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U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 08, 2026
DataAggregated Company Financials
Companies1093
  • 7D1.1%
  • 3M7.8%
  • 1Y19.8%
  • YTD4.6%

The market has climbed 1.1% over the last week, with theHealthcare and Financials sectors leading the way. In the last year, the market has climbed 20%. 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, 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
Tue, 27 Jun 2023UK£2.3tUK£2.2tUK£208.5b14x11.1x1.1x
Thu, 25 May 2023UK£2.4tUK£2.2tUK£216.7b14.2x11.1x1.1x
Sat, 22 Apr 2023UK£2.5tUK£2.2tUK£178.9b14.1x13.8x1.1x
Mon, 20 Mar 2023UK£2.2tUK£2.2tUK£183.2b13.4x12.3x1x
Wed, 15 Feb 2023UK£2.5tUK£2.1tUK£194.6b13.8x13x1.2x
Price to Earnings Ratio

13x


Total Market Cap: UK£2.5tTotal Earnings: UK£194.6bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.8x202420252026
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 16.8x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 10% per year over the last three years.
  • Revenues have also declined 2.9% 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 Market1.13%
Healthcare6.36%
Consumer Staples5.21%
Utilities3.18%
Telecom0.38%
Energy0.095%
Materials-0.27%
Financials-0.36%
Real Estate-0.44%
Consumer Discretionary-0.79%
Industrials-1.65%
Tech-5.60%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 20.1x.
    • Analysts expect its future annual earnings growth (31.4%) to be largely in line with prior year's earnings growth.
    • The market's confidence could indicate that the market believes that analysts are underestimating future growth.
Forecasted Growth
  • Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 31% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.7% 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
GSK GSKUK£21.9817.1%
+UK£12.9b		52.3%PE15.4xHealthcare
AZN AstraZenecaUK£141.043.7%
+UK£7.8b		21.6%PE31.7xHealthcare
ULVR UnileverUK£52.506.3%
+UK£7.1b		-0.7%PE24.2xConsumer Staples
BATS British American TobaccoUK£46.095.3%
+UK£5.0b		37.7%PE32.8xConsumer Staples
HSBA HSBC HoldingsUK£13.061.6%
+UK£3.5b		52.9%PB1.6xFinancials
See more

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SHEL
UK£27.75
Shell
7D
-0.7%
1Y
4.9%
BATS
UK£46.09
British American Tobacco
7D
5.3%
1Y
37.7%

BATS: ITC Stake Sale And Leverage Goals Will Limit Future Upside

Analysts have lifted their fair value estimate for British American Tobacco from £30.00 to about £33.22, citing updated assumptions around revenue growth, profit margins and future P/E expectations. What's in the News Company issues earnings guidance for 2025, indicating around 2% Group revenue growth at constant rates and mid single digit growth in New Category revenue at constant rates.
GSK
UK£21.98
GSK
7D
17.1%
1Y
52.3%
BA.
UK£18.79
BAE Systems
7D
-4.8%
1Y
57.0%

BA.: NATO Rearmament And New US Contracts Will Support Sustained Demand

Analysts have nudged their fair value estimate for BAE Systems higher to £21.49 from £21.01, reflecting modest tweaks to assumptions on growth, margins and future P/E. The revision incorporates a mix of recent price target hikes from JPMorgan, Berenberg and Kepler Cheuvreux, alongside downgrades from Jefferies and Bernstein.
GLEN
UK£4.78
Glencore
7D
-4.2%
1Y
33.3%
BP.
UK£4.78
BP
7D
3.1%
1Y
10.3%

BP.: Future Returns Will Balance Portfolio Sales Softer Crude And Leadership Change

Analysts have trimmed their BP price targets by a few dollars or pence overall, reflecting slightly lower fair value estimates and revenue growth assumptions. This has been partially offset by a small uplift in expected profit margins and future P/E, as firms reassess the company around a softer crude outlook, refining tailwinds, and an upcoming CEO transition.
SGE
UK£8.44
Sage Group
7D
-11.8%
1Y
-36.0%
ULVR
UK£52.50
Unilever
7D
6.3%
1Y
-0.7%

ULVR: Margin And U.S. Slowdown Concerns Will Keep Shares Subdued

Analysts have made a small trim to their Unilever fair value estimate to about €40.87 per share, reflecting slightly higher assumed future P/E, a modestly lower discount rate, and mixed sector views that now include a downgrade to Neutral and a cautious stance on valuation, despite a higher Jefferies price target to £41.00. Analyst Commentary Recent research points to a cautious tone around Unilever, with several bearish analysts focusing on valuation, earnings visibility, and execution risks over the next couple of years.
NG.
UK£12.85
National Grid
7D
4.1%
1Y
30.8%

Estimating The Intrinsic Value Of National Grid plc (LON:NG.)

Feb 04
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EXPN
UK£24.99
Experian
7D
-9.4%
1Y
-35.9%
REL
UK£21.45
RELX
7D
-16.8%
1Y
-46.9%
AZN
UK£141.04
AstraZeneca
7D
3.7%
1Y
21.6%

AZN: Oncology Pipeline And Manufacturing Investments Will Shape Balanced Long-Term Outlook

Analysts have lifted their AstraZeneca fair value estimate to £152.79 from £150.26, reflecting higher price targets from several firms and updated views on the company’s revenue growth, profit margins and future P/E assumptions. Analyst Commentary Recent Street research on AstraZeneca has been active, with several bullish analysts lifting price targets and initiating positive coverage.
HSBA
UK£13.06
HSBC Holdings
7D
1.6%
1Y
52.9%

HSBA: Future Returns Will Hinge On Chair Succession Rather Than Execution

Analysts have nudged their fair value estimate for HSBC Holdings higher to £11.54 from £11.25, citing updated assumptions for slightly faster revenue growth, a modestly higher profit margin, and a P/E multiple that lines up with recent price target moves and rating changes from Citi, Erste Group, and Morgan Stanley. Analyst Commentary Recent Street research on HSBC Holdings points to a mix of optimism around execution in the next few years and some caution on how much of that is already reflected in the share price.
LLOY
UK£1.07
Lloyds Banking Group
7D
-2.0%
1Y
70.6%

LLOY: Buybacks And Dividend Policy Will Support Measured Future Return Profile

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LSEG
UK£75.02
London Stock Exchange Group
7D
-7.6%
1Y
-36.0%

LSEG: Private Markets Data Partnership Will Support Long-Term Upside Potential

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IMB
UK£33.41
Imperial Brands
7D
9.0%
1Y
18.1%

IMB: Future Returns Will Depend On Execution And Ongoing Share Repurchases

Analysts have nudged their price targets on Imperial Brands higher, with recent moves such as £34.25 to £36.50, £24.00 to £27.00 and £33.50 to £35.00. These changes have helped to lift our fair value estimate to £34.65, supported by updated assumptions on discount rate, revenue trends, margins and future P/E.