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Legal & General Group PLC (LGEN) Fair Value & Analysis

Financial Services · GB · Market cap 15.9B GBX · ISIN GB0005603997

What is Legal & General Group PLC really worth?

LG Legal & General Group PLC LGEN · LSE
Price£2.96
Fair Value£1.18
Upside−60.1%
Quality55/100

A solid business, but trading 151% above our fair value of £1.18.

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Risks

!Mixed Growth (revenue 5y +42.5 %/yr)
!Thin margins · 5.4% net margin
!High debt · generates free cash flow
!Trails peers (5/15)
!Moderate moat 46/100

For context

·7.37% dividend yield
Evidence: High Range £0.8900 – £1.71

Fair value as of: Sep 1, 2026

From 13 valuation models · updated 4 days ago

Share price −2.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (£1.71). The favourable scenario is already priced in.
  • Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£0.8900 to £1.71) leaves room in how you read the outcome.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

£3.16 £1.49 Fair Value £1.18 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range £1.49 – £3.16 · fair‑value band £0.8900 – £1.71 · the £2.96 price screens above the £1.18 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Legal & General Group PLC (LGEN) currently trades at £2.96, while our model-based Fair Value estimate is £1.18, implying the stock looks roughly 150.6% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Financial Services sector. Bull case: the Growth DCF group reads highest at a median of £9.99 per share, and 9 of the 13 models we run sit above the £2.96 price. Bear case: the Asset-Based group reads lowest at £0.2800, and 4 of the 13 models stay below the price. Evidence for this calculation is high.

Revenue grew 13.9% year over year. It earns a return on equity of 17.9%. Net debt stands at £8.0B. The stock trades on a trailing P/E of 37.0. Fundamentals as of Sep 1, 2026

Our scenario range runs from £0.8900 (bear case) to £1.71 (bull case); at £2.96, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at −28% fair-value upside, at −60%, LGEN screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £15.30 £28.12 £49.13 73
Owner Earnings £3.95 £6.08 £10.56 72
Rev-Margin DCF £7.58 £9.99 £15.15 70
All 13 models by family
DCF Models
Owner Earnings £3.95 £6.08 £10.56 72
5Y P/E Exit £6.74 £9.19 £11.99 69
10Y P/E Exit £9.54 £13.73 £19.40 62
Earnings-Based
Graham-Dodd £0.6200 £4.32 £6.06 61
Lynch FV £2.23 £3.19 £4.14 59
Dividend Discount
Gordon GGM £2.09 £4.35 £6.91 64
DDM Multi-Stage £2.09 £3.67 £4.57 64
Multiples
P/E Multiple £0.8900 £1.18 £1.48 63
P/B Multiple £0.4400 £0.5800 £0.7300 55
Asset-Based
NCAV (Graham) £0.2100 £0.2800 £0.4200 54
Growth DCF
Growth DCF £15.30 £28.12 £49.13 73
Rev-Margin DCF £7.58 £9.99 £15.15 70
Economic Profit
Residual Income £0.5700 £0.6800 £1.80 66

Widest divergence: Growth DCF (£9.99) versus Asset-Based (£0.2800). Highest evidence: Growth DCF (73).

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Key figures & financial health

P/E ratio 37.0
P/S ratio 0.34 P/E × margin
EPS (TTM) £0.0800 price ÷ EPS = P/E 37.0
Dividend yield 7.4%
Net margin 0.9% FY2025
Return on equity 17.9% TTM
More key figures
Profitability
Return on assets (EBIT) 0.2% avg 5y
Operating margin 7.4% TTM
Growth
Revenue growth (YoY) +13.9% 3y avg +74.9%
EPS growth (YoY) +52.3%
Balance sheet & cash flow
Free cash flow 4.5B GBX FY2025
Net debt 8.0B GBX FY2025 · ≈ 1.8 yrs of FCF

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 51 · Market factors (momentum, volatility) 72

Profitability 26
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 10
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 76
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates through Institutional Retirement, Asset Management, Insurance, and Retail Retirement segments.

Full company description

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates through Institutional Retirement, Asset Management, Insurance, and Retail Retirement segments. The Institutional Retirement segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products; and writes assured payment policies (APP). The Asset Management segment provides unit linked institutional pensions, segregated investment management mandates, and collective investment schemes; index fund management; pooled and segregated active fixed income funds; active equity management; solutions for cash management requirements for institutional investors; solutions and liability driven investment; multi-asset funds; private markets strategies for physical real estate, private corporate debts, infrastructure debts, and real estate loans; and direct investment services. The Retail Retirement segment offers protection products, such as health, disability, critical illness, and accident; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace and retail savings scheme that provides corporate pension scheme solutions. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Legal & General Group PLC reported revenue of £54.5B in FY2025 versus £9.3B in FY2021, a compound +55.7%/yr. Reported net income was £498M in FY2025, compounding −29.8%/yr from FY2021.

Growth Quality 87/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£54.5B
Latest YoY
+320.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+74.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+42.5%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−15.8% (−23.2 + 7.4)
Revenue +55.7%/yr
FY21 £9.3B
FY22 £10.2B
FY23 £11.1B
FY24 £13.0B
FY25 £54.5B
Net income −29.8%/yr
FY21 £2.1B
FY22 £783M
FY23 £457M
FY24 £191M
FY25 £498M
Character of growth · EPS growth decomposed (2014-2025) −11.4 % p.a.
Revenue per share +12.0 %

of which total revenue +12.3 % · buybacks/dilution −0.3 %

EBIT margin −22.0 %
Tax rate +1.7 %
Residual (interest, one-offs) −0.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

LGEN screens 151% overvalued. Compare with Blackstone Inc →

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Cite: Fair Value Calculator (2026). "Legal & General Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/LGEN

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Asset Management · 697 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Below median
Fair Value upside −60% · Bottom 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 0% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 7% · Below median
Revenue growth 14% · Above median
Dividend yield (TTM) 7.4% · Top 25%
Debt / equity 2.02× · Higher than 75% of peers

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 37.0× · Pricier than 75% of peers
P/B 9.43× · Pricier than 75% of peers
P/S (TTM) 1.96× · Cheaper than median
P/FCF 4.8× · Cheaper than median
EV/EBITDA 8.7× · Pricier than median
PEG 1.53× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 40
FUTURE70 · sector 14
PAST71 · sector 24
HEALTH0 · sector 95
DIVIDEND100 · sector 81

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Asset Management stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
Blackstone Inc BX $142.39 $52.88 −63%
Investor AB INVEB kr 417.20 kr 824.66 +98%
Brookfield Corporation BN C$55.74 C$10.67 −81%
KKR & Co KKR $108.68 $19.97 −82%
Apollo Global Management, Inc APO $135.04 $101.04 −25%
State Street Corporation STT $193.33 $138.33 −28%
Ameriprise Financial, Inc AMP $559.32 $515.24 −8%
Ares Management Corporation ARES $143.10 $30.88 −78%
Northern Trust Corporation NTRS $186.79 $122.02 −35%
Raymond James Financial, Inc RJF $181.10 $142.42 −21%

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Frequently asked questions

Is Legal & General Group PLC (LGEN) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of £1.18 versus a price of £2.96, about −60% upside (overvalued).
What is the fair value of LGEN?
Our model-based fair value for Legal & General Group PLC is £1.18 (as of Sep 1, 2026), built from audited fundamentals. The current price: £2.96.
What is the quality score of LGEN?
Legal & General Group PLC has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of LGEN?
The net profit margin of Legal & General Group PLC is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.
Does Legal & General Group PLC pay a dividend?
Legal & General Group PLC currently shows a dividend yield of about 7.37% relative to its recent price (as of Sep 1, 2026).
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