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U.K. (FTSE) Market Analysis & Valuation

UpdatedDec 13, 2025
DataAggregated Company Financials
Companies1102
  • 7D-0.5%
  • 3M3.8%
  • 1Y15.2%
  • YTD15.9%

The market has been flat over the last week. As for the longer term, the market has risen 15% in the past 12 months. As for the next few years, earnings are expected to grow by 14% 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
Sat, 13 Dec 2025UK£2.8tUK£2.0tUK£138.3b15.9x20x1.4x
Mon, 10 Nov 2025UK£2.8tUK£2.0tUK£138.1b16.1x20.1x1.4x
Wed, 08 Oct 2025UK£2.7tUK£1.9tUK£135.5b16.7x20.2x1.4x
Fri, 05 Sep 2025UK£2.7tUK£2.0tUK£135.8b16.2x19.6x1.4x
Sun, 03 Aug 2025UK£2.6tUK£2.0tUK£134.5b16.3x19.5x1.3x
Tue, 01 Jul 2025UK£2.5tUK£1.9tUK£126.6b16.4x19.6x1.3x
Thu, 29 May 2025UK£2.5tUK£1.9tUK£125.7b16.4x19.7x1.3x
Sat, 26 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.7x1.2x
Mon, 24 Mar 2025UK£2.5tUK£2.0tUK£136.4b15.7x18.1x1.2x
Wed, 19 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.5x18.2x1.3x
Fri, 17 Jan 2025UK£2.5tUK£2.1tUK£124.5b15.8x19.7x1.2x
Sun, 15 Dec 2024UK£2.4tUK£2.0tUK£122.5b16.3x19.9x1.2x
Tue, 12 Nov 2024UK£2.4tUK£2.0tUK£118.4b16.3x20.2x1.2x
Thu, 10 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.5x20.3x1.2x
Sat, 07 Sep 2024UK£2.4tUK£2.0tUK£119.2b16.7x20.2x1.2x
Mon, 05 Aug 2024UK£2.4tUK£2.0tUK£124.8b16.7x19.3x1.2x
Wed, 03 Jul 2024UK£2.4tUK£2.0tUK£131.8b16.3x18.3x1.2x
Fri, 31 May 2024UK£2.5tUK£2.0tUK£129.4b17.3x19x1.2x
Sun, 28 Apr 2024UK£2.4tUK£2.1tUK£143.0b16x16.9x1.2x
Tue, 26 Mar 2024UK£2.4tUK£2.1tUK£147.5b16.1x16.4x1.2x
Thu, 22 Feb 2024UK£2.3tUK£2.1tUK£150.5b15.4x15.3x1.1x
Sat, 20 Jan 2024UK£2.3tUK£2.1tUK£193.6b14.6x11.7x1.1x
Mon, 18 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.1x11.9x1.1x
Wed, 15 Nov 2023UK£2.2tUK£2.1tUK£193.3b14.2x11.6x1.1x
Fri, 13 Oct 2023UK£2.3tUK£2.2tUK£186.7b13.9x12.5x1.1x
Sun, 10 Sep 2023UK£2.3tUK£2.2tUK£185.6b14.5x12.4x1.1x
Tue, 08 Aug 2023UK£2.3tUK£2.2tUK£189.1b14.5x12.4x1.1x
Thu, 06 Jul 2023UK£2.3tUK£2.2tUK£208.1b14.1x11.1x1.1x
Sat, 03 Jun 2023UK£2.4tUK£2.2tUK£211.9b14.3x11.2x1.1x
Mon, 01 May 2023UK£2.5tUK£2.2tUK£179.2b14.5x13.8x1.1x
Wed, 29 Mar 2023UK£2.4tUK£2.2tUK£183.7b13.4x12.8x1.1x
Fri, 24 Feb 2023UK£2.5tUK£2.2tUK£200.8b13.7x12.7x1.2x
Sun, 22 Jan 2023UK£2.5tUK£2.1tUK£183.6b13.7x13.6x1.2x
Tue, 20 Dec 2022UK£2.4tUK£2.1tUK£185.3b13.3x12.8x1.1x
Price to Earnings Ratio

12.8x


Total Market Cap: UK£2.4tTotal Earnings: UK£185.3bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.4x202320242025
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 20.0x which is higher than its 3-year average PE of 16.4x.
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 Market-0.46%
Financials1.26%
Industrials0.77%
Materials0.062%
Telecom-0.087%
Healthcare-0.74%
Consumer Staples-1.58%
Utilities-1.83%
Consumer Discretionary-1.97%
Tech-2.64%
Energy-2.88%
Real Estate-2.99%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 52.5x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 20.2%, 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 31% 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 7.0% 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£11.124.7%
+UK£8.5b		45.1%PB1.3xFinancials
STAN Standard CharteredUK£17.275.7%
+UK£2.1b		73.3%PB1xFinancials
RIO Rio Tinto GroupUK£55.891.6%
+UK£1.4b		14.1%PE11.8xMaterials
AHT Ashtead GroupUK£51.387.2%
+UK£1.4b		-1.1%PE20.2xIndustrials
FRES FresnilloUK£29.047.0%
+UK£1.4b		336.4%PE62.6xMaterials
See more

Market Insights

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IAG
UK£4.04
International Consolidated Airlines Group
7D
4.7%
1Y
37.7%
BP.
UK£4.39
BP
7D
-3.0%
1Y
10.9%
SHEL
UK£26.87
Shell
7D
-2.7%
1Y
7.5%
AHT
UK£51.38
Ashtead Group
7D
7.2%
1Y
-1.1%
HSBA
UK£11.12
HSBC Holdings
7D
4.7%
1Y
45.1%
AAL
UK£28.17
Anglo American
7D
-5.5%
1Y
0.8%

AAL: Iron Ore Outlook And Merger Decisions Will Shape Future Risk Reward Balance

The analyst price target for Anglo American has been raised to approximately $29.54 from about $29.18. This reflects analysts' more constructive view on long term iron ore demand and supply dynamics, despite slightly higher discount rates and some pressure on forecast margins.
ULVR
UK£48.36
Unilever
7D
-3.5%
1Y
-7.8%

ULVR: Ice Cream Spin-Off Delay Will Still Support Higher Long-Term Pricing Power

Analysts have raised their price target on Unilever from approximately $50 to about $56, reflecting increased confidence in the company’s long term fair value and profitability trajectory following supportive recent research coverage. Analyst Commentary Recent Street research underscores rising optimism around Unilever’s strategic positioning, with a notable Buy initiation and a price target meaningfully above the newly raised $56 objective.
STAN
UK£17.27
Standard Chartered
7D
5.7%
1Y
73.3%

STAN: Future Returns Will Depend On Executing Digital Custody And Tokenization Strategy

The analyst price target for Standard Chartered has inched higher to around £16.18 from approximately £16.25, as analysts broadly factor in slightly improved long term earnings prospects and valuation multiples following a series of modest target hikes across the Street. Analyst Commentary Recent research updates present a mixed but overall constructive outlook on Standard Chartered, with incremental target increases offset by one notable reduction.
FRES
UK£29.04
Fresnillo
7D
7.0%
1Y
336.4%

FRES: Elevated Gold Price Assumptions Will Likely Expose Downside If Metals Normalize

Our analyst price target for Fresnillo has been raised in line with the Street, which has lifted targets as high as 4,300 GBp per share. This reflects analysts' increasingly optimistic assumptions for revenue growth, margins, and long term precious metal pricing.
BARC
UK£4.44
Barclays
7D
2.3%
1Y
64.9%
III
UK£31.28
3i Group
7D
-3.2%
1Y
-14.2%

III: European Discount Retail Exposure Will Drive Compounding Returns Amid Mixed Momentum

Analysts have trimmed their price target on 3i Group, reflecting a reduced fair value estimate of approximately £44.44 from about £46.07. This change factors in slightly higher discount rates, softer revenue growth assumptions, and moderating profit margins, despite continued conviction in the long term compounding potential of its core assets.
LSEG
UK£84.64
London Stock Exchange Group
7D
-2.2%
1Y
-25.7%
AZN
UK£134.44
AstraZeneca
7D
-1.1%
1Y
28.4%
RIO
UK£55.89
Rio Tinto Group
7D
1.6%
1Y
14.1%
LLOY
UK£0.94
Lloyds Banking Group
7D
-2.1%
1Y
69.2%

LLOY: Future Returns Will Reflect Buybacks Wealth Expansion And Stable Profit Outlook

Analysts have raised their price target for Lloyds Banking Group, reflecting modest improvements in fair value estimates and slightly stronger expectations for revenue growth and profitability. What's in the News Lloyds Banking Group raised its earnings guidance for fiscal 2025, now expecting net interest income of around GBP 13.6 billion, slightly ahead of previous guidance (company guidance).
RR.
UK£10.97
Rolls-Royce Holdings
7D
1.1%
1Y
91.5%

RR.: Shares Will Gain Momentum From Aerospace Demand And Potential New Engine Deal

The analyst price target for Rolls-Royce Holdings has been revised upward from £11.93 to approximately £11.98. This change reflects analysts' increased confidence in the company's turnaround progress and opportunities for growth in the aerospace sector.