
7D
4.9%
1Y
54.1%
NWG
UK£6.16
NatWest Group
7D
6.1%
1Y
36.3%

NWG: Future Capital Returns And Evelyn Deal Will Support Fair Value Upside

Analysts have nudged their fair value estimate for NatWest Group higher to reflect a slightly lower future P/E assumption and updated expectations following recent price target moves, including Citi's lift to £8.40 from £8.10 and mixed adjustments from JPMorgan and Barclays. Analyst Commentary Bullish Takeaways Bullish analysts see room for upside in the valuation, with some price targets set at £8.40, which they link to updated assumptions on earnings and capital deployment.
BARC
UK£4.74
Barclays
7D
4.4%
1Y
56.0%

BARC: Evelyn Bid And Capital Returns Will Likely Keep Shares Fairly Priced

Analysts have nudged their price target on Barclays higher, lifting fair value from £3.93 to £4.47 as they factor in updated assumptions for revenue growth, profit margins and a lower future P/E. What's in the News Barclays completed the repurchase of 311,571,616 shares, around 2.19% of its share capital, for £1,232m under the buyback program announced on July 30, 2025, with purchases occurring between July 30, 2025 and December 31, 2025 (company announcement).
HSBA
UK£12.90
HSBC Holdings
7D
4.1%
1Y
45.6%

HSBA: Future Returns Will Depend On Cost Discipline And Return On Equity

HSBC Holdings' updated fair value has edged higher, supporting a modest uplift in the implied analyst price target to about £11.74, as analysts cite recent target increases, resumed coverage and upgrades following what they describe as good Q3 results and progress toward cost growth and return-on-equity goals. Analyst Commentary Recent research updates on HSBC point to a generally constructive tone, with several large firms revisiting their views after the latest Q3 report and revised internal targets.
RR.
UK£13.36
Rolls-Royce Holdings
7D
5.1%
1Y
118.5%

RR.: Turnaround Progress And Quantum Advances Will Support Stronger Long Term Prospects

Analysts have lifted their price target on Rolls-Royce Holdings, with our fair value estimate moving from £15.68 to £16.25, citing updated assumptions around revenue growth, profit margins and future P/E multiples supported by recent positive research on Ultrafan and the wider turnaround story. Analyst Commentary Recent Street research has leaned constructive, with bullish analysts pointing to both the ongoing business turnaround and the potential of the Ultrafan program as key parts of the Rolls-Royce equity story.
IMB
UK£32.30
Imperial Brands
7D
-1.8%
1Y
20.3%
BT.A
UK£2.03
BT Group
7D
-3.4%
1Y
34.9%
NG.
UK£13.46
National Grid
7D
-1.5%
1Y
40.5%

NG.: Dividend Outlook And Regulation Will Shape Steady Future Returns

Analysts have slightly raised their price target on National Grid, citing updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E that together point to a modestly higher implied equity value. Analyst Commentary Bullish Takeaways Bullish analysts see the updated assumptions on fair value and discount rate as broadly consistent with a regulated utility earning a steady return, which they view as supportive of the slightly higher price target.
SSE
UK£25.93
SSE
7D
-1.8%
1Y
73.5%

SSE: Future Earnings Visibility And Grid Investment Plans May Support Funding

The updated analyst price target for SSE edges higher as fair value nudges to £25.26, supported by a series of recent target increases from major banks citing reassessments of discount rates, profit margins and future P/E assumptions. Analyst Commentary Recent Street research on SSE clusters around higher price targets, with several major banks adjusting their fair value assumptions and reaffirming positive stances.
III
UK£33.99
3i Group
7D
-1.1%
1Y
-17.2%

III: Slower Momentum Will Still Deliver Durable Returns And Dividend Visibility

Analysts have trimmed their fair value estimate for 3i Group to £42.01 from £42.22, reflecting slightly lower revenue growth and profit margin assumptions, partly offset by updated discount rate and future P/E inputs, along with a mix of recent target changes and rating moves across the Street. Analyst Commentary The recent research updates show a split in opinion on 3i Group, with some analysts adjusting price targets upward and others cutting targets and ratings.