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Renew Holdings (RNWH) Fair Value & Analysis

Industrials · GB · Market cap 706M GBX

RH Renew Holdings RNWH · LSE
Price£9.26
Fair Value£10.37
Upside+12.0%
Quality62/100
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Healthy Growth
Thin margins · 3.8% net margin
Low debt · generates free cash flow
2.23% dividend yield
Ranks above peers (10/14)
Moderate moat 48/100
Evidence: High Range £6.94 – £14.41 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from £10.91 to £10.37 (−4.9%) since Jul 14, 2026. Share price +4.6% over the past month.

A solid business, screening 12% undervalued on our models.

What matters now

  • A fairly wide model range (£6.94 to £14.41) leaves room in how you read the outcome.
  • Our model range runs from £6.94 (bear) to £14.41 (bull), base £10.37. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 62/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£10.98 £5.06 Fair Value £10.37 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £5.06 – £10.98 · fair‑value band £6.94 – £14.41 · the £9.26 price screens below the £10.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Renew Holdings (RNWH) currently trades at £9.26, while our model-based Fair Value estimate is £10.37, implying the stock looks roughly 12.0% undervalued today. The Quality Score stands at 62/100 (solid 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, Renew Holdings generated revenue of £1.1B at a net margin of 3.8%. Revenue grew 5.1% year over year. It earns a return on equity of 19.4%. Net debt stands at £21.5M. Fundamentals as of Aug 13, 2026

Our scenario range runs from £6.94 (bear case) to £14.41 (bull case); at £9.26, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at 12%, RNWH screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF £6.30 £8.52 £11.23 80
Residual Income £3.48 £4.59 £14.18 76
Rev-Margin DCF £6.45 £9.97 £13.92 74
All 26 models by family
DCF Models
FCF DCF £6.24 £8.75 £12.00 38
Owner Earnings £7.95 £11.15 £15.30 31
5Y Revenue Exit £6.45 £9.93 £14.29 39
5Y EBITDA Exit £8.05 £12.87 £18.38 41
5Y P/E Exit £7.65 £12.14 £16.74 38
10Y Revenue Exit £6.12 £9.06 £12.86 36
10Y EBITDA Exit £7.22 £10.91 £15.66 37
10Y P/E Exit £6.99 £10.45 £14.53 35
Earnings-Based
Graham-Dodd £4.19 £11.81 £15.54 54
Lynch FV £2.39 £3.42 £4.44 50
PEG = 1.0 £2.39 £3.42 £4.44 46
EPV £4.92 £5.58 £6.13 59
Dividend Discount
Gordon GGM £1.50 £2.71 £3.73 70
DDM Multi-Stage £1.50 £2.24 £2.89 61
Multiples
P/E Multiple £9.71 £12.95 £16.19 63
P/S Multiple £7.86 £10.48 £13.10 58
P/B Multiple £7.86 £10.48 £13.10 55
EV/EBIT £9.77 £12.99 £16.22 53
EV/EBITDA £10.56 £14.05 £17.54 54
EV/Revenue £6.99 £9.95 £12.92 43
Asset-Based
NCAV (Graham) £1.52 £2.04 £3.05 50
Growth DCF
Growth DCF £6.30 £8.52 £11.23 80
Rev-Margin DCF £6.45 £9.97 £13.92 74
Economic Profit
Residual Income £3.48 £4.59 £14.18 76
ROIC Compounder £5.14 £6.16 £7.24 72
Growth Earnings
Growth-Adj P/E £7.77 £11.09 £14.42 68

Widest divergence: Growth Earnings (£11.09) versus Asset-Based (£2.04). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.1B GBX
Revenue growth (YoY) +5.1%
Net margin 3.8%
Return on equity 19.4%
Free cash flow 53.2M GBX FY2025
P/E ratio 16.0
More key figures
Operating margin 4.7%
EPS (TTM) £0.5800
Dividend yield 2.3%
EPS growth (YoY) -26.6%
Net debt 21.5M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 63 · Market factors (momentum, volatility) 61

Profitability 63
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Renew Holdings plc provides engineering services in the United Kingdom and rest of Europe. The company offers asset renewal and refurbishment, fencing and devegetation, critical planned and reactive maintenance, and operational support and asset care; civil, mechanical, and electrical and minor signalling engineering; geotechnical and earthwork; plant, …

Full company description

Renew Holdings plc provides engineering services in the United Kingdom and rest of Europe. The company offers asset renewal and refurbishment, fencing and devegetation, critical planned and reactive maintenance, and operational support and asset care; civil, mechanical, and electrical and minor signalling engineering; geotechnical and earthwork; plant, power, and signalling; and emergency provision, tunnel and shaft refurbishment, multidisciplinary design capability, electrification OLE, stations and telecoms, and specialist rail plant services to rail network. It also provides specialist engineering services for communication networks, highways, and aviation markets; and engineering, procurement and construction, network connection, EHV infrastructure, directional drilling, surfacing and reinstatement, traffic management, and design and feasibility study services for transmission and distribution markets. The company offers operational support and asset care; critical planned and reactive maintenance and renewal; civil, mechanical, and electrical engineering; nuclear decommissioning and decontamination; plant and equipment commissioning; fabrication and manufacturing; wind turbine maintenance; wind turbine blade inspection and repair; wind turbine monitoring; turbine inspections; and repair and replacement services to nuclear and wind markets. It also provides emergency reactive works, maintenance of strategic water mains and mains drainage, clean and wastewater rehabilitation infrastructure, maintenance of canal infrastructure, and dam safety and pressurised pipeline specialisms, as well as port, harbour and sea defences; and soil and groundwater remediation, design of bespoke remediation and ground engineering, and specialist restoration and conservation services. The company was formerly known as Montpellier Group Plc and changed its name to Renew Holdings plc in December 2005. Renew Holdings plc was founded in 1786 and is based in Leeds, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Renew Holdings reported revenue of £1.1B in FY2025 versus £776M in FY2021, a compound +8.7%/yr. Reported net income was £48.8M in FY2025, compounding +12.5%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£1.1B
Latest YoY
+7.1%
Avg. growth/yr (3Y) 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.
+9.8%
Avg. growth/yr (5Y) 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.
+11.7%
Avg. growth/yr (40Y) 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.
+3.8%
Revenue +8.7%/yr
FY21 £776M
FY22 £816M
FY23 £922M
FY24 £1.0B
FY25 £1.1B
Net income +12.5%/yr
FY21 £30.5M
FY22 £37.7M
FY23 £43.4M
FY24 £41.6M
FY25 £48.8M
Character of growth · EPS growth decomposed (2014-2025) +12.0 % p.a.
Revenue per share +5.2 pp

of which total revenue +8.0 pp · buybacks/dilution −2.8 pp

EBIT margin +6.6 pp
Tax rate −0.2 pp
Residual (interest, one-offs) +0.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Renew Holdings Fair Value". https://www.fairvalue-calculator.com/stock/RNWH

Peer Group

Engineering & Construction · 838 stocks

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.

Quality Score 62 · Top 25%
Fair Value upside +13% · Above median
Return on equity (TTM) 19% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 2.2% · Above median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 16.0× · Cheaper than median
P/B 3.96× · Pricier than 75% of peers
P/S (TTM) 0.86× · Pricier than median
P/FCF 18.0× · Pricier than 75% of peers
EV/EBITDA 11.7× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 51 · sector 14
FUTURE 26 · sector 14
PAST 78 · sector 26
HEALTH 100 · sector 94
DIVIDEND 45 · sector 33

Insider activity: 40/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 45,400 KRW 43,924 KRW -3%

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Frequently asked questions

Is Renew Holdings (RNWH) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £10.37 versus a price of £9.26, about +12% (undervalued).
What is the fair value of RNWH?
Our model-based fair value for Renew Holdings is £10.37 (as of Aug 13, 2026), built from audited fundamentals. The current price is £9.26.
What is the quality score of RNWH?
Renew Holdings has a Quality Score of 62/100. 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 revenue of Renew Holdings (RNWH)?
Renew Holdings reported trailing-twelve-month revenue of about £1.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of RNWH?
The net profit margin of Renew Holdings is about 3.8%, meaning it keeps roughly 3.8% of revenue as net income. Based on the latest reported figures.
Does Renew Holdings pay a dividend?
Renew Holdings currently shows a dividend yield of about 2.28% relative to its recent price (as of Aug 13, 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.

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