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United Utilities Group (UU) Fair Value & Analysis

Utilities · GB · Market cap 9.9B GBX

UU United Utilities Group UU · LSE
Price£12.91
Fair Value£8.80
Upside-31.8%
Quality97/100
Evidence: High Range £4.07 – £13.72

Fair value as of: Jun 24, 2026

From 15 valuation models · updated 6 days ago

Fair value updated Jun 24, 2026 — revised from £7.25 to £8.80 (+21.4%) since Jun 23, 2026. Share price −2.6% over the past month.

Price vs Fair Value (12 months)

£14.37 £10.60 Fair Value £8.80 Jul 2025 Jun 2026

12‑month range £10.60 – £14.37 · fair‑value band £4.07 – £13.72 · the £12.91 price screens above the £8.80 fair value. As of Jun 24, 2026.

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Analysis

United Utilities Group (UU) currently trades at £12.91, while our model-based Fair Value estimate is £8.80 — implying the stock looks roughly 31.8% overvalued today. We read business quality at 97/100 (high 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 Jun 24, 2026

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 (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

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. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.

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.

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

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Similar stocks

6 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company A1WK34 R$162.17 R$16.45 -90%
SBS SBS $5.42 $7.58 +40%
SBSP3 SBSP3 R$27.34 R$27.16 -1%
Severn Trent PLC STRNY $38.53 $27.88 -28%
Essential Utilities, Inc WTRG $37.36 $39.12 +5%
Guangdong Investment Limited GGDVY $50.80 $60.18 +18%

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Frequently asked questions

Is United Utilities Group (UU) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £8.80 versus a price of £12.91 — about −32% (overvalued). Model-based estimate, not financial advice.
What is the fair value of UU?
Our 21-model fair value for United Utilities Group is £8.80 (as of Jun 24, 2026), built from audited fundamentals. The current price is £12.91.
What is the quality score of UU?
United Utilities Group has a Quality Score of 97/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
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 Jun 24, 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 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.