Severn Trent PLC (SVT) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Severn Trent PLC stock £11.68, price £33.30, that is 64.9% below the price, quality 35 out of 100. Rating: strongly overvalued. Calculated from audited financials with 14 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range £18.60 – £33.30 · fair‑value band £11.64 – £23.53 · the £33.30 price screens above the £11.68 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 3, 2026.
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Severn Trent PLC provides water and wastewater services in the United Kingdom. It operates in two segments, Regulated Water and Wastewater, and Business Services. The company offers water and wastewater services to approximately 4.7 million households and businesses.
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It also generates renewable energy from anaerobic digestion, hydropower, wind turbines, and solar technologies; and provides property development services, as well as engages in the sale of surplus land.
It offers services to municipal and industrial clients, including the Ministry of Defence and the Coal Authority for the design, building, and operation of water and wastewater treatment facilities and networks.
Severn Trent PLC was founded in 1974 and is headquartered in Coventry, the United Kingdom.
Stock analysis
Severn Trent PLC (SVT) currently trades at £33.30, while our model-based Fair Value estimate is £11.68, 65% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of £18.10 per share, and 0 of the 14 models we run sit above the £33.30 price.
Bear case: the Asset-Based group reads lowest at £3.25, and 14 of the 14 models stay below the price. Data coverage for this calculation is medium.
Scenario range: £11.64 (bear) to £23.53 (bull), the price of £33.30 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 35/100 (below-average quality), in the Utilities sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Severn Trent PLC reported revenue of £2.8B in FY2026 versus £1.9B in FY2022, a compound +9.9%/yr. Reported net income was £371M in FY2026.
Key figures
Market cap £10.0B Large · P/E ratio 27.1 · P/S ratio 3.55 · EPS (TTM) £1.23 · Dividend yield 3.7% · Net margin 13.1% · Return on equity 20.5% · Return on assets (EBIT) 4.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 65 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades at its 52-week high and 29% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −42% fair-value upside, at −65%, SVT screens richer than that median.
Fair Value models
Bear£11.64Fair Value £11.68Bull£23.53
Price £33.30 · Downside -64.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.51/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+16.7%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+9.4%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+9.2%
Start year 2021 (pandemic). Over 10 years: +4.9% a year
Revenue growth 40 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+5.2%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+17.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+13.5%
Dividend (yield on the price)3.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.9.7% vs −1.2%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.29% → 34%
2026 sits 135% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
AI conclusion: The regulated utility profile supports stable returns while high leverage and negative free cash flow constrain durability and differentiation.
Main risk: Ongoing Ofwat investigations and potential government-led reforms to the UK water sector could impose stricter compliance requirements or alter the regulatory framework, raising operating costs or constraining allowed returns for Severn Trent.
Bull case: By maintaining strong operational performance and proactive compliance Severn Trent could secure favourable regulatory settlements that support investment and stable cash flows.
Bear case: If regulatory pressure intensifies through further enforcement or structural reforms the company might face higher mandated spending and tighter limits on returns that squeeze margins over time.
Ofwat recently confirmed a breach of wastewater rules at Severn Trent but skipped any financial penalty after the company had already spent shareholder money to address the problems. That proactive work produced a clear 41 percent cut in spills last year. Our models still flag the stock as overvalued. Will those operational gains ease future regulatory pressure or will legacy compliance issues keep weighing on returns?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Utilities - Regulated Water · 65 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score35 · Bottom 25%
Fair Value upside−64.9% · Bottom 25%
Profitability
Return on equity (12 months)20.5% · Top 25%
Return on assets2.1% · Below median
Net margin (12 months)13.1% · Above median
Operating margin (12 months)28.8% · Above median
Growth and dividend
Revenue growth (quarter YoY)15.3% · Top 25%
Dividend yield (12 months)3.7% · Top 25%
Balance sheet
Debt / equity4.93× · Highest 25%
Valuation Multiplesvs Utilities - Regulated Water median · lower = cheaper
P/E (12 months)27.1× · Priciest 25%
P/B5.45× · Priciest 25%
P/S (12 months)3.55× · Pricier than median
EV/EBITDA14.6× · Pricier than median
PEG4.69× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)77· sector 33
PAST (return on equity)82· sector 30
HEALTH (low debt)0· sector 68
DIVIDEND (yield)74· sector 52
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Severn Trent PLC (SVT) overvalued or undervalued?
As of Nov 3, 2026, our model estimates a fair value of £11.68 versus a price of £33.30, about 65% lower (overvalued).
What is the fair value of SVT?
Our model-based fair value for Severn Trent PLC is £11.68 (as of Nov 3, 2026), built from audited fundamentals. The current price: £33.30.
What is the quality score of SVT?
Severn Trent PLC has a Quality Score of 35/100. 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 price target for Severn Trent PLC (SVT)?
Our model-based price target is the fair value of £11.68 (as of Nov 3, 2026) from 14 valuation models. Cautious scenario £11.64, optimistic scenario £23.53. It is a calculation from audited fundamentals, not an analyst target.
What is the Severn Trent PLC stock forecast for 2026?
Our models put fair value at £11.68, about 65% lower versus a price of £33.30 (overvalued). Cautious scenario £11.64, optimistic scenario £23.53. The calculation is refreshed regularly with new filings.
What is the revenue of Severn Trent PLC (SVT)?
Severn Trent PLC reported trailing-twelve-month revenue of about £2.8B (latest available figure, as of Nov 3, 2026).
Does Severn Trent PLC pay a dividend?
Severn Trent PLC currently shows a dividend yield of 3.71% relative to its recent price (as of Nov 3, 2026).
What is the intrinsic value of Severn Trent PLC (SVT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Severn Trent PLC it is £11.68 per share (as of Nov 3, 2026), against a price of £33.30. It is the blended result of 14 valuation models (cash flow, earnings, asset, dividend).
Is Severn Trent PLC stock overvalued or undervalued in 2026?
As of Nov 3, 2026, SVT trades above its calculated fair value: price £33.30, fair value £11.68, a gap of about −65% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SVT?
No. The price is what the market pays today (£33.30); the fair value is what the company's own numbers justify (£11.68). For Severn Trent PLC the two are £21.62 per share apart. That gap is exactly why we show both numbers side by side.
How much is Severn Trent PLC worth?
The market values Severn Trent PLC at about £10.0B (market capitalisation, as of Nov 3, 2026). Per share that is £33.30; our models calculate a fair value of £11.68 per share.
What do the bullish and bearish scenarios say about SVT?
Our models span a range for Severn Trent PLC: cautious scenario £11.64, base £11.68, optimistic £23.53 per share (as of Nov 3, 2026, price £33.30). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SVT?
Severn Trent PLC trades at a price-to-earnings ratio of 27.1 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £11.68 is built from several models across several years. Other multiples: PEG 4.7, P/B 5.5, P/S 3.5, EV/EBITDA 14.6.
What is the PEG ratio of SVT?
The PEG ratio of Severn Trent PLC is 4.69 (P/E divided by earnings growth, as of Nov 3, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Severn Trent PLC (SVT)?
Balance-sheet figures for Severn Trent PLC (as of Nov 3, 2026): return on equity 20.5%, debt of 4.93 per unit of equity. They feed the Quality Score of 35/100, which measures business quality independently of the share price.
How far is SVT from its 52-week high?
Severn Trent PLC trades at £33.30, at its 52-week high of £33.30 and 29% above the low of £25.74 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of £11.68 is for.
Which stocks are comparable to Severn Trent PLC?
From the same area (Utilities) we also value American Water Works Company, Essential Utilities, Inc, Grandblue Environment Co, American States Water Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Severn Trent PLC stock attractive at the current price?
The data as of Nov 3, 2026: price £33.30, calculated fair value £11.68 (−65%), Quality Score 35/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SVT calculated?
We run Severn Trent PLC through 14 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of £11.68, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Severn Trent PLC itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Severn Trent PLC (SVT)?
The closing price on Nov 5, 2026 was £33.30. Our model-based fair value is £11.68, about 65% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Severn Trent PLC right now?
The price sits above even our optimistic bull case (£23.53). The favourable scenario is already priced in. Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range (£11.64 to £23.53) leaves room in how you read the outcome.
Where does the earnings growth of Severn Trent PLC (SVT) come from?
Earnings per share at Severn Trent PLC grew −3.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +1.9 %, EBIT margin −1.0 %, tax rate −3.4 %, residual (interest, one-offs) −0.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Severn Trent PLC
How large is the market capitalisation of Severn Trent PLC (SVT)?
The market capitalisation of Severn Trent PLC is £10.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Severn Trent PLC (SVT)?
The price-to-sales ratio of Severn Trent PLC is 3.55 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Severn Trent PLC (SVT)?
Earnings per share at Severn Trent PLC are £1.23 (price ÷ EPS = P/E 27.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Severn Trent PLC (SVT)?
The dividend yield of Severn Trent PLC is 3.7% (payout 100%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Severn Trent PLC (SVT)?
The net margin of Severn Trent PLC is 13.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Severn Trent PLC (SVT)?
The return on equity (ROE) of Severn Trent PLC is 20.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Severn Trent PLC (SVT)?
On an EBIT basis the return on assets of Severn Trent PLC is 4.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Severn Trent PLC (SVT)?
The operating margin of Severn Trent PLC is 28.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Severn Trent PLC (SVT)?
Revenue at Severn Trent PLC is growing +15.3% versus a year earlier (3y avg +9.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Severn Trent PLC (SVT)?
Earnings per share at Severn Trent PLC are growing +62.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Severn Trent PLC (SVT) generate?
The free cash flow of Severn Trent PLC is −£972M (fiscal year 2026). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Severn Trent PLC (SVT) carry?
The net debt of Severn Trent PLC is £11.0B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Nov 3, 2026