LBG Media plc

AIM:LBG Stock Report

Market Cap: UK£271.8m

LBG Media Valuation

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

Below Fair Value: LBG (£1.3) is trading below our estimate of fair value (£1.58)

Significantly Below Fair Value: LBG is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LBG. This is calculated by dividing LBG's market cap by their current earnings.
What is LBG's PE Ratio?
PE Ratio38.1x
EarningsUK£7.14m
Market CapUK£271.80m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LBG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.3x
CCP Celtic
11.5x-60.8%UK£154.1m
OMIP One Media iP Group
52x74.2%UK£8.3m
AEO Aeorema Communications
16.9xn/aUK£5.0m
GMR Gaming Realms
16.9x22.1%UK£113.4m
LBG LBG Media
38.1x24.2%UK£271.8m

Price-To-Earnings vs Peers: LBG is expensive based on its Price-To-Earnings Ratio (38.1x) compared to the peer average (24.3x).

Price to Earnings Ratio vs Industry

How does LBG's PE Ratio compare vs other companies in the European Entertainment Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LBG 38.1xIndustry Avg. 12.5xNo. of Companies10PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LBG is expensive based on its Price-To-Earnings Ratio (38.1x) compared to the European Entertainment industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is LBG'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.

LBG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.1x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: LBG is expensive based on its Price-To-Earnings Ratio (38.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).

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 LBG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.30
UK£1.60
+23.1%
5.1%UK£1.70UK£1.50n/a3
Nov ’25UK£1.33
UK£1.60
+20.3%
5.1%UK£1.70UK£1.50n/a3
Oct ’25UK£1.37
UK£1.60
+16.8%
5.1%UK£1.70UK£1.50n/a3
Sep ’25UK£1.28
UK£1.37
+7.2%
1.7%UK£1.40UK£1.35n/a3
Aug ’25UK£1.27
UK£1.37
+7.6%
1.7%UK£1.40UK£1.35n/a3
Jul ’25UK£1.06
UK£1.30
+22.6%
5.4%UK£1.35UK£1.20n/a3
Jun ’25UK£1.10
UK£1.30
+18.2%
5.4%UK£1.35UK£1.20n/a3
May ’25UK£0.77
UK£1.30
+68.3%
5.4%UK£1.35UK£1.20n/a3
Apr ’25UK£0.75
UK£1.37
+83.2%
1.7%UK£1.40UK£1.35n/a3
Mar ’25UK£0.83
UK£1.37
+63.7%
1.7%UK£1.40UK£1.35n/a3
Feb ’25UK£0.83
UK£1.37
+63.9%
1.7%UK£1.40UK£1.35n/a3
Jan ’25UK£0.81
UK£1.40
+72.4%
2.9%UK£1.45UK£1.35n/a3
Dec ’24UK£0.87
UK£1.43
+64.0%
1.6%UK£1.45UK£1.40n/a3
Nov ’24UK£0.90
UK£1.44
+60.6%
1.5%UK£1.45UK£1.40UK£1.334
Oct ’24UK£0.83
UK£1.36
+63.2%
5.4%UK£1.45UK£1.25UK£1.374
Sep ’24UK£0.71
UK£1.36
+92.4%
5.4%UK£1.45UK£1.25UK£1.284
Aug ’24UK£0.81
UK£1.40
+71.8%
2.9%UK£1.45UK£1.35UK£1.273
Jul ’24UK£0.96
UK£1.40
+45.1%
2.9%UK£1.45UK£1.35UK£1.063
Jun ’24UK£1.00
UK£1.40
+39.5%
2.9%UK£1.45UK£1.35UK£1.103
May ’24UK£1.03
UK£1.40
+35.9%
2.9%UK£1.45UK£1.35UK£0.773
Apr ’24UK£0.79
UK£1.40
+76.5%
2.9%UK£1.45UK£1.35UK£0.753
Mar ’24UK£1.11
UK£1.40
+26.1%
2.9%UK£1.45UK£1.35UK£0.833
Feb ’24UK£1.15
UK£1.30
+13.5%
8.3%UK£1.40UK£1.15UK£0.833
Jan ’24UK£1.22
UK£1.28
+4.9%
9.8%UK£1.40UK£1.15UK£0.812

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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