Pennon Group Plc

LSE:PNN Stock Report

Market Cap: UK£2.5b

Pennon Group Valuation

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

Below Fair Value: PNN (£5.21) is trading above our estimate of fair value (£2.64)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PNN. This is calculated by dividing PNN's market cap by their current earnings.
What is PNN's PE Ratio?
PE Ratio83x
EarningsUK£29.60m
Market CapUK£2.46b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PNN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.2x
UU. United Utilities Group
19.9x8.65%UK£8.0b
SVT Severn Trent
25.7x18.80%UK£8.1b
DRX Drax Group
6.5x-25.24%UK£2.6b
TEP Telecom Plus
16.9x10.28%UK£1.1b
PNN Pennon Group
83x19.77%UK£2.5b

Price-To-Earnings vs Peers: PNN is expensive based on its Price-To-Earnings Ratio (83x) compared to the peer average (17.2x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNN 83.0xIndustry Avg. 16.2xNo. of Companies11PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PNN is expensive based on its Price-To-Earnings Ratio (83x) compared to the Global Water Utilities industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is PNN'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.

PNN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio83x
Fair PE Ratio23.7x

Price-To-Earnings vs Fair Ratio: PNN is expensive based on its Price-To-Earnings Ratio (83x) compared to the estimated Fair Price-To-Earnings Ratio (23.7x).

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 PNN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£5.21
UK£5.88
+12.98%
6.11%UK£6.70UK£5.42n/a12
Dec ’26UK£5.49
UK£5.88
+7.14%
6.17%UK£6.70UK£5.42n/a12
Nov ’26UK£5.19
UK£5.85
+12.73%
6.64%UK£6.70UK£5.39n/a12
Oct ’26UK£4.70
UK£5.85
+24.41%
6.64%UK£6.70UK£5.39n/a12
Sep ’26UK£4.66
UK£5.87
+25.97%
6.36%UK£6.70UK£5.39n/a12
Aug ’26UK£4.99
UK£5.84
+17.06%
5.58%UK£6.50UK£5.39n/a12
Jul ’26UK£5.10
UK£5.55
+8.81%
10.26%UK£6.50UK£4.60n/a12
Jun ’26UK£5.09
UK£5.52
+8.48%
11.02%UK£6.50UK£4.60n/a12
May ’26UK£5.03
UK£5.52
+9.88%
11.02%UK£6.50UK£4.60n/a12
Apr ’26UK£4.57
UK£5.54
+21.08%
11.28%UK£6.50UK£4.60n/a12
Mar ’26UK£4.19
UK£5.66
+35.05%
10.73%UK£6.50UK£4.70n/a12
Feb ’26UK£5.78
UK£6.71
+16.14%
15.88%UK£8.95UK£5.70n/a11
Jan ’26UK£5.94
UK£7.18
+21.02%
12.73%UK£8.95UK£5.75n/a12
Dec ’25UK£6.03
UK£7.14
+18.46%
12.55%UK£9.15UK£5.75UK£5.4912
Nov ’25UK£5.47
UK£7.11
+30.04%
11.82%UK£8.90UK£6.00UK£5.1912
Oct ’25UK£5.98
UK£7.40
+23.76%
10.65%UK£8.90UK£6.00UK£4.7012
Sep ’25UK£6.04
UK£7.47
+23.81%
10.23%UK£8.90UK£6.00UK£4.6612
Aug ’25UK£6.30
UK£7.73
+22.80%
11.62%UK£9.55UK£6.00UK£4.9912
Jul ’25UK£5.85
UK£7.68
+31.44%
11.52%UK£9.55UK£6.00UK£5.1012
Jun ’25UK£6.22
UK£7.94
+27.69%
11.62%UK£10.30UK£6.77UK£5.0912
May ’25UK£6.77
UK£8.11
+19.77%
11.87%UK£10.60UK£6.77UK£5.0312
Apr ’25UK£6.48
UK£8.33
+28.64%
11.80%UK£10.60UK£6.77UK£4.5712
Mar ’25UK£6.71
UK£8.33
+24.13%
11.80%UK£10.60UK£6.77UK£4.1912
Feb ’25UK£7.04
UK£8.19
+16.34%
14.41%UK£10.60UK£6.20UK£5.7812
Jan ’25UK£7.52
UK£8.23
+9.50%
14.89%UK£10.90UK£6.20UK£5.9413
Dec ’24UK£7.07
UK£8.12
+14.92%
16.07%UK£10.90UK£6.20UK£6.0312
UK£5.88
Fair Value
11.5% undervalued intrinsic discount
12
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 Analysis2025/12/11 04:21
End of Day Share Price 2025/12/11 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. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John MuskBarclays
Dominic NashBarclays
Dominic NashBarclays