United Utilities Group PLC

OTCPK:UUGW.F Stock Report

Market Cap: US$9.7b

United Utilities Group Valuation

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

Below Fair Value: UUGW.F ($13.94) is trading above our estimate of fair value ($4.4)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UUGW.F. This is calculated by dividing UUGW.F's market cap by their current earnings.
What is UUGW.F's PE Ratio?
PE Ratio68.2x
EarningsUK£113.20m
Market CapUK£7.72b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UUGW.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.8x
WTRG Essential Utilities
19.9x7.0%US$10.9b
AWK American Water Works Company
27.2x7.9%US$26.8b
AWR American States Water
29x8.7%US$3.2b
CWT California Water Service Group
15.2x0.3%US$3.1b
UUGW.F United Utilities Group
68.2x24.4%US$7.7b

Price-To-Earnings vs Peers: UUGW.F is expensive based on its Price-To-Earnings Ratio (68.2x) compared to the peer average (22.8x).


Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UUGW.F 68.2xIndustry Avg. 18.0xNo. of Companies10PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: UUGW.F is expensive based on its Price-To-Earnings Ratio (68.2x) compared to the Global Water Utilities industry average (18x).


Price to Earnings Ratio vs Fair Ratio

What is UUGW.F'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.

UUGW.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio68.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate UUGW.F's Price-To-Earnings Fair Ratio for valuation analysis.


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 UUGW.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$13.94
US$14.85
+6.6%
8.1%US$16.44US$12.33n/a13
Nov ’25n/a
US$14.86
0%
9.1%US$16.53US$12.66n/a13
Oct ’25US$14.01
US$15.00
+7.1%
9.6%US$16.87US$12.92n/a13
Sep ’25n/a
US$14.55
0%
9.3%US$16.62US$12.73n/a13
Aug ’25n/a
US$14.70
0%
9.5%US$16.87US$12.49n/a13
Jul ’25n/a
US$14.55
0%
9.7%US$16.60US$12.28n/a13
Jun ’25n/a
US$14.43
0%
9.7%US$16.70US$12.36n/a13
May ’25n/a
US$14.07
0%
10.5%US$16.43US$11.85n/a13
Apr ’25n/a
US$14.09
0%
9.5%US$16.50US$11.89n/a13
Mar ’25n/a
US$14.22
0%
9.5%US$16.64US$12.00n/a13
Feb ’25US$12.76
US$14.31
+12.1%
9.5%US$16.71US$12.05n/a13
Jan ’25US$13.51
US$14.20
+5.1%
10.1%US$16.48US$11.73n/a13
Dec ’24n/a
US$13.70
0%
10.5%US$16.01US$11.39n/a12
Nov ’24n/a
US$13.57
0%
11.3%US$16.04US$11.16n/a13
Oct ’24US$11.11
US$13.53
+21.8%
10.7%US$15.74US$11.20US$14.0112
Sep ’24US$11.82
US$13.99
+18.4%
11.1%US$16.66US$12.04n/a12
Aug ’24US$12.99
US$14.37
+10.7%
11.1%US$17.08US$12.35n/a12
Jul ’24n/a
US$14.06
0%
11.3%US$17.03US$12.20n/a12
Jun ’24n/a
US$13.54
0%
12.5%US$16.79US$10.65n/a11
May ’24US$13.18
US$13.58
+3.0%
12.7%US$16.73US$10.61n/a12
Apr ’24n/a
US$13.19
0%
13.4%US$16.60US$10.53n/a11
Mar ’24US$11.85
US$12.94
+9.2%
13.3%US$16.10US$10.22n/a12
Feb ’24n/a
US$13.21
0%
13.5%US$16.53US$10.49US$12.7612
Jan ’24n/a
US$12.85
0%
12.3%US$15.70US$10.35US$13.5112
Dec ’23n/a
US$12.75
0%
11.5%US$15.79US$10.41n/a12
Nov ’23n/a
US$12.29
0%
11.5%US$15.00US$9.88n/a13

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


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