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Severn Trent PLC (SVT) Fair Value & Analysis

Utilities · GB · Market cap 9.3B GBX · ISIN GB00B1FH8J72

What is Severn Trent PLC really worth?

ST Severn Trent PLC SVT · LSE
Price£29.82
Fair Value£11.69
Upside−60.8%
Quality35/100

Below-average quality, and trading another 155% above our fair value of £11.69.

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Strengths

Solidly profitable · 13.1% net margin
Wide moat 66/100

Risks

!Expensive Growth (revenue 5y +9.2 %/yr)
!High debt · negative free cash flow
!Mixed vs. peers (6/14)
!Evidence only medium, so the estimate is less certain

For context

·4.14% dividend yield
Evidence: Medium Range £11.69 – £23.69

Fair value as of: Sep 1, 2026

From 15 valuation models · updated 4 days ago

Share price −3.2% 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 (£23.69). The favourable scenario is already priced in.
  • Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (£11.69 to £23.69) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£32.00 £18.60 Fair Value £11.69 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range £18.60 – £32.00 · fair‑value band £11.69 – £23.69 · the £29.82 price screens above the £11.69 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Severn Trent PLC (SVT) currently trades at £29.82, while our model-based Fair Value estimate is £11.69, implying the stock looks roughly 155.1% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of £18.12 per share, and 0 of the 12 models we run sit above the £29.82 price. Bear case: the Asset-Based group reads lowest at £4.09, and 12 of the 12 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Severn Trent PLC generated revenue of £2.8B at a net margin of 13.1%. Revenue grew 15.3% year over year. It earns a return on equity of 20.5%. Net debt stands at £11.0B. Fundamentals as of Sep 1, 2026

Our scenario range runs from £11.69 (bear case) to £23.69 (bull case); at £29.82, 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 12% fair-value upside, at −61%, SVT screens richer than that median.

Fair Value models

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 £7.37 £8.91 £19.63 71
EPV £1.14 68
ROIC Compounder £1.14 68
All 15 models by family
Earnings-Based
Graham-Dodd £8.36 £19.52 £25.10 65
PEG = 1.0 £3.33 £4.76 £6.18 57
EPV £1.14 68
Dividend Discount
Gordon GGM £10.80 £17.91 £25.98 67
DDM Multi-Stage £10.80 £15.70 £20.90 67
Multiples
P/E Multiple £16.60 £22.13 £27.66 63
P/S Multiple £15.67 £20.90 £26.12 58
P/B Multiple £8.24 £10.98 £13.73 55
EV/EBIT £5.48 £17.29 £29.09 60
EV/EBITDA £6.05 £18.05 £30.04 62
EV/Revenue £0.5500 50
Asset-Based
NCAV (Graham) £3.05 £4.09 £6.10 54
Economic Profit
Residual Income best evidence £7.37 £8.91 £19.63 71
ROIC Compounder £1.14 68
Growth Earnings
Growth-Adj P/E £12.68 £18.12 £23.55 67

Widest divergence: Growth Earnings (£18.12) versus Asset-Based (£4.09). Highest evidence: Residual Income (71).

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Key figures & financial health

P/E ratio 24.2
P/S ratio 3.18 P/E × margin
EPS (TTM) £1.23 price ÷ EPS = P/E 24.2
Dividend yield 4.1% payout 100%
Net margin 13.1% FY2026
Return on equity 20.5% TTM
More key figures
Profitability
Return on assets (EBIT) 4.4% avg 5y
Operating margin 28.8% TTM
Growth
Revenue (TTM) £2.8B TTM
Revenue growth (YoY) +15.3% 3y avg +9.4%
EPS growth (YoY) +62.9%
Balance sheet & cash flow
Free cash flow −972M GBX FY2026
Net debt 11.0B GBX FY2026

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 33 · Market factors (momentum, volatility) 65

Profitability 36
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 4
Balance sheet, leverage, solvency risk
Investment 12
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 65
Distance to the 52-week high (market factor)
Net Issuance 47
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

Severn Trent PLC provides water and wastewater services in the United Kingdom. It operates in two segments, Regulated Water and Wastewater, and Business Services. The company offers water and wastewater services to approximately 4.7 million households and businesses.

Full company description

Severn Trent PLC provides water and wastewater services in the United Kingdom. It operates in two segments, Regulated Water and Wastewater, and Business Services. The company offers water and wastewater services to approximately 4.7 million households and businesses. It also generates renewable energy from anaerobic digestion, hydropower, wind turbines, and solar technologies; and provides property development services, as well as engages in the sale of surplus land. It offers services to municipal and industrial clients, including the Ministry of Defence and the Coal Authority for the design, building, and operation of water and wastewater treatment facilities and networks. Severn Trent PLC was founded in 1974 and is headquartered in Coventry, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Severn Trent PLC reported revenue of 2.8B GBX in FY2026 versus 1.9B GBX in FY2022, a compound +9.9%/yr. Reported net income was 371M GBX in FY2026.

Growth Quality 51/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
£2.8B
Latest YoY
+16.7%
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.
+9.4%
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.
+9.2%
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.
+5.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+13.8% (9.7 + 4.1)
Revenue +9.9%/yr
FY22 1.9B GBX
FY23 2.2B GBX
FY24 2.3B GBX
FY25 2.4B GBX
FY26 2.8B GBX
Net income
FY22 −87.2M GBX
FY23 132M GBX
FY24 140M GBX
FY25 229M GBX
FY26 371M GBX
Character of growth · EPS growth decomposed (2015-2026) −3.0 % p.a.
Revenue per share +1.9 %

of which total revenue +4.3 % · buybacks/dilution −2.3 %

EBIT margin −1.0 %
Tax rate −3.4 %
Residual (interest, one-offs) −0.5 %

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).

SVT screens 155% overvalued. Compare with American Water Works Company →

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

Peer Group

Utilities - Regulated Water · 64 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 35 · Bottom 25%
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 21% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 13% · Above median
Operating margin (TTM) 29% · Above median
Revenue growth 15% · Top 25%
Dividend yield (TTM) 4.1% · Above median
Debt / equity 4.93× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 24.2× · Pricier than median
P/B 6.80× · Pricier than 75% of peers
P/S (TTM) 4.42× · Pricier than 75% of peers
EV/EBITDA 16.5× · Pricier than 75% of peers
PEG 4.69× · Pricier 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 0
FUTURE77 · sector 28
PAST82 · sector 31
HEALTH0 · sector 65
DIVIDEND83 · sector 52

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

Insider activity: 40/100

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 - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $138.30 $65.80 −52%
SBS SBS $4.82 $8.13 +69%
Essential Utilities, Inc WTRG $41.10 $21.81 −47%
Guangdong Investment Limited 0270 HK$8.15 HK$12.82 +57%
Grandblue Environment Co 600323 ¥29.61 ¥33.29 +12%
American States Water Company AWR $89.88 $47.94 −47%
Chengdu Xingrong Environment Co 000598 ¥7.35 ¥9.09 +24%
California Water Service Group CWT $50.48 $33.56 −34%
Chongqing Water Group 601158 ¥4.14 ¥2.77 −33%
Beijing Enterprises Water Group 0371 HK$1.74 HK$3.00 +73%

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Frequently asked questions

Is Severn Trent PLC (SVT) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of £11.69 versus a price of £29.82, about −61% upside (overvalued).
What is the fair value of SVT?
Our model-based fair value for Severn Trent PLC is £11.69 (as of Sep 1, 2026), built from audited fundamentals. The current price: £29.82.
What is the quality score of SVT?
Severn Trent PLC has a Quality Score of 35/100. 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 Severn Trent PLC (SVT)?
Severn Trent PLC reported trailing-twelve-month revenue of about £2.8B (latest available figure, as of Sep 1, 2026).
What is the net profit margin of SVT?
The net profit margin of Severn Trent PLC is about 13.1%, meaning it keeps roughly 13.1% of revenue as net income. Based on the latest reported figures.
Does Severn Trent PLC pay a dividend?
Severn Trent PLC currently shows a dividend yield of about 4.14% relative to its recent price (as of Sep 1, 2026).
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