Severn Trent PLC

BATS-CHIXE:SVTL Stock Report

Market Cap: UK£8.3b

Severn Trent Valuation

Is SVTL 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 SVTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SVTL (£27.8) is trading above our estimate of fair value (£9.22)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SVTL. This is calculated by dividing SVTL's market cap by their current earnings.
What is SVTL's PE Ratio?
PE Ratio35.9x
EarningsUK£230.00m
Market CapUK£8.26b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SVTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22x
UU. United Utilities Group
68.3x24.4%UK£7.7b
CNA Centrica
5.8x-10.8%UK£6.4b
SSE SSE
10.1x5.1%UK£19.1b
DRX Drax Group
3.7x-27.6%UK£2.4b
SVTL Severn Trent
35.9x24.3%UK£8.3b

Price-To-Earnings vs Peers: SVTL is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the peer average (22x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SVTL is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the Global Water Utilities industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is SVTL'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.

SVTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.9x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: SVTL is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).

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 SVTL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£27.80
UK£27.23
-2.0%
9.3%UK£32.00UK£23.49n/a12
Nov ’25UK£25.86
UK£26.77
+3.5%
9.2%UK£31.00UK£22.83n/a12
Oct ’25UK£26.92
UK£26.54
-1.4%
9.3%UK£31.00UK£22.83n/a12
Sep ’25UK£25.76
UK£26.42
+2.5%
9.1%UK£31.00UK£22.83n/a12
Aug ’25UK£25.87
UK£27.18
+5.1%
10.9%UK£33.20UK£22.83n/a12
Jul ’25UK£23.88
UK£27.17
+13.8%
11.9%UK£33.20UK£22.30n/a12
Jun ’25UK£23.95
UK£27.07
+13.0%
11.9%UK£33.20UK£22.30n/a12
May ’25UK£25.05
UK£27.10
+8.2%
11.6%UK£33.20UK£22.83n/a12
Apr ’25UK£24.78
UK£27.22
+9.9%
11.6%UK£33.20UK£22.83n/a12
Mar ’25UK£25.11
UK£27.22
+8.4%
11.6%UK£33.20UK£22.83n/a12
Feb ’25UK£25.97
UK£27.04
+4.1%
11.7%UK£33.20UK£21.55n/a13
Jan ’25UK£25.78
UK£26.91
+4.4%
11.7%UK£33.60UK£21.55n/a13
Dec ’24UK£26.11
UK£27.03
+3.5%
12.0%UK£33.60UK£21.55n/a12
Nov ’24UK£26.95
UK£26.95
-0.02%
12.1%UK£33.60UK£21.55UK£25.8612
Oct ’24UK£23.76
UK£26.26
+10.5%
15.1%UK£33.60UK£21.00UK£26.929
Sep ’24UK£23.87
UK£27.45
+15.0%
12.4%UK£34.00UK£21.00UK£25.7612
Aug ’24UK£25.35
UK£27.79
+9.6%
12.6%UK£34.00UK£21.00UK£25.8712
Jul ’24UK£25.62
UK£28.71
+12.0%
11.7%UK£34.00UK£21.00UK£23.8812
Jun ’24UK£27.11
UK£28.77
+6.1%
12.2%UK£34.00UK£21.00UK£23.9511
May ’24UK£29.20
UK£28.86
-1.2%
11.7%UK£34.00UK£21.00UK£25.0512
Apr ’24UK£28.80
UK£28.62
-0.6%
12.5%UK£34.00UK£20.00UK£24.7812
Mar ’24UK£26.60
UK£28.52
+7.2%
12.0%UK£32.90UK£20.00UK£25.1112
Feb ’24UK£27.79
UK£28.36
+2.0%
11.7%UK£32.80UK£20.00UK£25.9712
Jan ’24UK£26.57
UK£28.22
+6.2%
11.5%UK£32.80UK£20.00UK£25.7812
Dec ’23UK£27.02
UK£28.45
+5.3%
12.1%UK£32.80UK£20.00UK£26.1112
Nov ’23UK£25.08
UK£28.03
+11.8%
11.9%UK£32.80UK£20.00UK£26.9513

Analyst Forecast: Target price is lower than the current share price.

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