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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 28, 2026
DataAggregated Company Financials
Companies1081
  • 7D2.3%
  • 3M3.8%
  • 1Y18.1%
  • YTD7.9%

The market has climbed 2.3% in the last 7 days, lead by the Financials sector with a gain of 3.3%. As for the past 12 months, the market is up 18%. 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
Tue, 28 Jul 2026UK£3.0tUK£2.0tUK£166.4b16x18.1x1.5x
Thu, 25 Jun 2026UK£2.9tUK£2.0tUK£165.6b15.7x17.7x1.4x
Sat, 23 May 2026UK£3.0tUK£2.0tUK£164.6b16.1x18x1.5x
Mon, 20 Apr 2026UK£3.0tUK£2.0tUK£157.4b16.2x19.2x1.5x
Wed, 18 Mar 2026UK£2.9tUK£2.0tUK£156.5b15.7x18.7x1.5x
Fri, 13 Feb 2026UK£3.0tUK£1.9tUK£140.4b16.7x21.3x1.5x
Sun, 11 Jan 2026UK£2.9tUK£2.0tUK£138.1b16.8x21x1.5x
Tue, 09 Dec 2025UK£2.8tUK£2.0tUK£138.5b16.1x19.9x1.4x
Thu, 06 Nov 2025UK£2.8tUK£2.0tUK£139.8b16.4x20x1.4x
Sat, 04 Oct 2025UK£2.7tUK£1.9tUK£135.4b16.8x20.2x1.4x
Mon, 01 Sep 2025UK£2.7tUK£1.9tUK£135.2b16x19.7x1.4x
Wed, 30 Jul 2025UK£2.6tUK£1.9tUK£127.0b16.1x20.2x1.3x
Fri, 27 Jun 2025UK£2.5tUK£1.9tUK£126.6b16.5x19.5x1.3x
Sun, 25 May 2025UK£2.5tUK£1.9tUK£125.8b16.2x19.7x1.3x
Tue, 22 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Thu, 20 Mar 2025UK£2.5tUK£2.0tUK£135.3b15.5x18.5x1.3x
Sat, 15 Feb 2025UK£2.5tUK£2.0tUK£138.6b16.4x18.2x1.3x
Mon, 13 Jan 2025UK£2.4tUK£2.1tUK£124.6b15.8x19.3x1.2x
Wed, 11 Dec 2024UK£2.4tUK£2.0tUK£122.2b16.3x20x1.2x
Fri, 08 Nov 2024UK£2.4tUK£2.0tUK£118.3b16.3x20.3x1.2x
Sun, 06 Oct 2024UK£2.4tUK£2.0tUK£118.6b16.5x20.5x1.2x
Tue, 03 Sep 2024UK£2.5tUK£2.0tUK£119.1b17x20.7x1.2x
Thu, 01 Aug 2024UK£2.5tUK£2.0tUK£126.3b16.7x19.5x1.2x
Sat, 29 Jun 2024UK£2.4tUK£2.0tUK£132.2b16.2x18.2x1.2x
Mon, 27 May 2024UK£2.5tUK£2.0tUK£127.0b17.3x19.5x1.2x
Wed, 24 Apr 2024UK£2.4tUK£2.1tUK£148.6b15.9x16.4x1.2x
Fri, 22 Mar 2024UK£2.4tUK£2.0tUK£146.7b16.2x16.3x1.2x
Sun, 18 Feb 2024UK£2.3tUK£2.0tUK£147.0b15.2x15.6x1.1x
Tue, 16 Jan 2024UK£2.3tUK£2.1tUK£193.6b14.9x11.9x1.1x
Thu, 14 Dec 2023UK£2.3tUK£2.1tUK£194.4b14.8x11.8x1.1x
Sat, 11 Nov 2023UK£2.2tUK£2.2tUK£195.5b13.9x11.4x1x
Mon, 09 Oct 2023UK£2.3tUK£2.2tUK£186.3b13.9x12.3x1.1x
Wed, 06 Sep 2023UK£2.3tUK£2.2tUK£184.8b14.5x12.4x1.1x
Fri, 04 Aug 2023UK£2.3tUK£2.2tUK£189.9b14.6x12.3x1.1x
Price to Earnings Ratio

12.3x


Total Market Cap: UK£2.3tTotal Earnings: UK£189.9bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.8x202420252026
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 17.8x.
Past Earnings Growth
  • The earnings for British listed companies have declined 4.3% 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 Market2.33%
Industrials3.62%
Healthcare3.45%
Financials3.28%
Materials3.25%
Real Estate2.96%
Tech2.49%
Telecom2.39%
Energy1.78%
Consumer Discretionary1.11%
Consumer Staples-0.43%
Utilities-1.91%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.3x.
    • 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.
  • 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 decline of 1.8% per year.
  • In contrast, the Energy sector is expected to see its earnings grow by 6.8% 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£15.514.8%
+UK£12.1b		61.6%PB1.8xFinancials
AZN AstraZenecaUK£128.884.1%
+UK£7.9b		19.4%PE25.4xHealthcare
RR. Rolls-Royce HoldingsUK£14.144.1%
+UK£4.5b		44.0%PE19.9xIndustrials
BA. BAE SystemsUK£20.006.7%
+UK£3.5b		10.8%PE27.5xIndustrials
RIO Rio Tinto GroupUK£68.323.1%
+UK£3.3b		47.3%PE14.8xMaterials
See more

Market Insights

Header cover image
Healthcare just hit its lowest market weight since 1994. But dig deeper into the sector, and the collapse starts to look like a costume in some ways.
Continue reading
A brand’s strength doesn’t always last

Latest News

AZN
UK£128.88
AstraZeneca
7D
4.1%
1Y
19.4%
RIO
UK£68.32
Rio Tinto Group
7D
3.1%
1Y
47.3%
CNA
UK£1.60
Centrica
7D
-7.2%
1Y
-0.5%
Narrative Update • Jul 24

CNA: Higher Margins And Governance Reforms Will Support Future Upside

Centrica's analyst price target has been trimmed slightly, with recent cuts of £4 to £214 at Citi and £8 to £227 and then £10 to £235 at JPMorgan, reflecting adjustments to revenue expectations alongside modest tweaks to fair value and forward P/E assumptions, while profit margin estimates have edged higher. Analyst Commentary Recent research on Centrica shows a mix of optimism and caution, with price targets clustered in a relatively tight range and most firms maintaining positive ratings even as they fine tune their assumptions.
NG.
UK£12.23
National Grid
7D
-1.1%
1Y
15.9%
GSK
UK£19.61
GSK
7D
4.2%
1Y
40.3%
HSBA
UK£15.51
HSBC Holdings
7D
4.8%
1Y
61.6%
RR.
UK£14.14
Rolls-Royce Holdings
7D
4.1%
1Y
44.0%
Narrative Update • Jul 23

RR.: Widebody Flight-Hour Momentum Will Support Higher Future P/E

Analysts have raised the fair value estimate for Rolls-Royce Holdings by about £1.10 per share, citing higher price targets such as £16.25 and £15.00, and pointing to continued momentum across its divisions and strong widebody engine flight-hour trends as key supports for the new outlook. Analyst Commentary Recent research on Rolls-Royce Holdings points to a cluster of supportive views, with several bullish analysts highlighting the company’s widebody engine exposure, current flight-hour trends, and a series of higher fair value markers, including price targets such as £16.25, £15.00, £15.00 and £14.30 per share.
AAL
UK£36.41
Anglo American
7D
8.2%
1Y
60.9%
BA.
UK£20.00
BAE Systems
7D
6.7%
1Y
10.8%
SHEL
UK£32.77
Shell
7D
1.8%
1Y
22.0%
WISE
UK£8.90
Wise Group
7D
-3.0%
1Y
-13.6%
Narrative Update • Jul 21

WISE: Canadian Expansion And Index Inclusion Will Support Premium P/E Case

Analysts have reduced their Wise Group price target from £15.00 to £14.50, reflecting updated assumptions around future revenue growth, profit margins, and a lower forward P/E multiple. What’s in the News for Wise Group Wise Group’s Class A ordinary shares were cancelled from trading on the London Stock Exchange following a Scheme of Arrangement, effective 11 May 2026.
CPG
US$31.02
Compass Group
7D
-1.8%
1Y
-11.4%
Narrative Update • Jul 20

CPG: Revised Fair Value And P/E Assumptions Will Shape Returns

Analysts have lifted their price target on Compass Group from $28.57 to $31.00, citing updated assumptions for fair value, discount rate, revenue, profit margin, and future P/E that modestly adjust the risk and return profile investors may want to consider. What’s in the News for Compass Group No recent Compass Group company specific news items were identified in the provided sources, so the updated price target currently reflects analyst model adjustments rather than newly disclosed events.
EZJ
UK£6.20
easyJet
7D
-6.4%
1Y
26.1%
Narrative Update • Jul 20

EZJ: Future Returns Will Rely On Resolution Of Apollo Takeover Uncertainty

The analyst fair value estimate for easyJet has been raised from £4.48 to £5.87. This change reflects a series of higher Street price targets as analysts factor in updated views on valuation, profit margins and takeover interest.
SSE
UK£23.77
SSE
7D
-3.4%
1Y
29.3%
RTO
UK£4.27
Rentokil Initial
7D
-4.8%
1Y
18.3%
BATS
UK£45.67
British American Tobacco
7D
-2.0%
1Y
18.0%