Drax Group (DRX) Fair Value & Analysis
Utilities · GB · Market cap 2.6B GBX
Fair value as of: Jun 24, 2026
From 26 valuation models · updated 5 days ago
Share price −5.8% over the past month.
Price vs Fair Value (12 months)
12‑month range £6.13 – £9.14 · fair‑value band £6.88 – £11.46 · the £7.57 price screens below the £9.17 fair value. As of Jun 24, 2026.
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Drax Group (DRX) currently trades at £7.57, while our model-based Fair Value estimate is £9.17 — implying the stock looks roughly 21.1% undervalued today. We read business quality at 95/100 (high quality), in the Utilities 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, Drax Group generated revenue of £5.4B at a net margin of 1.4%. Revenue declined 8.7% year over year. It earns a return on equity of 3.6%. Net debt stands at £846M. Fundamentals as of Jun 24, 2026
Key figures & financial health
More key figures
Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.
About the company
Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. The company operates through four segments: Pellet Production, Biomass Generation, Flexible Generation, and Energy Solutions. The company provides renewable, dispatchable power, and system support services. It is involved in production and sale of biomass pellets; generation and sale of electricity from biomass assets, pumped storage, run-of-river hydro, and OCGTs assets; and processing and sale of waste-derived pellets, as well as supply of electricity to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in south-west Scotland. In addition, it owns and operates Daldowie fuel plant that proc…
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Drax Group reported revenue of £5.4B in FY2025 versus £5.1B in FY2021, a compound +1.3%/yr. Reported net income was £73.0M in FY2025, compounding +7.3%/yr from FY2021.
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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.