London Stock Exchange Group plc

BATS-CHIXE:LSEGL Stock Report

Market Cap: UK£56.5b

London Stock Exchange Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: LSEGL (£106.3) is trading above our estimate of fair value (£59.52)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LSEGL. This is calculated by dividing LSEGL's market cap by their current earnings.
What is LSEGL's PE Ratio?
PE Ratio83x
EarningsUK£681.00m
Market CapUK£56.54b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LSEGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.4x
IHP IntegraFin Holdings
24x9.5%UK£1.3b
III 3i Group
7.8x18.2%UK£33.0b
AQX Aquis Exchange
37.5x10.6%UK£186.2m
KSPI Kaspi.kz
12.2x17.0%US$22.8b
LSEGL London Stock Exchange Group
83x21.9%UK£56.5b

Price-To-Earnings vs Peers: LSEGL is expensive based on its Price-To-Earnings Ratio (83x) compared to the peer average (20.4x).

Price to Earnings Ratio vs Industry

How does LSEGL'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: LSEGL is expensive based on its Price-To-Earnings Ratio (83x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is LSEGL'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.

LSEGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio83x
Fair PE Ratio28.2x

Price-To-Earnings vs Fair Ratio: LSEGL is expensive based on its Price-To-Earnings Ratio (83x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).

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 LSEGL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£106.30
UK£114.65
+7.9%
8.8%UK£135.00UK£98.00n/a18
Nov ’25UK£107.58
UK£114.65
+6.6%
8.8%UK£135.00UK£98.00n/a18
Oct ’25UK£103.05
UK£111.24
+7.9%
9.5%UK£135.00UK£92.00n/a18
Sep ’25UK£102.20
UK£108.96
+6.6%
9.0%UK£135.00UK£92.00n/a18
Aug ’25UK£98.24
UK£107.16
+9.1%
9.6%UK£135.00UK£88.00n/a18
Jul ’25UK£93.38
UK£106.14
+13.7%
9.7%UK£130.00UK£86.00n/a17
Jun ’25UK£91.66
UK£105.67
+15.3%
9.6%UK£130.00UK£86.00n/a17
May ’25UK£88.24
UK£105.13
+19.1%
8.9%UK£125.00UK£86.00n/a17
Apr ’25UK£95.18
UK£103.80
+9.1%
9.5%UK£120.00UK£81.00n/a16
Mar ’25UK£90.14
UK£102.49
+13.7%
9.5%UK£115.00UK£81.00n/a16
Feb ’25UK£89.04
UK£102.43
+15.0%
9.4%UK£115.00UK£81.00n/a16
Jan ’25UK£92.94
UK£101.93
+9.7%
10.1%UK£125.00UK£81.00n/a17
Dec ’24UK£90.02
UK£100.58
+11.7%
9.4%UK£120.00UK£81.00n/a17
Nov ’24UK£83.62
UK£97.65
+16.8%
8.2%UK£115.00UK£81.00UK£107.5817
Oct ’24UK£82.44
UK£97.80
+18.6%
9.6%UK£120.00UK£81.00UK£103.0517
Sep ’24UK£81.68
UK£96.37
+18.0%
9.0%UK£112.50UK£79.00UK£102.2018
Aug ’24UK£83.30
UK£96.31
+15.6%
8.7%UK£110.50UK£79.00UK£98.2418
Jul ’24UK£83.42
UK£96.66
+15.9%
9.2%UK£112.50UK£79.00UK£93.3818
Jun ’24UK£84.66
UK£97.30
+14.9%
11.4%UK£125.00UK£77.00UK£91.6617
May ’24UK£83.22
UK£96.38
+15.8%
11.2%UK£125.00UK£77.00UK£88.2418
Apr ’24UK£78.80
UK£95.42
+21.1%
11.7%UK£125.00UK£77.00UK£95.1818
Mar ’24UK£74.40
UK£95.10
+27.8%
12.1%UK£126.00UK£77.00UK£90.1418
Feb ’24UK£74.02
UK£94.77
+28.0%
11.3%UK£120.00UK£77.00UK£89.0418
Jan ’24UK£71.74
UK£96.21
+34.1%
12.6%UK£126.00UK£77.00UK£92.9417
Dec ’23UK£82.72
UK£95.56
+15.5%
12.2%UK£127.00UK£77.00UK£90.0218
Nov ’23UK£76.39
UK£95.56
+25.1%
12.2%UK£127.00UK£77.00UK£83.6218

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

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