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Serco Group (SRP) Fair Value & Analysis

Industrials · GB · Market cap 2.5B GBX

SG Serco Group SRP · LSE
Price£2.31
Fair Value£3.12
Upside+35.3%
Quality95/100
Evidence: High Range £2.32 – £4.27

Fair value as of: Jun 24, 2026

From 26 valuation models · updated 5 days ago

Share price −14.8% over the past month.

Price vs Fair Value (12 months)

£3.30 £2.03 Fair Value £3.12 Jun 2025 Jun 2026

12‑month range £2.03 – £3.30 · fair‑value band £2.32 – £4.27 · the £2.31 price screens below the £3.12 fair value. As of Jun 24, 2026.

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Analysis

Serco Group (SRP) currently trades at £2.31, while our model-based Fair Value estimate is £3.12 — implying the stock looks roughly 35.3% 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, Serco Group generated revenue of £4.9B at a net margin of 3.0%. Revenue grew 1.2% year over year. It earns a return on equity of 17.0%. Net debt stands at £710M. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 4.9B GBX
Revenue growth (YoY) +1.2%
Net margin 3.0%
Return on equity 17.0%
Free cash flow 406M GBX FY2025
P/E ratio 18.2
More key figures
Operating margin 3.8%
EPS (TTM) £0.1400
Dividend yield 1.8%
EPS growth (YoY) +12.0%
Net debt 710M GBX FY2025

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

About the company

Serco Group plc provides public services in the United Kingdom, Europe, North America, the Asia Pacific, and the Middle East. It offers service design and advisory, resourcing, programme management, systems integration, case management, engineering, and assets and facilities management services. The company also provides administrative and back office, asylum seeker accommodation or passenger transport services; and supports in the decarbonization journeys of customers. It serves the United Kingdom and Canadian governments, devolved authorities, and other public sector customers; and federal and civilian agencies, and various state and municipal governments in citizen services, defense, health and other facilities management, justice and immigration, and transport sectors. Serco Group plc was founded in 1929 and is based in Hook, the United Kingdom.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Serco Group reported revenue of £5.0B in FY2025 versus £4.4B in FY2021, a compound +2.9%/yr. Reported net income was £146M in FY2025, compounding −16.8%/yr from FY2021.

Revenue +2.9%/yr
FY21 £4.4B
FY22 £4.5B
FY23 £4.9B
FY24 £4.8B
FY25 £5.0B
Net income −16.8%/yr
FY21 £304M
FY22 £155M
FY23 £202M
FY24 £44.2M
FY25 £146M

Open the full interactive analysis →

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6 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

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RELX PLC R1EL34 R$44.05 R$32.14 -27%
Thomson Reuters Corporation TRI C$120.12 C$85.63 -29%
Copart, Inc CPRT $31.36 $28.87 -8%
Global Payments Inc GPN $74.03 $34.31 -54%
UL Solutions Inc ULS $89.70 $30.98 -65%

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Frequently asked questions

Is Serco Group (SRP) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £3.12 versus a price of £2.31 — about +35% (undervalued). Model-based estimate, not financial advice.
What is the fair value of SRP?
Our 21-model fair value for Serco Group is £3.12 (as of Jun 24, 2026), built from audited fundamentals. The current price is £2.31.
What is the quality score of SRP?
Serco Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Serco Group (SRP)?
Serco Group reported trailing-twelve-month revenue of about £4.9B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of SRP?
The net profit margin of Serco Group is about 3.0%, meaning it keeps roughly 3.0% of revenue as net income. Based on the latest reported figures.
Does Serco Group pay a dividend?
Serco Group currently shows a dividend yield of about 1.75% 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.