DCF Valuation

United Utilities Group PLC (UUGWF) DCF Valuation — Is UUGWF overvalued?

The estimated DCF fair value of one United Utilities Group PLC (UUGWF) share is $9.78. Compared to the current market price of $18.32, the stock is overvalued by 46.6%.

DCF fair value

$9.78

Market price

$18.32

Upside / downside

−46.6%

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United Utilities Group PLC (UUGWF) DCF valuation FAQ

What is the DCF fair value of United Utilities Group PLC (UUGWF)?

The discounted-cash-flow model estimates the intrinsic fair value of one United Utilities Group PLC (UUGWF) share at $9.78, based on a 10-year projection of its cash flows converging to Damodaran industry averages.

Is United Utilities Group PLC (UUGWF) overvalued or undervalued?

Against the current market price of $18.32, the DCF fair value of $9.78 implies UUGWF is overvalued by 46.6%.

How is the UUGWF DCF value calculated?

It is a 10-year discounted-cash-flow estimate built from United Utilities Group PLC's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when United Utilities Group PLC files a new quarterly or annual report.

How this UUGWF valuation is built

The model projects ten years of United Utilities Group PLC's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing United Utilities Group PLC's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.

WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.

The market price refreshes daily; the DCF fair value updates when United Utilities Group PLC files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.