Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Utilities Sector Analysis

UpdatedApr 12, 2026
DataAggregated Company Financials
Companies12
  • 7D1.3%
  • 3M15.4%
  • 1Y41.5%
  • YTD17.6%

In the last week, the Utilities industry is up 1.3%, with National Grid up 1.9%. This takes the industry's 12 month performance to a gain of 42%. Earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 12 Apr 2026UK£136.3bUK£61.6bUK£4.7b23.7x29.1x2.2x
Tue, 10 Mar 2026UK£132.1bUK£61.6bUK£4.7b23.1x28.2x2.1x
Thu, 05 Feb 2026UK£127.3bUK£61.8bUK£4.8b21.8x26.3x2.1x
Sat, 03 Jan 2026UK£115.8bUK£61.8bUK£4.8b20x23.9x1.9x
Mon, 01 Dec 2025UK£114.9bUK£62.0bUK£4.8b19.4x23.7x1.9x
Wed, 29 Oct 2025UK£109.7bUK£62.1bUK£4.7b17.5x23.1x1.8x
Fri, 26 Sep 2025UK£100.2bUK£62.1bUK£4.7b16.9x21.1x1.6x
Sun, 24 Aug 2025UK£102.1bUK£62.1bUK£4.7b16.6x21.6x1.6x
Tue, 22 Jul 2025UK£103.1bUK£63.0bUK£6.4b15.1x16x1.6x
Thu, 19 Jun 2025UK£102.0bUK£63.0bUK£6.4b14.4x15.9x1.6x
Sat, 17 May 2025UK£100.7bUK£62.9bUK£7.2b11.1x14.1x1.6x
Mon, 14 Apr 2025UK£94.5bUK£63.8bUK£5.9b10.1x16x1.5x
Wed, 12 Mar 2025UK£89.7bUK£63.9bUK£5.9b10x15.2x1.4x
Fri, 07 Feb 2025UK£91.6bUK£65.7bUK£5.8b10.3x15.8x1.4x
Sun, 05 Jan 2025UK£91.9bUK£65.7bUK£5.8b10.4x15.8x1.4x
Tue, 03 Dec 2024UK£96.4bUK£65.7bUK£5.8b11.1x16.6x1.5x
Thu, 31 Oct 2024UK£95.0bUK£66.5bUK£6.1b11.7x15.7x1.4x
Sat, 28 Sep 2024UK£98.7bUK£66.5bUK£6.1b11.9x16.3x1.5x
Mon, 26 Aug 2024UK£96.1bUK£66.4bUK£6.1b12.3x15.9x1.4x
Wed, 24 Jul 2024UK£94.2bUK£73.1bUK£8.8b12.5x10.7x1.3x
Fri, 21 Jun 2024UK£90.3bUK£73.1bUK£8.8b13.1x10.3x1.2x
Sun, 19 May 2024UK£91.4bUK£75.7bUK£7.8b14.3x11.7x1.2x
Tue, 16 Apr 2024UK£82.6bUK£75.7bUK£7.8b13.4x10.6x1.1x
Thu, 14 Mar 2024UK£83.1bUK£75.6bUK£7.8b13.5x10.7x1.1x
Sat, 10 Feb 2024UK£80.5bUK£79.2bUK£7.7b13.3x10.4x1x
Mon, 08 Jan 2024UK£90.2bUK£81.4bUK£7.8b11.7x11.5x1.1x
Wed, 06 Dec 2023UK£88.9bUK£81.4bUK£7.8b11.8x11.4x1.1x
Fri, 03 Nov 2023UK£86.1bUK£82.7bUK£7.5b12.8x11.5x1x
Sun, 01 Oct 2023UK£82.1bUK£82.7bUK£7.5b13x10.9x1x
Tue, 29 Aug 2023UK£81.1bUK£82.5bUK£7.5b13.1x10.8x1x
Thu, 27 Jul 2023UK£86.2bUK£75.8bUK£2.4b19.5x36.2x1.1x
Sat, 24 Jun 2023UK£85.5bUK£74.5bUK£2.3b23.4x36.7x1.1x
Mon, 22 May 2023UK£89.7bUK£72.6bUK£3.9b17.3x22.9x1.2x
Wed, 19 Apr 2023UK£90.2bUK£71.9bUK£4.1b18.3x21.8x1.3x
Price to Earnings Ratio

21.8x


Total Market Cap: UK£90.2bTotal Earnings: UK£4.1bTotal Revenue: UK£71.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.6x202420252026
Current Industry PE
  • Investors are optimistic on the British Utilities industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 29.1x which is higher than its 3-year average PE of 17.6x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 2.2x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 4.3% per year over the last three years.
  • Meanwhile revenues for these companies have declined 5.0% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the U.K. Utilities sector?

GB Market1.87%
Utilities1.29%
Water Utilities2.33%
Other Utilities1.22%
Electric Utilities0.90%
Renewable Energy0.064%
Gas Utilities0%0
Industry PE
  • Investors are most optimistic about the Electric Utilities industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 18.3%, which is higher than its past year's earnings decline of 26.4% per year.
  • Investors are most pessimistic about the Other Utilities industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 16.3x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 18% over the next 5 years.
  • This is better than its past earnings decline of 26% per year.
  • In contrast, the Water Utilities industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
NG. National GridUK£13.481.9%
+UK£1.2b		33.2%PE23.3x
SSE SSEUK£27.530.9%
+UK£295.3m		77.2%PE34.6x
SVT Severn TrentUK£32.552.5%
+UK£234.8m		25.9%PE31.1x
UU. United Utilities GroupUK£13.942.2%
+UK£201.2m		30.6%PE23.7x
PNN Pennon GroupUK£5.682.4%
+UK£63.7m		24.1%PE90.6x

Latest News

NG.
UK£13.48
National Grid
7D
1.9%
1Y
33.2%

NG.: Grid Optimization And Execution Discipline Will Shape Earnings Resilience And Future P/E

Analysts have raised their price target on National Grid to £13.63 from £13.53, citing slightly higher assumptions for revenue growth, profit margin and future P/E as the main drivers of the change. Analyst Commentary Analysts are updating their views on National Grid in light of the revised price target, with attention on how the company can support its valuation through consistent execution and disciplined capital allocation.
DRX
UK£8.85
Drax Group
7D
-0.5%
1Y
60.9%
SSE
UK£27.53
SSE
7D
0.9%
1Y
77.2%

SSE: Offshore Wind Contract Wins And Mixed Market Sentiment Will Shape Returns

Analysts have lifted the SSE fair value estimate from £25.82 to £26.98, reflecting refreshed price targets from several banks and updated assumptions for revenue growth, profit margins and future P/E levels. Analyst Commentary Recent research on SSE has been active, with several banks updating price targets and ratings over the past few months.
SVT
UK£32.55
Severn Trent
7D
2.5%
1Y
25.9%

SVT: Clustered 3,300 GBp Views Will Guide A Measured Forward Outlook

Analysts have nudged their fair value estimate for Severn Trent slightly higher to £31.26 from £31.03, citing recent price target moves to £3,300 that reflect updated assumptions on growth, margins and P/E multiples. Analyst Commentary Recent Street commentary on Severn Trent points to a mixed set of views, with several firms adjusting ratings and price targets around the £33.00 level.
CNA
UK£2.11
Centrica
7D
-3.2%
1Y
48.2%
UU.
UK£13.94
United Utilities Group
7D
2.2%
1Y
30.6%
CINH
UK£0.045
Cindrigo Holdings
7D
-18.2%
1Y
n/a
YU.
UK£17.90
Yü Group
7D
7.2%
1Y
30.2%
TEP
UK£13.66
Telecom Plus
7D
3.3%
1Y
-18.7%

TEP: Stable Assumptions And Steady Outlook Will Support Stronger Future Returns

Analysts have kept their fair value estimate for Telecom Plus steady at £23.48, with unchanged assumptions on discount rate, revenue growth, profit margin and future P/E. This suggests no material shift in their underlying view of the shares at this stage.
PNN
UK£5.68
Pennon Group
7D
2.4%
1Y
24.1%

PNN: Higher £6.50 Fair Value Assumptions Will Support Bullish Re Rating

Analyst price targets for Pennon Group have moved higher, with several recent updates lifting fair value estimates toward around £6.50. This shift is supported by slightly adjusted assumptions on revenue growth, profit margins and future P/E multiples.
JEL
UK£4.40
Jersey Electricity
7D
2.3%
1Y
3.5%