The calculations below outline how an intrinsic value for
United Utilities Group
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)||£142.50||£284.75||£457.00||£461.37||£465.79|
|Source||Analyst x2||Analyst x4||Analyst x2||Extrapolated @ (0.96%)||Extrapolated @ (0.96%)|
Discounted (@ 8.93%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = £466 × (1 + 1.49%) ÷ (8.93% – 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 +
£5,495 = £1,356 + £4,140
Value = Total value / Shares Outstanding (£5,495 / 682)Discount to Share Price
Value per share:
Current discount (share price of £6.69): 16.93%
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 = 8.93% = 1.49% + (0.875 * 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 (£4,564,561,070).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.875 = 0.377 (1 + (1- 19%) (162.73%))
Levered Beta used in calculation = 0.875
Mr. Steven Lewis Mogford, also known as Steve, has been the Chief Executive Officer of United Utilities Group PLC since March 31, 2011 and United Utilities Water Limited since March 30, 2011. Mr. Mogford served as the Chief Executive of Selex Sensors (SELEX Galileo). He served as the Chief Executive of Airborne Systems SpA. He joined Selex Sensors and Airborne Systems in May 2007. He served as the Chief Operating Officer of Programmes at BAE Systems PLC since April 1, 2000. He joined British Aerospace Military Aircraft in 1977 as a Supply Engineer and undertook various procurement roles, including Director of Procurement since 1991. Mr. Mogford served as Commercial Director of the Systems and Services Business Unit of British Aerospace upon British Aerospace formation since 1992. He served as Programmes Director of Al Yamamah since 1994 and Managing Director of Systems and Services since 1995. Since August 1998, he served as Managing Director of British Aerospace Military Aircraft and Aerostructures. Following the merger of British Aerospace and Marconi Electronic Systems in November 1999, he served as Group Managing Director Programmes and Managing Director Eurofighter of BAE Systems PLC. He has been the Senior Independent Director and Non-Executive Director at G4S plc since May 27, 2016. He serves as a Director of United Utilities Plc. He has been Director of United Utilities Water Limited since March 30, 2011 and United Utilities Group PLC since January 5, 2011. Mr. Mogford served as a Non-Executive Director at Carillion Plc from September 2006 to December 31, 2015.and served as its Senior Independent Non Executive Director from May 7, 2014 to September 1, 2015. He served as an Executive Director of BAE Systems PLC from April 2000 to May 9, 2007. He is a Member of the board of the British Quality Foundation. He was educated at Barking Abbey Grammar School in Essex and Queen Elizabeth College, London, where he obtained a First Class BSc Honours Degree in Astrophysics, Maths and Physics.
Average tenure and age of the United Utilities Group management team in years:
Average tenure and age of the United Utilities Group board of directors in years:
United Utilities Group PLC (LSE:UU.) has returned to shareholders over the past 10 years, an average dividend yield of 5.00% annually. … View our latest analysis for United Utilities Group 5 checks you should do on a dividend stock When researching a dividend stock, I always follow the following screening criteria: Does it pay an annual yield higher than 75% of dividend payers? … Historical Dividend Yield Feb 16th 18 Does United Utilities Group pass our checks?Simply Wall St - – Full article
Comparing United Utilities Group’s PE ratio against the Global Water Utilities industry draws favorable results, with the company’s PE of 11.3 being below that of its industry (16.3). … LSE:CNA Historical Dividend Yield Feb 9th 18 SSE plc (LSE:SSE) SSE has a substantial dividend yield of 7.57% and their payout ratio stands at 68.23% , with analysts expecting the payout ratio in three years to be 75.82%. … LSE:SSE Historical Dividend Yield Feb 9th 18 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for UU. … Price per share = £7.59 Earnings per share = £0.629 ∴ Price-Earnings Ratio = £7.59 ÷ £0.629 = 12.1x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … UU.’s P/E of 12.1x is lower than its industry peers (16.3x), which implies that each dollar of UU.’s earnings is being undervalued by investors.Simply Wall St - – Full article
See our latest analysis for United Utilities Group Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of United Utilities Group’s profit relative to its shareholders’ equity. … For now, let’s just look at the cost of equity number for United Utilities Group, which is 8.30%. … Since United Utilities Group’s return covers its cost in excess of 7.38%, its use of equity capital is efficient and likely to be sustainable.Simply Wall St - – Full article
United Utilities Group PLC (LSE:UU.), a water utilities company based in United Kingdom, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of £7.79 to £8.55. … It’s trading around 2% above my intrinsic value, which means if you buy United Utilities Group today, you’d be paying a relatively fair price for it. … In addition to this, it seems like United Utilities Group’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued.Simply Wall St - – Full article
To get a preliminary understanding, this article will interpret United Utilities Group's margin performance to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 428.70 Million ÷ 1.73 Billion = 24.82% There has been a contraction in United Utilities Group's margin over the past five years, as a result of a 2.01% average growth in revenue exceeding average net income growth of 1.82%, which suggests that a smaller percentage of revenue falls to the bottom line despite the fact revenue has increased over the previous 5 years. … Thus, it is essential to run your own analysis on United Utilities Group's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.Simply Wall St - – Full article
View our latest analysis for United Utilities Group 5 checks you should use to assess a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … With its favorable dividend characteristics, United Utilities Group is one worth keeping around in your income portfolio. … Keeping in mind the dividend characteristics above, United Utilities Group is definitely worth considering for investors looking to build a dedicated income portfolio.Simply Wall St - – Full article
I will take you through a few basic checks to assess the financial health of companies with no debt. … View our latest analysis for United Utilities Group Is UU.’s level of debt at an acceptable level? … Does UU.’s liquid assets cover its short-term commitments?Simply Wall St - – Full article
Assessing United Utilities Group PLC's (LSE:UU.) past track record of performance is a valuable exercise for investors. … Check out our latest analysis for United Utilities Group How Did UU.'s Recent Performance Stack Up Against Its Past? … This suggests that, generally, United Utilities Group has been able to steadily raise its earnings over the past couple of years as well.Simply Wall St - – Full article
has a substantial dividend yield of 4.62% and their current payout ratio is 61.09% , and analysts are expecting a 76.22% payout ratio in the next three years. … LSE:SVT Historical Dividend Yield Nov 9th 17 Pennon Group Plc (LSE:PNN) PNN has a enticing dividend yield of 4.38% and their current payout ratio is 90.39%. … LSE:PNN Historical Dividend Yield Nov 9th 17 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.Simply Wall St - – Full article
United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is also involved in renewable energy generation, corporate trustee, and property management activities; and the provision of consulting and project management services. The company operates 43,000 kilometers (km) of pipes; 77,000 km of sewerage pipes; 567 wastewater treatment works; and 91 water treatment works. It serves 3 million households and 200,000 business customers. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.
|Name:||United Utilities Group PLC|
United Utilities Group PLC
Lingley Mere Business Park,
Cheshire, WA5 3LP,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|LSE||UU.||Ordinary Shares||London Stock Exchange||GB||GBP||02. Jan 1992|
|OTCPK||UUGW.F||Ordinary Shares||Pink Sheets LLC||US||USD||02. Jan 1992|
|DB||UUEC||Ordinary Shares||Deutsche Boerse AG||DE||EUR||02. Jan 1992|
|BATS-CHIXE||UUL||Ordinary Shares||BATS 'Chi-X Europe'||GB||GBP||02. Jan 1992|
|OTCPK||UUGR.Y||SPONSORED ADR||Pink Sheets LLC||US||USD||29. Jan 1998|
|Company Analysis updated:||2018/02/18|
|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.