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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies1094
  • 7D1.3%
  • 3M6.9%
  • 1Y23.2%
  • YTD1.9%

The market has climbed 1.3% over the last week, with theIndustrials and Energy sectors leading the way. As for the past 12 months, the market is up 23%. Looking forward, 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
Mon, 12 Jan 2026UK£2.9tUK£2.0tUK£138.1b16.8x21x1.5x
Wed, 10 Dec 2025UK£2.8tUK£2.0tUK£138.5b16x19.9x1.4x
Fri, 07 Nov 2025UK£2.8tUK£2.0tUK£139.0b16.2x20.1x1.4x
Sun, 05 Oct 2025UK£2.7tUK£1.9tUK£135.4b16.8x20.2x1.4x
Tue, 02 Sep 2025UK£2.7tUK£1.9tUK£135.1b16.1x19.7x1.4x
Thu, 31 Jul 2025UK£2.6tUK£2.0tUK£128.5b16.1x20x1.3x
Sat, 28 Jun 2025UK£2.5tUK£1.9tUK£126.7b16.6x19.6x1.3x
Mon, 26 May 2025UK£2.5tUK£1.9tUK£125.7b16.2x19.7x1.3x
Wed, 23 Apr 2025UK£2.4tUK£1.9tUK£134.3b15.1x17.6x1.2x
Fri, 21 Mar 2025UK£2.5tUK£2.0tUK£136.4b15.8x18.3x1.2x
Sun, 16 Feb 2025UK£2.5tUK£2.0tUK£139.3b16.4x18.1x1.2x
Tue, 14 Jan 2025UK£2.4tUK£2.1tUK£124.9b15.6x19.2x1.2x
Thu, 12 Dec 2024UK£2.4tUK£2.0tUK£121.7b16.5x20.1x1.2x
Sat, 09 Nov 2024UK£2.4tUK£2.0tUK£117.8b16.3x20.2x1.2x
Mon, 07 Oct 2024UK£2.4tUK£2.0tUK£118.6b16.5x20.5x1.2x
Wed, 04 Sep 2024UK£2.4tUK£2.0tUK£119.3b16.9x20.5x1.2x
Fri, 02 Aug 2024UK£2.4tUK£2.0tUK£125.4b17x19.5x1.2x
Sun, 30 Jun 2024UK£2.4tUK£2.0tUK£132.1b16.2x18.2x1.2x
Tue, 28 May 2024UK£2.5tUK£2.0tUK£127.2b17.3x19.5x1.2x
Thu, 25 Apr 2024UK£2.4tUK£2.1tUK£148.1b15.8x16.4x1.2x
Sat, 23 Mar 2024UK£2.4tUK£2.0tUK£147.0b16.2x16.3x1.2x
Mon, 19 Feb 2024UK£2.3tUK£2.0tUK£147.0b15.2x15.6x1.1x
Wed, 17 Jan 2024UK£2.3tUK£2.1tUK£194.3b14.9x11.8x1.1x
Fri, 15 Dec 2023UK£2.3tUK£2.1tUK£192.6b15.1x12x1.1x
Sun, 12 Nov 2023UK£2.2tUK£2.2tUK£195.3b13.9x11.4x1x
Tue, 10 Oct 2023UK£2.3tUK£2.2tUK£186.3b13.9x12.3x1x
Thu, 07 Sep 2023UK£2.3tUK£2.2tUK£185.2b14.4x12.4x1.1x
Sat, 05 Aug 2023UK£2.4tUK£2.2tUK£189.4b14.5x12.4x1.1x
Mon, 03 Jul 2023UK£2.3tUK£2.2tUK£208.3b14.3x11.3x1.1x
Wed, 31 May 2023UK£2.4tUK£2.2tUK£213.5b14.2x11.1x1.1x
Fri, 28 Apr 2023UK£2.5tUK£2.2tUK£178.7b14.3x13.7x1.1x
Sun, 26 Mar 2023UK£2.3tUK£2.2tUK£184.6b13.7x12.6x1.1x
Tue, 21 Feb 2023UK£2.6tUK£2.2tUK£197.0b13.8x13x1.2x
Thu, 19 Jan 2023UK£2.5tUK£2.1tUK£183.7b13.7x13.7x1.2x
Price to Earnings Ratio

13.7x


Total Market Cap: UK£2.5tTotal Earnings: UK£183.7bTotal 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 21.0x 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 9.1% per year over the last three years.
  • Revenues have also declined 2.1% 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 Market1.34%
Healthcare4.68%
Industrials4.29%
Utilities3.48%
Real Estate3.32%
Tech2.60%
Materials2.07%
Consumer Discretionary1.79%
Telecom1.13%
Consumer Staples0.0092%
Financials-1.08%
Energy-2.17%
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 7.1% 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
AZN AstraZenecaUK£142.166.2%
+UK£12.9b		31.4%PE31.4xHealthcare
BA. BAE SystemsUK£20.5310.9%
+UK£6.0b		73.8%PE30.9xIndustrials
RR. Rolls-Royce HoldingsUK£12.945.0%
+UK£5.1b		128.0%PE18.8xIndustrials
GLEN GlencoreUK£4.538.0%
+UK£3.9b		24.4%PS0.3xMaterials
GSK GSKUK£18.863.6%
+UK£2.6b		41.7%PE13.8xHealthcare
See more

Market Insights

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What research teams agree on – and where they don’t – heading into 2026.
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Three Sectors Expected to Rally in 2026 📈
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Three Sectors Expected to Rally in 2026 📈

Latest News

STAN
UK£17.95
Standard Chartered
7D
-3.3%
1Y
76.8%

STAN: Future Returns Will Depend On Steady Execution And Balanced Risk Reward

Analysts have made a small upward adjustment to their fair value estimate for Standard Chartered, supported by recent price target increases from Citi and JPMorgan to £17.75, £16.75 and £16.90. This also reflects slightly updated assumptions for the discount rate, revenue growth, profit margin and forward P/E.
GSK
UK£18.86
GSK
7D
3.6%
1Y
41.7%
HSBA
UK£11.94
HSBC Holdings
7D
-1.1%
1Y
49.6%
GLEN
UK£4.53
Glencore
7D
8.0%
1Y
24.4%
RIO
UK£60.06
Rio Tinto Group
7D
-1.4%
1Y
22.9%
ABF
UK£18.59
Associated British Foods
7D
-13.5%
1Y
-5.3%
BA.
UK£20.53
BAE Systems
7D
10.9%
1Y
73.8%

BA.: Sector Caution And U.S. Shutdown Risk Will Restrain Overheated Expectations

Narrative Update The updated analyst price targets for BAE Systems now center around £19.50 to £18.60 per share. This reflects a modestly lower fair value estimate and slightly adjusted growth, discount rate and P/E assumptions, as analysts balance sector wide caution with valuation driven support.
AZN
UK£142.16
AstraZeneca
7D
6.2%
1Y
31.4%
SHEL
UK£26.40
Shell
7D
-3.6%
1Y
-0.9%

SHEL: Future Returns Will Reflect Resilient Cash Flow And Shareholder Distributions

Our updated view on Shell reflects a small trim in fair value to €31.03 from €31.31, as analysts balance slightly softer growth and margin assumptions with higher price targets associated with resilient cash generation, tighter refining conditions, and a more disciplined focus on costs and shareholder returns. Analyst Commentary Street research on Shell is mixed, with several price target increases reflecting confidence in execution and cash generation, while a few more cautious voices highlight valuation and medium term growth constraints.
TSCO
UK£4.15
Tesco
7D
-6.1%
1Y
15.3%
RKT
UK£61.76
Reckitt Benckiser Group
7D
3.1%
1Y
26.2%
BP.
UK£4.26
BP
7D
-2.2%
1Y
-1.3%

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.
NWG
UK£6.43
NatWest Group
7D
-3.5%
1Y
68.4%

NWG: Future Buybacks And Wealth Expansion Moves Will Support Fair Value

Analysts have lifted their price targets for NatWest Group into a higher £6.65 to £7.25 range, citing updated views on the bank's earnings potential and risk profile that feed into their refreshed valuation work. Analyst Commentary Recent research updates cluster NatWest Group price targets between £6.65 and £7.30, with several banks adjusting their models around similar levels.
RR.
UK£12.94
Rolls-Royce Holdings
7D
5.0%
1Y
128.0%
NG.
UK£11.93
National Grid
7D
3.7%
1Y
30.2%

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

Jan 05
Investors Appear Satisfied With National Grid plc's (LON:NG.) Prospects
REL
UK£31.78
RELX
7D
2.8%
1Y
-15.6%

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