Legal & General Group Plc

DB:LGI Stock Report

Market Cap: €15.3b

Legal & General Group Valuation

Is LGI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LGI (€2.7) is trading below our estimate of fair value (€6.99)

Significantly Below Fair Value: LGI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LGI?

Key metric: As LGI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LGI. This is calculated by dividing LGI's market cap by their current earnings.
What is LGI's PE Ratio?
PE Ratio45.4x
EarningsUK£281.00m
Market CapUK£12.76b

Price to Earnings Ratio vs Peers

How does LGI's PE Ratio compare to its peers?

The above table shows the PE ratio for LGI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
TLX Talanx
10.7x5.0%€20.2b
HNR1 Hannover Rück
13.2x5.7%€29.6b
MUV2 Münchener Rückversicherungs-Gesellschaft in München
11.2x2.9%€63.8b
ALV Allianz
11.9x5.9%€112.3b
LGI Legal & General Group
45.4x28.0%€12.8b

Price-To-Earnings vs Peers: LGI is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

How does LGI's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
LGI 45.4xIndustry Avg. 11.9xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LGI is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the European Insurance industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is LGI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LGI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.4x
Fair PE Ratio11.8x

Price-To-Earnings vs Fair Ratio: LGI is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LGI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.70
€3.12
+15.5%
13.4%€4.02€2.52n/a15
Nov ’25€2.61
€3.12
+19.5%
12.9%€4.03€2.53n/a15
Oct ’25€2.81
€3.08
+9.7%
12.9%€3.98€2.49n/a15
Sep ’25€2.66
€3.06
+15.0%
12.4%€3.90€2.45n/a14
Aug ’25€2.70
€3.12
+15.5%
12.4%€3.97€2.49n/a14
Jul ’25€2.80
€3.15
+12.5%
11.9%€3.94€2.47n/a14
Jun ’25€2.92
€3.29
+12.8%
12.8%€3.94€2.47n/a14
May ’25€2.75
€3.25
+18.3%
13.6%€3.91€2.45n/a14
Apr ’25€2.93
€3.23
+10.3%
14.1%€3.91€2.45n/a14
Mar ’25€2.83
€3.24
+14.4%
13.6%€3.92€2.46n/a14
Feb ’25€2.96
€3.24
+9.4%
12.7%€3.94€2.46n/a13
Jan ’25€2.96
€3.14
+6.0%
14.5%€3.90€2.44n/a14
Dec ’24€2.73
€3.15
+15.4%
14.4%€3.91€2.45n/a14
Nov ’24€2.52
€3.21
+27.6%
15.1%€4.05€2.66€2.6114
Oct ’24€2.66
€3.29
+23.8%
14.4%€4.03€2.67€2.8114
Sep ’24€2.60
€3.39
+30.2%
14.1%€4.10€2.72€2.6614
Aug ’24€2.76
€3.44
+24.8%
15.1%€4.38€2.74€2.7014
Jul ’24€2.72
€3.57
+31.0%
12.4%€4.38€2.80€2.8016
Jun ’24€2.74
€3.55
+29.4%
12.3%€4.36€2.79€2.9216
May ’24€2.72
€3.48
+28.2%
12.6%€4.27€2.73€2.7515
Apr ’24€2.82
€3.47
+23.0%
12.3%€4.27€2.73€2.9316
Mar ’24€2.98
€3.51
+17.8%
12.8%€4.43€2.84€2.8316
Feb ’24€2.98
€3.50
+17.4%
13.6%€4.50€2.72€2.9616
Jan ’24€2.86
€3.61
+26.2%
13.7%€4.60€2.78€2.9616
Dec ’23€3.08
€3.59
+16.5%
13.9%€4.58€2.77€2.7316
Nov ’23€2.84
€3.49
+23.0%
17.0%€4.50€2.04€2.5217

Analyst Forecast: Target price is less than 20% higher than the current share price.

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