3i Group plc

BATS-CHIXE:IIIL Stock Report

Market Cap: UK£33.0b

3i Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: IIIL (£34.23) is trading below our estimate of fair value (£116.21)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IIIL. This is calculated by dividing IIIL's market cap by their current earnings.
What is IIIL's PE Ratio?
PE Ratio7.8x
EarningsUK£4.21b
Market CapUK£33.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IIIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
HL. Hargreaves Lansdown
17.6x1.6%UK£5.2b
ICG Intermediate Capital Group
14.5x11.4%UK£5.8b
SDR Schroders
13.1x12.9%UK£4.9b
BPT Bridgepoint Group
42.2x33.2%UK£2.8b
IIIL 3i Group
7.8x18.2%UK£33.0b

Price-To-Earnings vs Peers: IIIL is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

How does IIIL's PE Ratio compare vs other companies in the GB Capital Markets Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.1xn/aUS$32.25m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
No more companies available in this PE range
No. of Companies16PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IIIL is good value based on its Price-To-Earnings Ratio (7.8x) compared to the UK Capital Markets industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is IIIL'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.

IIIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ratio25.9x

Price-To-Earnings vs Fair Ratio: IIIL is good value based on its Price-To-Earnings Ratio (7.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).

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 IIIL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£34.23
UK£36.86
+7.7%
7.8%UK£41.40UK£31.92n/a9
Nov ’25UK£32.08
UK£35.02
+9.2%
9.9%UK£41.40UK£29.18n/a9
Oct ’25UK£32.23
UK£34.69
+7.6%
9.9%UK£41.40UK£29.18n/a9
Sep ’25UK£31.72
UK£33.71
+6.3%
7.4%UK£38.50UK£29.18n/a9
Aug ’25UK£30.78
UK£33.71
+9.5%
7.4%UK£38.50UK£29.18n/a9
Jul ’25UK£29.96
UK£32.78
+9.4%
7.9%UK£38.00UK£29.18n/a9
Jun ’25UK£28.70
UK£30.61
+6.7%
6.8%UK£34.00UK£26.50n/a9
May ’25UK£28.44
UK£29.21
+2.7%
6.6%UK£32.00UK£26.47n/a9
Apr ’25UK£28.16
UK£29.21
+3.7%
6.6%UK£32.00UK£26.47n/a9
Mar ’25UK£25.11
UK£27.61
+10.0%
2.9%UK£28.50UK£26.47n/a9
Feb ’25UK£23.57
UK£27.02
+14.6%
4.6%UK£28.47UK£24.80n/a9
Jan ’25UK£24.24
UK£24.24
+0.01%
7.0%UK£26.00UK£20.50n/a8
Dec ’24UK£22.44
UK£24.06
+7.2%
7.3%UK£26.00UK£20.50n/a7
Nov ’24UK£19.86
UK£23.53
+18.5%
5.3%UK£24.75UK£21.00UK£32.086
Oct ’24UK£20.80
UK£23.46
+12.8%
5.0%UK£24.70UK£21.00UK£32.236
Sep ’24UK£19.93
UK£23.46
+17.7%
5.0%UK£24.70UK£21.00UK£31.726
Aug ’24UK£19.47
UK£23.46
+20.5%
5.0%UK£24.70UK£21.00UK£30.786
Jul ’24UK£19.46
UK£22.43
+15.2%
6.8%UK£24.31UK£20.00UK£29.966
Jun ’24UK£19.31
UK£21.33
+10.5%
14.3%UK£24.31UK£14.72UK£28.707
May ’24UK£17.67
UK£20.19
+14.2%
13.3%UK£23.13UK£14.72UK£28.447
Apr ’24UK£16.85
UK£20.19
+19.8%
13.3%UK£23.13UK£14.72UK£28.167
Mar ’24UK£16.44
UK£19.70
+19.8%
12.1%UK£22.75UK£14.72UK£25.117
Feb ’24UK£16.03
UK£19.70
+22.9%
12.1%UK£22.75UK£14.72UK£23.577
Jan ’24UK£13.39
UK£17.62
+31.6%
10.5%UK£20.25UK£14.72UK£24.247
Dec ’23UK£13.14
UK£17.62
+34.1%
10.5%UK£20.25UK£14.72UK£22.447
Nov ’23UK£11.90
UK£16.99
+42.9%
8.9%UK£19.40UK£14.72UK£19.867

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

Discover undervalued companies

BFF Bank

€1.6b

Provides financial services to suppliers of the national health system and public administration sector in Italy, Croatia, the Czech Republic, France, Greece, Poland, Portugal, the Slovak Republic, and Spain.

0RON

€8.43

7D

-7.0%

1Y

-14.9%

Exor

€20.1b

Engages in the luxury goods, automotive, agricultural and construction equipment, commercial vehicles, and professional football businesses worldwide.

0RKY

€94.25

7D

-0.2%

1Y

10.2%

Man Group

UK£2.4b

Man Group Limited is a publicly owned investment manager.

EMGL

UK£2.07

7D

3.9%

1Y

-5.9%