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Shawbrook Group PLC (SHAW) Fair Value & Analysis

Financial Services · GB · Market cap 1.8B GBX

What is Shawbrook Group PLC really worth?

SG Shawbrook Group PLC SHAW · LSE
Price£3.27
Fair Value£6.15
Upside+88.4%
Quality41/100

Below-average quality, trading 47% below our fair value of £6.15.

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Strengths

Healthy Growth (revenue 5y +27.4 %/yr)
Highly profitable · 32.3% net margin
generates free cash flow
Wide moat 68/100

Risks

!Mixed vs. peers (6/13)
!Weak on dividend: 9 out of 100
Evidence: High Range £4.61 – £7.68

Fair value as of: Aug 28, 2026

From 6 valuation models · updated 8 days ago

Share price −0.6% over the past month.

What runs behind every stock

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

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (£4.61). The market is more pessimistic than our downside scenario.
  • 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 (10 months)

£5.04 £2.93 Fair Value £6.15 Oct 2025 Sep 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 28, 2026.

How to read this chart

10‑month range £2.93 – £5.04 · fair‑value band £4.61 – £7.68 · the £3.27 price screens below the £6.15 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Aug 28, 2026.

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Analysis

Shawbrook Group PLC (SHAW) currently trades at £3.27, while our model-based Fair Value estimate is £6.15, implying the stock looks roughly 46.9% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of £6.40 per share, and 2 of the 6 models we run sit above the £3.27 price. Bear case: the Asset-Based group reads lowest at £2.38, and 4 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Shawbrook Group PLC generated revenue of £605M at a net margin of 32.3%. Revenue declined 0.1% year over year. It earns a return on equity of 11.4%. Net debt stands at £238M. Fundamentals as of Aug 28, 2026

Our scenario range runs from £4.61 (bear case) to £7.68 (bull case); at £3.27, the current price sits below 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 −10% fair-value upside, at 88%, SHAW screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly £0.2378 per share, which is 3.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

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 £2.96 £3.24 £4.50 76
Gordon GGM £0.1000 £0.1800 £0.2500 68
DDM Multi-Stage £0.1000 £0.1700 £0.2000 67
All 6 models by family
Dividend Discount
Gordon GGM £0.1000 £0.1800 £0.2500 68
DDM Multi-Stage £0.1000 £0.1700 £0.2000 67
Multiples
P/E Multiple £4.80 £6.40 £7.99 63
P/B Multiple £4.80 £6.40 £7.99 55
Asset-Based
NCAV (Graham) £1.77 £2.38 £3.55 51
Economic Profit
Residual Income best evidence £2.96 £3.24 £4.50 76

Widest divergence: Multiples (£6.40) versus Dividend Discount (£0.1700). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 9.3
P/S ratio 2.65 P/E × margin
EPS (TTM) £0.3500 price ÷ EPS = P/E 9.3
Dividend yield 0.4% payout 4.0%
Net margin 28.4% FY2025
Return on equity 11.4% TTM
More key figures
Profitability
Return on assets (EBIT) 1.5% avg 5y
Operating margin 36.5% TTM
Growth
Revenue (TTM) £605M TTM
Revenue growth (YoY) −0.1% 3y avg +1.5%
EPS growth (YoY) −73.7%
Balance sheet & cash flow
Free cash flow 1.0B GBX FY2025
Net debt 238M GBX FY2025 · ≈ 0.2 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 44 · Market factors (momentum, volatility) 32

Profitability 35
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 37
Disciplined investing over empire-building
Low Volatility 39
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 0
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

Shawbrook Group PLC, through its subsidiary, Shawbrook Bank Limited, provides lending and savings products and services to private and business customers in the United Kingdom.

Full company description

Shawbrook Group PLC, through its subsidiary, Shawbrook Bank Limited, provides lending and savings products and services to private and business customers in the United Kingdom. It offers personal and business savings; personal, wedding, home improvement, car, debt consolidation, and point of sale loans; and asset, structured, leveraged, fund, platform, revolving credit, point of sale, and other finances, as well as corporate lending. The company also provides buy-to-let mortgages, commercial mortgages, development finance, and bridging finance services. Shawbrook Group PLC was incorporated in 2010 and is based in Brentwood, United Kingdom. Shawbrook Group PLC was formerly a subsidiary of Marlin Bidco Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shawbrook Group PLC reported revenue of £688M in FY2025 versus £466M in FY2021, a compound +10.2%/yr. Reported net income was £196M in FY2025, compounding +7.0%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£688M
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.
+45.2%
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.
+27.4%
Avg. revenue growth/yr (12Y) 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.
+29.5%
Revenue +10.2%/yr
FY21 £466M
FY22 £659M
FY23 £1.2B
FY24 £1.4B
FY25 £688M
Net income +7.0%/yr
FY21 £149M
FY22 £175M
FY23 £212M
FY24 £220M
FY25 £196M

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Cite: Fair Value Calculator (2026). "Shawbrook Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/SHAW

Peer Group

Banks - Regional · 1071 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 41 · Bottom 25%
Fair Value upside +88% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 1% · Below median
Net margin (TTM) 32% · Above median
Operating margin (TTM) 36% · Below median
Revenue growth 0% · Bottom 25%
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 9.3× · Cheaper than 75% of peers
P/B 1.32× · Pricier than median
P/S (TTM) 4.01× · Pricier than median
P/FCF 2.3× · Cheaper than median
EV/EBITDA 1.8× · Cheaper than 75% of peers

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
VALUE100 · sector 33
FUTURE0 · sector 45
PAST46 · sector 41
HEALTH0 · sector 85
DIVIDEND9 · sector 51

Insider activity: 35/100

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 Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €102.56 €144.64 +41%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 −42%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is Shawbrook Group PLC (SHAW) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of £6.15 versus a price of £3.27, about +88% upside (undervalued).
What is the fair value of SHAW?
Our model-based fair value for Shawbrook Group PLC is £6.15 (as of Aug 28, 2026), built from audited fundamentals. The current price: £3.27.
What is the quality score of SHAW?
Shawbrook Group PLC has a Quality Score of 41/100. 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 Shawbrook Group PLC (SHAW)?
Shawbrook Group PLC reported trailing-twelve-month revenue of about £605M (latest available figure, as of Aug 28, 2026).
What is the net profit margin of SHAW?
The net profit margin of Shawbrook Group PLC is about 32.3%, meaning it keeps roughly 32.3% of revenue as net income. Based on the latest reported figures.
Does Shawbrook Group PLC pay a dividend?
Shawbrook Group PLC currently shows a dividend yield of about 0.43% relative to its recent price (as of Aug 28, 2026).
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