Legal & General Group Plc

LSE:LGEN Stock Report

Market Cap: UK£13.9b

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.

Discounted Cash Flow
Simply Wall St
UK£3.03
Fair Value
21.2% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: LGEN (£2.39) is trading below our estimate of fair value (£3.03)

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 Ratio49.6x
EarningsUK£281.00m
Market CapUK£13.93b

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 Average15.9x
PRU Prudential
25.3x22.8%UK£17.8b
ADM Admiral Group
20.8x10.7%UK£8.4b
HSD Hansard Global
12.5xn/aUK£64.7m
BEZ Beazley
5.2x-17.0%UK£5.5b
LGEN Legal & General Group
49.6x25.2%UK£13.9b

Price-To-Earnings vs Peers: LGEN is expensive based on its Price-To-Earnings Ratio (49.6x) compared to the peer average (15.9x).

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 49.6xIndustry Avg. 12.1xNo. of Companies13PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LGEN is expensive based on its Price-To-Earnings Ratio (49.6x) compared to the European Insurance industry average (12.1x).

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 Ratio49.6x
Fair PE Ratio21.3x

Price-To-Earnings vs Fair Ratio: LGEN is expensive based on its Price-To-Earnings Ratio (49.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.3x).

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£2.39
UK£2.63
+9.9%
13.1%UK£3.35UK£2.10n/a15
Jan ’26UK£2.30
UK£2.63
+14.4%
13.1%UK£3.35UK£2.10n/a15
Dec ’25UK£2.21
UK£2.60
+17.4%
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£2.10UK£2.4213
Jan ’25UK£2.51
UK£2.70
+7.6%
14.5%UK£3.36UK£2.10UK£2.3014
Dec ’24UK£2.28
UK£2.69
+18.4%
14.4%UK£3.35UK£2.10UK£2.2114
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
Analyst Price Target
Consensus Narrative from 15 Analysts
UK£2.63
Fair Value
9.0% undervalued intrinsic discount
15
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 01:52
End of Day Share Price 2025/02/06 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Legal & General Group Plc is covered by 43 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Larissa Van DeventerBarclays
Larissa van DeventerBarclays