United Utilities Group PLC

BATS-CHIXE:UUL Stock Report

Market Cap: UK£7.7b

United Utilities Group Valuation

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

Below Fair Value: UUL (£11.28) is trading above our estimate of fair value (£3.69)

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

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UUL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.9x
SVT Severn Trent
35.6x24.3%UK£8.2b
CNA Centrica
5.9x-10.8%UK£6.5b
SSE SSE
10.3x5.2%UK£19.6b
DRX Drax Group
3.8x-27.6%UK£2.5b
UUL United Utilities Group
68x24.4%UK£7.7b

Price-To-Earnings vs Peers: UUL is expensive based on its Price-To-Earnings Ratio (68x) compared to the peer average (13.9x).

Price to Earnings Ratio vs Industry

How does UUL'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: UUL 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 UUL'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.

UUL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio68x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: UUL is expensive based on its Price-To-Earnings Ratio (68x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

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 UUL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£11.28
UK£11.74
+4.2%
8.1%UK£13.00UK£9.75n/a13
Nov ’25UK£10.33
UK£11.42
+10.6%
9.1%UK£12.70UK£9.73n/a13
Oct ’25UK£10.65
UK£11.29
+6.1%
9.6%UK£12.70UK£9.73n/a13
Sep ’25UK£10.25
UK£11.12
+8.5%
9.3%UK£12.70UK£9.73n/a13
Aug ’25UK£10.33
UK£11.46
+10.9%
9.5%UK£13.15UK£9.73n/a13
Jul ’25UK£9.87
UK£11.52
+16.8%
9.7%UK£13.15UK£9.73n/a13
Jun ’25UK£10.26
UK£11.36
+10.7%
9.7%UK£13.15UK£9.73n/a13
May ’25UK£10.54
UK£11.26
+6.8%
10.5%UK£13.15UK£9.48n/a13
Apr ’25UK£10.29
UK£11.23
+9.2%
9.5%UK£13.15UK£9.48n/a13
Mar ’25UK£10.19
UK£11.23
+10.3%
9.5%UK£13.15UK£9.48n/a13
Feb ’25UK£10.64
UK£11.26
+5.8%
9.5%UK£13.15UK£9.48n/a13
Jan ’25UK£10.62
UK£11.11
+4.7%
10.1%UK£12.90UK£9.18n/a13
Dec ’24UK£10.89
UK£11.04
+1.5%
10.5%UK£12.90UK£9.18n/a12
Nov ’24UK£10.84
UK£11.16
+3.0%
11.3%UK£13.20UK£9.18UK£10.3313
Oct ’24UK£9.50
UK£11.09
+16.7%
10.7%UK£12.90UK£9.18UK£10.6512
Sep ’24UK£9.37
UK£11.00
+17.4%
11.1%UK£13.10UK£9.47UK£10.2512
Aug ’24UK£9.95
UK£11.02
+10.8%
11.1%UK£13.10UK£9.47UK£10.3312
Jul ’24UK£9.62
UK£11.06
+15.0%
11.3%UK£13.40UK£9.60UK£9.8712
Jun ’24UK£10.36
UK£10.81
+4.4%
12.5%UK£13.40UK£8.50UK£10.2611
May ’24UK£10.79
UK£10.88
+0.8%
12.7%UK£13.40UK£8.50UK£10.5412
Apr ’24UK£10.60
UK£10.65
+0.5%
13.4%UK£13.40UK£8.50UK£10.2911
Mar ’24UK£9.88
UK£10.77
+8.9%
13.3%UK£13.40UK£8.50UK£10.1912
Feb ’24UK£10.45
UK£10.71
+2.5%
13.5%UK£13.40UK£8.50UK£10.6412
Jan ’24UK£9.94
UK£10.56
+6.2%
12.3%UK£12.90UK£8.50UK£10.6212
Dec ’23UK£10.39
UK£10.41
+0.2%
11.5%UK£12.90UK£8.50UK£10.8912
Nov ’23UK£9.45
UK£10.57
+11.9%
11.5%UK£12.90UK£8.50UK£10.8413

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

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