As of May 23, 2025, Land Securities Group PLC's estimated intrinsic value ranges from $147.37 to $889.73 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $889.73 | +47.7% |
| Discounted Cash Flow (5Y) | $804.41 | +33.5% |
| Dividend Discount Model (Stable) | $147.37 | -75.5% |
| Earnings Power Value | $173.15 | -71.3% |
Is Land Securities Group PLC (LAND.L) undervalued or overvalued?
With the current market price at $602.50, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Land Securities Group PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.9 | 0.98 |
| Cost of equity | 9.4% | 11.8% |
| Cost of debt | 4.0% | 5.2% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.84 | 0.84 |
| After-tax WACC | 6.6% | 8.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $804 | $9,631M | 78.9% |
| 10-Year Growth | $890 | $10,265M | 61.2% |
| 5-Year EBITDA | $509 | $7,439M | 72.7% |
| 10-Year EBITDA | $646 | $8,453M | 52.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $363M |
| Discount Rate (WACC) | 8.3% - 6.6% |
| Enterprise Value | $4,353M - $5,536M |
| Net Debt | $3,659M |
| Equity Value | $694M - $1,877M |
| Outstanding Shares | 7M |
| Fair Value | $94 - $253 |
| Selected Fair Value | $173.15 |
| Metric | Value |
|---|---|
| Market Capitalization | $4473M |
| Enterprise Value | $8132M |
| Trailing P/E | 42.20 |
| Forward P/E | 42.20 |
| Trailing EV/EBITDA | 15.25 |
| Current Dividend Yield | 658.93% |
| Dividend Growth Rate (5Y) | -3.96% |
| Debt-to-Equity Ratio | 0.84 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 37% | $266.92 |
| Discounted Cash Flow (5Y) | 31% | $201.10 |
| Dividend Discount Model (Stable) | 19% | $22.11 |
| Earnings Power Value | 12% | $17.31 |
| Weighted Average | 100% | $634.30 |
Based on our comprehensive valuation analysis, Land Securities Group PLC's weighted average intrinsic value is $634.30, which is approximately 5.3% above the current market price of $602.50.
Key investment considerations:
Given these factors, we believe Land Securities Group PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.