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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 13, 2026
DataAggregated Company Financials
Companies1094
  • 7D1.5%
  • 3M7.3%
  • 1Y23.6%
  • YTD2.2%

The Industrials and Healthcare sectors drove a 1.5% in the market over the last week. In the last year, the market has climbed 24%. 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
Tue, 13 Jan 2026UK£2.9tUK£2.0tUK£137.8b16.7x21.1x1.5x
Thu, 11 Dec 2025UK£2.8tUK£2.0tUK£138.4b15.9x19.9x1.4x
Sat, 08 Nov 2025UK£2.8tUK£2.0tUK£138.1b16.1x20.1x1.4x
Mon, 06 Oct 2025UK£2.7tUK£1.9tUK£135.4b16.8x20.2x1.4x
Wed, 03 Sep 2025UK£2.6tUK£2.0tUK£135.7b15.8x19.4x1.3x
Fri, 01 Aug 2025UK£2.6tUK£2.0tUK£126.3b16.4x20.3x1.3x
Sun, 29 Jun 2025UK£2.5tUK£1.9tUK£126.7b16.7x19.6x1.3x
Tue, 27 May 2025UK£2.5tUK£1.9tUK£125.7b16.2x19.7x1.3x
Thu, 24 Apr 2025UK£2.4tUK£2.0tUK£135.1b15.3x17.7x1.2x
Sat, 22 Mar 2025UK£2.5tUK£2.0tUK£136.5b15.6x18.1x1.2x
Mon, 17 Feb 2025UK£2.5tUK£2.0tUK£139.3b16.4x18.1x1.2x
Wed, 15 Jan 2025UK£2.4tUK£2.1tUK£124.8b15.7x19.2x1.2x
Fri, 13 Dec 2024UK£2.4tUK£2.0tUK£121.9b16.3x20x1.2x
Sun, 10 Nov 2024UK£2.4tUK£2.0tUK£118.2b16.3x20.2x1.2x
Tue, 08 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.4x20.4x1.2x
Thu, 05 Sep 2024UK£2.4tUK£2.0tUK£119.1b16.8x20.5x1.2x
Sat, 03 Aug 2024UK£2.4tUK£2.0tUK£124.9b16.7x19.3x1.2x
Mon, 01 Jul 2024UK£2.4tUK£2.0tUK£132.1b16.2x18.2x1.2x
Wed, 29 May 2024UK£2.5tUK£2.0tUK£129.0b17.2x19.1x1.2x
Fri, 26 Apr 2024UK£2.4tUK£2.1tUK£143.8b15.8x16.8x1.2x
Sun, 24 Mar 2024UK£2.4tUK£2.1tUK£147.6b16.3x16.4x1.1x
Tue, 20 Feb 2024UK£2.3tUK£2.0tUK£147.1b15.2x15.6x1.1x
Thu, 18 Jan 2024UK£2.3tUK£2.1tUK£193.7b14.6x11.6x1.1x
Sat, 16 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.1x11.9x1.1x
Mon, 13 Nov 2023UK£2.2tUK£2.2tUK£195.3b13.9x11.4x1x
Wed, 11 Oct 2023UK£2.3tUK£2.2tUK£185.9b14x12.6x1.1x
Fri, 08 Sep 2023UK£2.3tUK£2.2tUK£185.3b14.4x12.4x1.1x
Sun, 06 Aug 2023UK£2.4tUK£2.2tUK£189.4b14.6x12.4x1.1x
Tue, 04 Jul 2023UK£2.3tUK£2.2tUK£208.4b14.1x11.3x1.1x
Thu, 01 Jun 2023UK£2.3tUK£2.2tUK£213.2b14x11x1.1x
Sat, 29 Apr 2023UK£2.5tUK£2.2tUK£179.0b14.4x13.8x1.1x
Mon, 27 Mar 2023UK£2.3tUK£2.2tUK£184.6b13.7x12.6x1.1x
Wed, 22 Feb 2023UK£2.6tUK£2.2tUK£196.4b13.7x13x1.2x
Fri, 20 Jan 2023UK£2.5tUK£2.1tUK£183.7b13.7x13.6x1.2x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.5tTotal Earnings: UK£183.7bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.7x202420252026
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 21.1x which is higher than its 3-year average PE of 16.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.1% per year over the last three years.
  • Revenues have also declined 2.1% 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 Market1.48%
Healthcare4.05%
Materials3.91%
Industrials3.82%
Tech3.30%
Real Estate2.28%
Utilities2.09%
Consumer Discretionary1.81%
Telecom1.30%
Consumer Staples0.68%
Financials-0.94%
Energy-1.76%
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 7.2% 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£141.205.5%
+UK£11.4b		30.5%PE31.4xHealthcare
BA. BAE SystemsUK£20.9313.1%
+UK£7.2b		77.1%PE31.5xIndustrials
GLEN GlencoreUK£4.6911.7%
+UK£5.7b		28.7%PS0.3xMaterials
RR. Rolls-Royce HoldingsUK£12.874.5%
+UK£4.1b		126.8%PE18.6xIndustrials
GSK GSKUK£18.773.1%
+UK£2.3b		41.0%PE13.7xHealthcare
See more

Market Insights

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Latest News

ABF
UK£18.45
Associated British Foods
7D
-14.1%
1Y
-6.0%
TSCO
UK£4.17
Tesco
7D
-5.8%
1Y
15.8%

TSCO: Higher Risk Assumptions And Stable Margins Will Shape Future Upside

Analysts have trimmed their Tesco fair value estimate slightly to £4.80 from about £4.84. They cite a modest reset in discount rate assumptions alongside steady expectations for revenue growth, profit margins and future P/E levels.
HLN
UK£3.62
Haleon
7D
-2.7%
1Y
-1.6%

HLN: Modest Uplift In Outlook Will Balance Execution And Valuation Risks

Analysts have raised their Haleon price target by £0.10, from 507 GBp to 517 GBp. This change reflects updated assumptions for slightly higher revenue growth, a small adjustment to profit margins, and a modestly lower future P/E. Analyst Commentary The latest price target move to 517 GBp signals that at least one research house still sees room for upside in Haleon, but the change is relatively modest.
FRES
UK£37.34
Fresnillo
7D
6.8%
1Y
479.4%

FRES: Elevated Gold Price Forecasts Will Likely Drive Future Multiple Compression

Fresnillo’s updated fair value estimate has moved from £24.12 to £28.64 per share. This reflects analysts’ higher price targets and refreshed assumptions around revenue growth, profit margins and future P/E levels.
GSK
UK£18.77
GSK
7D
3.1%
1Y
41.0%
BARC
UK£4.73
Barclays
7D
-2.8%
1Y
81.5%
GLEN
UK£4.69
Glencore
7D
11.7%
1Y
28.7%
BA.
UK£20.93
BAE Systems
7D
13.1%
1Y
77.1%

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£141.20
AstraZeneca
7D
5.5%
1Y
30.5%
SHEL
UK£26.62
Shell
7D
-2.8%
1Y
-0.06%

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.
III
UK£31.27
3i Group
7D
-3.8%
1Y
-12.0%

III: Slower Momentum Will Still Deliver Compounding Returns And Dividend Support

Analysts have trimmed their 3i Group price target to £31.50 from £41.00, reflecting updated assumptions for the discount rate and earnings multiples as they factor in what they describe as slower momentum for the company. Analyst Commentary Recent research on 3i Group is skewed toward caution, with bearish analysts pointing to slower momentum and a valuation reset as key reasons for trimming expectations.
RKT
UK£62.28
Reckitt Benckiser Group
7D
4.0%
1Y
27.3%
BP.
UK£4.27
BP
7D
-2.0%
1Y
-1.1%

BP.: Future Returns Will Reflect Portfolio Reset Divestments And Leadership Transition

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£47.71
Unilever
7D
1.5%
1Y
-6.4%

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
UK£6.40
NatWest Group
7D
-3.8%
1Y
67.7%

NWG: Future Buybacks And Wealth Expansion Moves Will Support Fair Value

Analysts have lifted their price targets for NatWest Group into a higher £6.65 to £7.25 range, citing updated views on the bank's earnings potential and risk profile that feed into their refreshed valuation work. Analyst Commentary Recent research updates cluster NatWest Group price targets between £6.65 and £7.30, with several banks adjusting their models around similar levels.
RR.
UK£12.87
Rolls-Royce Holdings
7D
4.5%
1Y
126.8%