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United Utilities Group PLC (UU) Fair Value & Analysis

Utilities · GB · Market cap 10.3B GBX · ISIN GB00B39J2M42

What is United Utilities Group PLC really worth?

UU United Utilities Group PLC UU · LSE
Price£13.62
Fair Value£8.80
Upside−35.4%
Quality54/100

A solid business, but trading 55% above our fair value of £8.80.

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Strengths

Highly profitable · 22.4% net margin
Ranks above peers (9/14)
Wide moat 78/100

Risks

!Expensive Growth (revenue 5y +7.7 %/yr)
!High debt · negative free cash flow

For context

·3.94% dividend yield
Evidence: High Range £4.52 – £13.72

Fair value as of: Aug 23, 2026

From 14 valuation models · updated 13 days ago

Share price −3.9% over the past month.

What runs behind every stock

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

What matters now

  • The model range is unusually wide (£4.52 to £13.72). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

£14.36 £6.80 Fair Value £8.80 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range £6.80 – £14.36 · fair‑value band £4.52 – £13.72 · the £13.62 price screens above the £8.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

United Utilities Group PLC (UU) currently trades at £13.62, while our model-based Fair Value estimate is £8.80, implying the stock looks roughly 54.8% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of £11.34 per share, and 1 of the 14 models we run sit above the £13.62 price. Bear case: the Asset-Based group reads lowest at £2.02, and 13 of the 14 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, United Utilities Group PLC generated revenue of £2.6B at a net margin of 22.4%. Revenue grew 22.9% year over year. It earns a return on equity of 27.7%. Net debt stands at £9.7B. Fundamentals as of Aug 23, 2026

Our scenario range runs from £4.52 (bear case) to £13.72 (bull case); at £13.62, 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. For context, the median of 10 Utilities peers we cover trades at 12% fair-value upside, at −35%, UU screens richer 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 £0.1398 per share, which is 1.6 % 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
EPV £0.7300 £2.41 68
Gordon GGM £4.42 £6.79 £9.34 68
ROIC Compounder £0.7300 £2.41 68
All 14 models by family
Earnings-Based
Graham-Dodd £5.37 £11.48 £14.57 66
PEG = 1.0 £1.76 £2.51 £3.27 57
EPV £0.7300 £2.41 68
Dividend Discount
Gordon GGM £4.42 £6.79 £9.34 68
DDM Multi-Stage £4.42 £6.35 £8.53 67
Multiples
P/E Multiple £10.66 £14.22 £17.77 63
P/S Multiple £6.60 £8.80 £11.01 58
P/B Multiple £4.07 £5.43 £6.79 55
EV/EBIT £3.81 £9.31 £14.82 61
EV/EBITDA £3.36 £8.71 £14.07 62
Asset-Based
NCAV (Graham) £1.51 £2.02 £3.02 54
Economic Profit
Residual Income £4.87 £6.06 £21.92 64
ROIC Compounder £0.7300 £2.41 68
Growth Earnings
Growth-Adj P/E £7.94 £11.34 £14.74 67

Widest divergence: Growth Earnings (£11.34) versus Economic Profit (£0.7300). Highest evidence: EPV (68).

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Key figures & financial health

P/E ratio 15.8
P/S ratio 3.55 P/E × margin
EPS (TTM) £0.8600 price ÷ EPS = P/E 15.8
Dividend yield 3.9% payout 62.4%
Net margin 22.4% FY2026
Return on equity 27.7% TTM
More key figures
Profitability
Return on assets (EBIT) 4.1% avg 5y
Operating margin 41.1% TTM
Growth
Revenue (TTM) £2.6B TTM
Revenue growth (YoY) +22.9% 3y avg +12.8%
EPS growth (YoY) +115%
Balance sheet & cash flow
Free cash flow −110M GBX FY2026
Net debt 9.7B GBX FY2026

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 48 · Market factors (momentum, volatility) 69

Profitability 46
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 11
Balance sheet, leverage, solvency risk
Investment 54
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 70
Distance to the 52-week high (market factor)
Net Issuance 82
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

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities. The company operates approximately 122,000 kilometers of water and wastewater pipes.

Full company description

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities. The company operates approximately 122,000 kilometers of water and wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

United Utilities Group PLC reported revenue of £2.6B in FY2026 versus £1.9B in FY2022, a compound +8.9%/yr. Reported net income was £587M in FY2026.

Growth Quality 47/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
£2.6B
Latest YoY
+22.0%
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.
+12.8%
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.
+7.7%
Avg. revenue growth/yr (22Y) 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.
+1.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+19.8% (15.9 + 3.9)
Revenue +8.9%/yr
FY22 £1.9B
FY23 £1.8B
FY24 £1.9B
FY25 £2.1B
FY26 £2.6B
Net income
FY22 −£56.8M
FY23 £205M
FY24 £127M
FY25 £265M
FY26 £587M
Character of growth · EPS growth decomposed (2015-2026) −1.3 % p.a.
Revenue per share +3.0 %

of which total revenue +3.0 % · buybacks/dilution +0.0 %

EBIT margin −1.1 %
Tax rate −2.8 %
Residual (interest, one-offs) −0.4 %

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).

UU screens 55% overvalued. Compare with American Water Works Company →

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Cite: Fair Value Calculator (2026). "United Utilities Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/UU

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 54 · Above median
Fair Value upside −35% · Below median
Return on equity (TTM) 28% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 41% · Top 25%
Revenue growth 23% · Top 25%
Dividend yield (TTM) 3.9% · Above median
Debt / equity 5.01× · Higher than 75% of peers

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

P/E (TTM) 15.8× · Cheaper than median
P/B 6.20× · Pricier than 75% of peers
P/S (TTM) 5.31× · Pricier than 75% of peers
EV/EBITDA 14.6× · Pricier than median
PEG 1.06× · Cheaper 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
VALUE0 · sector 0
FUTURE100 · sector 28
PAST100 · sector 31
HEALTH0 · sector 65
DIVIDEND79 · sector 52

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

Insider activity: 45/100

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 Aug 23, 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 United Utilities Group PLC (UU) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of £8.80 versus a price of £13.62, about −35% upside (overvalued).
What is the fair value of UU?
Our model-based fair value for United Utilities Group PLC is £8.80 (as of Aug 23, 2026), built from audited fundamentals. The current price: £13.62.
What is the quality score of UU?
United Utilities Group PLC has a Quality Score of 54/100. 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 United Utilities Group PLC (UU)?
United Utilities Group PLC reported trailing-twelve-month revenue of about £2.6B (latest available figure, as of Aug 23, 2026).
What is the net profit margin of UU?
The net profit margin of United Utilities Group PLC is about 22.4%, meaning it keeps roughly 22.4% of revenue as net income. Based on the latest reported figures.
Does United Utilities Group PLC pay a dividend?
United Utilities Group PLC currently shows a dividend yield of about 3.94% relative to its recent price (as of Aug 23, 2026).
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