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Serco Group plc (SECCF) Fair Value & Analysis

Industrials · US · Market cap $3.2B

What is Serco Group plc really worth?

SG Serco Group plc logo Serco Group plc SECCF · US
Price from Aug 28, 2026$3.19
Fair Value$4.56
Upside+43.2%
Quality72/100

A solid business, trading 30% below our fair value of $4.56.

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Strengths

Healthy Growth (revenue 5y +5.0 %/yr)
Low debt · generates free cash flow

Risks

!Thin margins · 3.0% net margin
!Mixed vs. peers (6/14)
!Narrow moat 41/100
!Weak on future: 6 out of 100
!Weak on dividend: 28 out of 100

For context

·1.41% dividend yield
Evidence: High Range $3.17 – $6.14

Fair value as of: Aug 30, 2026

From 26 valuation models · updated 6 days ago

Fair value updated Aug 30, 2026, revised from $4.54 to $4.56 (+0.4%) since Aug 13, 2026.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The rarer combination: high quality (72/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range ($3.17 to $6.14) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$4.32 $0.9836 Fair Value $4.56 Jul 2015 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $0.9836 – $4.32 · fair‑value band $3.17 – $6.14 · the $3.19 price screens below the $4.56 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Serco Group plc (SECCF) currently trades at $3.19, while our model-based Fair Value estimate is $4.56, implying the stock looks roughly 30.2% undervalued today. The Quality Score stands at 72/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $5.39 per share, and 14 of the 26 models we run sit above the $3.19 price. Bear case: the Asset-Based group reads lowest at $0.6000, and 12 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Serco Group plc generated revenue of $4.9B at a net margin of 3.0%. Revenue grew 1.2% year over year. It earns a return on equity of 17.0%. Net debt stands at $710M. Fundamentals as of Aug 30, 2026

Our scenario range runs from $3.17 (bear case) to $6.14 (bull case); at $3.19, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at 43%, SECCF screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.0981 per share, which is 2.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $4.52 $7.50 $12.15 79
Growth DCF $4.53 $7.38 $11.71 77
Owner Earnings $3.82 $6.36 $10.32 75
All 26 models by family
DCF Models
FCF DCF best evidence $4.52 $7.50 $12.15 79
Owner Earnings $3.82 $6.36 $10.32 75
5Y Revenue Exit $3.16 $5.05 $7.48 72
5Y EBITDA Exit $4.45 $7.58 $11.34 74
5Y P/E Exit $2.81 $4.37 $6.04 71
10Y Revenue Exit $3.52 $5.39 $7.98 66
10Y EBITDA Exit $4.43 $7.16 $10.98 67
10Y P/E Exit $3.39 $4.93 $6.86 64
Earnings-Based
Graham-Dodd $1.01 $3.85 $5.21 64
Lynch FV $0.9400 $1.34 $1.74 61
PEG = 1.0 $0.9400 $1.34 $1.74 57
EPV $2.00 $2.35 $2.65 74
Dividend Discount
Gordon GGM $0.3900 $0.7700 $1.17 67
DDM Multi-Stage $0.3900 $0.6700 $0.8200 67
Multiples
P/E Multiple $2.34 $3.12 $3.90 63
P/S Multiple $1.89 $2.53 $3.16 58
P/B Multiple $1.89 $2.53 $3.16 55
EV/EBIT $3.62 $4.89 $6.17 66
EV/EBITDA $4.92 $6.63 $8.34 67
EV/Revenue $2.52 $3.69 $4.86 53
Asset-Based
NCAV (Graham) $0.4500 $0.6000 $0.8900 54
Growth DCF
Growth DCF $4.53 $7.38 $11.71 77
Rev-Margin DCF $3.16 $5.06 $7.39 72
Economic Profit
Residual Income $0.9400 $1.24 $3.68 65
ROIC Compounder $2.22 $2.91 $3.76 72
Growth Earnings
Growth-Adj P/E $1.70 $2.44 $3.17 67

Widest divergence: DCF Models ($5.39) versus Asset-Based ($0.6000). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 16.8
P/S ratio 0.49 P/E × margin
EPS (TTM) $0.1900 price ÷ EPS = P/E 16.8
Dividend yield 1.4% payout 23.7%
Net margin 2.9% FY2025
Return on equity 17.0% TTM
More key figures
Profitability
Return on assets (EBIT) 8.3% avg 5y
Operating margin 3.8% TTM
Growth
Revenue (TTM) $4.9B TTM
Revenue growth (YoY) +1.2% 3y avg +3.0%
EPS growth (YoY) +12.0%
Balance sheet & cash flow
Free cash flow $406M FY2025
Net debt $710M FY2025 · ≈ 1.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 70 · Market factors (momentum, volatility) 57

Profitability 53
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 66
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. It offers service design and advisory, resourcing, programme management, systems integration, case management, engineering, and assets and facilities management services.

Full company description

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. It offers service design and advisory, resourcing, programme management, systems integration, case management, engineering, and assets and facilities management services. The company also provides administrative and back office, asylum seeker accommodation or passenger transport services; and supports in the decarbonization journeys of customers. It serves the United Kingdom and Canadian governments, devolved authorities, and other public sector customers; and federal and civilian agencies, and various state and municipal governments in citizen services, defense, health and other facilities management, justice and immigration, and transport sectors. Serco Group plc was founded in 1929 and is based in Hook, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Serco Group plc reported revenue of £5.0B in FY2025 versus £4.4B in FY2021, a compound +2.9%/yr. Reported net income was £146M in FY2025, compounding −16.8%/yr from FY2021.

Growth Quality 74/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$5.0B
Latest YoY
+3.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.0%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+7.1% (5.7 + 1.4)
Revenue +2.9%/yr
FY21 £4.4B
FY22 £4.5B
FY23 £4.9B
FY24 £4.8B
FY25 £5.0B
Net income −16.8%/yr
FY21 £304M
FY22 £155M
FY23 £202M
FY24 £44.2M
FY25 £146M

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Cite: Fair Value Calculator (2026). "Serco Group plc Fair Value". https://www.fairvalue-calculator.com/stock/SECCF

Peer Group

Specialty Business Services · 248 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 72 · Top 25%
Fair Value upside +43% · Above median
Return on equity (TTM) 17% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth 1% · Below median
Dividend yield (TTM) 1.4% · Below median
Debt / equity 0.46× · Higher than median

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 16.8× · Cheaper than median
P/B 3.67× · Pricier than 75% of peers
P/S (TTM) 0.66× · Cheaper than median
P/FCF 7.9× · Pricier than median
EV/EBITDA 13.1× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE91 · sector 25
FUTURE6 · sector 27
PAST68 · sector 36
HEALTH77 · sector 92
DIVIDEND28 · sector 48

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $204.15 $95.19 −53%
RELX PLC RELX $34.55 $32.24 −7%
Thomson Reuters Corporation TRI C$142.85 C$70.40 −51%
Copart, Inc CPRT $32.76 $28.59 −13%
Global Payments Inc GPN $91.05 $68.98 −24%
RB Global, Inc RBA C$119.68 C$68.30 −43%
Brambles Limited BXB A$19.47 A$17.27 −11%
UL Solutions Inc ULS $74.43 $33.62 −55%
Wolters Kluwer N.V WKL €68.88 €101.27 +47%
Aramark ARMK $59.08 $13.18 −78%

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Frequently asked questions

Is Serco Group plc (SECCF) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of $4.56 versus the last price from Aug 28, 2026 of $3.19, about +43% upside (undervalued).
What is the fair value of SECCF?
Our model-based fair value for Serco Group plc is $4.56 (as of Aug 30, 2026), built from audited fundamentals. Last price (from Aug 28, 2026): $3.19.
What is the quality score of SECCF?
Serco Group plc has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Serco Group plc (SECCF)?
Serco Group plc reported trailing-twelve-month revenue of about $4.9B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of SECCF?
The net profit margin of Serco Group plc is about 3.0%, meaning it keeps roughly 3.0% of revenue as net income. Based on the latest reported figures.
Does Serco Group plc pay a dividend?
Serco Group plc currently shows a dividend yield of about 1.41% relative to its recent price (as of Aug 30, 2026).
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