As of May 29, 2025, Severn Trent PLC has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.00, this represents a potential upside of -62.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -48.4% |
| Potential Upside (10-year) | -62.7% |
| Discount Rate (WACC) | 5.1% - 8.1% |
Revenue is projected to grow from $2427 million in 03-2025 to $4585 million by 03-2035, representing a compound annual growth rate of approximately 6.6%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2025 | 2427 | 4% |
| 03-2026 | 2562 | 6% |
| 03-2027 | 2805 | 9% |
| 03-2028 | 3033 | 8% |
| 03-2029 | 3156 | 4% |
| 03-2030 | 3227 | 2% |
| 03-2031 | 3447 | 7% |
| 03-2032 | 3659 | 6% |
| 03-2033 | 3964 | 8% |
| 03-2034 | 4257 | 7% |
| 03-2035 | 4585 | 8% |
Net profit margin is expected to improve from 9% in 03-2025 to 9% by 03-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2025 | 229 | 9% |
| 03-2026 | 242 | 9% |
| 03-2027 | 265 | 9% |
| 03-2028 | 287 | 9% |
| 03-2029 | 298 | 9% |
| 03-2030 | 305 | 9% |
| 03-2031 | 326 | 9% |
| 03-2032 | 346 | 9% |
| 03-2033 | 375 | 9% |
| 03-2034 | 402 | 9% |
| 03-2035 | 433 | 9% |
with a 5-year average of $963 million. Projected CapEx is expected to maintain at approximately 44% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2026 | 1060 |
| 03-2027 | 1177 |
| 03-2028 | 1295 |
| 03-2029 | 1332 |
| 03-2030 | 1296 |
| 03-2031 | 1374 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 99 |
| Days Inventory | 23 |
| Days Payables | 72 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 1673 | 96 | 1123 | 126 | 328 |
| 2027 | 1847 | 105 | 1230 | 88 | 425 |
| 2028 | 2020 | 113 | 1330 | 62 | 515 |
| 2029 | 2086 | 118 | 1384 | 28 | 557 |
| 2030 | 2067 | 121 | 1415 | 25 | 507 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -48.4% |
| 10-Year DCF (Growth) | 0.00 | -62.7% |
| 5-Year DCF (EBITDA) | 851.52 | +Inf% |
| 10-Year DCF (EBITDA) | 1197.38 | +Inf% |
Is Severn Trent PLC (SVT.L) a buy or a sell? Severn Trent PLC is definitely a sell. Based on our DCF analysis, Severn Trent PLC (SVT.L) appears to be overvalued with upside potential of -62.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.00.