Legal & General Group Plc

DB:LGI Stock Report

Market Cap: €15.6b

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.

Discounted Cash Flow
Simply Wall St
€7.41
Fair Value
63.4% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: LGI (€2.71) is trading below our estimate of fair value (€7.41)

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 Ratio46.4x
EarningsUK£281.00m
Market CapUK£13.03b

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 Average15.8x
WUW Wüstenrot & Württembergische
26.6x25.4%€1.1b
TLX Talanx
11.6x5.3%€21.9b
HNR1 Hannover Rück
13.7x5.6%€30.8b
MUV2 Münchener Rückversicherungs-Gesellschaft in München
11.4x2.6%€66.5b
LGI Legal & General Group
46.4x24.5%€13.0b

Price-To-Earnings vs Peers: LGI is expensive based on its Price-To-Earnings Ratio (46.4x) compared to the peer average (15.8x).

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 46.4xIndustry Avg. 11.8xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LGI is expensive based on its Price-To-Earnings Ratio (46.4x) compared to the European Insurance industry average (11.8x).

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 Ratio46.4x
Fair PE Ratio11.3x

Price-To-Earnings vs Fair Ratio: LGI is expensive based on its Price-To-Earnings Ratio (46.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).

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€2.71
€3.15
+15.9%
13.2%€4.01€2.52n/a15
Jan ’26€2.75
€3.17
+15.4%
13.1%€4.04€2.53n/a15
Dec ’25€2.66
€3.13
+17.8%
13.4%€4.03€2.53n/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€2.44€2.7514
Dec ’24€2.73
€3.15
+15.4%
14.4%€3.91€2.45€2.6614
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
Analyst Price Target
Consensus Narrative from 15 Analysts
€3.19
Fair Value
14.9% undervalued intrinsic discount
15
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/09 21:44
End of Day Share Price 2025/01/09 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Legal & General Group Plc is covered by 42 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Larissa Van DeventerBarclays
Andrew BroadfieldBarclays