Severn Trent PLC

LSE:SVT Stock Report

Market Cap: UK£8.1b

Severn Trent Valuation

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

Below Fair Value: SVT (£27.02) is trading above our estimate of fair value (£7.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SVT. This is calculated by dividing SVT's market cap by their current earnings.
What is SVT's PE Ratio?
PE Ratio57.9x
EarningsUK£140.20m
Market CapUK£8.08b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SVT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.3x
UU. United Utilities Group
65.8x25.1%UK£7.4b
CNA Centrica
5.6x-10.8%UK£6.2b
SSE SSE
9.9x5.1%UK£18.8b
DRX Drax Group
3.8x-27.6%UK£2.5b
SVT Severn Trent
57.9x23.2%UK£8.1b

Price-To-Earnings vs Peers: SVT is expensive based on its Price-To-Earnings Ratio (57.9x) compared to the peer average (21.3x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SVT 57.9xIndustry Avg. 17.7xNo. of Companies11PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SVT is expensive based on its Price-To-Earnings Ratio (57.9x) compared to the Global Water Utilities industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is SVT'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.

SVT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio57.9x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: SVT is expensive based on its Price-To-Earnings Ratio (57.9x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

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 SVT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£27.02
UK£27.16
+0.5%
8.8%UK£31.00UK£23.60n/a12
Nov ’25UK£25.88
UK£26.77
+3.5%
9.2%UK£31.00UK£22.83n/a12
Oct ’25UK£26.90
UK£26.54
-1.3%
9.3%UK£31.00UK£22.83n/a12
Sep ’25UK£25.71
UK£26.42
+2.7%
9.1%UK£31.00UK£22.83n/a12
Aug ’25UK£25.89
UK£27.18
+5.0%
10.9%UK£33.20UK£22.83n/a12
Jul ’25UK£23.94
UK£27.17
+13.5%
11.9%UK£33.20UK£22.30n/a12
Jun ’25UK£23.86
UK£27.07
+13.4%
11.9%UK£33.20UK£22.30n/a12
May ’25UK£24.98
UK£27.10
+8.5%
11.6%UK£33.20UK£22.83n/a12
Apr ’25UK£24.70
UK£27.22
+10.2%
11.6%UK£33.20UK£22.83n/a12
Mar ’25UK£25.09
UK£27.22
+8.5%
11.6%UK£33.20UK£22.83n/a12
Feb ’25UK£25.93
UK£27.04
+4.3%
11.7%UK£33.20UK£21.55n/a13
Jan ’25UK£25.79
UK£26.91
+4.4%
11.7%UK£33.60UK£21.55n/a13
Dec ’24UK£26.15
UK£27.03
+3.4%
12.0%UK£33.60UK£21.55n/a12
Nov ’24UK£27.02
UK£26.95
-0.3%
12.1%UK£33.60UK£21.55UK£25.8812
Oct ’24UK£23.65
UK£26.26
+11.0%
15.1%UK£33.60UK£21.00UK£26.909
Sep ’24UK£23.80
UK£27.45
+15.3%
12.4%UK£34.00UK£21.00UK£25.7112
Aug ’24UK£25.32
UK£27.79
+9.8%
12.6%UK£34.00UK£21.00UK£25.8912
Jul ’24UK£25.66
UK£28.71
+11.9%
11.7%UK£34.00UK£21.00UK£23.9412
Jun ’24UK£27.07
UK£28.77
+6.3%
12.2%UK£34.00UK£21.00UK£23.8611
May ’24UK£29.32
UK£28.86
-1.6%
11.7%UK£34.00UK£21.00UK£24.9812
Apr ’24UK£28.79
UK£28.62
-0.6%
12.5%UK£34.00UK£20.00UK£24.7012
Mar ’24UK£26.64
UK£28.52
+7.1%
12.0%UK£32.90UK£20.00UK£25.0912
Feb ’24UK£27.88
UK£28.36
+1.7%
11.7%UK£32.80UK£20.00UK£25.9312
Jan ’24UK£26.51
UK£28.22
+6.5%
11.5%UK£32.80UK£20.00UK£25.7912
Dec ’23UK£27.17
UK£28.45
+4.7%
12.1%UK£32.80UK£20.00UK£26.1512
Nov ’23UK£25.01
UK£28.03
+12.1%
11.9%UK£32.80UK£20.00UK£27.0213

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

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