Scottish Mortgage Investment Trust plc Fair Value Analysis 2026

Scottish Mortgage Investment Trust plc Fair Value Deep Dive

Scottish Mortgage Investment Trust plc (SMT) is a globally focused investment trust that aims to deliver exceptional long-term capital growth by backing innovative companies. As of 23 June 2026, shares trade at GBP 14.27 while our model calculates a fair value of GBP 28.54, pointing to 100% upside potential and an undervalued opportunity with a Quality Score of 78/100.

What Scottish Mortgage Investment Trust plc Does

Managed by Baillie Gifford since its early days, the trust invests in a concentrated portfolio of high-conviction growth businesses across public markets and private companies. It targets transformative themes such as artificial intelligence, biotechnology and sustainable energy. Notable holdings have included major tech names alongside private investments like SpaceX, which saw a significant revaluation contributing to recent performance.

Recent Performance and Market Context

The year to 31 March 2026 delivered strong results: NAV total return of 27.4% and share price total return of 26.8%, comfortably ahead of the FTSE All-World Index at 18.0%. The first half of the financial year also saw NAV per share rise 22.9%. Revenue and net income surged in the latest reported period, reflecting portfolio gains. The trust continues its 43-year streak of dividend increases, with the latest total dividend rising 4.3%.

Why Our Model Shows Significant Undervaluation

Our fair-value framework incorporates multiple valuation models tailored to investment trusts, factoring in NAV trajectory, private-asset uplift potential, share-buyback activity and long-term growth prospects. Despite robust fundamentals and outperformance, the shares continue to trade at a meaningful discount to both reported NAV and our estimated intrinsic value. Active buybacks, recently including 1.6 million shares, alongside policy flexibility for additional private investments, support the case for re-rating.

Key Valuation Drivers

• Strong long-term NAV track record averaging 18.3% annually over the past decade.
• Exposure to private growth companies unavailable to most investors.
• Low ongoing charges of around 0.31%.
• Board commitment to narrowing the discount through buybacks and capital allocation.
• Beneficial structural tailwinds from AI and other transformative technologies.

Investors seeking a single stock or portfolio check can explore our fair value calculator for comparable analysis across thousands of equities.

Main Risks to Consider

Like any growth-focused vehicle, SMT exhibits higher volatility than broad market indices. Style headwinds during value rallies or rising-rate environments can pressure performance. Gearing amplifies both gains and losses. The dividend yield remains modest at approximately 0.3%, suiting total-return investors rather than income seekers. Private holdings introduce valuation uncertainty and liquidity considerations.

Balanced Verdict

Scottish Mortgage Investment Trust plc combines a proven growth mandate with attractive entry pricing according to our analysis. The 100% upside to fair value reflects both the quality of the underlying portfolio and the current market discount. While short-term sentiment and macro conditions can cause fluctuations, the long-term case for exceptional growth companies remains compelling for patient investors. This is not financial advice; always conduct your own research or consult a professional.

Ready to run your own scenarios? Check the free Fair Value Calculator to see fair-value estimates and Quality Scores for Scottish Mortgage Investment Trust plc and over 10,000 other stocks.

Frequently Asked Questions

What is Scottish Mortgage Investment Trust plc and what does it invest in?

Scottish Mortgage Investment Trust plc is a UK-listed investment trust managed by Baillie Gifford that seeks long-term capital growth by investing in exceptional public and private growth companies worldwide, with significant exposure to technology, AI and transformative businesses.

Why does our model show Scottish Mortgage Investment Trust plc as undervalued?

Our valuation model estimates a fair value of GBP 28.54 against the current share price of GBP 14.27, implying 100% upside, driven by strong recent NAV growth, access to high-quality private holdings like SpaceX, active share buybacks and a persistent discount to underlying asset value.

What are the main risks of investing in Scottish Mortgage Investment Trust plc?

Key risks include high volatility from growth-oriented holdings, potential underperformance during value-market rotations, the use of gearing which amplifies losses, a modest dividend yield and ongoing trading at a discount to net asset value.