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STOCK COMPARISON

Severn Trent vs American Water Works: Fair Value & Quality

Both stocks run through our valuation models. Here is how Severn Trent (SVT) and American Water Works (AWK) compare, as of Aug 8, 2026.

As of Aug 8, 2026, Fair Value Calculator sees American Water Works as the less overvalued of the two: Severn Trent trades at £30.66 versus a fair value of £11.69 (-62%), while American Water Works trades at $135 versus $65.80 (-51%).
Severn Trent
SVT.LSE · GBX · Utilities
-62%
upside to fair value
overvalued
Price£30.66
Fair Value£11.69
Quality47/100
American Water Works
AWK · USD · Utilities
-51%
upside to fair value
overvalued
Price$135
Fair Value$65.80
Quality48/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Severn TrentAmerican Water Works
Valuation
24.9×P/E (TTM)22.9×
4.40×P/S (TTM)5.04×
6.76×P/B2.42×
16.4×EV/EBITDA13.7×
4.69×PEG2.51×
4.2%Dividend yield2.6%
£1.26Dividend per share$3.31
Profitability
13%Net margin21%
29%Operating margin33%
21%Return on equity10%
3%Return on assets4%
Growth
15%Revenue growth (YoY)6%
9.4%Avg. growth/yr (3Y)10.7%
9.2%Avg. growth/yr (5Y)6.4%
Balance & size
4.93×Debt / equity1.18×
$12BMarket cap$26B
expensiveGrowth qualitymixed

American Water Works leads: 5 to 9 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Severn Trentof which business quality 33 · market factors 67 American Water Worksof which business quality 38 · market factors 57
ProfitabilityMargins and returns on capital today
36
36
Quality GrowthAre margins and returns improving?
54
33
CashflowEarnings quality: real cash, not paper profit
50
48
Fin. StrengthBalance sheet, leverage, solvency risk
4
18
InvestmentDisciplined investing over empire-building
12
31
Low VolatilityCalm price path (market factor)
91
88
MomentumPrice trend over the last 3–12 months (market factor)
50
44
52W MomentumDistance to the 52-week high (market factor)
71
44
Net IssuanceBuybacks instead of dilution
47
70

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Severn Trent

Earnings-Based£12.14
Dividend Discount£16.81
Multiples£24.59
Asset-Based£4.09
Economic Profit£8.91
Growth Earnings£19.97

11 of 12 models see the stock below the current price.

American Water Works

Earnings-Based$34.02
Dividend Discount$54.96
Multiples$103
Asset-Based$37.18
Economic Profit$39.66
Growth Earnings$99.38

16 of 16 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Severn Trent
Bear £11.69Fair Value £11.69Bull £23.69
£30.66 = current price (white tick)
American Water Works
Bear $49.35Fair Value $65.80Bull $99.51
$135 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Severn Trent · Utilities

Quality score47 · below median
Fair value upside-62% · bottom 25%

American Water Works · Utilities

Quality score48 · below median
Fair value upside-51% · bottom 25%

Bottom line

As of Aug 8, 2026, Fair Value Calculator sees American Water Works as the less overvalued of the two: Severn Trent trades at £30.66 versus a fair value of £11.69 (-62%), while American Water Works trades at $135 versus $65.80 (-51%).

American Water Works has the higher quality score (48/100).

See the full analysis →
Severn Trent · American Water Works

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.