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Costain Group (COST) Fair Value & Analysis

Industrials · GB · Market cap 513M GBX

CG Costain Group COST · LSE
Price£2.06
Fair Value£3.00
Upside+45.6%
Quality95/100
Evidence: High Range £2.31 – £3.69

Fair value as of: Jun 24, 2026

From 24 valuation models · updated 5 days ago

Fair value updated Jun 24, 2026 — revised from £2.88 to £3.00 (+4.2%) since Jun 23, 2026. Share price +6.0% over the past month.

Price vs Fair Value (12 months)

£2.13 £1.24 Fair Value £3.00 Jun 2025 Jun 2026

12‑month range £1.24 – £2.13 · fair‑value band £2.31 – £3.69 · the £2.06 price screens below the £3.00 fair value. As of Jun 24, 2026.

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Analysis

Costain Group (COST) currently trades at £2.06, while our model-based Fair Value estimate is £3.00 — implying the stock looks roughly 45.6% undervalued today. We read business quality at 95/100 (high quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, Costain Group generated revenue of £1.0B at a net margin of 3.6%. Revenue declined 15.0% year over year. It earns a return on equity of 15.1%. The balance sheet holds a net cash position of £190M. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 1.0B GBX
Revenue growth (YoY) -15.0%
Net margin 3.6%
Return on equity 15.1%
Free cash flow 49.9M GBX FY2025
P/E ratio 13.7
More key figures
Operating margin 6.1%
EPS (TTM) £0.1400
Dividend yield 2.2%
EPS growth (YoY) +34.4%
Net cash 190M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

Costain Group PLC provides infrastructure solutions for the transportation, energy, water, and defense sectors in the United Kingdom. The company operates in two segments, Transportation and Natural Resources. It operates in the road, rail, and integrated transport markets, as well as in the water, energy, defense, and nuclear energy markets. The company also provides engineering, construction, maintenance, renewals, advisory, design, and consulting services, as well as solutions. Costain Group PLC was founded in 1865 and is headquartered in London, the United Kingdom.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Costain Group reported revenue of £1.0B in FY2025 versus £1.1B in FY2021, a compound −2.0%/yr. Reported net income was £37.3M in FY2025.

Revenue −2.0%/yr
FY21 £1.1B
FY22 £1.4B
FY23 £1.3B
FY24 £1.3B
FY25 £1.0B
Net income
FY21 −£5.8M
FY22 £25.9M
FY23 £22.1M
FY24 £30.6M
FY25 £37.3M

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Frequently asked questions

Is Costain Group (COST) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £3.00 versus a price of £2.06 — about +46% (undervalued). Model-based estimate, not financial advice.
What is the fair value of COST?
Our 21-model fair value for Costain Group is £3.00 (as of Jun 24, 2026), built from audited fundamentals. The current price is £2.06.
What is the quality score of COST?
Costain Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Costain Group (COST)?
Costain Group reported trailing-twelve-month revenue of about £1.0B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of COST?
The net profit margin of Costain Group is about 3.6%, meaning it keeps roughly 3.6% of revenue as net income. Based on the latest reported figures.
Does Costain Group pay a dividend?
Costain Group currently shows a dividend yield of about 2.21% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.