Severn Trent PLC
Severn Trent PLC provides water and wastewater services in the United Kingdom. It operates in two segments, Regulated Water and Wastewater, and Infrastructure Services. It offers water and wastewater services. The company also generates renewable energy through solar, wind, hydro, and crop digestio…
Severn Trent PLC provides water and wastewater services in the United Kingdom. It operates in two segments, Regulated Water and Wastewater, and Infrastructure Services. It offers water and wastewater services. The company also generates renewable energy through solar, wind, hydro, and crop digestion, as well as through anaerobic digestion of sewage sludge and food waste. In addition, it engages in property development and the management of the sale of surplus land. The company was founded in 1974 and is headquartered in Coventry, the United Kingdom.Looks overvalued
Other models: GBP 19.65–23.84 (median 21.75). The recommended value is in line with them.
Why: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Details and the full model are below.
Market price above modeled range
Uses reported dividends of GBP 1.2305 per share from Fiscal year 2026, with 2.2% perpetual growth (base growth capped at the terminal rate) and 8.6% discount rates. The range varies growth and discount assumptions by 1 percentage point; it is illustrative, not a statistical confidence interval or investment advice.
Assumptions: growth 8.96%, discount rate 8.60%, terminal growth 2.20% (sector defaults). See a worked example.
Blended growth assumption: 9.0% (sector default 4.0%, own revenue history 9.9%, analyst revenue consensus 11.0%).
5-year outlook: relative outlook of about 7.0% a year (Medium confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 11.0% a year; the growth assumption used is 9.0%.
Adjust assumptions
Why this model: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Compare models- Recommended: Dividend discount model — GBP 19.65 (-40.0%)
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EPS-based Gordon proxy
— GBP 19.65 (-40.0%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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FCFF (steady state)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/EBITDA (12x)
— GBP 23.84 (-27.2%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/Sales (Rule of 40)
— GBP 79.09 (+141.4%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 14.82 | -121.0% |
| Base GBP 19.65 | -66.7% |
| Bull GBP 28.86 | -13.5% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 32.76 the market implies perpetual dividend growth of about this rate (discount rate 8.6%).
Compare: the market implies 4.7% a year, this model assumes 2.2%. The market expects more than this model does, which is why it reads as overvalued.
How the Dividend discount model value changes with growth (rows) and discount rate (columns). Green cells are above the current price. Dividend growth cannot exceed the long-run rate, so duplicate capped scenarios are omitted.
| Growth \ Discount | 6.6% | 7.6% | 8.6% | 9.6% | 10.6% |
|---|---|---|---|---|---|
| -1.8% | 14.39 | 12.85 | 11.62 | 10.60 | 9.74 |
| 0.2% | 19.27 | 16.66 | 14.68 | 13.12 | 11.86 |
| 2.2% | 28.58 | 23.29 | 19.65 | 16.99 | 14.97 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 64 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 2 of 5 years | 8 / 20 |
| Growth | revenue +9.9% a year | 20 / 20 |
| Balance sheet | net debt 7.0x EBITDA | 0 / 20 |
| Margins | EBITDA margin 51% | 20 / 20 |
Peers in Utilities
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| SVT.L (this company) | GBP 32.76 | -66.7% | 26.6 | 5.4 | 3.8% | 64 |
| ED Consolidated Edison | USD 119.93 | 30.7% | 20.0 | 1.7 | 2.7% | 78 |
| ENGI.PA Engie SA | EUR 23.81 | 16.6% | 15.8 | 1.8 | 7.5% | 76 |
| D Dominion Energy | USD 68.26 | -3.4% | 22.2 | 2.0 | 3.9% | 76 |
| FORTUM.HE Fortum Oyj | EUR 23.13 | -3.5% | 25.7 | 2.6 | 6.1% | 72 |
| CMS CMS Energy | USD 68.66 | -3.5% | 24.7 | 2.2 | 3.3% | 64 |
| CNA.L Centrica plc | GBP 1.50 | -5.9% | – | 2.3 | 3.3% | 92 |
| EIX Edison International | USD 59.61 | -8.9% | 6.3 | 1.3 | 5.7% | 52 |
| NTGY.MC Naturgy Energy Group, S.A. | EUR 29.30 | -9.7% | 14.0 | 3.0 | 5.9% | 70 |
| Peer median | 20.0 | 2.1 | ||||
Dividends
Paid in the last 12 months: GBP 0.01 per share · yield 0.04% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.008 |
| 2025 | 0.012 |
| 2024 | 0.012 |
| 2023 | 0.011 |
| 2022 | 0.010 |
| 2021 | 0.010 |
Annual financial statement
Saved annual report · Fiscal year 2026 · EODHD annual statements · period ended 31 Mar 2026
| Revenue | GBP 2,831,000,000 |
|---|---|
| EBITDA | GBP 1,448,000,000 |
| EBIT | GBP 950,000,000 |
| Net income | GBP 371,000,000 |
| Free cash flow | GBP -972,000,000 |
| Capital expenditures | GBP 1,896,000,000 |
| Debt | GBP 10,984,000,000 |
| Cash | GBP 796,000,000 |
| Working capital | GBP 504,000,000 |
| Shares outstanding | 301,500,000 |
| Reported dividends per share | GBP 1.2305 |