Severn Trent PLC (SVT) Fair Value & Analysis
Utilities · GB · Market cap 9.3B GBX · ISIN GB00B1FH8J72
What is Severn Trent PLC really worth?
Below-average quality, and trading another 155% above our fair value of £11.69.
Strengths
Risks
For context
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)
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.
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.
All 15 models by family
Widest divergence: Growth Earnings (£18.12) versus Asset-Based (£4.09). Highest evidence: Residual Income (71).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 33 · Market factors (momentum, volatility) 65
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.
of which total revenue +4.3 % · buybacks/dilution −2.3 %
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 →
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.
Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper
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.
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.
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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