Old Mutual Limited

BATS-CHIXE:OMUL Stock Report

Market Cap: UK£2.4b

Old Mutual Valuation

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

Below Fair Value: OMUL (£0.56) is trading below our estimate of fair value (£0.92)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for OMUL. This is calculated by dividing OMUL's market cap by their current earnings.
What is OMUL's PE Ratio?
PE Ratio7x
EarningsR7.95b
Market CapR55.85b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for OMUL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.9x
JUST Just Group
16.2x7.4%UK£1.4b
PRU Prudential
24.6x28.4%UK£17.1b
CSN Chesnara
77.3x11.8%UK£386.5m
LGEN Legal & General Group
45.5x28.0%UK£12.8b
OMUL Old Mutual
7x2.8%UK£55.9b

Price-To-Earnings vs Peers: OMUL is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (40.9x).

Price to Earnings Ratio vs Industry

How does OMUL's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OMUL is good value based on its Price-To-Earnings Ratio (7x) compared to the European Insurance industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is OMUL'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.

OMUL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: OMUL is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).

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 OMUL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.56
UK£0.59
+6.8%
16.1%UK£0.73UK£0.44n/a7
Nov ’25UK£0.54
UK£0.59
+10.5%
16.1%UK£0.73UK£0.44n/a7
Oct ’25UK£0.60
UK£0.61
+2.6%
14.4%UK£0.73UK£0.43n/a7
Sep ’25UK£0.54
UK£0.60
+11.3%
14.7%UK£0.73UK£0.43n/a7
Aug ’25UK£0.52
UK£0.62
+20.2%
8.1%UK£0.70UK£0.54n/a6
Jul ’25UK£0.56
UK£0.60
+6.6%
10.9%UK£0.69UK£0.50n/a6
Jun ’25UK£0.45
UK£0.60
+34.4%
10.9%UK£0.69UK£0.50n/a6
May ’25UK£0.47
UK£0.61
+30.8%
8.9%UK£0.70UK£0.53n/a6
Apr ’25UK£0.49
UK£0.62
+25.2%
5.7%UK£0.67UK£0.57n/a5
Mar ’25UK£0.51
UK£0.62
+22.0%
6.0%UK£0.67UK£0.57n/a5
Feb ’25UK£0.53
UK£0.62
+18.6%
5.0%UK£0.67UK£0.59n/a5
Jan ’25UK£0.54
UK£0.63
+18.0%
4.3%UK£0.68UK£0.59n/a5
Dec ’24UK£0.49
UK£0.63
+28.2%
4.3%UK£0.68UK£0.59n/a5
Nov ’24UK£0.52
UK£0.65
+24.6%
4.5%UK£0.69UK£0.61UK£0.545
Oct ’24UK£0.53
UK£0.61
+16.9%
9.2%UK£0.68UK£0.52UK£0.605
Sep ’24UK£0.54
UK£0.61
+13.1%
9.2%UK£0.68UK£0.52UK£0.545
Aug ’24UK£0.56
UK£0.57
+1.4%
11.6%UK£0.65UK£0.48UK£0.524
Jul ’24UK£0.50
UK£0.57
+14.1%
11.6%UK£0.65UK£0.48UK£0.564
Jun ’24UK£0.44
UK£0.57
+29.1%
11.6%UK£0.65UK£0.48UK£0.454
May ’24UK£0.50
UK£0.64
+26.8%
13.7%UK£0.76UK£0.53UK£0.474
Apr ’24UK£0.53
UK£0.64
+20.3%
13.7%UK£0.76UK£0.53UK£0.494
Mar ’24UK£0.55
UK£0.65
+19.6%
16.3%UK£0.79UK£0.51UK£0.514
Feb ’24UK£0.56
UK£0.65
+16.8%
16.3%UK£0.79UK£0.51UK£0.534
Jan ’24UK£0.53
UK£0.68
+28.5%
16.9%UK£0.81UK£0.52UK£0.544
Dec ’23UK£0.48
UK£0.71
+46.0%
16.1%UK£0.83UK£0.53UK£0.494
Nov ’23UK£0.49
UK£0.71
+44.7%
18.1%UK£0.85UK£0.51UK£0.524

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

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