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M&G Plc (MNG) Fair Value & Analysis

Financial Services · GB · Market cap 8.4B GBX · ISIN GB00BKFB1C65

What is M&G Plc really worth?

MG M&G Plc MNG · LSE
Price£3.57
Fair Value£1.65
Upside−53.8%
Quality52/100

A solid business, but trading 117% above our fair value of £1.65.

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Risks

!Mixed Growth (revenue 5y +6.6 %/yr)
!Thin margins · 4.1% net margin
!High debt · generates free cash flow
!Mixed vs. peers (6/14)
!Moderate moat 52/100

For context

·5.65% dividend yield
Evidence: High Range £1.24 – £2.06

Fair value as of: Aug 30, 2026

From 13 valuation models · updated 6 days ago

Share price −1.9% 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 (£2.06). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • 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)

£3.64 £1.15 Fair Value £1.65 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range £1.15 – £3.64 · fair‑value band £1.24 – £2.06 · the £3.57 price screens above the £1.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

M&G Plc (MNG) currently trades at £3.57, while our model-based Fair Value estimate is £1.65, implying the stock looks roughly 116.6% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Financial Services sector. Bull case: the Growth DCF group reads highest at a median of £6.63 per share, and 6 of the 13 models we run sit above the £3.57 price. Bear case: the Asset-Based group reads lowest at £0.8800, and 7 of the 13 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, M&G Plc generated revenue of £7.3B at a net margin of 4.1%. Revenue grew 37.0% year over year. It earns a return on equity of 9.7%. Net debt stands at £2.0B. Fundamentals as of Aug 30, 2026

Our scenario range runs from £1.24 (bear case) to £2.06 (bull case); at £3.57, 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 −54%, MNG 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
Residual Income best evidence £1.14 £1.25 £1.62 74
Growth DCF £3.16 £6.63 £12.21 72
Owner Earnings £1.30 £3.70 £8.56 66
All 13 models by family
DCF Models
Owner Earnings £1.30 £3.70 £8.56 66
5Y P/E Exit £1.40 £3.26 £5.67 65
10Y P/E Exit £2.04 £4.29 £7.70 59
Earnings-Based
Graham-Dodd £0.8600 £6.01 £8.44 61
Lynch FV £3.11 £4.44 £5.77 59
Dividend Discount
Gordon GGM £1.78 £3.54 £5.36 64
DDM Multi-Stage £1.78 £3.06 £3.74 65
Multiples
P/E Multiple £1.24 £1.65 £2.06 63
P/B Multiple £1.38 £1.84 £2.30 55
Asset-Based
NCAV (Graham) £0.6600 £0.8800 £1.32 54
Growth DCF
Growth DCF £3.16 £6.63 £12.21 72
Rev-Margin DCF £5.01 £10.04 £20.51 66
Economic Profit
Residual Income best evidence £1.14 £1.25 £1.62 74

Widest divergence: Growth DCF (£6.63) versus Asset-Based (£0.8800). Highest evidence: Residual Income (74).

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Key figures & financial health

P/E ratio 29.8
P/S ratio 0.41 P/E × margin
EPS (TTM) £0.1200 price ÷ EPS = P/E 29.8
Dividend yield 5.7% payout 168%
Net margin 1.4% FY2025
Return on equity 9.7% TTM
More key figures
Profitability
Return on assets (EBIT) 0.2% avg 5y
Operating margin 48.5% TTM
Growth
Revenue (TTM) £7.3B TTM
Revenue growth (YoY) +37.0%
EPS growth (YoY) +5.3%
Balance sheet & cash flow
Free cash flow 612M GBX FY2025
Net debt 2.0B GBX FY2025 · ≈ 3.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 46 · Market factors (momentum, volatility) 80

Profitability 20
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 93
Distance to the 52-week high (market factor)
Net Issuance 68
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

M&G plc, through its subsidiaries, provides investment and savings products to institutional clients and individual policyholders in the United Kingdom and internationally. The company operates through Asset Management and Life segments.

Full company description

M&G plc, through its subsidiaries, provides investment and savings products to institutional clients and individual policyholders in the United Kingdom and internationally. The company operates through Asset Management and Life segments. The Asset Management segment offers managed investment products, such as equities, fixed income, and multi-asset, as well as real estate investment products and services to wholesale clients and institutional investors. The Life segment provides corporate pension solutions, individual life and pensions, and international solutions and advice; and Prudential guaranteed income plan. This segment also offers level annuities, which provide a fixed annuity payment; fixed increase annuities, which incorporate a periodic automatic fixed increase in annuity payments; inflation-linked annuities, which incorporate a periodic increase based on a defined inflation index; and with-profits annuities, written in the with-profits fund, combining income features of annuity contracts with the investment-smoothing features of with-profits products. The company was formerly known as M&G Prudential PLC and changed its name to M&G plc in September 2019. M&G plc was founded in 1848 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

M&G Plc reported revenue of £21.7B in FY2025 versus £16.2B in FY2021, a compound +7.5%/yr. Reported net income was £302M in FY2025, compounding +38.1%/yr from FY2021.

Growth Quality 57/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£21.7B
Latest YoY
+92.6%
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.
+6.6%
Avg. revenue growth/yr (9Y) 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.
−2.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−16.5% (−22.2 + 5.7)
Revenue +7.5%/yr
FY21 £16.2B
FY22 −£7.9B
FY23 £10.7B
FY24 £11.3B
FY25 £21.7B
Net income +38.1%/yr
FY21 £83.0M
FY22 −£1.6B
FY23 £297M
FY24 −£360M
FY25 £302M

MNG screens 117% overvalued. Compare with Blackstone Inc →

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Cite: Fair Value Calculator (2026). "M&G Plc Fair Value". https://www.fairvalue-calculator.com/stock/MNG

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 53 · Below median
Fair Value upside −54% · Bottom 25%
Return on equity (TTM) 10% · Above median
Return on assets 1% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 48% · Above median
Revenue growth 37% · Top 25%
Dividend yield (TTM) 5.7% · Above median
Debt / equity 2.08× · Higher than 75% of peers

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 29.8× · Pricier than 75% of peers
P/B 3.61× · Pricier than 75% of peers
P/S (TTM) 1.54× · Cheaper than median
P/FCF 18.5× · Pricier than 75% of peers
EV/EBITDA 4.8× · Cheaper 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
FUTURE100 · sector 14
PAST39 · sector 24
HEALTH0 · sector 95
DIVIDEND100 · sector 81

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

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 Aug 30, 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 M&G Plc (MNG) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of £1.65 versus a price of £3.57, about −54% upside (overvalued).
What is the fair value of MNG?
Our model-based fair value for M&G Plc is £1.65 (as of Aug 30, 2026), built from audited fundamentals. The current price: £3.57.
What is the quality score of MNG?
M&G Plc has a Quality Score of 52/100. 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 revenue of M&G Plc (MNG)?
M&G Plc reported trailing-twelve-month revenue of about £7.3B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of MNG?
The net profit margin of M&G Plc is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does M&G Plc pay a dividend?
M&G Plc currently shows a dividend yield of about 5.65% relative to its recent price (as of Aug 30, 2026).
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