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U.K. (FTSE) Market Analysis & Valuation

UpdatedFeb 18, 2026
DataAggregated Company Financials
Companies1092
  • 7D1.6%
  • 3M11.7%
  • 1Y21.1%
  • YTD6.5%

The market is up 1.6% over the last week, with the Healthcare sector leading the way, up 6.6%. In the last year, the market has climbed 21%. Earnings are forecast to grow by 13% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

Has the U.K. Market valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Feb 2026UK£3.0tUK£1.9tUK£146.1b16.6x20.7x1.6x
Sat, 17 Jan 2026UK£2.9tUK£2.0tUK£137.9b16.7x21.3x1.5x
Mon, 15 Dec 2025UK£2.8tUK£2.0tUK£138.2b15.9x20x1.4x
Wed, 12 Nov 2025UK£2.8tUK£1.9tUK£137.0b16.6x20.5x1.4x
Fri, 10 Oct 2025UK£2.7tUK£1.9tUK£135.9b16.8x20.2x1.4x
Sun, 07 Sep 2025UK£2.7tUK£1.9tUK£135.6b16.4x19.7x1.4x
Tue, 05 Aug 2025UK£2.6tUK£2.0tUK£134.5b16.1x19.7x1.4x
Thu, 03 Jul 2025UK£2.5tUK£1.9tUK£126.8b16.2x19.5x1.3x
Sat, 31 May 2025UK£2.5tUK£1.9tUK£126.0b16.2x19.7x1.3x
Mon, 28 Apr 2025UK£2.4tUK£2.0tUK£134.9b15.3x17.7x1.2x
Wed, 26 Mar 2025UK£2.5tUK£2.0tUK£135.6b15.5x18.2x1.2x
Fri, 21 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.1x18x1.2x
Sun, 19 Jan 2025UK£2.5tUK£2.1tUK£125.0b16x19.9x1.2x
Tue, 17 Dec 2024UK£2.4tUK£2.0tUK£122.1b16.1x19.9x1.2x
Thu, 14 Nov 2024UK£2.4tUK£2.0tUK£120.3b16.3x19.7x1.2x
Sat, 12 Oct 2024UK£2.4tUK£2.0tUK£118.8b16.3x20.2x1.2x
Mon, 09 Sep 2024UK£2.4tUK£2.0tUK£119.2b16.6x20.2x1.2x
Wed, 07 Aug 2024UK£2.4tUK£2.0tUK£125.7b16.3x18.8x1.2x
Fri, 05 Jul 2024UK£2.4tUK£2.0tUK£131.0b16.8x18.5x1.2x
Sun, 02 Jun 2024UK£2.5tUK£2.0tUK£129.3b17.3x19.1x1.2x
Tue, 30 Apr 2024UK£2.4tUK£2.1tUK£143.3b16.4x17x1.2x
Thu, 28 Mar 2024UK£2.4tUK£2.1tUK£144.6b16.4x16.6x1.2x
Sat, 24 Feb 2024UK£2.3tUK£2.0tUK£139.7b15.6x16.6x1.1x
Mon, 22 Jan 2024UK£2.3tUK£2.1tUK£193.6b14.6x11.7x1.1x
Wed, 20 Dec 2023UK£2.3tUK£2.1tUK£193.2b14.9x12x1.1x
Fri, 17 Nov 2023UK£2.3tUK£2.1tUK£195.1b14.3x11.6x1.1x
Sun, 15 Oct 2023UK£2.3tUK£2.2tUK£187.0b13.8x12.4x1.1x
Tue, 12 Sep 2023UK£2.3tUK£2.2tUK£185.1b14.5x12.5x1.1x
Thu, 10 Aug 2023UK£2.3tUK£2.1tUK£183.8b14.6x12.8x1.1x
Sat, 08 Jul 2023UK£2.3tUK£2.2tUK£207.0b14x10.9x1x
Mon, 05 Jun 2023UK£2.4tUK£2.2tUK£212.0b14.3x11.2x1.1x
Wed, 03 May 2023UK£2.4tUK£2.2tUK£208.7b14.4x11.7x1.1x
Fri, 31 Mar 2023UK£2.4tUK£2.2tUK£182.1b13.8x13.2x1.1x
Sun, 26 Feb 2023UK£2.5tUK£2.2tUK£195.0b13.7x13x1.2x
Price to Earnings Ratio

13x


Total Market Cap: UK£2.5tTotal Earnings: UK£195.0bTotal Revenue: UK£2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.9x202420252026
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 20.7x which is higher than its 3-year average PE of 16.9x.
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 3.8% 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 Market1.65%
Healthcare6.64%
Utilities5.42%
Industrials2.49%
Real Estate2.00%
Consumer Staples1.62%
Tech1.42%
Energy1.27%
Telecom0.96%
Consumer Discretionary0.81%
Financials-0.62%
Materials-0.85%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 20.6x.
    • Analysts are expecting annual earnings growth of 24.8%, which is lower than the prior year's growth of 33.5% 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 7.5% 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£155.424.9%
+UK£11.2b		32.8%PE31.9xHealthcare
RR. Rolls-Royce HoldingsUK£13.256.1%
+UK£6.4b		106.1%PE19.1xIndustrials
BA. BAE SystemsUK£21.109.6%
+UK£5.5b		56.9%PE31.7xIndustrials
REL RELXUK£22.3411.0%
+UK£4.0b		-44.1%PE19.6xIndustrials
CPG Compass GroupUK£21.806.5%
+UK£2.3b		-22.3%PE26.9xConsumer Discretionary
See more

Market Insights

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Latest News

BA.
UK£21.10
BAE Systems
7D
9.6%
1Y
56.9%
CPG
UK£21.80
Compass Group
7D
6.5%
1Y
-22.3%
GSK
UK£22.68
GSK
7D
5.5%
1Y
57.8%
BATS
UK£43.44
British American Tobacco
7D
-1.9%
1Y
43.4%
REL
UK£22.34
RELX
7D
11.0%
1Y
-44.1%
AZN
UK£155.42
AstraZeneca
7D
4.9%
1Y
32.8%

AZN: Elevated Margin Assumptions Will Face Pressure From Pipeline And Competition Risks

Narrative Update: AstraZeneca Analyst Price Target Shift Analysts have raised their fair value estimate for AstraZeneca from £108.53 to £117.29, citing updated assumptions for revenue growth, profit margins and a lower future P/E multiple, supported by recent price target increases and fresh bullish coverage across several banks. Analyst Commentary Recent Street research on AstraZeneca has leaned positive, with several banks adjusting fair value estimates and starting coverage with supportive views.
HSBA
UK£12.98
HSBC Holdings
7D
-0.6%
1Y
44.9%

HSBA: Future Returns Will Depend On Cost Discipline And Return On Equity

HSBC Holdings' updated fair value has edged higher, supporting a modest uplift in the implied analyst price target to about £11.74, as analysts cite recent target increases, resumed coverage and upgrades following what they describe as good Q3 results and progress toward cost growth and return-on-equity goals. Analyst Commentary Recent research updates on HSBC point to a generally constructive tone, with several large firms revisiting their views after the latest Q3 report and revised internal targets.
LSEG
UK£77.90
London Stock Exchange Group
7D
5.5%
1Y
-33.4%

LSEG: Activist Engagement And Efficiency Focus Will Support Long-Term Upside Potential

Analysts have made only a marginal adjustment to their price target for London Stock Exchange Group, reflecting small tweaks to assumptions around discount rate, revenue growth, profit margin and future P/E, while keeping their core fair value view effectively unchanged at about £123.06 per share. What's in the News On February 11, 2026, Elliott Management Corporation disclosed that it has built a stake in London Stock Exchange Group and is engaging with the company to improve its performance (Key Developments).
RIO
UK£73.89
Rio Tinto Group
7D
1.5%
1Y
46.7%

RIO: Ended Glencore Talks And Planned Asset Sales Will Support Upside

Analysts have nudged their fair value estimate for Rio Tinto Group higher to about £84 from roughly £83, citing Street research that includes several recent price target increases and mixed rating changes. These changes balance a slightly higher assumed revenue growth rate with a modestly lower profit margin and a marginally higher future P/E and discount rate.
RR.
UK£13.25
Rolls-Royce Holdings
7D
6.1%
1Y
106.1%

RR.: Turnaround Progress And Quantum Advances Will Support Stronger Long Term Prospects

Analysts have lifted their price target on Rolls-Royce Holdings, with our fair value estimate moving from £15.68 to £16.25, citing updated assumptions around revenue growth, profit margins and future P/E multiples supported by recent positive research on Ultrafan and the wider turnaround story. Analyst Commentary Recent Street research has leaned constructive, with bullish analysts pointing to both the ongoing business turnaround and the potential of the Ultrafan program as key parts of the Rolls-Royce equity story.
BP.
UK£4.70
BP
7D
-0.7%
1Y
1.3%
IMB
UK£32.51
Imperial Brands
7D
-1.6%
1Y
17.0%
SDR
UK£5.86
Schroders
7D
28.1%
1Y
53.8%
PRU
UK£11.25
Prudential
7D
-3.2%
1Y
59.5%

PRU: Share Buybacks And Revised Assumptions Will Shape Future Market Verdict

Analysts have lifted their price targets on Prudential to £15.00 and £12.70, reflecting updated assumptions that include a fair value estimate of 11.9, a discount rate of 7.198%, revenue growth of 2.40%, a profit margin of 20.22% and a future P/E of 17.21. Analyst Commentary Recent Street research points to a supportive tone on Prudential, with both JPMorgan and Morgan Stanley updating their price targets in line with the valuation inputs discussed earlier.
KAP
US$82.40
National Atomic Company Kazatomprom JSC
7D
-4.1%
1Y
122.4%

KAP: Japanese Supply Deal And 2026 Guidance Will Support Steady Outlook

Analysts have trimmed their price target for National Atomic Company Kazatomprom JSC slightly, citing updated assumptions that reflect a modestly higher revenue growth outlook, a small adjustment to profit margin expectations, and a lower future P/E multiple. What's in the News Kazatomprom issued production and earnings guidance for 2026, indicating expected group sales volumes in a range of 19,500 tU to 20,500 tU, with KAP sales volumes between 13,100 tU and 14,100 tU, and total production on a 100% basis targeted between 27,500 tU and 29,000 tU (Key Developments).
DGE
UK£17.61
Diageo
7D
-4.1%
1Y
-16.7%

DGE: Premium Portfolio And Cost Discipline Will Benefit From Expected Consumer Tailwinds

Narrative Update on Diageo Analysts have trimmed their Diageo fair value estimate slightly, by about $0.23 to $20.57, reflecting more muted assumptions for revenue growth and profit margins, partly offset by a modestly higher future P/E multiple. Analyst Commentary Recent Street research around consumer and value-focused retailers gives some context for how analysts are thinking about companies with everyday spending exposure, which can be useful when you think about Diageo.