Línea Directa Aseguradora, S.A., Compañía de Seguros y Reaseguros

BME:LDA Stock Report

Market Cap: €1.1b

Línea Directa Aseguradora Compañía de Seguros y Reaseguros Valuation

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

Below Fair Value: LDA (€1.05) is trading below our estimate of fair value (€1.31)

Significantly Below Fair Value: LDA is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LDA. This is calculated by dividing LDA's market cap by their current earnings.
What is LDA's PE Ratio?
PE Ratio23.4x
Earnings€48.85m
Market Cap€1.14b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LDA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.8x
GCO Grupo Catalana Occidente
6.9x-1.3%€4.3b
MAP Mapfre
9.5x5.6%€8.0b
LPI LPI Capital Bhd
14x5.4%RM 5.3b
SAFT Safety Insurance Group
16.9xn/aUS$1.3b
LDA Línea Directa Aseguradora Compañía de Seguros y Reaseguros
23.4x20.8%€1.1b

Price-To-Earnings vs Peers: LDA is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the peer average (11.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
LDA 23.4xIndustry Avg. 11.8xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LDA is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the European Insurance industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is LDA'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.

LDA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.4x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: LDA is expensive based on its Price-To-Earnings Ratio (23.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

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 LDA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.05
€1.06
+0.6%
8.9%€1.25€0.99n/a6
Nov ’25€1.17
€1.06
-9.4%
8.9%€1.25€0.99n/a6
Oct ’25€1.07
€1.03
-3.2%
8.7%€1.20€0.95n/a6
Sep ’25€1.10
€1.03
-6.4%
8.7%€1.20€0.95n/a6
Aug ’25€1.11
€1.03
-6.6%
8.7%€1.20€0.95n/a6
Jul ’25€1.16
€1.03
-11.9%
10.1%€1.25€0.95n/a7
Jun ’25€1.16
€1.03
-11.4%
10.1%€1.25€0.95n/a7
May ’25€1.01
€1.02
+0.5%
10.8%€1.25€0.92n/a7
Apr ’25€0.93
€0.99
+7.2%
11.3%€1.15€0.82n/a6
Mar ’25€0.92
€0.96
+5.3%
14.6%€1.15€0.76n/a6
Feb ’25€0.95
€0.96
+1.9%
14.6%€1.15€0.76n/a6
Jan ’25€0.85
€0.94
+10.1%
15.3%€1.15€0.70n/a6
Dec ’24€0.88
€0.94
+6.0%
15.3%€1.15€0.70n/a6
Nov ’24€0.82
€0.94
+14.8%
15.3%€1.15€0.70€1.176
Oct ’24€0.88
€0.93
+6.6%
15.9%€1.15€0.68€1.076
Sep ’24€0.93
€0.93
-0.05%
15.9%€1.15€0.68€1.106
Aug ’24€0.89
€0.93
+5.4%
15.9%€1.15€0.68€1.116
Jul ’24€0.82
€0.93
+12.2%
16.5%€1.15€0.70€1.166
Jun ’24€0.87
€0.93
+7.5%
16.6%€1.15€0.70€1.166
May ’24€0.84
€0.93
+11.5%
16.6%€1.15€0.70€1.016
Apr ’24€0.99
€1.05
+5.5%
15.3%€1.26€0.82€0.936
Mar ’24€0.93
€1.06
+14.6%
15.0%€1.26€0.82€0.926
Feb ’24€0.97
€1.13
+16.3%
13.6%€1.41€0.95€0.956
Jan ’24€1.03
€1.39
+34.3%
14.4%€1.60€0.98€0.856
Dec ’23€1.01
€1.38
+36.6%
14.9%€1.60€0.96€0.886
Nov ’23€0.95
€1.38
+44.9%
15.4%€1.60€0.94€0.826

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

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