Hargreaves Lansdown plc

LSE:HL. Stock Report

Market Cap: UK£5.2b

Hargreaves Lansdown Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: HL. (£10.88) is trading below our estimate of fair value (£13.54)

Significantly Below Fair Value: HL. 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 HL.?

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

The above table shows the Price to Earnings ratio for HL.. This is calculated by dividing HL.'s market cap by their current earnings.
What is HL.'s PE Ratio?
PE Ratio17.6x
EarningsUK£293.20m
Market CapUK£5.16b

Price to Earnings Ratio vs Peers

How does HL.'s PE Ratio compare to its peers?

The above table shows the PE ratio for HL. vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.7x
SDR Schroders
13.1x12.9%UK£4.9b
ICG Intermediate Capital Group
14.9x11.7%UK£5.9b
BPT Bridgepoint Group
41.3x33.2%UK£2.7b
PHLL Petershill Partners
9.5x38.3%UK£2.6b
HL. Hargreaves Lansdown
17.6x1.6%UK£5.2b

Price-To-Earnings vs Peers: HL. is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (19.7x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CBA CEIBA Investments
2.8xn/aUS$42.52m
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
HL. 17.6xIndustry Avg. 12.1xNo. of Companies15PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HL. is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is HL.'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.

HL. PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: HL. is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

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 HL. forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£10.88
UK£11.23
+3.2%
7.7%UK£13.42UK£9.38n/a12
Nov ’25UK£10.88
UK£11.23
+3.2%
7.7%UK£13.42UK£9.38n/a12
Oct ’25UK£11.12
UK£10.83
-2.6%
12.2%UK£13.42UK£7.60n/a13
Sep ’25UK£11.11
UK£10.78
-3.0%
13.4%UK£13.42UK£6.95n/a13
Aug ’25UK£10.96
UK£10.19
-6.9%
20.1%UK£13.42UK£6.85n/a14
Jul ’25UK£11.27
UK£9.84
-12.7%
22.3%UK£13.42UK£6.30n/a14
Jun ’25UK£10.56
UK£9.36
-11.3%
25.1%UK£15.00UK£6.30n/a17
May ’25UK£8.09
UK£9.31
+15.0%
26.2%UK£15.00UK£6.20n/a17
Apr ’25UK£7.36
UK£9.22
+25.2%
27.5%UK£15.00UK£6.00n/a18
Mar ’25UK£7.38
UK£9.22
+24.9%
27.5%UK£15.00UK£6.00n/a18
Feb ’25UK£7.58
UK£9.63
+27.0%
32.2%UK£17.00UK£6.00n/a18
Jan ’25UK£7.34
UK£9.64
+31.3%
32.5%UK£17.00UK£6.00n/a18
Dec ’24UK£7.12
UK£9.66
+35.6%
32.2%UK£17.00UK£6.00n/a18
Nov ’24UK£7.10
UK£9.97
+40.3%
30.1%UK£17.00UK£6.00UK£10.8817
Oct ’24UK£7.73
UK£10.25
+32.6%
29.9%UK£17.25UK£6.60UK£11.1218
Sep ’24UK£7.66
UK£9.96
+30.0%
28.2%UK£16.50UK£6.50UK£11.1119
Aug ’24UK£8.40
UK£10.10
+20.3%
26.5%UK£16.50UK£7.00UK£10.9619
Jul ’24UK£8.16
UK£10.02
+22.8%
27.5%UK£16.79UK£7.00UK£11.2719
Jun ’24UK£8.05
UK£10.15
+26.0%
27.3%UK£16.79UK£7.00UK£10.5618
May ’24UK£8.03
UK£10.19
+26.9%
26.7%UK£16.79UK£7.00UK£8.0918
Apr ’24UK£7.99
UK£10.07
+25.9%
26.8%UK£16.79UK£6.61UK£7.3620
Mar ’24UK£8.36
UK£10.14
+21.2%
26.2%UK£16.79UK£6.61UK£7.3820
Feb ’24UK£8.82
UK£10.31
+16.8%
22.8%UK£16.50UK£7.80UK£7.5819
Jan ’24UK£8.56
UK£10.34
+20.8%
22.2%UK£16.50UK£7.80UK£7.3420
Dec ’23UK£8.53
UK£10.39
+21.9%
22.0%UK£16.50UK£7.80UK£7.1220
Nov ’23UK£7.90
UK£10.66
+34.9%
24.8%UK£16.50UK£7.80UK£7.1020

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

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