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United Utilities Group (UU) Fair Value & Analysis

Utilities · GB · Market cap 10.3B GBX

UU United Utilities Group UU · LSE
Price£13.75
Fair Value£8.80
Upside-36.0%
Quality62/100
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Expensive Growth
Highly profitable · 22.4% net margin
High debt · negative free cash flow
3.97% dividend yield
Ranks above peers (9/14)
Wide moat 78/100
Evidence: High Range £4.84 – £13.72 Share as image

Fair value as of: Jul 18, 2026

From 14 valuation models · updated 20 days ago

Share price +6.5% over the past month.

A solid business, but screening 36% overvalued on our models.

What matters now

  • The model range is unusually wide (£4.84 to £13.72). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

£13.75 £6.55 Fair Value £8.80 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 £6.55 – £13.75 · fair‑value band £4.84 – £13.72 · the £13.75 price screens above the £8.80 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

United Utilities Group (UU) currently trades at £13.75, while our model-based Fair Value estimate is £8.80, implying the stock looks roughly 36.0% overvalued today. We read business quality at 62/100 (solid 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, United Utilities Group generated revenue of £2.6B at a net margin of 22.4%. Revenue grew 22.9% year over year. It earns a return on equity of 27.7%. Net debt stands at £9.7B. Fundamentals as of Jul 18, 2026

Our scenario range runs from £4.84 (bear case) to £13.72 (bull case); at £13.75, 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. For context, the median of 10 Utilities peers we cover trades at -10% fair-value upside, at -36%, UU 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.

Model BearBaseBull Evidence
Highest evidence
Residual Income £4.87 £6.06 £21.92 76
ROIC Compounder £0.7300 £2.41 72
Gordon GGM £4.42 £6.79 £9.34 70
All 14 models by family
Earnings-Based
Graham-Dodd £5.37 £11.48 £14.57 54
PEG = 1.0 £1.76 £2.51 £3.27 46
EPV £0.7300 £2.41 59
Dividend Discount
Gordon GGM £4.42 £6.79 £9.34 70
DDM Multi-Stage £4.42 £6.35 £8.53 61
Multiples
P/E Multiple £11.85 £15.80 £19.75 63
P/S Multiple £6.60 £8.80 £11.01 58
P/B Multiple £6.79 £9.05 £11.31 55
EV/EBIT £7.11 £13.72 £20.33 53
EV/EBITDA £8.18 £15.14 £22.10 54
Asset-Based
NCAV (Graham) £1.51 £2.02 £3.02 50
Economic Profit
Residual Income £4.87 £6.06 £21.92 76
ROIC Compounder £0.7300 £2.41 72
Growth Earnings
Growth-Adj P/E £8.76 £12.52 £16.27 68

Widest divergence: Multiples (£13.72) versus Economic Profit (£0.7300). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 2.6B GBX
Revenue growth (YoY) +22.9%
Net margin 22.4%
Return on equity 27.7%
Free cash flow −110M GBX FY2026
P/E ratio 15.4
More key figures
Operating margin 41.1%
EPS (TTM) £0.8600
Dividend yield 4.1%
EPS growth (YoY) +115%
Net debt 9.7B GBX FY2026

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

Quality Score breakdown

Overall quality 62/100

Of which business quality 48 · Market factors (momentum, volatility) 72

Profitability 46
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 11
Balance sheet, leverage, solvency risk
Investment 54
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 82
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

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities. The company operates approximately 122,000 kilometers of water and wastewater pipes.

Full company description

United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities. The company operates approximately 122,000 kilometers of water and wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

United Utilities Group reported revenue of £2.6B in FY2026 versus £1.9B in FY2022, a compound +8.9%/yr. Reported net income was £587M in FY2026.

Growth Quality 47/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
£2.6B
Latest YoY
+22.0%
Avg. growth/yr (3Y)
+12.8%
Avg. growth/yr (5Y)
+7.7%
Avg. growth/yr (22Y)
+1.1%
Revenue +8.9%/yr
FY22 £1.9B
FY23 £1.8B
FY24 £1.9B
FY25 £2.1B
FY26 £2.6B
Net income
FY22 −£56.8M
FY23 £205M
FY24 £127M
FY25 £265M
FY26 £587M

UU screens 36% overvalued. Compare with American Water Works Company →

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Cite: Fair Value Calculator (2026). "United Utilities Group Fair Value". https://www.fairvalue-calculator.com/stock/UU

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.

Quality Score 62 · Top 25%
Fair Value upside −36% · Below median
Return on equity (TTM) 28% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 41% · Top 25%
Revenue growth 23% · Top 25%
Dividend yield (TTM) 4.0% · Top 25%
Debt / equity 5.01× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 16.1× · Cheaper than median
P/B 6.16× · Pricier than 75% of peers
P/S (TTM) 5.28× · Pricier than 75% of peers
EV/EBITDA 14.6× · Pricier than median
PEG 1.06× · Cheaper than 75% of peers

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 1
FUTURE 100 · sector 28
PAST 100 · sector 29
HEALTH 0 · sector 66
DIVIDEND 79 · sector 49

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

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 Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Jul 18, 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

Is United Utilities Group (UU) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £8.80 versus a price of £13.75, about −36% (overvalued).
What is the fair value of UU?
Our model-based fair value for United Utilities Group is £8.80 (as of Jul 18, 2026), built from audited fundamentals. The current price is £13.75.
What is the quality score of UU?
United Utilities Group has a Quality Score of 62/100. 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 United Utilities Group (UU)?
United Utilities Group reported trailing-twelve-month revenue of about £2.6B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of UU?
The net profit margin of United Utilities Group is about 22.4%, meaning it keeps roughly 22.4% of revenue as net income. Based on the latest reported figures.
Does United Utilities Group pay a dividend?
United Utilities Group currently shows a dividend yield of about 4.08% 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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