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U.K. (FTSE) Utilities Sector Analysis

UpdatedMar 13, 2026
DataAggregated Company Financials
Companies12
  • 7D1.6%
  • 3M22.0%
  • 1Y48.0%
  • YTD17.2%

In the last week, Utilities has been flat. The past year has been better, since the industry has gained 44% in that time. 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
Fri, 13 Mar 2026UK£136.0bUK£61.6bUK£4.7b23.7x29x2.2x
Sun, 08 Feb 2026UK£127.8bUK£61.8bUK£4.8b21.7x26.4x2.1x
Tue, 06 Jan 2026UK£115.7bUK£61.8bUK£4.8b19.9x23.9x1.9x
Thu, 04 Dec 2025UK£115.0bUK£62.0bUK£4.8b18.6x23.7x1.9x
Sat, 01 Nov 2025UK£109.3bUK£62.1bUK£4.7b17.7x23.1x1.8x
Mon, 29 Sep 2025UK£100.8bUK£62.1bUK£4.7b16.6x21.3x1.6x
Wed, 27 Aug 2025UK£101.8bUK£62.1bUK£4.7b16.5x21.5x1.6x
Fri, 25 Jul 2025UK£103.0bUK£63.0bUK£6.4b14.7x16x1.6x
Sun, 22 Jun 2025UK£101.7bUK£63.0bUK£6.4b14.3x15.8x1.6x
Tue, 20 May 2025UK£101.6bUK£62.9bUK£7.2b11.1x14.2x1.6x
Thu, 17 Apr 2025UK£100.0bUK£63.8bUK£5.9b10.3x16.9x1.6x
Sat, 15 Mar 2025UK£90.5bUK£63.9bUK£5.9b10.1x15.3x1.4x
Mon, 10 Feb 2025UK£91.6bUK£65.7bUK£5.8b10.2x15.8x1.4x
Wed, 08 Jan 2025UK£90.9bUK£65.7bUK£5.8b10.4x15.7x1.4x
Fri, 06 Dec 2024UK£95.2bUK£65.7bUK£5.8b11x16.4x1.4x
Sun, 03 Nov 2024UK£94.3bUK£66.5bUK£6.1b11.7x15.6x1.4x
Tue, 01 Oct 2024UK£97.9bUK£66.5bUK£6.1b11.8x16.2x1.5x
Thu, 29 Aug 2024UK£96.8bUK£66.4bUK£6.1b12.1x16x1.5x
Sat, 27 Jul 2024UK£94.9bUK£67.1bUK£6.0b12.3x15.9x1.4x
Mon, 24 Jun 2024UK£90.1bUK£73.1bUK£8.8b13.1x10.2x1.2x
Wed, 22 May 2024UK£90.6bUK£75.7bUK£7.8b14.4x11.6x1.2x
Fri, 19 Apr 2024UK£82.8bUK£75.7bUK£7.8b13.4x10.6x1.1x
Sun, 17 Mar 2024UK£83.5bUK£75.6bUK£7.8b13.5x10.7x1.1x
Tue, 13 Feb 2024UK£81.0bUK£79.2bUK£7.7b13.4x10.5x1x
Thu, 11 Jan 2024UK£90.4bUK£81.4bUK£7.8b11.7x11.5x1.1x
Sat, 09 Dec 2023UK£90.5bUK£81.4bUK£7.8b11.8x11.6x1.1x
Mon, 06 Nov 2023UK£86.0bUK£82.7bUK£7.5b12.7x11.4x1x
Wed, 04 Oct 2023UK£79.0bUK£82.7bUK£7.5b12.6x10.5x1x
Fri, 01 Sep 2023UK£82.3bUK£82.5bUK£7.5b13x11x1x
Sun, 30 Jul 2023UK£84.3bUK£82.5bUK£7.5b13.3x11.2x1x
Tue, 27 Jun 2023UK£85.4bUK£74.5bUK£2.3b22.2x36.7x1.1x
Thu, 25 May 2023UK£89.1bUK£72.6bUK£3.9b16.4x22.8x1.2x
Sat, 22 Apr 2023UK£91.6bUK£71.9bUK£4.1b18.5x22.2x1.3x
Mon, 20 Mar 2023UK£84.6bUK£71.9bUK£4.1b18.2x20.5x1.2x
Price to Earnings Ratio

20.5x


Total Market Cap: UK£84.6bTotal Earnings: UK£4.1bTotal Revenue: UK£71.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Utilities Sector Price to Earnings3Y Average 17.4x202420252026
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 28.3x which is higher than its 3-year average PE of 17.4x.
  • 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 Market-1.19%
Utilities1.56%
Electric Utilities2.45%
Other Utilities1.85%
Renewable Energy0.97%
Gas Utilities0%0
Water Utilities-0.74%
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 19.8%, 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 16.2x.
Forecasted Growth
  • Analysts are most optimistic on the Electric Utilities industry, expecting annual earnings growth of 20% 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 14% 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£13.681.2%
+UK£795.4m		43.0%PE23.7x
SSE SSEUK£27.042.5%
+UK£787.9m		80.3%PE34.2x
CNA CentricaUK£2.077.1%
+UK£616.1m		43.8%PS0.5x
DRX Drax GroupUK£8.771.6%
+UK£44.7m		55.2%PE40.5x
TEP Telecom PlusUK£13.421.5%
+UK£16.0m		-21.9%PE16.2x

Latest News

UU.
UK£13.58
United Utilities Group
7D
-0.4%
1Y
38.4%

UU.: Revised Discount Rate And P/E Will Guide Post Downgrade Risk Balance

Analysts have lifted their price target for United Utilities Group by £0.25 to £13.51, citing updated assumptions on fair value, discount rate and future P/E, even though some recent research has shifted ratings to Hold. Analyst Commentary Bullish and bearish analysts are looking at the same set of factors for United Utilities Group but are drawing different conclusions about how much upside is left after the latest price target adjustment.
NG.
UK£13.68
National Grid
7D
1.2%
1Y
43.0%

NG.: Margin Resilience And P/E Expectations Will Shape Predictable Future Returns

Analysts have nudged their National Grid fair value estimate higher from £12.47 to £13.14, pointing to slightly firmer profit margin expectations and a modestly higher future P/E multiple, even as revenue growth assumptions are trimmed. Analyst Commentary Bullish Takeaways Bullish analysts view the uplift in fair value to £13.14 as consistent with a business that can sustain firmer profit margins over time, which they see as supportive of the overall earnings quality story.
SSE
UK£27.04
SSE
7D
2.5%
1Y
80.3%

SSE: Offshore Wind Contracts Will Shape Future Returns At Fairly Priced Shares

Narrative Update on SSE The updated analyst price target for SSE has increased to £26.00, with analysts noting recent target revisions from several firms as supporting this updated view. Analyst Commentary Recent research commentary on SSE has centred on higher price targets, with several bullish analysts revisiting their assumptions on valuation and execution.
DRX
UK£8.77
Drax Group
7D
1.6%
1Y
55.2%
SVT
UK£31.69
Severn Trent
7D
-0.8%
1Y
29.6%

SVT: Mixed Rating Shifts Will Shape A Fairly Balanced Outlook

The analyst fair value estimate for Severn Trent has edged up from about £30.22 to roughly £30.45, reflecting updated price targets in which some analysts see valuation as more balanced while others still identify upside, leading to a mixed shift in ratings. Analyst Commentary Recent research views on Severn Trent are mixed, with some firms trimming their stance on the shares while still lifting price targets, and others taking a more constructive view.
TEP
UK£13.42
Telecom Plus
7D
1.5%
1Y
-21.9%

TEP: Stable Assumptions Will Support Stronger Future Shareholder Returns

Analysts have kept their fair value estimate for Telecom Plus steady at £23.48, citing unchanged assumptions on discount rate, revenue growth and profit margin, which together leave their long term P/E expectations broadly intact. Valuation Changes Fair Value: Held steady at £23.48, with no change in the underlying model input.
PNN
UK£5.55
Pennon Group
7D
-1.9%
1Y
34.3%

PNN: Mixed Rating Shifts And Regulatory Uncertainty Will Shape £6 Outlook

Analysts have nudged their fair value estimate for Pennon Group higher to £6.00. This reflects updated assumptions on discount rates, growth and margins following a mix of recent rating changes and price target revisions across the Street.
CNA
UK£2.07
Centrica
7D
7.1%
1Y
43.8%

CNA: Neutral Stance Will Rely On Execution Against Tight P/E Expectations

Centrica's analyst fair value estimate has edged up to reflect higher price targets in the £2.24 to £2.32 range, with analysts citing adjusted expectations for revenue growth, improved profit margin assumptions, and a lower expected future P/E of 11.4x. Analyst Commentary Recent research has clustered Centrica's price targets in the £2.24 to £2.32 range, with several banks adjusting their numbers in quick succession.
JEL
UK£4.55
Jersey Electricity
7D
-1.1%
1Y
5.8%
YU.
UK£16.70
Yü Group
7D
-4.0%
1Y
17.6%
CINH
UK£0.07
Cindrigo Holdings
7D
-15.2%
1Y
n/a
QDE
UK£0.021
Quantum Data Energy
7D
-9.1%
1Y
-73.9%