Liontrust Asset Management PLC

LSE:LIO Stock Report

Market Cap: UK£288.2m

Liontrust Asset Management Valuation

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

Below Fair Value: LIO (£4.6) is trading below our estimate of fair value (£10.08)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LIO. This is calculated by dividing LIO's market cap by their current earnings.
What is LIO's PE Ratio?
PE Ratio20.2x
EarningsUK£14.58m
Market CapUK£288.22m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LIO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.2x
GSEO VH Global Sustainable Energy Opportunities
14.3xn/aUK£273.1m
BOOK Literacy Capital
14.1xn/aUK£294.9m
CGL Castelnau Group
3.3xn/aUK£306.7m
BRK Brooks Macdonald Group
41.1x28.0%UK£265.4m
LIO Liontrust Asset Management
20.2x26.4%UK£294.0m

Price-To-Earnings vs Peers: LIO is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (18.2x).

Price to Earnings Ratio vs Industry

How does LIO'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
LIO 20.2xIndustry Avg. 12.1xNo. of Companies19PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LIO is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is LIO'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.

LIO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: LIO is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).

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 LIO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£4.60
UK£7.02
+52.6%
24.7%UK£10.50UK£5.00n/a8
Nov ’25UK£4.72
UK£7.42
+57.4%
23.9%UK£10.50UK£5.00n/a8
Oct ’25UK£5.77
UK£8.05
+39.5%
18.6%UK£10.50UK£5.50n/a8
Sep ’25UK£6.25
UK£8.11
+29.8%
17.2%UK£10.50UK£6.00n/a8
Aug ’25UK£6.52
UK£8.11
+24.4%
17.2%UK£10.50UK£6.00n/a8
Jul ’25UK£6.83
UK£8.17
+19.6%
16.8%UK£10.50UK£6.00n/a8
Jun ’25UK£8.21
UK£8.09
-1.5%
16.9%UK£10.50UK£6.00n/a8
May ’25UK£6.74
UK£8.09
+20.0%
16.9%UK£10.50UK£6.00n/a8
Apr ’25UK£6.72
UK£8.38
+24.6%
17.8%UK£10.50UK£6.00n/a8
Mar ’25UK£6.45
UK£8.38
+29.8%
17.8%UK£10.50UK£6.00n/a8
Feb ’25UK£6.17
UK£8.38
+35.7%
17.8%UK£10.50UK£6.00n/a8
Jan ’25UK£6.30
UK£8.50
+34.9%
22.0%UK£11.00UK£5.50n/a7
Dec ’24UK£5.34
UK£8.50
+59.3%
22.0%UK£11.00UK£5.50n/a7
Nov ’24UK£5.31
UK£8.67
+63.4%
23.7%UK£11.00UK£5.10UK£4.726
Oct ’24UK£6.07
UK£9.77
+60.9%
28.3%UK£15.10UK£7.10UK£5.776
Sep ’24UK£6.53
UK£9.77
+49.6%
28.3%UK£15.10UK£7.10UK£6.256
Aug ’24UK£6.38
UK£12.84
+101.3%
42.7%UK£22.50UK£7.10UK£6.525
Jul ’24UK£7.16
UK£12.04
+68.1%
44.5%UK£22.50UK£7.21UK£6.836
Jun ’24UK£7.88
UK£12.28
+55.9%
42.9%UK£22.50UK£7.05UK£8.216
May ’24UK£8.60
UK£12.58
+46.2%
39.9%UK£22.50UK£7.70UK£6.746
Apr ’24UK£10.22
UK£14.32
+40.2%
32.4%UK£22.50UK£10.22UK£6.725
Mar ’24UK£11.74
UK£14.14
+20.4%
30.2%UK£22.50UK£10.22UK£6.456
Feb ’24UK£11.84
UK£14.11
+19.2%
30.3%UK£22.50UK£10.22UK£6.176
Jan ’24UK£11.20
UK£13.84
+23.5%
31.7%UK£22.50UK£10.21UK£6.306
Dec ’23UK£11.30
UK£13.79
+22.0%
32.1%UK£22.50UK£9.92UK£5.346
Nov ’23UK£9.14
UK£13.56
+48.4%
37.9%UK£22.50UK£8.40UK£5.315

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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