Has the U.K. Market valuation changed over the past few years?

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 17.4x.

Which sectors have driven the changes within the U.K. Market?

Investors favour the Telecom sector the most for future growth which is trading above its 3-year average PE ratio. The market's confidence is likely because analysts are expecting annual earnings growth of 32.8%, which is higher than its past year's earnings growth of 5.1% 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 10.0x.

U.K. (FTSE) Market Analysis & Valuation

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Sun, 17 May 2026	UK£2.9t	UK£2.0t	UK£165.4b	15.7x	17.5x	1.4x
Tue, 14 Apr 2026	UK£3.0t	UK£2.0t	UK£157.2b	15.8x	19x	1.5x
Thu, 12 Mar 2026	UK£2.9t	UK£2.0t	UK£155.2b	16x	18.9x	1.5x
Sat, 07 Feb 2026	UK£3.0t	UK£1.9t	UK£140.7b	16.9x	21.1x	1.5x
Mon, 05 Jan 2026	UK£2.8t	UK£2.0t	UK£138.0b	16.3x	20.6x	1.5x
Wed, 03 Dec 2025	UK£2.8t	UK£2.0t	UK£139.9b	16.2x	20.1x	1.4x
Fri, 31 Oct 2025	UK£2.8t	UK£2.0t	UK£137.6b	16.5x	20.4x	1.4x
Sun, 28 Sep 2025	UK£2.7t	UK£1.9t	UK£135.9b	16.6x	19.7x	1.4x
Tue, 26 Aug 2025	UK£2.7t	UK£1.9t	UK£134.1b	16.1x	20.1x	1.4x
Thu, 24 Jul 2025	UK£2.6t	UK£1.9t	UK£126.9b	16.1x	20.1x	1.3x
Sat, 21 Jun 2025	UK£2.5t	UK£1.9t	UK£127.6b	16.4x	19.5x	1.3x
Mon, 19 May 2025	UK£2.5t	UK£2.0t	UK£133.0b	16.5x	18.6x	1.3x
Wed, 16 Apr 2025	UK£2.3t	UK£2.0t	UK£134.8b	15.2x	17.4x	1.2x
Fri, 14 Mar 2025	UK£2.4t	UK£2.0t	UK£137.3b	15x	17.8x	1.2x
Sun, 09 Feb 2025	UK£2.5t	UK£2.0t	UK£123.9b	16x	20.3x	1.2x
Tue, 07 Jan 2025	UK£2.4t	UK£2.0t	UK£123.0b	15.9x	19.7x	1.2x
Thu, 05 Dec 2024	UK£2.4t	UK£2.0t	UK£122.6b	16.4x	20x	1.2x
Sat, 02 Nov 2024	UK£2.4t	UK£2.0t	UK£118.3b	16.3x	20.4x	1.2x
Mon, 30 Sep 2024	UK£2.5t	UK£2.0t	UK£117.8b	17x	20.8x	1.2x
Wed, 28 Aug 2024	UK£2.5t	UK£2.0t	UK£119.2b	17x	20.6x	1.2x
Fri, 26 Jul 2024	UK£2.4t	UK£2.0t	UK£129.7b	16.3x	18.6x	1.2x
Sun, 23 Jun 2024	UK£2.4t	UK£2.0t	UK£132.0b	16.7x	18.4x	1.2x
Tue, 21 May 2024	UK£2.5t	UK£2.0t	UK£125.5b	17.2x	20.1x	1.2x
Thu, 18 Apr 2024	UK£2.4t	UK£2.1t	UK£148.3b	15.7x	16x	1.1x
Sat, 16 Mar 2024	UK£2.3t	UK£2.0t	UK£144.3b	16.1x	16.1x	1.1x
Mon, 12 Feb 2024	UK£2.3t	UK£2.0t	UK£144.7b	15.2x	15.6x	1.1x
Wed, 10 Jan 2024	UK£2.3t	UK£2.1t	UK£193.5b	15x	12x	1.1x
Fri, 08 Dec 2023	UK£2.3t	UK£2.1t	UK£193.9b	14.7x	11.7x	1.1x
Sun, 05 Nov 2023	UK£2.2t	UK£2.1t	UK£193.8b	14x	11.6x	1x
Tue, 03 Oct 2023	UK£2.3t	UK£2.2t	UK£186.7b	14.3x	12.5x	1.1x
Thu, 31 Aug 2023	UK£2.3t	UK£2.1t	UK£183.3b	14.5x	12.6x	1.1x
Sat, 29 Jul 2023	UK£2.4t	UK£2.1t	UK£191.6b	14.3x	12.5x	1.1x
Mon, 26 Jun 2023	UK£2.3t	UK£2.2t	UK£208.4b	14.1x	11.1x	1.1x
Wed, 24 May 2023	UK£2.4t	UK£2.2t	UK£216.7b	14.3x	11.2x	1.1x


GB Market	-0.73%
Consumer Staples	2.70%
Energy	2.27%
Healthcare	1.73%
Consumer Discretionary	-0.34%
Materials	-0.36%
Tech	-0.97%
Financials	-1.34%
Industrials	-3.67%
Real Estate	-3.91%
Telecom	-5.36%
Utilities	-7.61%

Company	Last Price	7D	1Y	Valuation	Sector
BATS British American Tobacco	UK£48.64	14.0% +UK£12.9b	52.6%	PE13.7x	Consumer Staples
SHEL Shell	UK£31.95	2.9% +UK£4.9b	28.3%	PE12.7x	Energy
AZN AstraZeneca	UK£136.32	2.2% +UK£4.5b	32.0%	PE27.1x	Healthcare
CPG Compass Group	US$31.96	8.3% +US$4.2b	-8.5%	PE26.9x	Consumer Discretionary
BP. BP	UK£5.52	3.0% +UK£2.5b	48.1%	PE35.4x	Energy

Announcement • May 16

Astrazeneca and Daiichi Sankyo Receive Us Approval for Enhertu for Two New Indications in Her2-Positive Early Breast Cancer

AstraZeneca and Daiichi Sankyo’s ENHERTU (fam-trastuzumab deruxtecan-nxki) has been approved by the US Food and Drug Administration (FDA) for both the neoadjuvant and adjuvant treatment of patients with HER2-positive early breast cancer based on results from the DESTINY-Breast11 and DESTINY-Breast05 Phase III trials, respectively. In the neoadjuvant setting, ENHERTU followed by a taxane, trastuzumab, and pertuzumab (THP) has been approved for the treatment of adult patients with HER2-positive Stage II or Stage III breast cancer. In the adjuvant setting, ENHERTU has been approved for the treatment of adult patients with HER2-positive breast cancer who have residual invasive disease following trastuzumab (with or without pertuzumab) and taxane-based treatment. In DESTINY-Breast11, ENHERTU followed by THP as a neoadjuvant treatment demonstrated a pathologic complete response (pCR) rate of 67.3% compared with 56.3% for dose-dense doxorubicin and cyclophosphamide followed by THP [ddAC-THP], an improvement of 11.2% (95% confidence interval [CI] 3.9-18.3; p=0.003). At the time of the pCR analysis, 29 patients (4.5%) had event-free survival (EFS) events, and 12 patients (1.9%) had overall survival (OS) events. In DESTINY-Breast05, ENHERTU as an adjuvant treatment reduced the risk of invasive disease recurrence or death (invasive disease-free survival [IDFS]) by 53% compared to trastuzumab emtansine (T-DM1) in patients with HER2-positive breast cancer with residual invasive disease following neoadjuvant therapy (hazard ratio [HR] 0.47; 95% CI 0.34-0.66; p). Following these approvals in the US, an amount of $155 million is due from AstraZeneca to Daiichi Sankyo as milestone payments for both these indications. Sales of ENHERTU in the US are recognized by Daiichi Sankyo. ENHERTU is a HER2-directed antibody and topoisomerase inhibitor conjugate indicated for HER2-Positive Early Breast Cancer as neoadjuvant treatment of adult patients with HER2-positive (IHC 3+ or ISH+) Stage II or III breast cancer, as determined by an FDA-authorized test followed by a taxane, trastuzumab, and pertuzumab (THP), and as adjuvant treatment of adult patients with HER2-positive (IHC 3+ or ISH+) breast cancer who have residual invasive disease following neoadjuvant trastuzumab (with or without pertuzumab) and taxane-based treatment. ENHERTU is also indicated for HER2-Positive Metastatic Breast Cancer, HER2-Low and HER2-Ultralow Metastatic Breast Cancer, HER2-Mutant Unresectable or Metastatic Non-Small Cell Lung Cancer (NSCLC), HER2-Positive Locally Advanced or Metastatic Gastric Cancer, and HER2-Positive (IHC 3+) Unresectable or Metastatic Solid Tumors. ENHERTU is a HER2-directed ADC. Designed using Daiichi Sankyo’s proprietary DXd ADC Technology, ENHERTU consists of a HER2 monoclonal antibody attached to a number of topoisomerase I inhibitor payloads (an exatecan derivative, DXd) via tetrapeptide-based cleavable linkers. ENHERTU (5.4mg/kg) is approved in the US as an adjuvant treatment for adult patients with HER2-positive (IHC 3+ or ISH+) breast cancer who have residual invasive disease following trastuzumab (with or without pertuzumab) and taxane-based treatment based on the DESTINY-Breast05 trial. ENHERTU (5.4mg/kg) followed by THP is approved in the US and China as a neoadjuvant treatment for adult patients with HER2-positive (IHC 3+ or ISH+) Stage II or III breast cancer based on the results from the DESTINY-Breast11 trial. ENHERTU (5.4mg/kg) in combination with pertuzumab is approved in the US, Switzerland, United Arab Emirates and Saudi Arabia as a 1st-line treatment for adult patients with unresectable or metastatic HER2-positive (IHC 3+ or ISH+) breast cancer based on the results from the DESTINY-Breast09 trial. ENHERTU (5.4mg/kg) is approved in more than 95 countries/regions worldwide for the treatment of adult patients with unresectable or metastatic HER2-positive (IHC 3+ or ISH+) breast cancer who have received a prior anti-HER2-based regimen, either in the metastatic setting or in the neoadjuvant or adjuvant setting, and have developed disease recurrence during or within six months of completing therapy based on the results from the DESTINY-Breast03 trial. ENHERTU (5.4mg/kg) is approved in more than 95 countries/regions worldwide for the treatment of adult patients with unresectable or metastatic HER2-low (IHC 1+ or IHC 2+/ISH-) breast cancer who have received a prior systemic therapy in the metastatic setting or developed disease recurrence during or within six months of completing adjuvant chemotherapy based on the results from the DESTINY-Breast04 trial. ENHERTU (5.4mg/kg) is approved in more than 70 countries/regions worldwide for the treatment of adult patients with unresectable or metastatic hormone receptor (HR)-positive, HER2-low (IHC 1+ or IHC 2+/ISH-) or HER2-ultralow (IHC 0 with membrane staining) breast cancer, as determined by a locally or regionally authorized test, that have progressed on one or more endocrine therapies in the metastatic setting based on the results from the DESTINY-Breast06 trial. ENHERTU (5.4mg/kg) is approved in more than 75 countries/regions worldwide for the treatment of adult patients with unresectable or metastatic non-small cell lung cancer (NSCLC) whose tumors have activating HER2 (ERBB2) mutations, as detected by a locally or regionally approved test, and who have received a prior systemic therapy based on the results from the DESTINY-Lung02 and/or DESTINY-Lung05 trials. ENHERTU (6.4mg/kg) is approved in more than 85 countries/regions worldwide for the treatment of adult patients with locally advanced or metastatic HER2-positive (IHC 3+ or IHC 2+/ISH+) gastric or gastroesophageal junction (GEJ) adenocarcinoma who have received a prior trastuzumab-based regimen based on the results from the DESTINY-Gastric01, DESTINY-Gastric02 and/or DESTINY-Gastric04 trials. ENHERTU (5.4mg/kg) is approved in more than 15 countries/regions worldwide for the treatment of adult patients with unresectable or metastatic HER2-positive (IHC 3+) solid tumors who have received prior systemic treatment and have no satisfactory alternative treatment options based on efficacy results from the DESTINY-PanTumor02, DESTINY-Lung01, DESTINY-CRC02 and/or HERALD trials.

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