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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 05, 2026
DataAggregated Company Financials
Companies1082
  • 7D1.6%
  • 3M2.4%
  • 1Y19.7%
  • YTD6.9%

The market is up 1.6% over the last week, with the Financials sector leading the way, up 3.4%. As for the past 12 months, the market is up 20%. Earnings are forecast to grow by 11% annually.

Trending IndustriesOil and GasGoldBiotechSoftwareRenewable Energy

Market Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Jul 2026UK£3.0tUK£2.0tUK£164.8b15.9x18.2x1.5x
Tue, 02 Jun 2026UK£2.9tUK£2.0tUK£164.8b16.1x17.9x1.5x
Thu, 30 Apr 2026UK£2.9tUK£2.0tUK£160.0b15.7x18.1x1.4x
Sat, 28 Mar 2026UK£2.8tUK£2.0tUK£157.5b14.6x17.7x1.4x
Mon, 23 Feb 2026UK£3.0tUK£2.0tUK£148.3b16.8x20.6x1.6x
Wed, 21 Jan 2026UK£2.9tUK£2.0tUK£137.6b16.7x21.1x1.5x
Fri, 19 Dec 2025UK£2.8tUK£2.0tUK£138.3b16.1x20.3x1.4x
Sun, 16 Nov 2025UK£2.8tUK£2.0tUK£139.2b16.4x20x1.4x
Tue, 14 Oct 2025UK£2.7tUK£1.9tUK£135.8b16.8x20.1x1.4x
Thu, 11 Sep 2025UK£2.7tUK£1.9tUK£136.8b16.3x19.5x1.4x
Sat, 09 Aug 2025UK£2.6tUK£1.9tUK£134.0b16.2x19.7x1.4x
Mon, 07 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.3x19.6x1.3x
Wed, 04 Jun 2025UK£2.5tUK£1.9tUK£127.2b16.2x19.5x1.3x
Fri, 02 May 2025UK£2.4tUK£2.0tUK£131.5b15.7x18.4x1.2x
Sun, 30 Mar 2025UK£2.5tUK£2.0tUK£135.5b15.5x18.2x1.2x
Tue, 25 Feb 2025UK£2.5tUK£2.0tUK£137.3b16.1x18.2x1.2x
Thu, 23 Jan 2025UK£2.5tUK£2.1tUK£124.1b15.8x20.1x1.2x
Sat, 21 Dec 2024UK£2.4tUK£2.0tUK£122.7b16x19.4x1.2x
Mon, 18 Nov 2024UK£2.4tUK£2.0tUK£121.8b16.3x19.5x1.2x
Wed, 16 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.5x20.4x1.2x
Fri, 13 Sep 2024UK£2.4tUK£2.0tUK£119.3b16.5x20.3x1.2x
Sun, 11 Aug 2024UK£2.4tUK£2.0tUK£123.3b16.4x19.6x1.2x
Tue, 09 Jul 2024UK£2.4tUK£2.0tUK£130.8b16.7x18.5x1.2x
Thu, 06 Jun 2024UK£2.5tUK£2.0tUK£129.7b16.8x19x1.2x
Sat, 04 May 2024UK£2.4tUK£2.1tUK£141.9b16.5x17.3x1.2x
Mon, 01 Apr 2024UK£2.4tUK£2.1tUK£145.9b16.4x16.5x1.1x
Wed, 28 Feb 2024UK£2.3tUK£2.0tUK£140.6b15.3x16.4x1.1x
Fri, 26 Jan 2024UK£2.3tUK£2.1tUK£193.0b14.9x11.8x1.1x
Sun, 24 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.2x12.1x1.1x
Tue, 21 Nov 2023UK£2.3tUK£2.1tUK£194.2b14.4x11.7x1.1x
Thu, 19 Oct 2023UK£2.3tUK£2.2tUK£187.2b13.7x12.4x1.1x
Sat, 16 Sep 2023UK£2.4tUK£2.2tUK£185.8b14.7x12.7x1.1x
Mon, 14 Aug 2023UK£2.3tUK£2.1tUK£184.6b14.3x12.6x1.1x
Wed, 12 Jul 2023UK£2.3tUK£2.2tUK£206.3b13.8x11x1x
Price to Earnings Ratio

11x


Total Market Cap: UK£2.3tTotal Earnings: UK£206.3bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.7x202420252026
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 17.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 7.2% per year over the last three years.
  • Revenues have also declined 2.2% 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 Market1.61%
Industrials4.22%
Financials3.39%
Tech3.02%
Healthcare1.40%
Utilities1.13%
Materials0.048%
Energy-0.017%
Consumer Staples-0.074%
Real Estate-0.35%
Consumer Discretionary-0.76%
Telecom-1.08%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.7x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.8%, which is higher than its past year's earnings growth of 7.6% 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 10.2x.
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 growth rate of 3.1% per year.
  • In contrast, the Consumer Staples sector is expected to see its earnings grow by 6.9% 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
RR. Rolls-Royce HoldingsUK£15.047.0%
+UK£8.1b		56.3%PE21.3xIndustrials
BA. BAE SystemsUK£19.829.6%
+UK£4.9b		5.4%PE27.3xIndustrials
HSBA HSBC HoldingsUK£14.512.0%
+UK£4.9b		63.8%PB1.7xFinancials
LLOY Lloyds Banking GroupUK£1.155.4%
+UK£3.4b		52.7%PB1.4xFinancials
BP. BPUK£4.67-0.5%
UK£3.3b		23.2%PE31.6xEnergy
See more

Market Insights

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Markets are supposed to reprice risk when it changes. This time they've repriced the promise, but left the threat largely untouched. Whether that's an oversight or a fair call is worth thinking through.
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Latest News

SHEL
UK£28.92
Shell
7D
-0.2%
1Y
10.0%
RR.
UK£15.04
Rolls-Royce Holdings
7D
7.0%
1Y
56.3%
BP.
UK£4.67
BP
7D
-0.5%
1Y
23.2%
AZN
UK£144.56
AstraZeneca
7D
1.0%
1Y
39.9%
RIO
UK£70.70
Rio Tinto Group
7D
-1.4%
1Y
65.7%
Narrative Update • Jul 02

RIO: Copper Projects And Logistics Savings Will Support Future Upside

The analyst price target for Rio Tinto Group is updated modestly higher to reflect a fair value move from £91.63 to £93.88, as analysts factor in slightly stronger revenue growth assumptions, a higher profit margin profile and a lower projected future P/E multiple, while also weighing mixed rating actions and valuation concerns across recent research. Analyst Commentary Recent research on Rio Tinto Group shows a mix of views, but several bullish analysts have lifted their price targets, pointing to what they see as supportive sector conditions and solid project execution.
HSBA
UK£14.51
HSBC Holdings
7D
2.0%
1Y
63.8%
BT.A
UK£1.88
BT Group
7D
-3.4%
1Y
-4.2%
BATS
UK£46.21
British American Tobacco
7D
-2.7%
1Y
30.4%
VOD
UK£0.99
Vodafone Group
7D
-6.6%
1Y
20.9%
Narrative Update • Jul 02

VOD: German Competition And Inorganic Investment Needs Will Pressure Future Returns

Vodafone Group's analyst price targets have generally shifted lower, with cuts such as £1.55 to £1.50 and £1.20 to £1.10. These changes reflect analyst concerns about German competitive pressures and the balance between UK growth, elevated spending, and German EBITDA trends.
NWG
UK£6.83
NatWest Group
7D
4.0%
1Y
41.3%
DGE
UK£15.34
Diageo
7D
-2.7%
1Y
-19.6%
Narrative Update • Jul 01

DGE: Cost Cuts And Margin Discipline Will Shape Future Earnings Multiple

Analysts have reduced Diageo's implied fair value to £14.25 from £14.60, reflecting a slightly higher discount rate and modest adjustments to revenue growth, profit margin and future P/E assumptions. Analyst Commentary Recent research on consumer staples and discretionary companies highlights how quickly sentiment can shift when growth visibility, pricing power, or margins come into question.
BA.
UK£19.82
BAE Systems
7D
9.6%
1Y
5.4%
LLOY
UK£1.15
Lloyds Banking Group
7D
5.4%
1Y
52.7%
REL
UK£23.34
RELX
7D
-1.2%
1Y
-40.1%
Narrative Update • Jun 22

REL: AI Product Suite And Buybacks Will Support Future Earnings Multiple

Analysts have nudged their fair value estimate for RELX slightly higher to £35.83 from £35.80, citing a modestly stronger revenue growth outlook supported by fresh AI product commentary and the recent initiation and downgrade on the stock. Analyst Commentary Recent research on RELX highlights a split in opinion, with some bullish analysts pointing to the company’s AI product suite and data assets as support for the fair value uplift, while more cautious voices focus on the risk that expectations for AI driven growth and valuation may already be demanding.
IHG
US$167.55
InterContinental Hotels Group
7D
-2.3%
1Y
41.8%
Narrative Update • Jun 22

IHG: Future Returns Will Depend On Net Unit Growth And Conversions

InterContinental Hotels Group's analyst price target has been raised, with recent moves such as Goldman Sachs lifting its view to $188 from $165 and Bernstein moving to $154 from $141. Analysts point to stronger net unit growth, a deeper pipeline, and improving conversion trends as key supports for the updated fair value of $155.18.
LSEG
UK£86.70
London Stock Exchange Group
7D
7.5%
1Y
-19.0%
Narrative Update • Jun 17

LSEG: Digital Expansion And Share Buybacks Will Support Future Share Price Upside

Analysts have nudged their price targets for London Stock Exchange Group higher, with one recent move adding £1.00 to the prior level. The change reflects updated views on fair value, discount rate, revenue growth, profit margin and future P/E assumptions.