The Law Debenture Corporation p.l.c.

LSE:LWDB Stock Report

Market Cap: UK£1.2b

Law Debenture Valuation

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

Below Fair Value: LWDB (£8.82) is trading above our estimate of fair value (£5.3)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LWDB. This is calculated by dividing LWDB's market cap by their current earnings.
What is LWDB's PE Ratio?
PE Ratio8.3x
EarningsUK£140.61m
Market CapUK£1.16b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LWDB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
ASHM Ashmore Group
12x-4.8%UK£1.1b
BBGI BBGI Global Infrastructure
16xn/aUK£886.4m
N91 Ninety One Group
8.9x2.0%UK£1.5b
OCI Oakley Capital Investments
10xn/aUK£880.3m
LWDB Law Debenture
8.3xn/aUK£1.2b

Price-To-Earnings vs Peers: LWDB is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

How does LWDB'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
LWDB 8.3xIndustry Avg. 12.7xNo. of Companies15PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LWDB is good value based on its Price-To-Earnings Ratio (8.3x) compared to the UK Capital Markets industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is LWDB'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.

LWDB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LWDB's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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