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Scottish Mortgage Investment Trust PLC (SMT) Fair Value & Analysis

Financial Services · GB · Market cap 14.7B GBX

SM Scottish Mortgage Investment Trust PLC SMT · LSE
Price£13.59
Fair Value£17.90
Upside+31.7%
Quality75/100
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Weak Growth
Highly profitable · 97.4% net margin
Low debt · negative free cash flow
0.33% dividend yield
Ranks above peers (9/13)
Wide moat 83/100
Evidence: High Range £13.43 – £22.38 Share as image

Fair value as of: Jul 18, 2026

From 16 valuation models · updated 20 days ago

Fair value updated Jul 18, 2026, revised from £17.35 to £17.90 (+3.2%) since Jun 26, 2026. Share price −6.9% over the past month.

A strong business, screening 32% undervalued on our models.

What matters now

  • The rarer combination: high quality (75/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£15.39 £6.02 Fair Value £17.90 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £6.02 – £15.39 · fair‑value band £13.43 – £22.38 · the £13.59 price screens below the £17.90 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Scottish Mortgage Investment Trust PLC (SMT) currently trades at £13.59, while our model-based Fair Value estimate is £17.90, implying the stock looks roughly 31.7% undervalued today. We read business quality at 75/100 (high quality), in the Financial Services 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, Scottish Mortgage Investment Trust PLC generated revenue of £3.2B at a net margin of 97.4%. Revenue declined 53.0% year over year. It earns a return on equity of 24.0%. Net debt stands at £1.6B. Fundamentals as of Jul 18, 2026

Our scenario range runs from £13.43 (bear case) to £22.38 (bull case); at £13.59, 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 Financial Services peers we cover trades at -51% fair-value upside, at 32%, SMT 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 BearBaseBull Evidence
Highest evidence
Residual Income £9.59 £14.08 £105.73 76
ROIC Compounder £15.63 £24.76 £30.79 72
Gordon GGM £0.2006 £0.4152 £0.6578 70
All 16 models by family
Earnings-Based
Graham-Dodd £9.10 £63.49 £89.09 54
Lynch FV £32.80 £46.86 £60.91 50
PEG = 1.0 £32.80 £46.86 £60.91 46
EPV £11.20 £13.14 £14.84 59
Dividend Discount
Gordon GGM £0.2006 £0.4152 £0.6578 70
DDM Multi-Stage £0.2006 £0.3499 £0.4339 61
Multiples
P/E Multiple £20.08 £26.77 £33.47 63
P/S Multiple £2.56 £3.41 £4.26 58
P/B Multiple £13.42 £17.90 £22.37 55
EV/EBIT £17.88 £23.98 £30.08 53
EV/EBITDA £12.80 £17.20 £21.61 54
EV/Revenue £1.97 £3.00 £4.02 43
Asset-Based
NCAV (Graham) £2.98 £4.00 £5.97 50
Economic Profit
Residual Income £9.59 £14.08 £105.73 76
ROIC Compounder £15.63 £24.76 £30.79 72
Growth Earnings
Growth-Adj P/E £42.27 £60.38 £78.49 68

Widest divergence: Growth Earnings (£60.38) versus Dividend Discount (£0.3499). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 3.2B GBX
Revenue growth (YoY) -53.0%
Net margin 97.4%
Return on equity 24.0%
Free cash flow −68.7M GBX FY2026
P/E ratio 4.9
More key figures
Operating margin 95.5%
EPS (TTM) £2.75
Dividend yield 0.3%
EPS growth (YoY) -49.8%
Net debt 1.6B GBX FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 75/100

Of which business quality 72 · Market factors (momentum, volatility) 64

Profitability 64
Margins and returns on capital today
Quality Growth 92
Are margins and returns improving?
Cashflow 39
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 100
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

Scottish Mortgage Investment Trust PLC is a closed-ended equity mutual fund launched and managed by Baillie Gifford & Co Ltd. The fund is co-managed by Baillie Gifford & Co. It invests in public equity markets of countries across the globe. The fund seeks to invest in stocks of companies operating across diversified sectors.

Full company description

Scottish Mortgage Investment Trust PLC is a closed-ended equity mutual fund launched and managed by Baillie Gifford & Co Ltd. The fund is co-managed by Baillie Gifford & Co. It invests in public equity markets of countries across the globe. The fund seeks to invest in stocks of companies operating across diversified sectors. The fund invests in growth stocks of companies. It focuses on factors such as strength of management, competitive position, customer perspective, prospects for sales and margins, current and potential valuation to create its portfolio. The fund benchmarks the performance of its portfolio against the FTSE All World Index. Scottish Mortgage Investment Trust PLC was formed in 1909 and is domiciled in the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Scottish Mortgage Investment Trust PLC reported revenue of £3.2B in FY2026 versus −£2.5B in FY2022. Reported net income was £3.1B in FY2026.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£3.2B
Latest YoY
+144.8%
Avg. growth/yr (5Y)
−19.3%
Avg. growth/yr (22Y)
+10.9%
Revenue
FY22 −£2.5B
FY23 −£2.9B
FY24 £1.4B
FY25 £1.3B
FY26 £3.2B
Net income
FY22 −£2.5B
FY23 −£2.9B
FY24 £1.4B
FY25 £1.2B
FY26 £3.1B

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Cite: Fair Value Calculator (2026). "Scottish Mortgage Investment Trust PLC Fair Value". https://www.fairvalue-calculator.com/stock/SMT

Peer Group

Asset Management · 963 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 75 · Top 25%
Fair Value upside +32% · Above median
Return on equity (TTM) 24% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 97% · Top 25%
Operating margin (TTM) 96% · Top 25%
Revenue growth -53% · Bottom 25%
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 4.9× · Cheaper than 75% of peers
P/B 1.43× · Pricier than 75% of peers
P/S (TTM) 6.20× · Pricier than median
EV/EBITDA 6.7× · Cheaper 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 76 · sector 37
FUTURE 0 · sector 6
PAST 96 · sector 26
HEALTH 97 · sector 95
DIVIDEND 7 · sector 70

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 Asset Management stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Fondul Proprietatea SA FP $0.0420 $0.0800 +90%
BlackRock, Inc BLK $1,036 $504.81 -51%
Blackstone Inc BX $124.56 $16.35 -87%
Investor AB INVEB kr 394.40 kr 788.80 +100%
Brookfield Corporation BN C$62.45 C$10.12 -84%
KKR & Co KKR $100.94 $44.88 -56%
AB Industrivärden INDUA kr 532.50 kr 1,065 +100%
Jio Financial Services Limited JIOFIN ₹242.98 ₹40.19 -83%
Bajaj Holdings BAJAJHLDNG ₹10,398 ₹9,202 -12%
HDFC Asset Management Company HDFCAMC ₹2,729 ₹301.41 -89%

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Frequently asked questions

Is Scottish Mortgage Investment Trust PLC (SMT) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £17.90 versus a price of £13.59, about +32% (undervalued).
What is the fair value of SMT?
Our model-based fair value for Scottish Mortgage Investment Trust PLC is £17.90 (as of Jul 18, 2026), built from audited fundamentals. The current price is £13.59.
What is the quality score of SMT?
Scottish Mortgage Investment Trust PLC has a Quality Score of 75/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Scottish Mortgage Investment Trust PLC (SMT)?
Scottish Mortgage Investment Trust PLC reported trailing-twelve-month revenue of about £3.2B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of SMT?
The net profit margin of Scottish Mortgage Investment Trust PLC is about 97.4%, meaning it keeps roughly 97.4% of revenue as net income. Based on the latest reported figures.
Does Scottish Mortgage Investment Trust PLC pay a dividend?
Scottish Mortgage Investment Trust PLC currently shows a dividend yield of about 0.30% relative to its recent price (as of Jul 18, 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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