LondonMetric Property Plc

LSE:LMP Stock Report

Market Cap: UK£3.8b

LondonMetric Property Valuation

Is LMP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: LMP (£1.88) is trading below our estimate of fair value (£2.26)

Significantly Below Fair Value: LMP 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 LMP?

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

The above table shows the Price to Earnings ratio for LMP. This is calculated by dividing LMP's market cap by their current earnings.
What is LMP's PE Ratio?
PE Ratio32.4x
EarningsUK£118.70m
Market CapUK£3.84b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LMP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.1x
UKCM UK Commercial Property REIT
29.9xn/aUK£947.3m
PCTN Picton Property Income
46x40.1%UK£374.2m
SREI Schroder Real Estate Investment Trust
79.9xn/aUK£241.1m
AEWU AEW UK REIT
16.4xn/aUK£148.6m
LMP LondonMetric Property
32.4x20.1%UK£3.8b

Price-To-Earnings vs Peers: LMP is good value based on its Price-To-Earnings Ratio (32.4x) compared to the peer average (43.1x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LMP 32.4xIndustry Avg. 21.9xNo. of Companies7PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LMP is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the European REITs industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is LMP'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.

LMP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.4x
Fair PE Ratio19.5x

Price-To-Earnings vs Fair Ratio: LMP is expensive based on its Price-To-Earnings Ratio (32.4x) 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 LMP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.88
UK£2.28
+21.3%
5.1%UK£2.51UK£2.10n/a10
Nov ’25UK£1.94
UK£2.31
+18.8%
5.6%UK£2.51UK£2.10n/a10
Oct ’25UK£2.08
UK£2.31
+11.1%
5.6%UK£2.51UK£2.10n/a10
Sep ’25UK£2.04
UK£2.30
+12.7%
6.3%UK£2.51UK£2.05n/a10
Aug ’25UK£2.04
UK£2.30
+12.9%
6.3%UK£2.51UK£2.05n/a10
Jul ’25UK£1.92
UK£2.28
+18.5%
5.9%UK£2.50UK£2.05n/a9
Jun ’25UK£2.04
UK£2.22
+8.8%
7.5%UK£2.47UK£1.86n/a10
May ’25UK£1.97
UK£2.22
+12.8%
7.5%UK£2.47UK£1.86n/a10
Apr ’25UK£2.03
UK£2.21
+9.0%
7.1%UK£2.40UK£1.86n/a10
Mar ’25UK£1.83
UK£1.99
+9.1%
13.0%UK£2.40UK£1.59n/a7
Feb ’25UK£1.89
UK£1.88
-0.6%
8.1%UK£2.00UK£1.59n/a6
Jan ’25UK£1.92
UK£1.87
-2.3%
8.0%UK£2.00UK£1.59n/a6
Dec ’24UK£1.83
UK£1.94
+6.2%
8.5%UK£2.20UK£1.59n/a11
Nov ’24UK£1.67
UK£2.04
+22.4%
12.4%UK£2.55UK£1.59UK£1.9412
Oct ’24UK£1.72
UK£2.07
+20.5%
11.5%UK£2.55UK£1.66UK£2.0811
Sep ’24UK£1.77
UK£2.11
+19.4%
15.2%UK£2.78UK£1.66UK£2.0411
Aug ’24UK£1.82
UK£2.10
+15.6%
17.7%UK£2.78UK£1.66UK£2.048
Jul ’24UK£1.65
UK£2.10
+27.1%
17.7%UK£2.78UK£1.66UK£1.928
Jun ’24UK£1.80
UK£2.09
+16.2%
17.1%UK£2.78UK£1.66UK£2.048
May ’24UK£1.93
UK£2.06
+7.0%
15.2%UK£2.78UK£1.66UK£1.9711
Apr ’24UK£1.76
UK£2.06
+17.4%
15.2%UK£2.78UK£1.66UK£2.0311
Mar ’24UK£1.85
UK£2.06
+11.1%
14.3%UK£2.78UK£1.66UK£1.8312
Feb ’24UK£1.90
UK£2.06
+8.5%
15.8%UK£2.78UK£1.66UK£1.8912
Jan ’24UK£1.72
UK£2.10
+21.6%
16.9%UK£2.78UK£1.66UK£1.9212
Dec ’23UK£1.78
UK£2.20
+23.7%
19.3%UK£2.99UK£1.65UK£1.8312
Nov ’23UK£1.91
UK£2.37
+24.3%
18.6%UK£3.00UK£1.65UK£1.6712

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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