3i Group plc

BATS-CHIXE:IIIL Stock Report

Market Cap: UK£34.9b

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 (£36.25) is trading below our estimate of fair value (£87.19)

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 Ratio8.3x
EarningsUK£4.21b
Market CapUK£34.88b

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 Average23x
ICG Intermediate Capital Group
15.4x11.8%UK£6.2b
HL. Hargreaves Lansdown
17.7x1.8%UK£5.2b
SDR Schroders
13.1x13.2%UK£4.9b
BPT Bridgepoint Group
45.8x33.0%UK£3.0b
IIIL 3i Group
8.3x16.4%UK£34.9b

Price-To-Earnings vs Peers: IIIL is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (23x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.3xn/aUS$37.06m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
MAFL Mineral & Financial Investments
2.5xn/aUS$6.25m
APQ APQ Global
0.4xn/aUS$5.84m
No more companies available in this PE range
No. of Companies15PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IIIL is good value based on its Price-To-Earnings Ratio (8.3x) compared to the UK Capital Markets industry average (11.9x).

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 Ratio8.3x
Fair PE Ratio25.4x

Price-To-Earnings vs Fair Ratio: IIIL is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.4x).

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£36.25
UK£38.92
+7.4%
7.1%UK£43.80UK£34.50n/a9
Dec ’25UK£37.02
UK£38.40
+3.7%
5.9%UK£42.00UK£34.50n/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£20.50UK£37.027
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

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 Analysis2024/12/17 15:24
End of Day Share Price 2024/12/17 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

3i Group plc is covered by 21 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Geoff AllumArden Partners Plc.
Daniel GarrodBarclays
Michael SandersonBarclays