United Utilities Group PLC

DB:UUEA Stock Report

Market Cap: €9.3b

United Utilities Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: UUEA (€26) is trading above our estimate of fair value (€9.25)

Significantly Below Fair Value: UUEA is trading above our estimate of fair value.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UUEA. This is calculated by dividing UUEA's market cap by their current earnings.
What is UUEA's PE Ratio?
PE Ratio68x
EarningsUK£113.20m
Market CapUK£7.70b

Price to Earnings Ratio vs Peers

How does UUEA's PE Ratio compare to its peers?

The above table shows the PE ratio for UUEA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
EBK EnBW Energie Baden-Württemberg
28.6xn/a€17.1b
RWE RWE
8.4x-11.1%€23.7b
FHW Fernheizwerk Neukölln
21.4xn/a€52.9m
EOAN E.ON
17.6x8.9%€31.6b
UUEA United Utilities Group
68x24.4%€7.7b

Price-To-Earnings vs Peers: UUEA is expensive based on its Price-To-Earnings Ratio (68x) compared to the peer average (19x).


Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UUEA 68.0xIndustry Avg. 17.0xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UUEA is expensive based on its Price-To-Earnings Ratio (68x) compared to the Global Water Utilities industry average (17x).


Price to Earnings Ratio vs Fair Ratio

What is UUEA'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.

UUEA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio68x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: UUEA is expensive based on its Price-To-Earnings Ratio (68x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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