As of April 4, 2026, London Stock Exchange Group PLC's estimated intrinsic value ranges from $4413.24 to $12823.96 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $8226.95 | -7.8% |
| Discounted Cash Flow (5Y) | $6522.24 | -26.9% |
| Dividend Discount Model (Multi-Stage) | $5617.54 | -37.0% |
| Dividend Discount Model (Stable) | $4413.24 | -50.5% |
| Earnings Power Value | $12823.96 | +43.8% |
Is London Stock Exchange Group PLC (LSEG.L) undervalued or overvalued?
With the current market price at $8920.00, the stock appears to be moderately overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate London Stock Exchange 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 | 0.46 | 0.56 |
| Cost of equity | 6.7% | 8.9% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 22.6% | 24.8% |
| Debt/Equity ratio | 0.28 | 0.28 |
| After-tax WACC | 5.9% | 7.8% |
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 | $6,522 | $38,151M | 79.0% |
| 10-Year Growth | $8,227 | $46,091M | 65.4% |
| 5-Year EBITDA | $6,023 | $35,825M | 77.7% |
| 10-Year EBITDA | $7,728 | $43,766M | 63.6% |
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 | $4,546M |
| Discount Rate (WACC) | 7.8% - 5.9% |
| Enterprise Value | $58,411M - $76,598M |
| Net Debt | $7,769M |
| Equity Value | $50,642M - $68,829M |
| Outstanding Shares | 5M |
| Fair Value | $10,872 - $14,776 |
| Selected Fair Value | $12823.96 |
| Metric | Value |
|---|---|
| Market Capitalization | $41551M |
| Enterprise Value | $49320M |
| Trailing P/E | 33.27 |
| Forward P/E | 26.30 |
| Trailing EV/EBITDA | 9.45 |
| Current Dividend Yield | 172.80% |
| Dividend Growth Rate (5Y) | 13.94% |
| Debt-to-Equity Ratio | 0.28 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $2468.09 |
| Discounted Cash Flow (5Y) | 25% | $1630.56 |
| Dividend Discount Model (Multi-Stage) | 20% | $1123.51 |
| Dividend Discount Model (Stable) | 15% | $661.99 |
| Earnings Power Value | 10% | $1282.40 |
| Weighted Average | 100% | $7166.54 |
Based on our comprehensive valuation analysis, London Stock Exchange Group PLC's intrinsic value is $7166.54, which is approximately 19.7% below the current market price of $8920.00.
Key investment considerations:
Given these factors, we believe London Stock Exchange Group PLC is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.