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SSE PLC (SSE) Fair Value & Analysis

Utilities · GB · Market cap 30.0B GBX · ISIN GB0007908733

What is SSE PLC really worth?

SP SSE PLC SSE · LSE
Price£24.01
Fair Value£15.80
Upside−34.2%
Quality40/100

Below-average quality, and trading another 52% above our fair value of £15.80.

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Strengths

Solidly profitable · 11.9% net margin

Risks

!Weak Growth (revenue 5y +8.3 %/yr)
!Moderate debt · negative free cash flow
!Mixed vs. peers (6/14)
!Moderate moat 55/100
!Evidence only medium, so the estimate is less certain

For context

·2.68% dividend yield
Evidence: Medium Range £10.00 – £20.54

Fair value as of: Sep 5, 2026

From 16 valuation models · updated today

Share price +2.5% over the past month.

What runs behind every stock

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

What matters now

  • The price sits above even our optimistic bull case (£20.54). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (£10.00 to £20.54) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£27.58 £11.82 Fair Value £15.80 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range £11.82 – £27.58 · fair‑value band £10.00 – £20.54 · the £24.01 price screens above the £15.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

SSE PLC (SSE) currently trades at £24.01, while our model-based Fair Value estimate is £15.80, implying the stock looks roughly 52.0% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Utilities sector. Bull case: the Multiples group reads highest at a median of £17.03 per share, and 0 of the 16 models we run sit above the £24.01 price. Bear case: the Earnings-Based group reads lowest at £5.75, and 16 of the 16 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, SSE PLC generated revenue of £10.2B at a net margin of 12.6%. Revenue declined 2.1% year over year. It earns a return on equity of 9.7%. Net debt stands at £11.6B. Fundamentals as of Sep 5, 2026

Our scenario range runs from £10.00 (bear case) to £20.54 (bull case); at £24.01, the current price sits above 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 last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. For context, the median of 10 Utilities peers we cover trades at −38% fair-value upside, at −34%, SSE screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly £0.1757 per share, which is 1.1 % 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
Residual Income best evidence £9.16 £10.09 £14.00 76
EPV £7.42 £9.62 £11.55 74
ROIC Compounder £7.42 £9.62 £12.58 72
All 16 models by family
Earnings-Based
Graham-Dodd £6.81 £19.57 £25.82 65
Lynch FV £4.03 £5.75 £7.48 61
PEG = 1.0 £4.03 £5.75 £7.48 57
EPV £7.42 £9.62 £11.55 74
Dividend Discount
Gordon GGM £5.13 £10.67 £16.92 66
DDM Multi-Stage £5.13 £8.20 £11.20 66
Multiples
P/E Multiple £13.53 £18.04 £22.54 63
P/S Multiple £12.78 £17.03 £21.29 58
P/B Multiple £12.78 £17.03 £21.29 55
EV/EBIT £13.79 £20.32 £26.84 65
EV/EBITDA £13.56 £20.01 £26.46 66
EV/Revenue £8.98 £15.31 £21.64 52
Asset-Based
NCAV (Graham) £5.25 £7.03 £10.50 54
Economic Profit
Residual Income best evidence £9.16 £10.09 £14.00 76
ROIC Compounder £7.42 £9.62 £12.58 72
Growth Earnings
Growth-Adj P/E £11.06 £15.80 £20.54 67

Widest divergence: Multiples (£17.03) versus Earnings-Based (£5.75). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 22.9
P/S ratio 2.71 P/E × margin
EPS (TTM) £1.05 price ÷ EPS = P/E 22.9
Dividend yield 2.7% payout 61.3%
Net margin 11.9% FY2026
Return on equity 9.7% TTM
More key figures
Profitability
Return on assets (EBIT) 6.1% avg 5y
Operating margin 22.6% TTM
Growth
Revenue (TTM) £10.2B TTM
Revenue growth (YoY) −2.1% 3y avg −6.6%
EPS growth (YoY) +43.7%
Balance sheet & cash flow
Free cash flow −712M GBX FY2026
Net debt 11.6B GBX FY2026

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 40 · Market factors (momentum, volatility) 67

Profitability 33
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 28
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 77
Distance to the 52-week high (market factor)
Net Issuance 49
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

SSE plc engages in the generation, transmission, distribution, and supply of electricity. The company distributes electricity to approximately 4 million homes and businesses in southern central England and the north of Scotland; and owns, develops, and operates the high voltage electricity transmission system in the north of Scotland and other areas.

Full company description

SSE plc engages in the generation, transmission, distribution, and supply of electricity. The company distributes electricity to approximately 4 million homes and businesses in southern central England and the north of Scotland; and owns, develops, and operates the high voltage electricity transmission system in the north of Scotland and other areas. Its diversified portfolio includes onshore and offshore wind farms, hydro-electric power, and batteries, flexible thermal generation, and electricity transmission and distribution networks. In addition, the company provides energy products and services; and invests in, develops, builds, and operates electricity infrastructure and businesses. The company was formerly known as Scottish and Southern Energy plc and changed its name to SSE plc in September 2011. SSE plc was incorporated in 1989 and is based in Perth, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

SSE PLC reported revenue of £10.2B in FY2026 versus £8.7B in FY2022, a compound +4.0%/yr. Reported net income was £1.2B in FY2026, compounding −20.5%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£10.2B
Latest YoY
+0.5%
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.
−6.6%
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.
+8.3%
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.
+9.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−10.9% (−13.6 + 2.7)
Revenue +4.0%/yr
FY22 £8.7B
FY23 £12.5B
FY24 £10.5B
FY25 £10.1B
FY26 £10.2B
Net income −20.5%/yr
FY22 £3.0B
FY23 −£158M
FY24 £1.7B
FY25 £1.2B
FY26 £1.2B
Character of growth · EPS growth decomposed (2015-2026) +3.9 % p.a.
Revenue per share −12.2 %

of which total revenue −11.2 % · buybacks/dilution −1.2 %

EBIT margin +17.2 %
Tax rate −3.0 %
Residual (interest, one-offs) +4.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

SSE screens 52% overvalued. Compare with Iberdrola, S.A →

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Cite: Fair Value Calculator (2026). "SSE PLC Fair Value". https://www.fairvalue-calculator.com/stock/SSE

Peer Group

Utilities - Diversified · 52 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 40 · Below median
Fair Value upside −34% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 4% · Top 25%
Net margin (TTM) 12% · Above median
Operating margin (TTM) 23% · Top 25%
Revenue growth −2% · Below median
Dividend yield (TTM) 2.7% · Bottom 25%
Debt / equity 0.67× · Lower than median

Valuation Multiples vs Utilities - Diversified median · lower = cheaper

P/E (TTM) 22.9× · Pricier than median
P/B 3.21× · Pricier than 75% of peers
P/S (TTM) 3.99× · Pricier than 75% of peers
EV/EBITDA 17.5× · Pricier than 75% of peers
PEG 0.83× · Cheaper than 75% of peers

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
VALUE0 · sector 5
FUTURE0 · sector 6
PAST39 · sector 37
HEALTH66 · sector 48
DIVIDEND54 · sector 81

VALUE 0: the price sits above our fair-value range.

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 Utilities - Diversified stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
Iberdrola, S.A IBE €20.28 €8.45 −58%
Enel SpA ENEL €9.42 €4.82 −49%
Engie SA ENGI €24.50 €21.15 −14%
Sempra SRE $84.57 $44.47 −47%
E.ON SE EOAN €17.83 €11.71 −34%
RWE Aktiengesellschaft generates and RWE €59.10 €55.77 −6%
ACWA Power Company 2082 184.00 SAR 24.19 SAR −87%
Brookfield Infrastructure Partners L.P. BIPUN C$54.99 C$34.34 −38%
EnBW Energie Baden-Württemberg AG EBK €68.60 €21.11 −69%
EDP, S.A EDP €4.70 €3.81 −19%

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Frequently asked questions

Is SSE PLC (SSE) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of £15.80 versus a price of £24.01, about −34% upside (overvalued).
What is the fair value of SSE?
Our model-based fair value for SSE PLC is £15.80 (as of Sep 5, 2026), built from audited fundamentals. The current price: £24.01.
What is the quality score of SSE?
SSE PLC has a Quality Score of 40/100. 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 SSE PLC (SSE)?
SSE PLC reported trailing-twelve-month revenue of about £10.2B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of SSE?
The net profit margin of SSE PLC is about 12.6%, meaning it keeps roughly 12.6% of revenue as net income. Based on the latest reported figures.
Does SSE PLC pay a dividend?
SSE PLC currently shows a dividend yield of about 2.68% relative to its recent price (as of Sep 5, 2026).
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