Legal & General Group Plc

LSE:LGEN Stock Report

Market Cap: UK£12.7b

Legal & General Group Valuation

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

Below Fair Value: LGEN (£2.19) is trading below our estimate of fair value (£5.46)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LGEN. This is calculated by dividing LGEN's market cap by their current earnings.
What is LGEN's PE Ratio?
PE Ratio45.4x
EarningsUK£281.00m
Market CapUK£12.68b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LGEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15x
PRU Prudential
24.4x28.4%UK£16.8b
ADM Admiral Group
18.2x11.6%UK£7.2b
HSD Hansard Global
12.6xn/aUK£65.4m
BEZ Beazley
4.7x-17.0%UK£4.7b
LGEN Legal & General Group
45.4x28.0%UK£12.7b

Price-To-Earnings vs Peers: LGEN is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the peer average (15x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
LGEN 45.4xIndustry Avg. 11.7xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LGEN is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the European Insurance industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is LGEN'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.

LGEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.4x
Fair PE Ratio19.5x

Price-To-Earnings vs Fair Ratio: LGEN is expensive based on its Price-To-Earnings Ratio (45.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.5x).

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 LGEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.19
UK£2.60
+18.7%
13.4%UK£3.35UK£2.10n/a15
Nov ’25UK£2.21
UK£2.59
+17.5%
12.9%UK£3.35UK£2.10n/a15
Oct ’25UK£2.26
UK£2.60
+15.1%
12.9%UK£3.35UK£2.10n/a15
Sep ’25UK£2.24
UK£2.63
+17.4%
12.4%UK£3.35UK£2.10n/a14
Aug ’25UK£2.26
UK£2.63
+16.4%
12.4%UK£3.35UK£2.10n/a14
Jul ’25UK£2.29
UK£2.67
+16.8%
11.9%UK£3.35UK£2.10n/a14
Jun ’25UK£2.50
UK£2.80
+12.0%
12.8%UK£3.35UK£2.10n/a14
May ’25UK£2.35
UK£2.79
+18.4%
13.6%UK£3.35UK£2.10n/a14
Apr ’25UK£2.54
UK£2.77
+8.9%
14.1%UK£3.35UK£2.10n/a14
Mar ’25UK£2.43
UK£2.77
+13.8%
13.6%UK£3.35UK£2.10n/a14
Feb ’25UK£2.51
UK£2.76
+9.9%
12.7%UK£3.36UK£2.10n/a13
Jan ’25UK£2.51
UK£2.70
+7.6%
14.5%UK£3.36UK£2.10n/a14
Dec ’24UK£2.28
UK£2.69
+18.4%
14.4%UK£3.35UK£2.10n/a14
Nov ’24UK£2.15
UK£2.77
+29.1%
15.1%UK£3.50UK£2.30UK£2.2114
Oct ’24UK£2.23
UK£2.86
+28.6%
14.4%UK£3.50UK£2.32UK£2.2614
Sep ’24UK£2.19
UK£2.89
+32.1%
14.1%UK£3.50UK£2.32UK£2.2414
Aug ’24UK£2.30
UK£2.95
+28.1%
15.1%UK£3.75UK£2.35UK£2.2614
Jul ’24UK£2.27
UK£3.05
+34.3%
12.4%UK£3.75UK£2.40UK£2.2916
Jun ’24UK£2.29
UK£3.05
+33.2%
12.3%UK£3.75UK£2.40UK£2.5016
May ’24UK£2.34
UK£3.06
+30.6%
12.6%UK£3.75UK£2.40UK£2.3515
Apr ’24UK£2.39
UK£3.05
+27.5%
12.3%UK£3.75UK£2.40UK£2.5416
Mar ’24UK£2.57
UK£3.09
+20.1%
12.8%UK£3.90UK£2.50UK£2.4316
Feb ’24UK£2.55
UK£3.09
+21.0%
13.6%UK£3.97UK£2.40UK£2.5116
Jan ’24UK£2.50
UK£3.11
+24.8%
13.7%UK£3.97UK£2.40UK£2.5116
Dec ’23UK£2.55
UK£3.11
+21.8%
13.9%UK£3.97UK£2.40UK£2.2816
Nov ’23UK£2.35
UK£3.03
+28.8%
17.0%UK£3.90UK£1.77UK£2.1517

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

Discover undervalued companies

Lancashire Holdings

UK£1.5b

Provides specialty insurance and reinsurance products in London, Bermuda, and Australia.

LREL

UK£6.10

7D

-7.7%

1Y

-5.6%

FBD Holdings

€523.9m

Through its subsidiaries, engages in the underwriting of general insurance to farmers, private individuals, and business owners in Ireland.

FBH

€13.15

7D

0%

1Y

1.5%

Swiss Re

CHF 28.1b

Provides wholesale reinsurance, insurance, other insurance-based forms of risk transfer, and other insurance-related services worldwide.

SRENZ

CHF 96.62

7D

2.0%

1Y

4.1%