AJ Bell plc

LSE:AJB Stock Report

Market Cap: UK£1.9b

AJ Bell Valuation

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

Below Fair Value: AJB (£4.54) is trading below our estimate of fair value (£5.03)

Significantly Below Fair Value: AJB 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 AJB?

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

The above table shows the Price to Earnings ratio for AJB. This is calculated by dividing AJB's market cap by their current earnings.
What is AJB's PE Ratio?
PE Ratio22.2x
EarningsUK£84.30m
Market CapUK£1.87b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AJB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.4x
TCAP TP ICAP Group
19.7x20.5%UK£1.9b
PLUS Plus500
8.8x-0.09%UK£1.9b
IGG IG Group Holdings
11.3x6.2%UK£3.5b
ALPH Alpha Group International
10x6.3%UK£939.1m
AJB AJ Bell
22.2x9.6%UK£1.9b

Price-To-Earnings vs Peers: AJB is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (12.4x).

Price to Earnings Ratio vs Industry

How does AJB'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$36.40m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.5xn/aUS$6.40m
MAFL Mineral & Financial Investments
2.4xn/aUS$5.95m
No more companies available in this PE range
AJB 22.2xIndustry Avg. 11.7xNo. of Companies16PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AJB is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the UK Capital Markets industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is AJB'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.

AJB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: AJB is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

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 AJB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.54
UK£4.78
+5.2%
13.8%UK£5.90UK£3.41n/a14
Dec ’25UK£4.75
UK£4.65
-2.1%
13.4%UK£5.90UK£3.41n/a14
Nov ’25UK£4.47
UK£4.58
+2.5%
13.9%UK£5.90UK£3.16n/a14
Oct ’25UK£4.46
UK£4.36
-2.1%
11.2%UK£5.00UK£3.16n/a14
Sep ’25UK£4.36
UK£4.36
+0.1%
11.2%UK£5.00UK£3.16n/a14
Aug ’25UK£4.57
UK£4.32
-5.5%
12.8%UK£5.00UK£2.84n/a14
Jul ’25UK£3.82
UK£3.88
+1.5%
13.5%UK£4.60UK£2.84n/a14
Jun ’25UK£3.85
UK£3.94
+2.4%
14.3%UK£4.88UK£2.84n/a15
May ’25UK£3.35
UK£3.69
+10.1%
16.1%UK£4.88UK£2.75n/a14
Apr ’25UK£3.02
UK£3.59
+18.8%
16.6%UK£4.88UK£2.65n/a14
Mar ’25UK£3.11
UK£3.59
+15.5%
16.6%UK£4.88UK£2.65n/a14
Feb ’25UK£3.19
UK£3.58
+12.2%
17.1%UK£4.88UK£2.65n/a14
Jan ’25UK£3.13
UK£3.50
+11.7%
20.3%UK£4.88UK£2.40n/a14
Dec ’24UK£2.50
UK£3.42
+36.9%
19.9%UK£4.88UK£2.40UK£4.7514
Nov ’24UK£2.62
UK£3.67
+39.9%
17.9%UK£4.88UK£2.75UK£4.4713
Oct ’24UK£2.74
UK£3.89
+41.6%
16.0%UK£5.25UK£2.75UK£4.4613
Sep ’24UK£2.87
UK£3.99
+38.9%
13.5%UK£5.25UK£3.40UK£4.3612
Aug ’24UK£3.20
UK£3.99
+24.6%
13.5%UK£5.25UK£3.40UK£4.5712
Jul ’24UK£3.21
UK£4.05
+26.3%
13.2%UK£5.25UK£3.40UK£3.8212
Jun ’24UK£3.22
UK£4.03
+25.0%
14.2%UK£5.25UK£3.10UK£3.8512
May ’24UK£3.26
UK£4.13
+26.5%
14.4%UK£5.25UK£3.00UK£3.3511
Apr ’24UK£3.45
UK£4.09
+18.6%
13.8%UK£5.00UK£3.00UK£3.0211
Mar ’24UK£3.27
UK£4.01
+22.8%
15.1%UK£5.00UK£3.00UK£3.1112
Feb ’24UK£3.36
UK£4.01
+19.3%
15.8%UK£5.00UK£3.00UK£3.1911
Jan ’24UK£3.58
UK£3.92
+9.5%
16.8%UK£4.90UK£2.80UK£3.1311
Dec ’23UK£3.60
UK£3.63
+0.9%
18.3%UK£4.90UK£2.80UK£2.5011

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 Analysis2024/12/20 21:09
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

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

AJ Bell plc is covered by 18 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael SandersonBarclays
Michael SandersonBarclays
Alexander MedhurstBarclays