Land Securities Group Plc

LSE:LAND Stock Report

Market Cap: UK£4.5b

Land Securities Group Valuation

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

Below Fair Value: LAND (£6.1) is trading below our estimate of fair value (£8.69)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LAND. This is calculated by dividing LAND's market cap by their current earnings.
What is LAND's PE Ratio?
PE Ratio42.7x
EarningsUK£106.00m
Market CapUK£4.53b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LAND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.9x
BLND British Land
22.9x20.1%UK£3.9b
LMP LondonMetric Property
32.6x20.1%UK£3.9b
UKCM UK Commercial Property REIT
29.9xn/aUK£947.3m
PCTN Picton Property Income
46.4x40.4%UK£376.9m
LAND Land Securities Group
42.7x26.4%UK£4.5b

Price-To-Earnings vs Peers: LAND is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the peer average (32.9x).

Price to Earnings Ratio vs Industry

How does LAND's PE Ratio compare vs other companies in the European REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LAND 42.7xIndustry Avg. 22.8xNo. of Companies7PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LAND is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the European REITs industry average (22.8x).

Price to Earnings Ratio vs Fair Ratio

What is LAND'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.

LAND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.7x
Fair PE Ratio21.1x

Price-To-Earnings vs Fair Ratio: LAND is expensive based on its Price-To-Earnings Ratio (42.7x) compared to the estimated Fair Price-To-Earnings Ratio (21.1x).

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 LAND forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£6.10
UK£7.30
+19.6%
10.4%UK£9.30UK£5.50n/a18
Nov ’25UK£6.05
UK£7.36
+21.6%
10.7%UK£9.30UK£5.15n/a18
Oct ’25UK£6.53
UK£7.26
+11.2%
10.1%UK£8.30UK£5.15n/a17
Sep ’25UK£6.30
UK£7.27
+15.4%
9.4%UK£8.30UK£5.04n/a16
Aug ’25UK£6.36
UK£7.27
+14.3%
9.4%UK£8.30UK£5.04n/a16
Jul ’25UK£6.30
UK£7.27
+15.3%
9.4%UK£8.30UK£5.04n/a16
Jun ’25UK£6.53
UK£7.07
+8.3%
12.5%UK£8.30UK£4.85n/a18
May ’25UK£6.49
UK£7.09
+9.3%
13.0%UK£8.30UK£4.85n/a17
Apr ’25UK£6.58
UK£7.08
+7.6%
14.1%UK£8.60UK£4.65n/a17
Mar ’25UK£6.27
UK£7.03
+12.1%
13.9%UK£8.60UK£4.65n/a17
Feb ’25UK£6.54
UK£6.94
+6.1%
13.9%UK£8.60UK£4.65n/a17
Jan ’25UK£7.05
UK£6.72
-4.7%
13.2%UK£7.54UK£4.65n/a14
Dec ’24UK£6.34
UK£6.54
+3.3%
13.2%UK£7.54UK£4.65n/a14
Nov ’24UK£5.74
UK£6.73
+17.4%
13.6%UK£8.00UK£4.65UK£6.0517
Oct ’24UK£5.90
UK£6.66
+12.9%
13.3%UK£8.00UK£4.65UK£6.5317
Sep ’24UK£5.92
UK£6.91
+16.7%
12.4%UK£8.00UK£4.85UK£6.3017
Aug ’24UK£6.43
UK£6.96
+8.2%
11.5%UK£8.00UK£4.85UK£6.3617
Jul ’24UK£5.74
UK£7.03
+22.4%
9.0%UK£8.00UK£6.25UK£6.3017
Jun ’24UK£6.07
UK£6.95
+14.4%
9.1%UK£8.00UK£6.00UK£6.5317
May ’24UK£6.74
UK£7.01
+3.9%
8.9%UK£8.00UK£6.00UK£6.4917
Apr ’24UK£6.21
UK£7.01
+12.8%
8.9%UK£8.00UK£6.00UK£6.5817
Mar ’24UK£6.77
UK£7.02
+3.7%
8.2%UK£8.00UK£6.00UK£6.2717
Feb ’24UK£7.14
UK£6.78
-5.0%
8.2%UK£8.00UK£5.90UK£6.5416
Jan ’24UK£6.21
UK£6.65
+7.0%
8.6%UK£8.00UK£5.75UK£7.0516
Dec ’23UK£6.13
UK£6.74
+9.9%
12.9%UK£8.80UK£5.00UK£6.3417
Nov ’23UK£5.81
UK£6.78
+16.8%
16.6%UK£8.80UK£4.60UK£5.7417

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

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