Land Securities Group Plc

DB:LSU2 Stock Report

Market Cap: €5.2b

Land Securities Group Valuation

Is LSU2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 LSU2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€4.32
Fair Value
57.3% overvalued intrinsic discount
18
Number of Analysts

Below Fair Value: LSU2 (€6.8) is trading above our estimate of fair value (€4.32)

Significantly Below Fair Value: LSU2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LSU2?

Key metric: As LSU2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LSU2. This is calculated by dividing LSU2's market cap by their current earnings.
What is LSU2's PE Ratio?
PE Ratio41x
EarningsUK£106.00m
Market CapUK£4.35b

Price to Earnings Ratio vs Peers

How does LSU2's PE Ratio compare to its peers?

The above table shows the PE ratio for LSU2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.2x
BLND British Land
22.3x25.4%UK£3.8b
3462 Nomura Real Estate Master Fund
22.7x-6.2%JP¥694.6b
MRL MERLIN Properties SOCIMI
48.6x33.0%€6.3b
FUNO 11 Fibra UNO
7.1x-1.3%Mex$81.9b
LSU2 Land Securities Group
41x26.3%€4.3b

Price-To-Earnings vs Peers: LSU2 is expensive based on its Price-To-Earnings Ratio (41x) compared to the peer average (25.2x).

Price to Earnings Ratio vs Industry

How does LSU2's PE Ratio compare vs other companies in the European REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies10PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LSU2 is expensive based on its Price-To-Earnings Ratio (41x) compared to the European REITs industry average (22.3x).

Price to Earnings Ratio vs Fair Ratio

What is LSU2'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.

LSU2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41x
Fair PE Ratio65.6x

Price-To-Earnings vs Fair Ratio: LSU2 is good value based on its Price-To-Earnings Ratio (41x) compared to the estimated Fair Price-To-Earnings Ratio (65.6x).

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 LSU2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.80
€8.31
+22.2%
9.2%€9.56€6.65n/a18
Jan ’26€7.00
€8.77
+25.3%
10.5%€11.21€6.63n/a18
Dec ’25€7.25
€8.75
+20.7%
10.4%€11.15€6.59n/a18
Nov ’25€7.10
€8.85
+24.6%
10.7%€11.19€6.19n/a18
Oct ’25€7.80
€8.71
+11.7%
10.1%€9.96€6.18n/a17
Sep ’25€7.30
€8.51
+16.6%
9.4%€9.72€5.90n/a16
Aug ’25€7.50
€8.58
+14.4%
9.4%€9.80€5.95n/a16
Jul ’25€7.45
€8.57
+15.1%
9.4%€9.79€5.95n/a16
Jun ’25€7.75
€8.26
+6.6%
12.5%€9.70€5.67n/a18
May ’25€7.60
€8.30
+9.2%
13.0%€9.72€5.68n/a17
Apr ’25€7.65
€8.27
+8.2%
14.1%€10.05€5.43n/a17
Mar ’25€7.20
€8.23
+14.3%
13.9%€10.07€5.44n/a17
Feb ’25€7.80
€8.14
+4.3%
13.9%€10.08€5.45€6.8017
Jan ’25€8.25
€7.73
-6.3%
13.2%€8.67€5.35€7.0014
Dec ’24€7.20
€7.65
+6.2%
13.2%€8.81€5.43€7.2514
Nov ’24€6.50
€7.73
+19.0%
13.6%€9.19€5.34€7.1017
Oct ’24€6.60
€7.66
+16.0%
13.3%€9.20€5.35€7.8017
Sep ’24€7.00
€8.02
+14.6%
12.4%€9.30€5.64€7.3017
Aug ’24€7.70
€8.12
+5.5%
11.5%€9.34€5.66€7.5017
Jul ’24€6.60
€8.22
+24.5%
9.0%€9.36€7.31€7.4517
Jun ’24€7.00
€7.98
+14.1%
9.1%€9.20€6.90€7.7517
May ’24€7.40
€7.97
+7.7%
8.9%€9.10€6.83€7.6017
Apr ’24€7.10
€7.97
+12.3%
8.9%€9.10€6.83€7.6517
Mar ’24€7.80
€7.98
+2.4%
8.2%€9.09€6.82€7.2017
Feb ’24€8.00
€7.72
-3.5%
8.2%€9.11€6.72€7.8016
Analyst Price Target
Consensus Narrative from 18 Analysts
€8.08
Fair Value
15.9% undervalued intrinsic discount
18
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 Analysis2025/02/02 12:45
End of Day Share Price 2025/01/31 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

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

Land Securities Group Plc is covered by 43 analysts. 11 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
Paul MayBarclays
Paul MayBarclays