London Stock Exchange Group plc

LSE:LSEG Stock Report

Mkt Cap: UK£40.9b

We’ve recently updated our valuation analysis.

London Stock Exchange Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LSEG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.5x
Enterprise Value/EBITDA18.6x
PEG Ratio2.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LSEG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.9x
IHP IntegraFin Holdings
23.5x5.1%UK£1.0b
III 3i Group
4.3x-13.5%UK£15.3b
AQX Aquis Exchange
26.2x22.4%UK£104.8m
SDR Schroders
13.4x4.8%UK£7.6b
LSEG London Stock Exchange Group
43.8x15.0%UK£40.9b

Price-To-Earnings vs Peers: LSEG is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the peer average (16.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.7%
n/an/an/a

Price-To-Earnings vs Industry: LSEG is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the UK Capital Markets industry average (14.6x)


Price to Earnings Ratio vs Fair Ratio

What is LSEG'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.

LSEG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.8x
Fair PE Ratio22x

Price-To-Earnings vs Fair Ratio: LSEG is expensive based on its Price-To-Earnings Ratio (43.8x) compared to the estimated Fair Price-To-Earnings Ratio (22x).


Share Price vs Fair Value

What is the Fair Price of LSEG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LSEG (£74.08) is trading above our estimate of fair value (£49.41)

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


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 LSEG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£74.08
UK£94.77
+27.9%
11.3%UK£120.00UK£77.00n/a18
Jan ’24UK£71.36
UK£96.21
+34.8%
12.6%UK£126.00UK£77.00n/a17
Dec ’23UK£82.70
UK£95.56
+15.6%
12.2%UK£127.00UK£77.00n/a18
Nov ’23UK£76.20
UK£95.56
+25.4%
12.2%UK£127.00UK£77.00n/a18
Oct ’23UK£76.28
UK£96.28
+26.2%
11.9%UK£127.00UK£75.00n/a18
Sep ’23UK£79.28
UK£96.39
+21.6%
11.6%UK£127.00UK£75.00n/a18
Aug ’23UK£79.88
UK£93.61
+17.2%
11.0%UK£122.17UK£75.00n/a19
Jul ’23UK£75.58
UK£94.02
+24.4%
10.9%UK£122.17UK£75.00n/a19
Jun ’23UK£71.44
UK£94.02
+31.6%
10.9%UK£122.17UK£75.00n/a19
May ’23UK£79.16
UK£93.18
+17.7%
9.6%UK£110.38UK£75.00n/a18
Apr ’23UK£80.84
UK£91.20
+12.8%
10.3%UK£110.38UK£75.00n/a17
Mar ’23UK£63.72
UK£87.01
+36.5%
13.2%UK£103.00UK£51.80n/a17
Feb ’23UK£71.44
UK£90.69
+26.9%
11.1%UK£110.38UK£74.00UK£74.0818
Jan ’23UK£69.30
UK£90.47
+30.5%
11.6%UK£110.38UK£74.00UK£71.3617
Dec ’22UK£67.52
UK£90.38
+33.9%
11.9%UK£110.38UK£74.00UK£82.7016
Nov ’22UK£71.50
UK£90.61
+26.7%
12.2%UK£110.38UK£74.00UK£76.2015
Oct ’22UK£74.48
UK£90.14
+21.0%
12.9%UK£110.38UK£70.00UK£76.2815
Sep ’22UK£80.62
UK£88.11
+9.3%
14.9%UK£110.38UK£60.00UK£79.2817
Aug ’22UK£74.90
UK£87.67
+17.0%
15.4%UK£110.73UK£60.00UK£79.8817
Jul ’22UK£78.78
UK£87.52
+11.1%
15.4%UK£110.73UK£60.00UK£75.5817
Jun ’22UK£74.82
UK£87.58
+17.1%
15.5%UK£111.71UK£60.00UK£71.4417
May ’22UK£74.00
UK£88.40
+19.5%
16.3%UK£111.71UK£60.00UK£79.1615
Apr ’22UK£72.34
UK£88.46
+22.3%
18.3%UK£115.00UK£60.00UK£80.8415
Mar ’22UK£97.14
UK£97.44
+0.3%
16.1%UK£118.00UK£60.00UK£63.7215
Feb ’22UK£91.00
UK£92.70
+1.9%
17.2%UK£118.00UK£60.00UK£71.4413

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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