3i Group plc

LSE:III Stock Report

Market Cap: UK£34.4b

3i Group Valuation

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

Below Fair Value: III (£35.69) is trading below our estimate of fair value (£89.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for III. This is calculated by dividing III's market cap by their current earnings.
What is III's PE Ratio?
PE Ratio8.2x
EarningsUK£4.21b
Market CapUK£34.42b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for III vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22x
HL. Hargreaves Lansdown
17.6x1.6%UK£5.2b
ICG Intermediate Capital Group
15.2x11.7%UK£6.1b
SDR Schroders
13.2x12.9%UK£5.0b
BPT Bridgepoint Group
42x33.2%UK£2.8b
III 3i Group
8.2x17.7%UK£34.4b

Price-To-Earnings vs Peers: III is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (22x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PNIX Phoenix Digital Assets
1.2xn/aUS$34.25m
IX. i(x) Net Zero
0.1xn/aUS$8.94m
APQ APQ Global
0.4xn/aUS$5.78m
MAFL Mineral & Financial Investments
2xn/aUS$4.99m
No more companies available in this PE range
III 8.2xIndustry Avg. 12.1xNo. of Companies19PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: III is good value based on its Price-To-Earnings Ratio (8.2x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is III'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.

III PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio25.8x

Price-To-Earnings vs Fair Ratio: III is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).

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 III forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£35.69
UK£37.42
+4.9%
7.6%UK£42.00UK£31.92n/a9
Nov ’25UK£32.00
UK£35.02
+9.4%
9.9%UK£41.40UK£29.18n/a9
Oct ’25UK£32.26
UK£34.69
+7.5%
9.9%UK£41.40UK£29.18n/a9
Sep ’25UK£31.79
UK£33.71
+6.0%
7.4%UK£38.50UK£29.18n/a9
Aug ’25UK£30.92
UK£33.71
+9.0%
7.4%UK£38.50UK£29.18n/a9
Jul ’25UK£29.86
UK£32.78
+9.8%
7.9%UK£38.00UK£29.18n/a9
Jun ’25UK£28.63
UK£30.61
+6.9%
6.8%UK£34.00UK£26.50n/a9
May ’25UK£28.45
UK£29.21
+2.7%
6.6%UK£32.00UK£26.47n/a9
Apr ’25UK£28.09
UK£29.21
+4.0%
6.6%UK£32.00UK£26.47n/a9
Mar ’25UK£25.07
UK£27.61
+10.1%
2.9%UK£28.50UK£26.47n/a9
Feb ’25UK£23.51
UK£27.02
+14.9%
4.6%UK£28.47UK£24.80n/a9
Jan ’25UK£24.21
UK£24.24
+0.1%
7.0%UK£26.00UK£20.50n/a8
Dec ’24UK£22.48
UK£24.06
+7.0%
7.3%UK£26.00UK£20.50n/a7
Nov ’24UK£19.88
UK£23.53
+18.4%
5.3%UK£24.75UK£21.00UK£32.006
Oct ’24UK£20.73
UK£23.46
+13.2%
5.0%UK£24.70UK£21.00UK£32.266
Sep ’24UK£19.99
UK£23.46
+17.4%
5.0%UK£24.70UK£21.00UK£31.796
Aug ’24UK£19.49
UK£23.46
+20.4%
5.0%UK£24.70UK£21.00UK£30.926
Jul ’24UK£19.49
UK£22.43
+15.1%
6.8%UK£24.31UK£20.00UK£29.866
Jun ’24UK£19.37
UK£21.33
+10.1%
14.3%UK£24.31UK£14.72UK£28.637
May ’24UK£17.67
UK£20.19
+14.2%
13.3%UK£23.13UK£14.72UK£28.457
Apr ’24UK£16.85
UK£20.19
+19.8%
13.3%UK£23.13UK£14.72UK£28.097
Mar ’24UK£16.37
UK£19.70
+20.4%
12.1%UK£22.75UK£14.72UK£25.077
Feb ’24UK£16.10
UK£19.70
+22.4%
12.1%UK£22.75UK£14.72UK£23.517
Jan ’24UK£13.42
UK£17.62
+31.3%
10.5%UK£20.25UK£14.72UK£24.217
Dec ’23UK£13.16
UK£17.62
+33.9%
10.5%UK£20.25UK£14.72UK£22.487
Nov ’23UK£11.94
UK£16.99
+42.3%
8.9%UK£19.40UK£14.72UK£19.887

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

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