The Discounted Cash Flow (DCF) valuation of SSE PLC (SSE.L) is 2,503.46 GBP. With the latest stock price at 1,745.00 GBP, the upside of SSE PLC based on DCF is 43.5%.

Is SSE.L a buy or a sell?

Based on the latest price of 1,745.00 GBP and our DCF valuation, SSE PLC (SSE.L) is a buy. Buying SSE.L stocks now will result in a potential gain of 43.5%.

	Range	Selected
WACC / Discount Rate	6.6% - 8.1%	7.4%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	1,769.51 - 3,937.97	2,503.46
Upside	1.4% - 125.7%	43.5%

1,745.00 GBP

Stock Price

2,503.46 GBP

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

SSE.L DCF Valuation: Revenue & Expenses Forecast

(GBP in millions)		Projections

	03-2024	03-2025	03-2026	03-2027	03-2028	03-2029

Revenue	10,457	9,734	10,092	10,328	10,535	10,745
% Growth	16%	-7%	4%	2%	2%	2%

Cost of goods sold	(6,107)	(5,684)	(5,894)	(6,032)	(6,152)	(6,275)
% of Revenue	58%	58%	58%	58%	58%	58%

Selling, G&A expenses	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(1,855)	(1,727)	(1,790)	(1,832)	(1,869)	(1,906)
% of Revenue	18%	18%	18%	18%	18%	18%

Tax expense	(611)	(568)	(589)	(603)	(615)	(628)
Tax rate	24%	24%	24%	24%	24%	24%

Net profit	1,884	1,754	1,819	1,861	1,898	1,936
% Margin	18%	18%	18%	18%	18%	18%