London City Equities Ltd (LCE) fair value: what the stock is really worth
As of Oct 28, 2026: fair value (intrinsic value) of London City Equities Ltd stock A$1.80, price A$0.90, upside +100.0%, quality 80 out of 100. Rating: strongly undervalued. Calculated from audited financials with 11 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range A$0.3915 – A$0.9000 · fair‑value band A$0.9420 – A$2.73 · the A$0.9000 price screens below the A$1.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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London City Equities Limited is a publicly owned investment manager. The firm invests in the public equity markets of Australia. London City Equities Limited was founded in 1986 and is based in Sydney, Australia.
Stock analysis
London City Equities Ltd (LCE) currently trades at A$0.9000, while our model-based Fair Value estimate is A$1.80, implying the stock looks roughly 50% undervalued today.
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Valuation
Bull case: the Earnings-Based group reads highest at a median of A$6.20 per share, and 7 of the 11 models we run sit above the A$0.9000 price.
Bear case: the Dividend Discount group reads lowest at A$0.3900, and 4 of the 11 models stay below the price. Data coverage for this calculation is low.
Scenario range: A$0.9420 (bear) to A$2.73 (bull), the price of A$0.9000 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 80/100 (high quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
London City Equities Ltd reported revenue of A$9.0M in FY2026 versus A$2.4M in FY2022, a compound +39.0%/yr. Reported net income was A$7.8M in FY2026, compounding +44.0%/yr from FY2022.
Key figures
Market cap A$28.6M (≈ $19.7M) Micro · P/E ratio 3.6 · P/S ratio 3.16 · EPS (TTM) A$0.2500 · Dividend yield 2.8% · Net margin 86.4% · Return on equity 29.4% · Return on assets (EBIT) 8.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 88 out of 100 (low confidence).
What moves the price
The share trades at its 52-week high and 9% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −16% fair-value upside, at 100%, LCE screens cheaper than that median.
Fair Value models
BearA$0.9420Fair Value A$1.80BullA$2.73
Price A$0.9000 · Upside +100.0%
Capped: our models arrive at a very high value here. We deliberately show a more cautious Fair Value.
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then (A$0.0814 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+396.6%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+92.0%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+74.4%
Start year 2021 (pandemic). Over 10 years: +31.2% a year
Revenue growth 27 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+33.9%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+58.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+56.0%
Dividend (yield on the price)2.8%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 51.6% / 62.6%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−5% → 86%
2026 sits 2,191% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
less than -40 %
The company could shrink this much every year for the next five years and today's price would still be justified.
Compare London City Equities Ltd with another stock
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Peer Groupⓘ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.Asset Management · 587 stocks
Beats the industry median on 11/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score80 · Top 25%
Fair Value upside+100.0% · Top 25%
Profitability
Return on equity (12 months)29.4% · Top 25%
Return on assets26.6% · Top 25%
Net margin (12 months)86.4% · Top 25%
Operating margin (12 months)94.0% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)632.5% · Top 25%
Dividend yield (12 months)2.8% · Below median
Valuation Multiplesvs Asset Management median · lower = cheaper
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Cite: Fair Value Calculator (2026). "London City Equities Ltd Fair Value". https://www.fairvalue-calculator.com/stock/LCE
Frequently asked questions
Is London City Equities Ltd (LCE) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of A$1.80 versus the last price from Oct 28, 2026 of A$0.9000, about +100% upside (undervalued).
What is the fair value of LCE?
Our model-based fair value for London City Equities Ltd is A$1.80 (as of Nov 7, 2026), built from audited fundamentals. Last price (from Oct 28, 2026): A$0.9000.
What is the quality score of LCE?
London City Equities Ltd has a Quality Score of 80/100. 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 price target for London City Equities Ltd (LCE)?
Our model-based price target is the fair value of A$1.80 (as of Nov 7, 2026) from 11 valuation models. Cautious scenario A$0.9420, optimistic scenario A$2.73. It is a calculation from audited fundamentals, not an analyst target.
What is the London City Equities Ltd stock forecast for 2026?
Our models put fair value at A$1.80, about +100% upside versus the last price from Oct 28, 2026 of A$0.9000 (undervalued). Cautious scenario A$0.9420, optimistic scenario A$2.73. The calculation is refreshed regularly with new filings.
What is the revenue of London City Equities Ltd (LCE)?
London City Equities Ltd reported trailing-twelve-month revenue of about A$9.0M (latest available figure, as of Nov 7, 2026).
Does London City Equities Ltd pay a dividend?
London City Equities Ltd currently shows a dividend yield of 2.78% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of London City Equities Ltd (LCE) and when is the ex-dividend date?
London City Equities Ltd pays a dividend of A$0.025 per share a year, a dividend yield of 2.8%. The last ex-dividend date was Oct 1, 2026. A dividend has been paid every year since at least 2003. The payout ratio is 10.0% of earnings. Free cash flow covers the dividend 9.94 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into London City Equities Ltd (LCE)?
For today's price to be fair in a discounted-cash-flow model, London City Equities Ltd would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +74.4 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of LCE use?
Our models discount London City Equities Ltd at 9.5 %: a base by market capitalisation (nano), country premium for Australia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For London City Equities Ltd that is less than minus 40 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has London City Equities Ltd (LCE) delivered so far?
Over the past 5 years revenue at London City Equities Ltd grew +74.4 % a year. The price currently implies free-cash-flow growth of less than minus 40 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of London City Equities Ltd (LCE) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into London City Equities Ltd (less than minus 40 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of London City Equities Ltd (LCE)?
The free-cash-flow yield on the price is 28.27 %: that much free cash flow London City Equities Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of London City Equities Ltd (LCE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For London City Equities Ltd it is A$1.80 per share (as of Nov 7, 2026), against a price of A$0.9000. It is the blended result of 11 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit).
Is London City Equities Ltd stock overvalued or undervalued in 2026?
As of Nov 7, 2026, LCE trades below its calculated fair value: price A$0.9000, fair value A$1.80, a gap of about +100% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of LCE?
No. The price is what the market pays today (A$0.9000); the fair value is what the company's own numbers justify (A$1.80). For London City Equities Ltd the two are A$0.9000 per share apart. That gap is exactly why we show both numbers side by side.
How much is London City Equities Ltd worth?
The market values London City Equities Ltd at about A$28.6M (market capitalisation, as of Nov 7, 2026). Per share that is A$0.9000; our models calculate a fair value of A$1.80 per share.
What do the bullish and bearish scenarios say about LCE?
Our models span a range for London City Equities Ltd: cautious scenario A$0.9420, base A$1.80, optimistic A$2.73 per share (as of Nov 7, 2026, price A$0.9000). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LCE?
London City Equities Ltd trades at a price-to-earnings ratio of 3.6 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$1.80 is built from several models across several years. Median P/E at fiscal year-end, 7 fiscal years (2017 to 2026), reported earnings: 87.5. Other multiples: P/B 1.0, P/S 3.2, EV/EBITDA 3.6.
How solid is the balance sheet of London City Equities Ltd (LCE)?
Balance-sheet figures for London City Equities Ltd (as of Nov 7, 2026): return on equity 29.4%. They feed the Quality Score of 80/100, which measures business quality independently of the share price.
How far is LCE from its 52-week high?
London City Equities Ltd trades at A$0.9000, at its 52-week high of A$0.9000 and 9% above the low of A$0.8250 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of A$1.80 is for.
Which stocks are comparable to London City Equities Ltd?
From the same area (Financial Services) we also value Blackstone Inc, Brookfield Asset Management Ltd, KKR & Co, Apollo Global Management, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is London City Equities Ltd stock attractive at the current price?
The data as of Nov 7, 2026: price A$0.9000, calculated fair value A$1.80 (+100%), Quality Score 80/100, from 11 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of LCE calculated?
We run London City Equities Ltd through 11 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit. Every model gets the same audited fundamentals; the fair value of A$1.80 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. London City Equities Ltd currently trades 50% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of London City Equities Ltd (LCE)?
The latest price we hold is from Oct 28, 2026 and stands at A$0.9000. Our model-based fair value is A$1.80, about +100% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with London City Equities Ltd right now?
The rarer combination: high quality (80/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case (A$0.9420). The market is more pessimistic than our downside scenario. The model range is unusually wide (A$0.9420 to A$2.73). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Key figures of London City Equities Ltd
How large is the market capitalisation of London City Equities Ltd (LCE)?
The market capitalisation of London City Equities Ltd is A$28.6M (≈ $19.7M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of London City Equities Ltd (LCE)?
The price-to-sales ratio of London City Equities Ltd is 3.16 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of London City Equities Ltd (LCE)?
Earnings per share at London City Equities Ltd are A$0.2500 (price ÷ EPS = P/E 3.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of London City Equities Ltd (LCE)?
The dividend yield of London City Equities Ltd is 2.8% (payout 10.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of London City Equities Ltd (LCE)?
The net margin of London City Equities Ltd is 86.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of London City Equities Ltd (LCE)?
The return on equity (ROE) of London City Equities Ltd is 29.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of London City Equities Ltd (LCE)?
On an EBIT basis the return on assets of London City Equities Ltd is 8.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of London City Equities Ltd (LCE)?
The operating margin of London City Equities Ltd is 94.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at London City Equities Ltd (LCE)?
Revenue at London City Equities Ltd is growing +633% versus a year earlier (3y avg +92.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at London City Equities Ltd (LCE)?
Earnings per share at London City Equities Ltd are growing +36.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does London City Equities Ltd (LCE) hold?
London City Equities Ltd holds more cash than debt, A$306K net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Thin data
Nov 7, 2026