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U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 15, 2026
DataAggregated Company Financials
Companies1092
  • 7D0.9%
  • 3M9.0%
  • 1Y20.5%
  • YTD5.6%

In the last week, the market has stayed flat, however the Utilities sector stood out, gaining 5.5%. As for the longer term, the market has risen 20% in the past 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
Mon, 16 Feb 2026UK£3.0tUK£1.9tUK£145.5b16.7x20.6x1.5x
Wed, 14 Jan 2026UK£2.9tUK£2.0tUK£138.0b16.5x21x1.5x
Fri, 12 Dec 2025UK£2.8tUK£2.0tUK£138.1b15.9x20.1x1.4x
Sun, 09 Nov 2025UK£2.8tUK£2.0tUK£138.1b16.1x20.1x1.4x
Tue, 07 Oct 2025UK£2.7tUK£1.9tUK£135.3b16.6x20.2x1.4x
Thu, 04 Sep 2025UK£2.7tUK£2.0tUK£135.8b16x19.6x1.4x
Sat, 02 Aug 2025UK£2.6tUK£2.0tUK£134.0b16.1x19.6x1.3x
Mon, 30 Jun 2025UK£2.5tUK£1.9tUK£126.7b16.7x19.6x1.3x
Wed, 28 May 2025UK£2.5tUK£1.9tUK£125.8b16.4x19.8x1.3x
Fri, 25 Apr 2025UK£2.4tUK£2.0tUK£134.8b15.3x17.8x1.2x
Sun, 23 Mar 2025UK£2.5tUK£2.0tUK£136.4b15.7x18.1x1.2x
Tue, 18 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.4x18.2x1.3x
Thu, 16 Jan 2025UK£2.4tUK£2.1tUK£124.8b15.7x19.5x1.2x
Sat, 14 Dec 2024UK£2.5tUK£2.0tUK£122.5b16.3x20.2x1.2x
Mon, 11 Nov 2024UK£2.4tUK£2.0tUK£118.2b16.3x20.2x1.2x
Wed, 09 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.3x20.2x1.2x
Fri, 06 Sep 2024UK£2.4tUK£2.0tUK£118.9b16.9x20.4x1.2x
Sun, 04 Aug 2024UK£2.4tUK£2.0tUK£124.9b16.7x19.3x1.2x
Tue, 02 Jul 2024UK£2.4tUK£2.0tUK£132.1b16.3x18.2x1.2x
Thu, 30 May 2024UK£2.4tUK£2.1tUK£129.4b17.1x18.9x1.2x
Sat, 27 Apr 2024UK£2.4tUK£2.1tUK£143.6b16x16.9x1.2x
Mon, 25 Mar 2024UK£2.4tUK£2.1tUK£147.6b16.3x16.4x1.1x
Wed, 21 Feb 2024UK£2.3tUK£2.0tUK£146.9b15.3x15.6x1.1x
Fri, 19 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.7x11.7x1.1x
Sun, 17 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.1x11.9x1.1x
Tue, 14 Nov 2023UK£2.2tUK£2.2tUK£195.0b14x11.5x1x
Thu, 12 Oct 2023UK£2.3tUK£2.2tUK£185.8b14x12.6x1.1x
Sat, 09 Sep 2023UK£2.3tUK£2.2tUK£185.4b14.5x12.4x1.1x
Mon, 07 Aug 2023UK£2.4tUK£2.2tUK£189.4b14.6x12.4x1.1x
Wed, 05 Jul 2023UK£2.3tUK£2.2tUK£208.0b14.2x11.2x1.1x
Fri, 02 Jun 2023UK£2.3tUK£2.2tUK£211.4b14.2x11.1x1.1x
Sun, 30 Apr 2023UK£2.5tUK£2.2tUK£179.2b14.5x13.8x1.1x
Tue, 28 Mar 2023UK£2.4tUK£2.2tUK£184.0b13.4x12.8x1.1x
Thu, 23 Feb 2023UK£2.5tUK£2.2tUK£200.4b13.7x12.7x1.2x
Price to Earnings Ratio

12.7x


Total Market Cap: UK£2.5tTotal Earnings: UK£200.4bTotal 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 10% per year over the last three years.
  • Revenues have also declined 3.8% 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 Market0.93%
Utilities5.47%
Materials4.28%
Healthcare4.28%
Tech2.66%
Industrials2.54%
Real Estate1.84%
Energy1.54%
Consumer Staples1.14%
Telecom0.55%
Consumer Discretionary0.32%
Financials-4.30%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 20.5x.
    • Analysts are expecting annual earnings growth of 24.8%, which is lower than the prior year's growth of 33.5% 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 5.9% 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
AZN AstraZenecaUK£151.187.2%
+UK£15.7b		29.1%PE31.3xHealthcare
RIO Rio Tinto GroupUK£71.875.0%
+UK£5.6b		42.2%PE15.5xMaterials
SHEL ShellUK£28.733.5%
+UK£5.4b		7.4%PE12.5xEnergy
ULVR UnileverUK£54.323.5%
+UK£4.0b		9.8%PE24.4xConsumer Staples
NG. National GridUK£13.666.3%
+UK£4.0b		42.7%PE23.6xUtilities
See more

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RIO
UK£71.87
Rio Tinto Group
7D
5.0%
1Y
42.2%
BATS
UK£43.54
British American Tobacco
7D
-5.5%
1Y
40.9%

British American Tobacco p.l.c. (LON:BATS) Annual Results: Here's What Analysts Are Forecasting For This Year

Feb 15
British American Tobacco p.l.c. (LON:BATS) Annual Results: Here's What Analysts Are Forecasting For This Year
NWG
UK£5.80
NatWest Group
7D
-12.0%
1Y
35.5%
ULVR
UK£54.32
Unilever
7D
3.5%
1Y
9.8%
BA.
UK£19.68
BAE Systems
7D
4.7%
1Y
60.3%
AZN
UK£151.18
AstraZeneca
7D
7.2%
1Y
29.1%
BP.
UK£4.61
BP
7D
-3.6%
1Y
-1.5%
BARC
UK£4.54
Barclays
7D
-5.2%
1Y
54.1%
TSCO
UK£4.89
Tesco
7D
8.1%
1Y
23.2%
STAN
UK£17.19
Standard Chartered
7D
-8.7%
1Y
53.0%

STAN: Future Returns Will Depend On Crypto Expansion And Execution Consistency

Narrative Update The analyst price target for Standard Chartered has been revised higher to £17.91 from £17.29. This reflects analysts' use of updated assumptions for revenue growth, profit margins, discount rate and future P/E, alongside recent Street research that includes higher price targets from JPMorgan, Morgan Stanley and Citi.
NG.
UK£13.66
National Grid
7D
6.3%
1Y
42.7%

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.
SHEL
UK£28.73
Shell
7D
3.5%
1Y
7.4%
RR.
UK£12.71
Rolls-Royce Holdings
7D
3.4%
1Y
103.5%
PRU
UK£10.69
Prudential
7D
-9.5%
1Y
47.1%

PRU: Share Buybacks And Revised Assumptions Will Shape Future Market Verdict

Analysts have lifted their price targets on Prudential to £15.00 and £12.70, reflecting updated assumptions that include a fair value estimate of 11.9, a discount rate of 7.198%, revenue growth of 2.40%, a profit margin of 20.22% and a future P/E of 17.21. Analyst Commentary Recent Street research points to a supportive tone on Prudential, with both JPMorgan and Morgan Stanley updating their price targets in line with the valuation inputs discussed earlier.
HSBA
UK£12.39
HSBC Holdings
7D
-5.1%
1Y
42.4%

HSBA: Future Returns Will Hinge On Chair Succession Rather Than Execution

Analysts have nudged their fair value estimate for HSBC Holdings higher to £11.54 from £11.25, citing updated assumptions for slightly faster revenue growth, a modestly higher profit margin, and a P/E multiple that lines up with recent price target moves and rating changes from Citi, Erste Group, and Morgan Stanley. Analyst Commentary Recent Street research on HSBC Holdings points to a mix of optimism around execution in the next few years and some caution on how much of that is already reflected in the share price.
LLOY
UK£1.00
Lloyds Banking Group
7D
-5.9%
1Y
56.5%

LLOY: Buybacks And Dividend Policy Will Support Measured Future Return Profile

Analysts have lifted their price target for Lloyds Banking Group to £1.08 from £0.96, citing adjusted assumptions for revenue growth, profit margins and future P/E multiples that point to a higher assessed fair value. What's in the News The Board of Directors has authorized a new share buyback plan, approved on 30 January 2026.