United Utilities Group (UU.L)
Utilities · LSE · UK
Fundamentals
Valuation and ratings
United Utilities Group trades at £13.51, which is 119% below the £29.57 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 76 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 15.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About United Utilities Group
United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is also involved in the 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.
UU.L passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is United Utilities Group (UU.L) undervalued?
Against our discounted cash flow estimate of £29.57, UU.L at £13.51 is 119% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is UU.L's P/E ratio?
UU.L trades at 15.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.