Pennon Group Plc

DB:3PN Stock Report

Market Cap: €3.0b

Pennon Group Valuation

Is 3PN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of 3PN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 3PN (€6.32) is trading above our estimate of future cash flow value (€3.51)

Significantly Below Future Cash Flow Value: 3PN is trading above our estimate of future cash flow value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3PN?

Key metric: As 3PN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 3PN. This is calculated by dividing 3PN's market cap by their current earnings.
What is 3PN's PE Ratio?
PE Ratio87x
EarningsUK£29.60m
Market CapUK£2.58b

Price to Earnings Ratio vs Peers

How does 3PN's PE Ratio compare to its peers?

The above table shows the PE ratio for 3PN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
MNV6 Mainova
7.9xn/a€2.4b
MVV1 MVV Energie
16.6xn/a€2.1b
LEC Lechwerke
27.7xn/a€2.5b
CSMG3 Companhia de Saneamento de Minas Gerais
14.7x10.91%R$19.4b
3PN Pennon Group
87x18.77%€2.6b

Price-To-Earnings vs Peers: 3PN is expensive based on its Price-To-Earnings Ratio (87x) compared to the peer average (16.7x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does 3PN's PE Ratio compare vs other companies in the Global Water Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
3PN 87.0xIndustry Avg. 16.2xNo. of Companies14PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 3PN is expensive based on its Price-To-Earnings Ratio (87x) compared to the Global Water Utilities industry average (16.3x).

Price to Earnings Ratio vs Fair Ratio

What is 3PN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3PN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio87x
Fair PE Ratio8.1x

Price-To-Earnings vs Fair Ratio: 3PN is expensive based on its Price-To-Earnings Ratio (87x) compared to the estimated Fair Price-To-Earnings Ratio (8.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 3PN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.32
€6.80
+7.52%
9.60%€7.84€5.19n/a13
Jan ’27€6.05
€6.66
+10.12%
6.20%€7.63€6.17n/a12
Dec ’26€6.26
€6.71
+7.13%
6.17%€7.65€6.19n/a12
Nov ’26€6.01
€6.73
+12.02%
6.64%€7.71€6.20n/a12
Oct ’26€5.49
€6.70
+21.98%
6.64%€7.68€6.18n/a12
Sep ’26€5.52
€6.78
+22.87%
6.36%€7.74€6.23n/a12
Aug ’26€5.76
€6.72
+16.68%
5.58%€7.48€6.21n/a12
Jul ’26€5.88
€6.47
+10.07%
10.26%€7.57€5.36n/a12
Jun ’26€6.02
€6.49
+7.85%
11.02%€7.64€5.40n/a12
May ’26€5.92
€6.49
+9.67%
11.02%€7.64€5.40n/a12
Apr ’26€5.37
€6.63
+23.63%
11.28%€7.78€5.51n/a12
Mar ’26€4.98
€6.86
+37.66%
10.73%€7.88€5.70n/a12
Feb ’26€7.03
€8.03
+14.32%
15.88%€10.71€6.82€6.4011
Jan ’26€7.20
€8.67
+20.45%
12.73%€10.80€6.94€6.0512
Dec ’25€7.38
€8.60
+16.66%
12.55%€11.02€6.93€6.2612
Nov ’25€6.50
€8.53
+31.31%
11.82%€10.67€7.19€6.0112
Oct ’25€7.09
€8.87
+25.05%
10.65%€10.66€7.19€5.4912
Sep ’25€7.03
€8.80
+25.22%
10.23%€10.49€7.07€5.5212
Aug ’25€7.65
€9.18
+20.02%
11.62%€11.34€7.12€5.7612
Jul ’25€6.81
€9.08
+33.35%
11.52%€11.29€7.09€5.8812
Jun ’25€7.14
€9.34
+30.82%
11.62%€12.11€7.96€6.0212
May ’25€7.87
€9.46
+20.24%
11.87%€12.37€7.90€5.9212
Apr ’25€7.66
€9.73
+27.02%
11.80%€12.38€7.91€5.3712
Mar ’25€7.73
€9.73
+25.85%
11.80%€12.38€7.91€4.9812
Feb ’25€8.25
€9.56
+15.93%
14.41%€12.38€7.24€7.0312
€6.82
Fair Value
7.3% undervalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/02 09:43
End of Day Share Price 2026/02/02 00:00
Earnings2025/09/30
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Pennon Group Plc is covered by 24 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Dominic NashBarclays
Dominic NashBarclays
John MuskBarclays