Severn Trent PLC (SVT) Fair Value & Analysis
Utilities · GB · Market cap 9.3B GBX
Fair value as of: Jul 19, 2026
From 15 valuation models · updated 19 days ago
Fair value updated Jul 19, 2026, revised from £10.98 to £11.69 (+6.5%) since Jul 18, 2026. Share price +3.9% over the past month.
Below-average quality, and screening another 62% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (£23.69). The favourable scenario is already priced in.
- Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range (£11.69 to £23.69) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.
How to read this chart
60‑month range £18.30 – £31.49 · fair‑value band £11.69 – £23.69 · the £30.66 price screens above the £11.69 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.
Analysis
Severn Trent PLC (SVT) currently trades at £30.66, while our model-based Fair Value estimate is £11.69, implying the stock looks roughly 61.9% overvalued today. We read business quality at 47/100 (below-average quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Severn Trent PLC generated revenue of £2.8B at a net margin of 13.1%. Revenue grew 15.3% year over year. It earns a return on equity of 20.5%. Net debt stands at £11.0B. Fundamentals as of Jul 19, 2026
Our scenario range runs from £11.69 (bear case) to £23.69 (bull case); at £30.66, the current price sits above 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. 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. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at -62%, SVT screens richer 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.
All 15 models by family
Widest divergence: Multiples (£24.59) versus Asset-Based (£4.09). Highest evidence: Residual Income (76).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 33 · Market factors (momentum, volatility) 67
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
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.
Full company description
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. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
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.
SVT screens 62% overvalued. Compare with American Water Works Company →
Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Severn Trent (LSE:SVT) Stock Sees Modest Fair Value Lift As Analysts Debate Regulation
- Severn Trent Water admits ‘serious and unacceptable’ sewage failings
- Severn Trent (LSE:SVT) Stock Fair Value Edges Lower As Analysts Split On Targets
- What Could Shift The Investment Story For Severn Trent (LSE:SVT) Next
Peer Group
Utilities - Regulated Water · 67 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.
Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper
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: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| American Water Works Company AWK | $134.33 | $65.80 | -51% |
| SBSP3 SBSP3 | R$29.22 | R$31.23 | +7% |
| SBS SBS | $5.79 | $5.21 | -10% |
| Essential Utilities, Inc WTRG | $38.59 | $21.81 | -43% |
| CSMG3 CSMG3 | R$66.10 | R$60.17 | -9% |
| Grandblue Environment Co 600323 | ¥29.10 | ¥33.29 | +14% |
| American States Water Company AWR | $85.01 | $48.02 | -44% |
| Chengdu Xingrong Environment Co 000598 | ¥6.97 | ¥10.74 | +54% |
| California Water Service Group CWT | $49.73 | $33.56 | -33% |
| Chongqing Water Group 601158 | ¥4.08 | ¥2.86 | -30% |
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Frequently asked questions
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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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