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U.K. (FTSE) Market Analysis & Valuation

UpdatedJul 23, 2026
DataAggregated Company Financials
Companies1083
  • 7D1.9%
  • 3M2.0%
  • 1Y17.7%
  • YTD7.5%

Over the last 7 days, the market has risen 1.9%, driven by gains of 5.3% in the Energy sector. The market is up 18% over the last 12 months. 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
Thu, 23 Jul 2026UK£3.0tUK£2.0tUK£165.0b15.9x18.2x1.5x
Sat, 20 Jun 2026UK£2.9tUK£2.0tUK£165.4b15.9x17.6x1.4x
Mon, 18 May 2026UK£2.9tUK£2.0tUK£165.4b15.7x17.5x1.4x
Wed, 15 Apr 2026UK£3.0tUK£2.0tUK£157.0b15.7x19.1x1.5x
Fri, 13 Mar 2026UK£2.9tUK£2.0tUK£156.3b15.8x18.6x1.5x
Sun, 08 Feb 2026UK£3.0tUK£1.9tUK£140.6b16.9x21.1x1.5x
Tue, 06 Jan 2026UK£2.9tUK£2.0tUK£137.6b16.5x20.8x1.5x
Thu, 04 Dec 2025UK£2.8tUK£2.0tUK£139.2b16.2x20x1.4x
Sat, 01 Nov 2025UK£2.8tUK£2.0tUK£139.2b16.5x20x1.4x
Mon, 29 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.6x19.7x1.4x
Wed, 27 Aug 2025UK£2.7tUK£1.9tUK£134.5b16x20x1.4x
Fri, 25 Jul 2025UK£2.6tUK£1.9tUK£127.0b16.1x20.3x1.3x
Sun, 22 Jun 2025UK£2.5tUK£1.9tUK£127.6b16.4x19.5x1.3x
Tue, 20 May 2025UK£2.5tUK£2.0tUK£132.9b16.5x18.7x1.3x
Thu, 17 Apr 2025UK£2.4tUK£2.0tUK£134.8b15.3x17.5x1.2x
Sat, 15 Mar 2025UK£2.5tUK£2.0tUK£137.0b15x18.1x1.2x
Mon, 10 Feb 2025UK£2.5tUK£2.0tUK£123.9b16x20.3x1.2x
Wed, 08 Jan 2025UK£2.4tUK£2.1tUK£123.2b16.2x19.6x1.2x
Fri, 06 Dec 2024UK£2.5tUK£2.0tUK£122.4b16.3x20x1.2x
Sun, 03 Nov 2024UK£2.4tUK£2.0tUK£118.3b16.3x20.4x1.2x
Tue, 01 Oct 2024UK£2.4tUK£2.0tUK£117.8b16.8x20.6x1.2x
Thu, 29 Aug 2024UK£2.5tUK£2.0tUK£119.5b17x20.5x1.2x
Sat, 27 Jul 2024UK£2.4tUK£2.0tUK£126.6b16.5x19.3x1.2x
Mon, 24 Jun 2024UK£2.4tUK£2.0tUK£132.0b16.7x18.4x1.2x
Wed, 22 May 2024UK£2.5tUK£2.0tUK£125.6b17.2x20x1.2x
Fri, 19 Apr 2024UK£2.4tUK£2.1tUK£147.5b15.7x16.1x1.1x
Sun, 17 Mar 2024UK£2.3tUK£2.1tUK£144.9b16.1x16.1x1.1x
Tue, 13 Feb 2024UK£2.3tUK£2.0tUK£144.7b15x15.6x1.1x
Thu, 11 Jan 2024UK£2.3tUK£2.1tUK£193.5b15.1x12x1.1x
Sat, 09 Dec 2023UK£2.3tUK£2.1tUK£194.2b14.6x11.7x1.1x
Mon, 06 Nov 2023UK£2.2tUK£2.1tUK£193.8b14x11.6x1x
Wed, 04 Oct 2023UK£2.3tUK£2.2tUK£187.0b14.2x12.3x1.1x
Fri, 01 Sep 2023UK£2.3tUK£2.2tUK£186.5b14.5x12.5x1.1x
Sun, 30 Jul 2023UK£2.4tUK£2.2tUK£193.5b14.4x12.4x1.1x
Price to Earnings Ratio

12.4x


Total Market Cap: UK£2.4tTotal Earnings: UK£193.5bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 17.8x202420252026
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 17.8x.
Past Earnings Growth
  • The earnings for British listed companies have declined 5.2% per year over the last three years.
  • Meanwhile revenues have been flat.
  • This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.

Sector Trends

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

GB Market1.95%
Energy5.26%
Consumer Staples2.59%
Real Estate2.36%
Industrials2.16%
Materials1.73%
Utilities1.63%
Financials1.53%
Tech0.90%
Telecom0.90%
Healthcare0.68%
Consumer Discretionary-0.23%
Sector PE
  • Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 51.4x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 17.5%, which is higher than its past year's earnings growth of 7.7% 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 10.3x.
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 decline of 1.8% per year.
  • In contrast, the Energy sector is expected to see its earnings grow by 6.8% 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£15.414.1%
+UK£10.5b		62.5%PB1.8xFinancials
SHEL ShellUK£32.925.2%
+UK£8.8b		24.1%PE13.1xEnergy
BP. BPUK£5.396.2%
+UK£4.9b		33.3%PE34.7xEnergy
BATS British American TobaccoUK£46.155.1%
+UK£4.8b		20.0%PE13xConsumer Staples
BA. BAE SystemsUK£19.246.1%
+UK£3.1b		3.5%PE26.4xIndustrials
See more

Market Insights

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Latest News

REL
UK£24.54
RELX
7D
-1.9%
1Y
-37.0%
BA.
UK£19.24
BAE Systems
7D
6.1%
1Y
3.5%
SHEL
UK£32.92
Shell
7D
5.2%
1Y
24.1%
IAG
UK£4.39
International Consolidated Airlines Group
7D
-3.4%
1Y
16.4%
Narrative Update • Jul 21

IAG: Rising Cash Returns And Higher P/E Assumptions May Unlock Repricing

Analysts have lifted the fair value estimate for International Consolidated Airlines Group to about £6.44 from roughly £6.02, reflecting updated assumptions on revenue growth, profit margins and future P/E that align with a series of recent price target increases on the stock. Analyst Commentary Recent research on International Consolidated Airlines Group points to a cluster of higher price targets, which helps explain why some investors are re‑examining the stock in light of the updated fair value estimate.
LSEG
UK£86.82
London Stock Exchange Group
7D
-4.3%
1Y
-16.3%
HSBA
UK£15.41
HSBC Holdings
7D
4.1%
1Y
62.5%
Narrative Update • Jul 21

HSBA: Tighter Private Credit Lending Will Eventually Restrain Future Earnings Power

Analysts have raised their price target on HSBC Holdings to £9.97 from £7.73. They cite updated assumptions on fair value, a lower discount rate, modestly higher revenue growth and profit margin forecasts, and a slightly higher future P/E multiple.
CPG
US$30.88
Compass Group
7D
-2.1%
1Y
-14.1%
Narrative Update • Jul 20

CPG: Revised Fair Value And P/E Assumptions Will Shape Returns

Analysts have lifted their price target on Compass Group from $28.57 to $31.00, citing updated assumptions for fair value, discount rate, revenue, profit margin, and future P/E that modestly adjust the risk and return profile investors may want to consider. What’s in the News for Compass Group No recent Compass Group company specific news items were identified in the provided sources, so the updated price target currently reflects analyst model adjustments rather than newly disclosed events.
EZJ
UK£5.85
easyJet
7D
-13.3%
1Y
18.1%
Narrative Update • Jul 20

EZJ: Future Returns Will Rely On Resolution Of Apollo Takeover Uncertainty

The analyst fair value estimate for easyJet has been raised from £4.48 to £5.87. This change reflects a series of higher Street price targets as analysts factor in updated views on valuation, profit margins and takeover interest.
IHG
US$155.55
InterContinental Hotels Group
7D
-3.0%
1Y
32.9%
Narrative Update • Jul 20

IHG: RevPAR Momentum And Net Unit Growth Will Face Multiple Compression Risk

InterContinental Hotels Group's updated fair value estimate has moved from $104.18 to $108.00 as analysts factor in higher Street price targets, with supporting commentary pointing to stronger RevPAR trends, improving net unit growth momentum, and a reduced valuation gap to U.S. peers. Analyst Commentary Recent Street research on InterContinental Hotels Group highlights a mix of optimism on growth drivers such as RevPAR trends and net unit growth, alongside a more measured tone on valuation, particularly when compared with U.S. peers like Hilton and Marriott.
BP.
UK£5.39
BP
7D
6.2%
1Y
33.3%
NWG
UK£6.85
NatWest Group
7D
3.2%
1Y
37.1%
Narrative Update • Jul 17

NWG: Structural Hedge Reinvestment And Buybacks Will Drive Future Upside Re Rating

NatWest Group's analyst price target has been nudged higher to around £7.61 from about £7.44, with analysts pointing to updated assumptions on fair value, discount rate and P/E alongside recent target increases and ratings support from several banks. Analyst Commentary Recent research on NatWest Group highlights a split between more optimistic analysts, who see room for the shares to reflect higher fair value, and more cautious voices, who are focused on execution and sector level risks.
AZN
UK£127.02
AstraZeneca
7D
1.1%
1Y
19.0%
Narrative Update • Jul 16

AZN: Trial Setbacks And Oncology Deals Will Shape Medium Term Credibility

AstraZeneca's updated analyst price targets show a modest reset lower, with recent research pointing to greater uncertainty around medium term revenue catalysts and mixed trial outcomes, even as some analysts continue to highlight areas of support within the broader pipeline and existing portfolio. Analyst Commentary Recent research on AstraZeneca highlights a mix of caution and support, with several firms revisiting their models after the CARDIO TTRansform outcome and reassessing how much risk investors are taking on around the medium term growth story.
GLEN
UK£5.38
Glencore
7D
4.0%
1Y
64.8%
Narrative Update • Jul 15

GLEN: Copper Mix And Lithium Offtake Will Support Future Rerating Potential

Glencore's analyst price target has been lowered to around £5.90 to £6.35 per share from prior levels closer to £6.10 to £6.60, as analysts factor in higher required returns, updated views on commodity mix and earnings potential, and a moderation in assumed future P/E multiples, despite slightly stronger revenue growth and margin inputs. Analyst Commentary Recent research on Glencore shows a mix of optimism and caution, with several bullish analysts still highlighting upside potential around earnings power, commodity exposure and current valuation, even as headline price targets edge lower in some cases.
STJ
UK£10.68
St. James's Place
7D
-11.3%
1Y
-10.1%
Narrative Update • Jul 07

STJ: Supportive Research Coverage Will Drive Future Upside From Current Levels

The analyst fair value estimate for St. James's Place has been raised modestly to £16.99 from £16.41, reflecting updated views from analysts who cite recent price target revisions and supportive research coverage as key drivers of this change. Analyst Commentary Recent Street research on St. James's Place shows a mix of optimism around long term potential and caution around near term execution, with a series of price target revisions and fresh coverage feeding into the updated fair value estimate.
BATS
UK£46.15
British American Tobacco
7D
5.1%
1Y
20.0%
III
UK£25.52
3i Group
7D
-4.0%
1Y
-41.3%