Legal & General Group PLC (LGEN) fair value: what the stock is really worth
As of Sep 25, 2026: fair value of Legal & General Group PLC £4.38, price £2.98, upside +47.2%, quality 61 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range £1.49 – £3.16 · fair‑value band £2.07 – £6.50 · the £2.98 price screens below the £4.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates through Institutional Retirement, Asset Management, Insurance, and Retail Retirement segments.
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Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates through Institutional Retirement, Asset Management, Insurance, and Retail Retirement segments. The Institutional Retirement segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products; and writes assured payment policies (APP). The Asset Management segment provides unit linked institutional pensions, segregated investment management mandates, and collective investment schemes; index fund management; pooled and segregated active fixed income funds; active equity management; solutions for cash management requirements for institutional investors; solutions and liability driven investment; multi-asset funds; private markets strategies for physical real estate, private corporate debts, infrastructure debts, and real estate loans; and direct investment services. The Retail Retirement segment offers protection products, such as health, disability, critical illness, and accident; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace and retail savings scheme that provides corporate pension scheme solutions. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.
Stock analysis
Legal & General Group PLC (LGEN) currently trades at £2.98, while our model-based Fair Value estimate is £4.38, implying the stock looks roughly 32.1% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of £10.34 per share, and 9 of the 13 models we run sit above the £2.98 price.
Bear case: the Multiples group reads lowest at £0.5900, and 4 of the 13 models stay below the price. Evidence for this calculation is high.
Scenario range: £2.07 (bear) to £6.50 (bull), the price of £2.98 sits inside 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 61/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Legal & General Group PLC reported revenue of £54.5B in FY2025 versus £9.3B in FY2021, a compound +55.7%/yr. Reported net income was £498M in FY2025, compounding −29.8%/yr from FY2021.
Key figures
Market cap 17.7B GBX · P/E ratio 27.0 · P/S ratio 0.25 · EPS (TTM) £0.1100 · Dividend yield 7.4% · Net margin 0.9% · Return on equity 27.0% · Return on assets (EBIT) 0.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 6% below its 52-week high and 35% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −15% fair-value upside, at 47%, LGEN screens cheaper than that median.
Fair Value models
Bear £2.07Fair Value £4.38Bull £6.50
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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. 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.Evidence ⓘEvidence = 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.92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+320.7%
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.
+74.9%
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.
+42.5%
Start year 2020 (pandemic). Over 10 years: +19.5% a year
Revenue growth 25 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.
+4.7%
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What shareholders gained per year (last 5 years) ⓘ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.
−15.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−23.2%
Dividend (yield on the price)7.4%
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.−23.2% vs −7.6%, slowing
Profit margin 2020 to 2025 ⓘ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.15% → 2%
Start year 2020 (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 %
Yearly growth needed for the next five years to justify today's price.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
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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 · 647 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score62 · Above median
Fair Value upside+47.2% · Above median
Profitability
Return on equity (TTM)27.0% · Top 25%
Return on assets0.1% · Below median
Net margin (TTM)18.0% · Below median
Operating margin (TTM)13.4% · Below median
Growth and dividend
Revenue growth15.3% · Above median
Dividend yield (TTM)7.4% · Top 25%
Balance sheet
Debt / equity2.02× · Highest 25%
Valuation Multiplesvs Asset Management median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Legal & General Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/LGEN
Frequently asked questions
Is Legal & General Group PLC (LGEN) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of £4.38 versus a price of £2.98, about +47% upside (undervalued).
What is the fair value of LGEN?
Our model-based fair value for Legal & General Group PLC is £4.38 (as of Sep 27, 2026), built from audited fundamentals. The current price: £2.98.
What is the quality score of LGEN?
Legal & General Group PLC has a Quality Score of 61/100. 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 Legal & General Group PLC (LGEN)?
Our model-based price target is the fair value of £4.38 (as of Sep 27, 2026) from 13 valuation models. Cautious scenario £2.07, optimistic scenario £6.50. It is a calculation from audited fundamentals, not an analyst target.
What is the Legal & General Group PLC stock forecast for 2026?
Our models put fair value at £4.38, about +47% upside versus a price of £2.98 (undervalued). Cautious scenario £2.07, optimistic scenario £6.50. The calculation is refreshed regularly with new filings.
Does Legal & General Group PLC pay a dividend?
Legal & General Group PLC currently shows a dividend yield of about 7.36% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Legal & General Group PLC (LGEN)?
For today's price to be fair in a discounted-cash-flow model, Legal & General Group PLC would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 9.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +42.5 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of LGEN use?
Our models discount Legal & General Group PLC at 9.3 %: a base by market capitalisation (large), damped by beta 0.79, country premium for United Kingdom. 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 Legal & General Group PLC that is less than minus 40 % per year a year over ten years, using the same discount rate (9.3 %) and the same formula as our fair value.
How much growth has Legal & General Group PLC (LGEN) delivered so far?
Over the past 5 years revenue at Legal & General Group PLC grew +42.5 % a year. The price currently implies less than minus 40 % per year free-cash-flow growth a 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 Legal & General Group PLC (LGEN) growing?
The median revenue growth in the sector is +9.1 % a year. That is the yardstick for the growth priced into Legal & General Group PLC (less than minus 40 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Legal & General Group PLC (LGEN)?
The free-cash-flow yield on the price is 25.45 %: that much free cash flow Legal & General Group PLC produces per unit of market value. When it exceeds the discount rate of our models (9.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Legal & General Group PLC (LGEN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Legal & General Group PLC it is £4.38 per share (as of Sep 27, 2026), against a price of £2.98. It is the blended result of 13 valuation models (cash flow, earnings, asset, dividend).
Is Legal & General Group PLC stock overvalued or undervalued in 2026?
As of Sep 27, 2026, LGEN trades below its calculated fair value: price £2.98, fair value £4.38, a gap of about +47% (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 LGEN?
No. The price is what the market pays today (£2.98); the fair value is what the company's own numbers justify (£4.38). For Legal & General Group PLC the two are £1.41 per share apart. That gap is exactly why we show both numbers side by side.
How much is Legal & General Group PLC worth?
The market values Legal & General Group PLC at about 17.7B GBX (market capitalisation, as of Sep 27, 2026). Per share that is £2.98; our models calculate a fair value of £4.38 per share.
What do the bullish and bearish scenarios say about LGEN?
Our models span a range for Legal & General Group PLC: cautious scenario £2.07, base £4.38, optimistic £6.50 per share (as of Sep 27, 2026, price £2.98). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LGEN?
Legal & General Group PLC trades at a price-to-earnings ratio of 27.0 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £4.38 is built from several models across several years. Other multiples: PEG 1.5, P/B 10.3, P/S 2.0, EV/EBITDA 8.6.
What is the PEG ratio of LGEN?
The PEG ratio of Legal & General Group PLC is 1.53 (P/E divided by earnings growth, as of Sep 27, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Legal & General Group PLC (LGEN)?
Balance-sheet figures for Legal & General Group PLC (as of Sep 27, 2026): return on equity 27.0%, debt of 2.02 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is LGEN from its 52-week high?
Legal & General Group PLC trades at £2.98, about 6% below its 52-week high of £3.16 and 35% above the low of £2.20 (as of Sep 25, 2026). Distance from the high says nothing about value: that is what the fair value of £4.38 is for.
Which stocks are comparable to Legal & General Group PLC?
From the same area (Financial Services) we also value Blackstone Inc, KKR & Co, Brookfield Corporation, 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 Legal & General Group PLC stock attractive at the current price?
The data as of Sep 27, 2026: price £2.98, calculated fair value £4.38 (+47%), Quality Score 61/100, from 13 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 LGEN calculated?
We run Legal & General Group PLC through 13 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of £4.38, 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 16.1 % above its aggregate fair value. Legal & General Group PLC currently trades 47 % 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 Legal & General Group PLC (LGEN)?
The closing price on Sep 25, 2026 was £2.98. Our model-based fair value is £4.38, about +47% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Legal & General Group PLC right now?
The model range is unusually wide (£2.07 to £6.50). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Legal & General Group PLC (LGEN) come from?
Earnings per share at Legal & General Group PLC grew −11.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.0 %, EBIT margin −22.0 %, tax rate +1.7 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Legal & General Group PLC
How large is the market capitalisation of Legal & General Group PLC (LGEN)?
The market capitalisation of Legal & General Group PLC is 17.7B GBX. 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 Legal & General Group PLC (LGEN)?
The price-to-sales ratio of Legal & General Group PLC is 0.25 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Legal & General Group PLC (LGEN)?
Earnings per share at Legal & General Group PLC are £0.1100 (price ÷ EPS = P/E 27.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Legal & General Group PLC (LGEN)?
The dividend yield of Legal & General Group PLC is 7.4% (payout 199%). 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 Legal & General Group PLC (LGEN)?
The net margin of Legal & General Group PLC is 0.9% (fiscal year 2025). 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 Legal & General Group PLC (LGEN)?
The return on equity (ROE) of Legal & General Group PLC is 27.0% (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 Legal & General Group PLC (LGEN)?
On an EBIT basis the return on assets of Legal & General Group PLC is 0.2% (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 Legal & General Group PLC (LGEN)?
The operating margin of Legal & General Group PLC is 13.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Legal & General Group PLC (LGEN)?
Revenue at Legal & General Group PLC is growing +15.3% versus a year earlier (3y avg +74.9%). 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 Legal & General Group PLC (LGEN)?
Earnings per share at Legal & General Group PLC are growing +507% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Legal & General Group PLC (LGEN) carry?
The net debt of Legal & General Group PLC is 8.0B GBX (fiscal year 2025, ≈ 1.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 27, 2026