Old Mutual Limited

LSE:OMU Stock Report

Market Cap: UK£2.5b

Old Mutual Valuation

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

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

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for OMU. This is calculated by dividing OMU's market cap by their current earnings.
What is OMU's PE Ratio?
PE Ratio7x
EarningsR7.95b
Market CapR56.02b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for OMU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41x
JUST Just Group
17.2x8.2%UK£1.5b
PRU Prudential
25x28.4%UK£17.5b
CSN Chesnara
75.5x11.8%UK£377.5m
LGEN Legal & General Group
46.3x28.0%UK£13.0b
OMU Old Mutual
7x2.7%UK£56.0b

Price-To-Earnings vs Peers: OMU is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (41x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
OMU 7.0xIndustry Avg. 11.8xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OMU 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 OMU'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.

OMU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio10.2x

Price-To-Earnings vs Fair Ratio: OMU is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).

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 OMU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.56
UK£0.60
+6.1%
16.1%UK£0.74UK£0.44n/a7
Nov ’25UK£0.54
UK£0.59
+10.1%
16.1%UK£0.73UK£0.44n/a7
Oct ’25UK£0.58
UK£0.61
+5.4%
14.4%UK£0.73UK£0.43n/a7
Sep ’25UK£0.55
UK£0.60
+9.8%
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£0.54
UK£0.60
+10.4%
10.9%UK£0.69UK£0.50n/a6
Jun ’25UK£0.45
UK£0.60
+34.7%
10.9%UK£0.69UK£0.50n/a6
May ’25UK£0.47
UK£0.61
+30.4%
8.9%UK£0.70UK£0.53n/a6
Apr ’25UK£0.50
UK£0.62
+25.0%
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£0.55
UK£0.63
+15.0%
4.3%UK£0.68UK£0.59n/a5
Dec ’24UK£0.50
UK£0.63
+27.1%
4.3%UK£0.68UK£0.59n/a5
Nov ’24UK£0.53
UK£0.65
+20.9%
4.5%UK£0.69UK£0.61UK£0.545
Oct ’24UK£0.52
UK£0.61
+18.7%
9.2%UK£0.68UK£0.52UK£0.585
Sep ’24UK£0.53
UK£0.61
+15.2%
9.2%UK£0.68UK£0.52UK£0.555
Aug ’24UK£0.56
UK£0.57
+2.3%
11.6%UK£0.65UK£0.48UK£0.524
Jul ’24UK£0.51
UK£0.57
+11.8%
11.6%UK£0.65UK£0.48UK£0.544
Jun ’24UK£0.44
UK£0.57
+27.9%
11.6%UK£0.65UK£0.48UK£0.454
May ’24UK£0.50
UK£0.64
+27.0%
13.7%UK£0.76UK£0.53UK£0.474
Apr ’24UK£0.53
UK£0.64
+20.5%
13.7%UK£0.76UK£0.53UK£0.504
Mar ’24UK£0.55
UK£0.65
+19.1%
16.3%UK£0.79UK£0.51UK£0.514
Feb ’24UK£0.56
UK£0.65
+16.0%
16.3%UK£0.79UK£0.51UK£0.534
Jan ’24UK£0.51
UK£0.68
+32.8%
16.9%UK£0.81UK£0.52UK£0.554
Dec ’23UK£0.49
UK£0.71
+45.2%
16.1%UK£0.83UK£0.53UK£0.504
Nov ’23UK£0.49
UK£0.71
+44.8%
18.1%UK£0.85UK£0.51UK£0.534

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

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