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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 10, 2026
DataAggregated Company Financials
Companies1094
  • 7D1.9%
  • 3M7.4%
  • 1Y22.9%
  • YTD1.9%

The market has climbed 1.9% in the last 7 days, lead by the Industrials sector with a gain of 7.1%. 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
Sat, 10 Jan 2026UK£2.9tUK£2.0tUK£138.0b16.8x21x1.5x
Mon, 08 Dec 2025UK£2.8tUK£2.0tUK£138.5b16.1x20.1x1.4x
Wed, 05 Nov 2025UK£2.8tUK£2.0tUK£139.1b16.2x20x1.4x
Fri, 03 Oct 2025UK£2.7tUK£1.9tUK£135.7b16.7x20x1.4x
Sun, 31 Aug 2025UK£2.7tUK£1.9tUK£135.2b16x19.7x1.4x
Tue, 29 Jul 2025UK£2.6tUK£1.9tUK£126.3b16.2x20.2x1.3x
Thu, 26 Jun 2025UK£2.5tUK£1.9tUK£126.8b16.4x19.4x1.3x
Sat, 24 May 2025UK£2.5tUK£1.9tUK£125.8b16.2x19.7x1.3x
Mon, 21 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.5x1.2x
Wed, 19 Mar 2025UK£2.5tUK£2.0tUK£135.8b15.6x18.4x1.3x
Fri, 14 Feb 2025UK£2.5tUK£2.0tUK£121.8b16.4x20.8x1.2x
Sun, 12 Jan 2025UK£2.4tUK£2.1tUK£124.7b15.8x19.3x1.2x
Tue, 10 Dec 2024UK£2.5tUK£2.0tUK£122.1b16.5x20.1x1.2x
Thu, 07 Nov 2024UK£2.4tUK£2.0tUK£118.6b16.3x20.3x1.2x
Sat, 05 Oct 2024UK£2.4tUK£2.0tUK£118.4b16.5x20.5x1.2x
Mon, 02 Sep 2024UK£2.5tUK£2.0tUK£119.2b16.9x20.7x1.2x
Wed, 31 Jul 2024UK£2.4tUK£2.0tUK£127.6b16.8x19.1x1.2x
Fri, 28 Jun 2024UK£2.4tUK£2.0tUK£132.3b16.3x18.2x1.2x
Sun, 26 May 2024UK£2.5tUK£2.0tUK£128.9b17.2x19.3x1.2x
Tue, 23 Apr 2024UK£2.4tUK£2.1tUK£149.1b15.6x16x1.1x
Thu, 21 Mar 2024UK£2.4tUK£2.1tUK£146.1b16x16.1x1.1x
Sat, 17 Feb 2024UK£2.3tUK£2.0tUK£144.5b15.2x15.9x1.1x
Mon, 15 Jan 2024UK£2.3tUK£2.1tUK£193.4b14.9x12x1.1x
Wed, 13 Dec 2023UK£2.3tUK£2.1tUK£194.2b14.6x11.7x1.1x
Fri, 10 Nov 2023UK£2.2tUK£2.2tUK£195.0b13.9x11.5x1x
Sun, 08 Oct 2023UK£2.3tUK£2.2tUK£186.3b13.9x12.3x1.1x
Tue, 05 Sep 2023UK£2.3tUK£2.1tUK£184.5b14.5x12.5x1.1x
Thu, 03 Aug 2023UK£2.4tUK£2.1tUK£189.2b14.6x12.4x1.1x
Sat, 01 Jul 2023UK£2.3tUK£2.2tUK£208.2b14.2x11.3x1.1x
Mon, 29 May 2023UK£2.4tUK£2.2tUK£213.9b14x11.2x1.1x
Wed, 26 Apr 2023UK£2.5tUK£2.2tUK£178.9b14.2x13.8x1.1x
Fri, 24 Mar 2023UK£2.3tUK£2.2tUK£184.7b13.8x12.6x1.1x
Sun, 19 Feb 2023UK£2.6tUK£2.2tUK£197.2b13.8x13.1x1.2x
Tue, 17 Jan 2023UK£2.5tUK£2.1tUK£184.9b13.7x13.7x1.2x
Price to Earnings Ratio

13.7x


Total Market Cap: UK£2.5tTotal Earnings: UK£184.9bTotal 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 9.3% per year over the last three years.
  • Revenues have also declined 2.3% 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 Market1.88%
Industrials7.11%
Materials4.16%
Real Estate4.02%
Tech3.92%
Healthcare3.67%
Utilities3.31%
Consumer Discretionary2.02%
Telecom1.34%
Financials0.071%
Consumer Staples-1.57%
Energy-2.94%
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£142.164.6%
+UK£9.7b		29.4%PE31.5xHealthcare
BA. BAE SystemsUK£20.5317.0%
+UK£8.9b		72.2%PE30.9xIndustrials
RR. Rolls-Royce HoldingsUK£12.948.1%
+UK£8.5b		123.0%PE18.8xIndustrials
GLEN GlencoreUK£4.5310.7%
+UK£5.1b		26.2%PS0.3xMaterials
REL RELXUK£31.786.5%
+UK£3.5b		-16.6%PE30xIndustrials
See more

Market Insights

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7D
3.0%
1Y
39.8%
BATS
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7D
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1Y
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GLEN
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Glencore
7D
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1Y
26.2%
ABF
UK£18.59
Associated British Foods
7D
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1Y
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BA.
UK£20.53
BAE Systems
7D
17.0%
1Y
72.2%

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
4.6%
1Y
29.4%
SHEL
UK£26.40
Shell
7D
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1Y
0.6%

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.
STAN
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Standard Chartered
7D
-2.7%
1Y
75.1%
TSCO
UK£4.15
Tesco
7D
-6.1%
1Y
15.5%
BP.
UK£4.26
BP
7D
-2.8%
1Y
0.1%

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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.
ULVR
UK£47.44
Unilever
7D
-1.6%
1Y
-7.0%

ULVR: Margin Resilience And Q4 Volume Support A More Constructive Outlook

Narrative Update The updated analyst price target for Unilever reflects a shift from £40.00 to £41.00 per share, as analysts weigh contained earnings growth, pressure on pricing and operating margins, and potential sentiment risks around FY26 margin guidance and U.S. growth contributions. Analyst Commentary Recent research reflects a slightly higher price target of £41.00 per share, but with a cautious tone around earnings quality, valuation and medium term guidance.
NWG
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NatWest Group
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1Y
71.6%

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RR.
UK£12.94
Rolls-Royce Holdings
7D
8.1%
1Y
123.0%
ANTO
UK£34.73
Antofagasta
7D
6.7%
1Y
104.7%
AHT
UK£55.94
Ashtead Group
7D
9.7%
1Y
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REL
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Shareholders Would Enjoy A Repeat Of RELX's (LON:REL) Recent Growth In Returns

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