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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£14.36
Fair Value£28.51
Upside+98.6%
Quality79/100
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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 (8/12)
Wide moat 83/100
Evidence: High Range £15.05 – £35.63 Share as image

Fair value as of: Aug 13, 2026

From 8 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from £17.90 to £28.51 (+59.3%) since Jul 18, 2026. Share price +1.6% over the past month.

A strong business, screening 99% undervalued on our models.

What matters now

  • The rarer combination: high quality (79/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (£15.05). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (£15.05 to £35.63) leaves room in how you read the outcome.
  • 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)

£15.45 £6.04 Fair Value £28.51 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 £6.04 – £15.45 · fair‑value band £15.05 – £35.63 · the £14.36 price screens below the £28.51 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

Scottish Mortgage Investment Trust PLC (SMT) currently trades at £14.36, while our model-based Fair Value estimate is £28.51, implying the stock looks roughly 98.6% undervalued today. The Quality Score stands at 79/100 (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 Aug 13, 2026

Our scenario range runs from £15.05 (bear case) to £35.63 (bull case); at £14.36, the current price sits below 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 -33% fair-value upside, at 99%, 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 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
Residual Income £20.56 £30.19 £226.64 76
Gordon GGM £0.4300 £0.8900 £1.41 70
P/E Multiple £27.98 £37.31 £46.63 63
All 8 models by family
Earnings-Based
Graham-Dodd £19.51 £136.09 £190.98 54
Lynch FV £70.31 £100.44 £130.57 50
Dividend Discount
Gordon GGM £0.4300 £0.8900 £1.41 70
DDM Multi-Stage £0.4300 £0.7500 £0.9300 61
Multiples
P/E Multiple £27.98 £37.31 £46.63 63
P/B Multiple £13.43 £17.90 £22.38 55
Asset-Based
NCAV (Graham) £6.39 £8.57 £12.79 50
Economic Profit
Residual Income £20.56 £30.19 £226.64 76

Widest divergence: Earnings-Based (£100.44) versus Dividend Discount (£0.7500). Highest evidence: Residual Income (76).

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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 5.2
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 Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 79/100

Of which business quality 72 · Market factors (momentum, volatility) 69

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 60
Price trend over the last 3–12 months (market factor)
52W Momentum 74
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) 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.
−19.3%
Avg. growth/yr (22Y) 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.
+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
Character of growth · EPS growth decomposed (2015-2026) +7.3 % p.a.
Revenue per share +7.6 pp

of which total revenue +7.6 pp · buybacks/dilution +0.0 pp

EBIT margin −0.5 pp
Tax rate +0.0 pp
Residual (interest, one-offs) +0.1 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). "Scottish Mortgage Investment Trust PLC Fair Value". https://www.fairvalue-calculator.com/stock/SMT.LSE

Peer Group

Asset Management · 690 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 78 · Top 25%
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) 5.2× · Cheaper than 75% of peers
P/B 1.43× · Pricier than median
P/S (TTM) 6.22× · 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 0 · sector 36
FUTURE 0 · sector 14
PAST 96 · sector 24
HEALTH 97 · sector 95
DIVIDEND 7 · sector 68

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 Aug 13, 2026).

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AB Industrivärden INDUA kr 544.00 kr 375.93 -31%
ICICIAMC ICICIAMC ₹3,077 ₹1,132 -63%
Jio Financial Services Limited JIOFIN ₹256.05 ₹171.84 -33%
Hedef Holding HEDEF 267.25 TRY 321.44 TRY +20%
Bajaj Holdings BAJAJHLDNG ₹11,579 ₹11,257 -3%
HDFC Asset Management Company HDFCAMC ₹2,490 ₹866.78 -65%
Nippon Life Asset Management Limited NAMINDIA ₹1,182 ₹311.00 -74%

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Frequently asked questions

Is Scottish Mortgage Investment Trust PLC (SMT) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £28.51 versus a price of £14.36, about +99% (undervalued).
What is the fair value of SMT?
Our model-based fair value for Scottish Mortgage Investment Trust PLC is £28.51 (as of Aug 13, 2026), built from audited fundamentals. The current price is £14.36.
What is the quality score of SMT?
Scottish Mortgage Investment Trust PLC has a Quality Score of 79/100. 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 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 Aug 13, 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 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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