The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (GBP, Millions)||£107.50||£151.67||£128.00||£127.38||£126.75|
|Source||Analyst x2||Analyst x3||Analyst x2||Extrapolated @ (-0.49%)||Extrapolated @ (-0.49%)|
Discounted (@ 8.3%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = £127 × (1 + 1.49%) ÷ (8.3% – 1.49%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
£1,775 = £507 + £1,268
Value = Total value / Shares Outstanding (£1,775 / 236)Discount to Share Price
Value per share:
Current discount (share price of £17.66): -135.01%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.3% = 1.49% + (0.8 * 8.51%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (£4,040,218,744).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.795 = 0.382 (1 + (1- 19%) (133.54%))
Levered Beta used in calculation = 0.8
Ms. Olivia R. Garfield, also known as Liv, BA (Hons), has been the Chief Executive Officer at Severn Trent Plc and Severn Trent Water Ltd. since April 11, 2014. Ms. Garfield has been Executive Director of Severn Trent Plc since April 11, 2014. She served as the Chief Executive of Openreach at BT Group plc from April 1, 2011 to February 2014. Her task is to build on the foundations laid by Robertson. She carried out a range of senior strategic and operational roles, including Group Director Strategy, Portfolio and Regulation, Managing Director Commercial and Brands, Global Services and Vice President UK Customer Services, Global Services. Ms. Garfield served as Group Director of Strategy and Regulatory Affairs at BT Group plc. She oversaw BT Group's fibre broadband strategy and other key areas. She oversaw delivery of fibre to two thirds of UK homes and businesses. From 1998 to 2002, she served for Accenture as a consultant in the Communications and High Tech Market Unit, designing and implementing business change solutions across a number of industry sectors. She has been a Panel Member of The Takeover Panel (U.K.) since November 2, 2017. She has been a Director of Dee Valley Water plc since February 17, 2017, Dee Valley Group plc since February 2017 and Severn Trent Water Ltd. since April 11, 2014. She served as a Non Executive Director of Tesco PLC since April 1, 2013 until February 28, 2015. Ms. Garfield holds MA (Hons) degree from New Hall College, Cambridge.
Average tenure and age of the Severn Trent management team in years:
Average tenure and age of the Severn Trent board of directors in years:
Does Severn Trent tick all the boxes of a great dividend stock? … Check out our latest analysis for Severn Trent 5 questions I ask before picking a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it the top 25% annual dividend yield payer? … LSE:SVT Historical Dividend Yield Feb 16th 18 How well does Severn Trent fit our criteria?Simply Wall St - – Full article
Below, I have outlined more attractive dividend aspects for Severn Trent for income investors who may be interested in new dividend stocks for their portfolio. … More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount over the past It can afford to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward High Yield And Dependable Severn Trent currently yields 4.28%, which is high for water utilities stocks. … In addition to this, EPS is forecasted to fall to £1.21 in the upcoming year.Next Steps: With Severn Trent producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward.Simply Wall St - – Full article
View our latest analysis for Severn Trent What you must know about ROE Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Severn Trent’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity LSE:SVT Last Perf Jan 15th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.Simply Wall St - – Full article
Assessing Severn Trent Plc's (LSE:SVT) past track record of performance is an insightful exercise for investors. … Check out our latest analysis for Severn Trent Was SVT's weak performance lately a part of a long-term decline? … For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data.Simply Wall St - – Full article
The stock’s ratio of 14.9x is currently well-below the industry average of 29.2x, meaning that it is trading at a cheaper price relative to its peers. … LSE:SVT Future Profit Nov 1st 17 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at SVT future expectations.Simply Wall St - – Full article
Severn Trent Plc operates as a water and sewerage company in the United Kingdom, the United States, and internationally. The company operates through two segments, Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water segment provides water and sewerage services to approximately 4.5 million households and businesses in the Midlands and mid-Wales. The Business Services segment provides contract services to municipal and industrial clients in the UK and the UK Ministry of Defence for the design, build, and operation of water and waste water treatment facilities and networks. This segment also offers contract services to community, municipal, and industrial clients for the operation and maintenance of water and waste water treatment facilities and networks in the United States; and generates renewable energy from wind turbines, anaerobic digestion, hydropower, and solar technology. Severn Trent Plc was founded in 1974 and is headquartered in Coventry, the United Kingdom.
|Name:||Severn Trent Plc|
Severn Trent Plc
Severn Trent Centre,
2 St John’s Street,
West Midlands, CV1 2LZ,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|LSE||SVT||Ordinary Shares||London Stock Exchange||GB||GBP||01. Jan 1992|
|OTCPK||SVTR.F||Ordinary Shares||Pink Sheets LLC||US||USD||01. Jan 1992|
|DB||SVT1||Ordinary Shares||Deutsche Boerse AG||DE||EUR||01. Jan 1992|
|BATS-CHIXE||SVTL||Ordinary Shares||BATS 'Chi-X Europe'||GB||GBP||01. Jan 1992|
|OTCPK||STRN.Y||SPONSORED ADR||Pink Sheets LLC||US||USD||06. Mar 2012|
|Company Analysis updated:||2018/02/24|
|Last estimates confirmation:||2018/02/13|
|Last earnings update:||2017/09/30|
|Last annual earnings update:||2017/03/31|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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 here.