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Data-driven stock valuation

SSE PLC (SSE) fair value: what the stock is really worth

As of Nov 5, 2026: fair value (intrinsic value) of SSE PLC stock £11.19, price £26.52, that is 57.8% below the price, quality 40 out of 100. Rating: strongly overvalued. Calculated from audited financials with 16 of our 26 valuation models and 37 quality factors, updated daily.

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Utilities GB · ISIN GB0007908733

SP SSE PLC logo Some data Nov 4, 2026

SSE PLC

SSE · LSE
Very expensive, weak quality

Our calculation puts a fair price 58% below what the stock costs today.

Solidly profitable · 11.9% net margin (TTM)
Positive coverage
Quality 40/100
Moderate debt
2.4% dividend yield · Watch coverage
Mixed vs. peers (6/14)
Moderate moat 55/100 · thin data
Some data
Fair value £11.19 · Strongly overvalued (−57.8%)
Weak Growth (revenue 3y −6.6 %/yr in GBP)
Negative free cash flow

Risks from the AI analysis

🚩Ofgem price controls could cap network returns

What runs behind every stock

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

Price vs Fair Value

£27.06 £12.26 Fair Value £11.19 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.

How to read this chart

60‑month range £12.26 – £27.06 · fair‑value band £9.19 – £18.35 · the £26.52 price screens above the £11.19 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.

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Company profile

SSE plc engages in the generation, transmission, distribution, and supply of electricity.

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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.

Stock analysis

SSE PLC (SSE) currently trades at £26.52, while our model-based Fair Value estimate is £11.19, 58% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of £16.11 per share, and 0 of the 16 models we run sit above the £26.52 price.

Bear case: the Asset-Based group reads lowest at £5.34, and 16 of the 16 models stay below the price. Data coverage for this calculation is medium.

Scenario range: £9.19 (bear) to £18.35 (bull), the price of £26.52 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 40/100 (below-average quality), in the Utilities sector.

Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.

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.

Key figures

Market cap £30.4B Large · P/E ratio 25.3 · P/S ratio 2.99 · EPS (TTM) £1.05 · Dividend yield 2.4% · Net margin 11.9% · Return on equity 9.7% · Return on assets (EBIT) 6.1%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (low confidence).

What moves the price

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.

The share trades about 2% below its 52-week high and 46% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Utilities peers we cover trades at −48% fair-value upside, at −58%, SSE screens richer than that median.

Fair Value models

Bear £9.19 Fair Value £11.19 Bull £18.35
Price £26.52 · Downside -57.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (£0.2447 per share) are deliberately not added. 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income £9.19 £10.14 £12.44 76
EPV £7.75 £10.08 £12.13 74
ROIC Compounder £7.75 £10.08 £13.84 71
All 16 models by family
Earnings-Based
Graham-Dodd £6.77 £19.44 £25.64 65
Lynch FV £4.00 £5.71 £7.42 61
PEG = 1.0 £4.00 £5.71 £7.42 57
EPV £7.75 £10.08 £12.13 74
Dividend Discount
Gordon GGM £5.24 £11.19 £18.35 66
DDM Multi-Stage £5.24 £8.46 £11.70 66
Multiples
P/E Multiple £13.43 £17.91 £22.39 63
P/S Multiple £12.69 £16.92 £21.14 58
P/B Multiple £10.75 £14.34 £17.92 55
EV/EBIT £9.93 £16.41 £22.90 64
EV/EBITDA £9.70 £16.11 £22.52 65
EV/Revenue £5.16 £11.44 £17.73 51
Asset-Based
NCAV (Graham) £3.98 £5.34 £7.97 54
Economic Profit
Residual Income £9.19 £10.14 £12.44 76
ROIC Compounder £7.75 £10.08 £13.84 71
Growth Earnings
Growth-Adj P/E £10.98 £15.69 £20.40 67

Open the full fair value analysis →

Quality Score breakdown

Overall quality 40/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 33
How much profit the company makes from its sales and capital
Quality Growth 36
Are margins and returns getting better?
Cashflow 50
Do the profits arrive as real cash?
Financial strength 40
Debt, balance sheet and risk of trouble
Investment 28
Does it invest with discipline instead of growing at any price?
Low Volatility 81
How calm the share price moves, does not count
Price momentum 61
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 88
Distance to the 52-week high, does not count
New shares 49
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+0.5%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−6.6%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+8.3%
Start year 2021 (pandemic). Over 10 years: −9.9% a year
Revenue growth 40 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+9.1%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−11.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year−13.6%
Dividend (yield on the price)2.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−13.6% vs 6.7%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.13% → 21%
Pace: the 5-year rate starts in 2021 (pandemic)
⚠ Revenue per share shrinking 11.6%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.

SSE screens overvalued: fair value 58% below the price. Compare with Iberdrola, S.A →

Earlier news

News mood ⓘNews mood, the average tone of recent news (93 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation. Positive
Recent news coverage is more positive than average.
Note from the team Oct 11, 2026
AI conclusion: The business gains from a rising share of regulated network earnings that support more stable results, yet negative free cash flow and thin moat evidence remain key limitations.
Main risk: Ofgem determinations on RIIO price controls or REMA reforms such as zonal pricing could restrict allowed revenues and cost of equity for SSE's transmission and distribution networks, squeezing margins on regulated assets.
Bull case: SSE could collaborate closely with Ofgem and government on net zero infrastructure needs to secure more favourable funding allowances and accelerate its regulated network investments.
Bear case: Unfavourable regulatory settlements or delayed approvals might constrain capital expenditure on transmission upgrades and limit earnings growth from the networks business.
SSE is shifting toward a larger share of earnings from regulated networks, which dampens the usual seasonal peaks while investment in transmission accelerates. Renewables output has risen with favorable conditions and added capacity. Our models see it as overvalued. Will this mix deliver more predictable results over time, or will it constrain upside from the variable generation business?
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Peer Groupⓘ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.Utilities - Diversified · 49 stocks

Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 40 · Below median
Fair Value upside −57.8% · Bottom 25%
Profitability
Return on equity (12 months) 9.7% · Above median
Return on assets 3.4% · Above median
Net margin (12 months) 11.9% · Above median
Operating margin (12 months) 23.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY) −2.1% · Bottom 25%
Dividend yield (12 months) 2.4% · Bottom 25%
Balance sheet
Debt / equity 0.67× · Below median

Valuation Multiplesvs Utilities - Diversified median · lower = cheaper

P/E (12 months) 25.3× · Pricier than median
P/B 2.40× · Priciest 25%
P/S (12 months) 2.99× · Priciest 25%
EV/EBITDA 13.8× · Pricier than median
PEG 0.82× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 0
FUTURE (revenue growth)0 · sector 32
PAST (return on equity)39 · sector 35
HEALTH (low debt)66 · sector 48
DIVIDEND (yield)49 · sector 82

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

Context: sector, industry, market

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.

Stock Price Fair Value vs Fair Value Compare
Engie SA ENGI €24.01 €20.64 −14% vs SSE
RWE Aktiengesellschaft generates and RWE €57.06 €43.47 −24% vs SSE
Enel SpA ENEL €9.77 €5.94 −39% vs SSE
EDP, S.A EDP €4.98 €2.67 −46% vs SSE
Sempra SRE $82.90 $43.34 −48% vs SSE
E.ON SE EOAN €19.32 €8.96 −54% vs SSE
Brookfield Infrastructure Partners L.P. BIP $38.17 $17.58 −54% vs SSE
Iberdrola, S.A IBE €22.77 €10.28 −55% vs SSE
EnBW Energie Baden-Württemberg AG EBK €65.20 €21.11 −68% vs SSE
ACWA Power Company 2082 153.80 SAR 27.47 SAR −82% vs SSE

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SSE PLC: fair value per Fair Value Calculator

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

Frequently asked questions

Is SSE PLC (SSE) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of £11.19 versus a price of £26.52, about 58% lower (overvalued).
What is the fair value of SSE?
Our model-based fair value for SSE PLC is £11.19 (as of Nov 4, 2026), built from audited fundamentals. The current price: £26.52.
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 price target for SSE PLC (SSE)?
Our model-based price target is the fair value of £11.19 (as of Nov 4, 2026) from 16 valuation models. Cautious scenario £9.19, optimistic scenario £18.35. It is a calculation from audited fundamentals, not an analyst target.
What is the SSE PLC stock forecast for 2026?
Our models put fair value at £11.19, about 58% lower versus a price of £26.52 (overvalued). Cautious scenario £9.19, optimistic scenario £18.35. The calculation is refreshed regularly with new filings.
What is the revenue of SSE PLC (SSE)?
SSE PLC reported trailing-twelve-month revenue of about £10.2B (latest available figure, as of Nov 4, 2026).
Does SSE PLC pay a dividend?
SSE PLC currently shows a dividend yield of 2.43% relative to its recent price (as of Nov 4, 2026).
What is the intrinsic value of SSE PLC (SSE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For SSE PLC it is £11.19 per share (as of Nov 4, 2026), against a price of £26.52. It is the blended result of 16 valuation models (cash flow, earnings, asset, dividend).
Is SSE PLC stock overvalued or undervalued in 2026?
As of Nov 4, 2026, SSE trades above its calculated fair value: price £26.52, fair value £11.19, a gap of about −58% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SSE?
No. The price is what the market pays today (£26.52); the fair value is what the company's own numbers justify (£11.19). For SSE PLC the two are £15.33 per share apart. That gap is exactly why we show both numbers side by side.
How much is SSE PLC worth?
The market values SSE PLC at about £30.4B (market capitalisation, as of Nov 4, 2026). Per share that is £26.52; our models calculate a fair value of £11.19 per share.
What do the bullish and bearish scenarios say about SSE?
Our models span a range for SSE PLC: cautious scenario £9.19, base £11.19, optimistic £18.35 per share (as of Nov 4, 2026, price £26.52). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SSE?
SSE PLC trades at a price-to-earnings ratio of 25.3 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £11.19 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings: 10.5. Other multiples: PEG 0.8, P/B 2.4, P/S 3.0, EV/EBITDA 13.8.
What is the PEG ratio of SSE?
The PEG ratio of SSE PLC is 0.82 (P/E divided by earnings growth, as of Nov 4, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of SSE PLC (SSE)?
Balance-sheet figures for SSE PLC (as of Nov 4, 2026): return on equity 9.7%, debt of 0.67 per unit of equity. They feed the Quality Score of 40/100, which measures business quality independently of the share price.
How far is SSE from its 52-week high?
SSE PLC trades at £26.52, about 2% below its 52-week high of £27.06 and 46% above the low of £18.16 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of £11.19 is for.
Which stocks are comparable to SSE PLC?
From the same area (Utilities) we also value Iberdrola, S.A, Enel SpA, Engie SA, Sempra, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is SSE PLC stock attractive at the current price?
The data as of Nov 4, 2026: price £26.52, calculated fair value £11.19 (−58%), Quality Score 40/100, from 16 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SSE calculated?
We run SSE PLC through 16 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of £11.19, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.0% above its aggregate fair value. SSE PLC itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of SSE PLC (SSE)?
The closing price on Nov 5, 2026 was £26.52. Our model-based fair value is £11.19, about 58% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with SSE PLC right now?
The price sits above even our optimistic bull case (£18.35). 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 (£9.19 to £18.35) leaves room in how you read the outcome.
Where does the earnings growth of SSE PLC (SSE) come from?
Earnings per share at SSE PLC grew +3.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share −12.2 %, EBIT margin +17.2 %, tax rate −3.0 %, residual (interest, one-offs) +4.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of SSE PLC

How large is the market capitalisation of SSE PLC (SSE)?
The market capitalisation of SSE PLC is £30.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of SSE PLC (SSE)?
The price-to-sales ratio of SSE PLC is 2.99 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of SSE PLC (SSE)?
Earnings per share at SSE PLC are £1.05 (price ÷ EPS = P/E 25.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of SSE PLC (SSE)?
The dividend yield of SSE PLC is 2.4% (payout 61.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of SSE PLC (SSE)?
The net margin of SSE PLC is 11.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of SSE PLC (SSE)?
The return on equity (ROE) of SSE PLC is 9.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of SSE PLC (SSE)?
On an EBIT basis the return on assets of SSE PLC is 6.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of SSE PLC (SSE)?
The operating margin of SSE PLC is 23.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at SSE PLC (SSE)?
Revenue at SSE PLC is growing −2.1% versus a year earlier (3y avg −6.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at SSE PLC (SSE)?
Earnings per share at SSE PLC are growing +27.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does SSE PLC (SSE) generate?
The free cash flow of SSE PLC is −£712M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does SSE PLC (SSE) carry?
The net debt of SSE PLC is £11.6B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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