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U.K. (FTSE) Market Analysis & Valuation

UpdatedDec 28, 2025
DataAggregated Company Financials
Companies1097
  • 7D-0.1%
  • 3M5.8%
  • 1Y20.1%
  • YTD18.6%

The market has been flat over the last week. More promisingly, the market is up 20% over the past year. 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
Sun, 28 Dec 2025UK£2.8tUK£2.0tUK£137.9b16.1x20.5x1.4x
Tue, 25 Nov 2025UK£2.7tUK£2.0tUK£139.2b15.9x19.6x1.4x
Thu, 23 Oct 2025UK£2.7tUK£1.9tUK£135.7b16.6x20.2x1.4x
Sat, 20 Sep 2025UK£2.7tUK£1.9tUK£135.9b16.4x19.6x1.4x
Mon, 18 Aug 2025UK£2.7tUK£1.9tUK£133.8b15.9x19.8x1.4x
Wed, 16 Jul 2025UK£2.5tUK£1.9tUK£127.7b16x19.7x1.3x
Fri, 13 Jun 2025UK£2.5tUK£1.9tUK£127.2b16.4x19.8x1.3x
Sun, 11 May 2025UK£2.4tUK£2.0tUK£130.8b16x18.6x1.2x
Tue, 08 Apr 2025UK£2.2tUK£2.0tUK£137.3b14.1x16x1.1x
Thu, 06 Mar 2025UK£2.5tUK£2.0tUK£137.8b15.9x18.2x1.3x
Sat, 01 Feb 2025UK£2.5tUK£2.0tUK£123.8b15.9x20.4x1.2x
Mon, 30 Dec 2024UK£2.4tUK£2.0tUK£122.5b15.9x19.6x1.2x
Wed, 27 Nov 2024UK£2.4tUK£2.0tUK£123.5b16.2x19.6x1.2x
Fri, 25 Oct 2024UK£2.4tUK£2.0tUK£123.3b16.1x19.8x1.2x
Sun, 22 Sep 2024UK£2.4tUK£2.0tUK£118.1b16.9x19.9x1.2x
Tue, 20 Aug 2024UK£2.5tUK£2.0tUK£121.6b16.9x20.3x1.2x
Thu, 18 Jul 2024UK£2.4tUK£2.0tUK£128.8b16.9x18.7x1.2x
Sat, 15 Jun 2024UK£2.4tUK£2.1tUK£130.3b16.4x18.6x1.2x
Mon, 13 May 2024UK£2.5tUK£2.1tUK£136.5b16.9x18.4x1.2x
Wed, 10 Apr 2024UK£2.4tUK£2.1tUK£145.8b16x16.5x1.1x
Fri, 08 Mar 2024UK£2.3tUK£2.1tUK£145.6b15.9x16x1.1x
Sun, 04 Feb 2024UK£2.3tUK£2.1tUK£183.3b14.8x12.5x1.1x
Tue, 02 Jan 2024UK£2.3tUK£2.1tUK£193.7b15.1x12.1x1.1x
Thu, 30 Nov 2023UK£2.2tUK£2.1tUK£193.3b14.4x11.6x1.1x
Sat, 28 Oct 2023UK£2.2tUK£2.2tUK£186.4b13.4x11.8x1x
Mon, 25 Sep 2023UK£2.3tUK£2.2tUK£186.8b14.6x12.1x1x
Wed, 23 Aug 2023UK£2.2tUK£2.1tUK£184.1b14.3x12.2x1x
Fri, 21 Jul 2023UK£2.4tUK£2.2tUK£206.8b14.2x11.6x1.1x
Sun, 18 Jun 2023UK£2.4tUK£2.2tUK£207.5b14.3x11.5x1.1x
Tue, 16 May 2023UK£2.4tUK£2.2tUK£210.9b14.4x11.6x1.1x
Thu, 13 Apr 2023UK£2.5tUK£2.2tUK£179.5b13.7x13.7x1.1x
Sat, 11 Mar 2023UK£2.5tUK£2.2tUK£189.1b13.5x13.1x1.1x
Mon, 06 Feb 2023UK£2.5tUK£2.1tUK£185.4b14.2x13.7x1.2x
Wed, 04 Jan 2023UK£2.4tUK£2.1tUK£186.3b13.4x13.1x1.2x
Price to Earnings Ratio

13.1x


Total Market Cap: UK£2.4tTotal Earnings: UK£186.3bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.5x20242025
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 20.5x which is higher than its 3-year average PE of 16.5x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.5% per year over the last three years.
  • Revenues have also declined 2.6% 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-0.14%
Materials2.11%
Real Estate0.51%
Telecom0.45%
Financials0.27%
Energy0.17%
Healthcare-0.25%
Tech-0.43%
Utilities-0.46%
Consumer Discretionary-0.79%
Industrials-0.97%
Consumer Staples-1.41%
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 52.7x.
    • The market's confidence is likely because analysts are expecting annual earnings growth of 16.7%, 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 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
RIO Rio Tinto GroupUK£59.822.5%
+UK£2.3b		27.5%PE12.8xMaterials
HSBA HSBC HoldingsUK£11.750.7%
+UK£1.4b		51.3%PB1.4xFinancials
AAL Anglo AmericanUK£30.123.1%
+UK£971.2m		13.3%PS1.6xMaterials
ANTO AntofagastaUK£32.242.6%
+UK£818.3m		99.1%PE39.3xMaterials
KAP National Atomic Company Kazatomprom JSCUS$54.506.4%
+US$855.9m		46.1%PE10.6xEnergy
See more

Market Insights

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RR.
UK£11.50
Rolls-Royce Holdings
7D
-1.8%
1Y
98.9%
ANTO
UK£32.24
Antofagasta
7D
2.6%
1Y
99.1%

Antofagasta plc's (LON:ANTO) Intrinsic Value Is Potentially 95% Above Its Share Price

Dec 24
Antofagasta plc's (LON:ANTO) Intrinsic Value Is Potentially 95% Above Its Share Price
AAL
UK£30.12
Anglo American
7D
3.1%
1Y
13.3%

AAL: Iron Ore Upside And Merger Progress Will Drive Bullish Rerating

Analysts have lifted their price target on Anglo American to about $35 from roughly $28, reflecting improved expectations for revenue growth, higher margins, and a more favorable long term iron ore and valuation outlook following a series of recent target increases from major brokerages. Analyst Commentary Recent research updates highlight a clear shift toward a more constructive stance on Anglo American, with a series of price target increases signaling rising confidence in the company’s earnings trajectory and asset quality.
GLEN
UK£3.94
Glencore
7D
1.2%
1Y
11.2%
STAN
UK£18.06
Standard Chartered
7D
1.0%
1Y
83.7%

STAN: Future Returns Will Hinge On Executing Digital Custody Amid Balanced Outlook

Narrative Update on Standard Chartered The analyst price target for Standard Chartered has been modestly raised by approximately 3 percent to about £16.66, as analysts factor in slightly stronger long term revenue growth, marginally higher profit margins, and a higher justified future P E multiple despite a small uptick in the discount rate. Analyst Commentary Recent Street research on Standard Chartered reflects a generally constructive stance on the bank's medium term prospects, with modest dispersion around valuation targets as views differ on execution risk and earnings durability.
ULVR
UK£48.38
Unilever
7D
-1.1%
1Y
-6.0%

ULVR: Ice Cream Demerger Delay Will Still Support Future Pricing Power

Analysts have modestly reduced their price target on Unilever to approximately $53.37 from about $56.02, citing slightly lower long term revenue growth expectations and a marginally softer profit margin and valuation outlook, while the discount rate remains broadly unchanged. What's in the News Unilever delayed the planned demerger of its Magnum ice cream unit, attributing the timing change to the U.S. government shutdown, but reiterated confidence in completing the spin off later this year (Reuters).
GSK
UK£18.06
GSK
7D
-0.9%
1Y
34.5%
AAF
UK£3.36
Airtel Africa
7D
2.9%
1Y
196.6%

AAF: Future Profitability And Capital Returns Will Drive Further Upside

Analysts have raised their price target on Airtel Africa from 2.98 dollars to 3.88 dollars, citing higher expected profitability and a modestly richer valuation multiple, despite slightly softer long term revenue growth assumptions and a marginally higher discount rate. What's in the News Airtel Africa has scheduled a board meeting for January 29, 2026 to consider a potential change in its board of directors (company filing).
AHT
UK£51.84
Ashtead Group
7D
-3.0%
1Y
4.9%

AHT: Share Buybacks And Dividends Will Mask Limited Rental Revenue Upside

Analysts have raised their price target on Ashtead Group to approximately £46.00 from about £40.46, reflecting improved expectations for revenue growth and profit margins, along with a slightly higher discount rate and a modestly lower future valuation multiple. What's in the News Ashtead Group has announced a new share repurchase program of up to $1.5 billion, valid until the end of April 2027 (Key Developments).
CPG
UK£23.70
Compass Group
7D
-1.3%
1Y
-10.7%

There's Reason For Concern Over Compass Group PLC's (LON:CPG) Price

Dec 20
There's Reason For Concern Over Compass Group PLC's (LON:CPG) Price
III
UK£32.24
3i Group
7D
-1.6%
1Y
-10.3%

III: Discount Retail Exposure Will Deliver Compounding Returns Despite Slower Momentum

Analysts have trimmed their price target on 3i Group from approximately £44.44 to about £43.94, citing slower momentum. Despite stronger projected revenue growth and a modestly higher future P/E, they argue this justifies a lower valuation and reduced fair value.
KAP
US$54.50
National Atomic Company Kazatomprom JSC
7D
6.4%
1Y
46.1%

KAP: Higher Revenue Guidance Will Drive Improved Profitability Outlook

Analysts have raised their price target for National Atomic Company Kazatomprom JSC by approximately 11 percent to the equivalent of about 62, reflecting expectations of slightly improved profitability despite a marginally lower long term revenue growth outlook and a higher anticipated future price to earnings multiple. What's in the News Kazatomprom raised its consolidated revenue guidance for 2025 to KZT 1,750 billion to KZT 1,850 billion, up from a prior range of KZT 1,600 billion to KZT 1,700 billion (company guidance) The company confirmed its 2025 production guidance, keeping expected total production at 25,000 tU to 26,500 tU on a 100 percent basis and 13,000 tU to 14,000 tU on an attributable basis, with group sales volume unchanged at 17,500 tU to 18,500 tU (company guidance) Kazatomprom scheduled a special or extraordinary shareholders meeting for December 19, 2025 in Astana to consider approval of a new edition of its Corporate Governance Code (company announcement) Valuation Changes The Fair Value Estimate has risen moderately, from approximately 56.39 to 62.37, reflecting a higher intrinsic value assessment for the shares.
HSBA
UK£11.75
HSBC Holdings
7D
0.7%
1Y
51.3%

HSBA: Future Returns Will Depend On Succession Decisions And Capital Deployment Choices

Analysts have modestly raised their price target on HSBC Holdings, reflecting a slightly higher fair value estimate of approximately $10.88 versus $10.62 previously, supported by expectations for disciplined cost control, solid mid teens returns on equity, and resilient revenue growth despite only marginally higher forward valuation multiples. Analyst Commentary Recent Street research on HSBC Holdings reflects a generally constructive stance on the bank's execution and capital return story, tempered by selective concerns about deal making and capital deployment.
RKT
UK£59.78
Reckitt Benckiser Group
7D
-1.7%
1Y
23.8%

RKT: Future Outlook Will Reflect Steady Execution Amid Measured Medium Term Repricing

Reckitt Benckiser Group's analyst price targets have inched higher to roughly 5,650 to 5,700 GBp, reflecting analysts' modestly increased fair value estimate despite slightly softer long term revenue growth and margin assumptions and a higher expected future earnings multiple. Analyst Commentary Recent research updates on Reckitt Benckiser suggest a cautiously constructive stance, with modest price target upgrades reflecting incremental confidence in the company’s execution rather than a wholesale re-rating of its long term growth profile.
DGE
UK£15.90
Diageo
7D
-5.3%
1Y
-37.3%

DGE: Premium Positioning Will Cushion SNAP Headwinds And Support Share Rebound

Analysts have modestly trimmed their fair value estimate for Diageo by about $0.47 per share, citing higher perceived risk to consumer staples demand and slightly softer long term growth and margin assumptions. Analyst Commentary Bullish analysts acknowledge that reduced SNAP benefits and temporary payment disruptions create a near term headwind for staples demand, but they largely view the impact on Diageo as manageable given its premium positioning and global diversification.
RIO
UK£59.82
Rio Tinto Group
7D
2.5%
1Y
27.5%

RIO: Stronger Commodity Pricing And Cost Discipline Will Drive Upside Potential

Rio Tinto Group's analyst price target has been revised higher, with fair value estimates rising from approximately 65.08 to 74.18 as analysts factor in stronger expected revenue growth, wider profit margins, and a more favorable, though slightly higher risk-adjusted, earnings multiple implied by the latest round of target hikes across the Street. Analyst Commentary Recent research updates reflect a constructive tone on Rio Tinto, with a series of price target increases signaling growing confidence in the company’s earnings power and balance of risk and reward.