Legal & General Group Valuation

Q: What is the Fair Price of LGGN.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LGGN.Y ($13.94) is trading below our estimate of [[fair value]] ($33.64)

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

Below Fair Value: LGGN.Y ($13.94) is trading below our estimate of fair value ($33.64)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LGGN.Y?

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

The above table shows the Price to Earnings ratio for LGGN.Y. This is calculated by dividing LGGN.Y's market cap by their current earnings.
What is LGGN.Y's PE Ratio?
PE Ratio	46.1x
Earnings	UK£281.00m
Market Cap	UK£12.95b

LGGN.Y key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	17x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does LGGN.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for LGGN.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	10.7x
UNM Unum Group	8x	-3.9%	US$14.1b
PRI Primerica	14.7x	6.5%	US$10.2b
GL Globe Life	8.6x	3.7%	US$9.4b
PRU Prudential Financial	11.4x	6.4%	US$46.1b
LGGN.Y Legal & General Group	46.1x	28.0%	US$13.0b

Price-To-Earnings vs Peers: LGGN.Y is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the peer average (10.7x).

Price to Earnings Ratio vs Industry

How does LGGN.Y's PE Ratio compare vs other companies in the US Insurance Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
UTGN UTG	2x	n/a	US$89.87m
AORE.F American Overseas Group	2.1x	n/a	US$16.68m
CUII China United Insurance Service	0.0003x	n/a	US$3.13k

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LGGN.Y is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the US Insurance industry average (13.9x).

Price to Earnings Ratio vs Fair Ratio

What is LGGN.Y'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.

LGGN.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	46.1x
Fair PE Ratio	22.2x

Price-To-Earnings vs Fair Ratio: LGGN.Y is expensive based on its Price-To-Earnings Ratio (46.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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