United Utilities Group PLC

LSE:UU. Stock Report

Market Cap: UK£7.3b

United Utilities Group Valuation

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

Below Fair Value: UU. (£10.7) is trading above our estimate of fair value (£3.71)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UU.. This is calculated by dividing UU.'s market cap by their current earnings.
What is UU.'s PE Ratio?
PE Ratio64.5x
EarningsUK£113.20m
Market CapUK£7.30b

Price to Earnings Ratio vs Peers

How does UU.'s PE Ratio compare to its peers?

The above table shows the PE ratio for UU. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.1x
SVT Severn Trent
33.6x24.3%UK£7.7b
CNA Centrica
5.8x-10.0%UK£6.4b
SSE SSE
9.3x5.3%UK£17.7b
DRX Drax Group
3.6x-31.8%UK£2.3b
UU. United Utilities Group
64.5x25.8%UK£7.3b

Price-To-Earnings vs Peers: UU. is expensive based on its Price-To-Earnings Ratio (64.5x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UU. 64.5xIndustry Avg. 17.1xNo. of Companies11PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UU. is expensive based on its Price-To-Earnings Ratio (64.5x) compared to the Global Water Utilities industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is UU.'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.

UU. PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio64.5x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: UU. is expensive based on its Price-To-Earnings Ratio (64.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

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 UU. forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£10.70
UK£11.96
+11.8%
5.9%UK£13.00UK£10.00n/a13
Dec ’25UK£11.20
UK£11.74
+4.9%
8.1%UK£13.00UK£9.75n/a13
Nov ’25UK£10.34
UK£11.42
+10.4%
9.1%UK£12.70UK£9.73n/a13
Oct ’25UK£10.64
UK£11.29
+6.1%
9.6%UK£12.70UK£9.73n/a13
Sep ’25UK£10.20
UK£11.12
+9.1%
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£10.16
UK£11.36
+11.8%
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£10.18
UK£11.23
+10.4%
9.5%UK£13.15UK£9.48n/a13
Feb ’25UK£10.63
UK£11.26
+6.0%
9.5%UK£13.15UK£9.48n/a13
Jan ’25UK£10.60
UK£11.11
+4.9%
10.1%UK£12.90UK£9.18n/a13
Dec ’24UK£10.92
UK£11.04
+1.1%
10.5%UK£12.90UK£9.18UK£11.2012
Nov ’24UK£10.88
UK£11.16
+2.6%
11.3%UK£13.20UK£9.18UK£10.3413
Oct ’24UK£9.48
UK£11.09
+16.9%
10.7%UK£12.90UK£9.18UK£10.6412
Sep ’24UK£9.32
UK£11.00
+18.0%
11.1%UK£13.10UK£9.47UK£10.2012
Aug ’24UK£9.95
UK£11.02
+10.7%
11.1%UK£13.10UK£9.47UK£10.3312
Jul ’24UK£9.62
UK£11.06
+15.1%
11.3%UK£13.40UK£9.60UK£9.8712
Jun ’24UK£10.32
UK£10.81
+4.7%
12.5%UK£13.40UK£8.50UK£10.1611
May ’24UK£10.82
UK£10.88
+0.5%
12.7%UK£13.40UK£8.50UK£10.5412
Apr ’24UK£10.60
UK£10.65
+0.4%
13.4%UK£13.40UK£8.50UK£10.2911
Mar ’24UK£9.91
UK£10.77
+8.6%
13.3%UK£13.40UK£8.50UK£10.1812
Feb ’24UK£10.52
UK£10.71
+1.8%
13.5%UK£13.40UK£8.50UK£10.6312
Jan ’24UK£9.91
UK£10.56
+6.5%
12.3%UK£12.90UK£8.50UK£10.6012
Dec ’23UK£10.46
UK£10.41
-0.4%
11.5%UK£12.90UK£8.50UK£10.9212

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 Analysis2024/12/17 15:00
End of Day Share Price 2024/12/17 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

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 here.

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 .

Analyst Sources

United Utilities Group PLC is covered by 32 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Myriam CohenAlphaValue
Dominic NashBarclays
Harry WyburdBarclays