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Severn TrentLSE:SVT -0.33%79 Earnings Yield (Joel Greenblatt) % is 5.01% as of Mar. 2026, which is 10% above its 10-year median of 4.55. GuruFocus rates LSE:SVT with a GF Score™ of 79/100 and a GF Value™ of £30.31 (Fairly Valued). The stock has 7 warning signs investors should review. Among 510 Utilities - Regulated companies, Severn Trent ranks worse than 64.9% on this metric.
Severn Trent's Enterprise Value for the quarter that ended in Mar. 2026 was £19,492 Mil.
Severn Trent's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was £976 Mil. Severn Trent's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 5.01%.
The historical rank and industry rank for Severn Trent's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
LSE:SVT'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.75 Med: 4.55 Max: 6.51
Current: 5.06
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Severn Trent was 6.51%. The lowest was 3.75%. And the median was 4.55%.
LSE:SVT's Earnings Yield (Joel Greenblatt) % is ranked worse than 64.9% of 510
companies
in the Utilities - Regulated industry
Industry Median: 6.5
vs LSE:SVT: 5.06
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Severn Trent's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 1.23%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Severn Trent Earnings Yield (Joel Greenblatt) % Related Terms
Severn Trent Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Severn Trent's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Water subindustry, Severn Trent's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Severn Trent Earnings Yield (Joel Greenblatt) % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Severn Trent's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Severn Trent's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Severn Trents Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Mar. 2026 is calculated as
For company reported semi-annually or annually, GuruFocus only calculate annual data for Earnings Yield (Joel Greenblatt) and apply the annual figure to corresponding quarter.
What does a Earnings Yield (Joel Greenblatt) % of 5.01% mean?
Severn Trent (LSE:SVT) has a Earnings Yield (Joel Greenblatt) % of 5.01% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Severn Trent and its competitors. This is 10% above median its historical median of 4.55. Over the past decade, Severn Trent's Earnings Yield (Joel Greenblatt) % has ranged from 3.75 to 6.51. According to the industry distribution chart, Severn Trent ranks #331 out of 510 companies in the Utilities - Regulated industry, placing it in the top 64.9%.
Is Severn Trent's Earnings Yield (Joel Greenblatt) % too high?
Severn Trent's current Earnings Yield (Joel Greenblatt) % of 5.01% is 10% above median its 10-year median of 4.55. Over the past 10 years, this metric has ranged from a low of 3.75 to a high of 6.51. The Utilities - Regulated industry median Earnings Yield (Joel Greenblatt) % is 6.50. Severn Trent's value of 5.01% is 22.9% below this industry median. Based on the distribution chart, Severn Trent ranks #331 out of 510 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Severn Trent has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Severn Trent's Earnings Yield (Joel Greenblatt) % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Severn Trent ranks #331 out of 510 companies for Earnings Yield (Joel Greenblatt) %. This places Severn Trent in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.50. Severn Trent's value of 5.01% is 22.9% below this benchmark. Historically, Severn Trent's own Earnings Yield (Joel Greenblatt) % has ranged from 3.75 to 6.51 over the past decade. While the company's 10-year median is 4.55 vs. the industry median of 6.50, Severn Trent has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for an Utilities - Regulated company?
The median Earnings Yield (Joel Greenblatt) % among Utilities - Regulated companies is 6.50, based on 510 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Severn Trent's current Earnings Yield (Joel Greenblatt) % of 5.01% is 22.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Severn Trent and its competitors. For the Utilities - Regulated industry, the median Earnings Yield (Joel Greenblatt) % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severn Trent's current Earnings Yield (Joel Greenblatt) % is 5.01%, which is 10% above median its own 10-year median of 4.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severn Trent stock overvalued right now?
Based on GuruFocus' analysis, Severn Trent (LSE:SVT) is currently considered Fairly Valued. The stock's GF Value™ is £30.31, compared to a current price of £30.18 — trading 0.4% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 5.01%, which is 10% above median its 10-year median of 4.55 and 22.9% below the Utilities - Regulated industry median of 6.50. Severn Trent's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Severn Trent (LSE:SVT), the current Earnings Yield (Joel Greenblatt) % is 5.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Severn Trent (LSE:SVT) Overvalued in 2026?
Based on GuruFocus' analysis, Severn Trent stock appears to be undervalued.
The current stock price of £30.18 is trading 0.4% below its estimated GF Value™ of £30.31.
GuruFocus considers Severn Trent to be Fairly Valued.
Key valuation signals for LSE:SVT:
Earnings Yield (Joel Greenblatt) %: 5.01% (10% above median its 10-year median of 4.55)
GF Value™: £30.31 vs. price of £30.18 (0.4% below fair value)
Industry Position: 22.9% below the Utilities - Regulated median (#331 of 510)
No single metric tells the full story. See the LSE:SVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Severn Trent PLC is a United Kingdom-based water utilities company. It mainly operates in the U.K., but also in the United States and other countries in Europe. The company derives the majority of its revenue from its regulated water and wastewater segment, which supplies water and conducts sewage and environmental services. The company also operates a business services segment that is involved with renewable energy operations. The company provides contract services to industrial and municipal clients to develop water treatment facilities and networks. The firm generates its renewable energy by using hydropower, wind power, and solar power.
79GF Score
Get the complete analysis for LSE:SVT
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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