Lancashire Holdings Ltd (LRE) fair value: what the stock is really worth
As of Oct 26, 2026: fair value (intrinsic value) of Lancashire Holdings Ltd stock £8.68, price £6.77, upside +28.2%, quality 74 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Fair value above price?Yes
Good quality?Yes
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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 Oct 22, 2026.
How to read this chart
60‑month range £2.04 – £6.92 · fair‑value band £6.51 – £10.85 · the £6.77 price screens below the £8.68 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
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Lancashire Holdings Limited, together with its subsidiaries, provides specialty insurance and reinsurance products in London, Bermuda, and Australia. The company operates in two segments, Reinsurance and Insurance.
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It offers property direct and facultative, property political risk and sovereign risk, and property terrorism and political violence insurance products, as well as property reinsurance services.
The company also provides energy insurance products covering upstream, downstream and onshore operational, and upstream construction all risks business; marine hull, total loss only, mortgagees interests insurance, mortgagees additional perils, excess protection and indemnity, marine war, and builder's risks; and aviation AV52, aviation consortium, airline hull and liability, and satellite insurance products.
In addition, it offers general insurance, support, insurance agent, and insurance mediation services. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.
Stock analysis
Lancashire Holdings Ltd (LRE) currently trades at £6.77, while our model-based Fair Value estimate is £8.68, implying the stock looks roughly 22.0% undervalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of £15.02 per share, and 4 of the 6 models we run sit above the £6.77 price.
Bear case: the Asset-Based group reads lowest at £2.59, and 2 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: £6.51 (bear) to £10.85 (bull), the price of £6.77 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 74/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Lancashire Holdings Ltd reported revenue of $2.1B in FY2025 versus $748M in FY2021, a compound +29.9%/yr. Reported net income was $300M in FY2025.
Key figures
Market cap £1.7B Mid · P/E ratio 6.9 · P/S ratio 0.97 · EPS (TTM) £0.9800 · Dividend yield 14.0% · Net margin 14.1% · Return on equity 21.7% · Return on assets (EBIT) 4.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 72 out of 100 (low confidence).
What moves the price
The share trades about 2% below its 52-week high and 29% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at 7% fair-value upside, at 28%, LRE screens cheaper than that median.
Fair Value models
Bear£6.51Fair Value £8.68Bull£10.85
Price £6.77 · Upside +28.2%
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 2025 figures (about 10 months old). Earnings retained since then (£0.0247 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.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+25.2%
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.
+39.5%
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.
+31.5%
Start year 2020 (pandemic). Over 10 years: +13.4% a year
Revenue growth 19 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.
+10.9%
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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.
+46.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+32.0%
Dividend (yield on the price)14.0%
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.32.0% vs 2.8%, picking up
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.1% → 15%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
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).
−23.7%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+0.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about −25.5% a year for the price and −2.2% for the forecasts.
Compare Lancashire Holdings 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.Insurance - Specialty · 26 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score74 · Top 25%
Fair Value upside+28.2% · Top 25%
Profitability
Return on equity (12 months)21.7% · Top 25%
Return on assets6.2% · Above median
Net margin (12 months)21.4% · Above median
Operating margin (12 months)22.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)−5.4% · Below median
Dividend yield (12 months)14.0% · Top 25%
Balance sheet
Debt / equity0.30× · Highest 25%
Valuation Multiplesvs Insurance - Specialty median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Lancashire Holdings Ltd (LRE) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of £8.68 versus a price of £6.77, about +28% upside (undervalued).
What is the fair value of LRE?
Our model-based fair value for Lancashire Holdings Ltd is £8.68 (as of Oct 22, 2026), built from audited fundamentals. The current price: £6.77.
What is the quality score of LRE?
Lancashire Holdings Ltd has a Quality Score of 74/100. 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 Lancashire Holdings Ltd (LRE)?
Our model-based price target is the fair value of £8.68 (as of Oct 22, 2026) from 6 valuation models. Cautious scenario £6.51, optimistic scenario £10.85. It is a calculation from audited fundamentals, not an analyst target.
What is the Lancashire Holdings Ltd stock forecast for 2026?
Our models put fair value at £8.68, about +28% upside versus a price of £6.77 (undervalued). Cautious scenario £6.51, optimistic scenario £10.85. The calculation is refreshed regularly with new filings.
What is the revenue of Lancashire Holdings Ltd (LRE)?
Lancashire Holdings Ltd reported trailing-twelve-month revenue of about £1.5B (latest available figure, as of Oct 22, 2026).
Does Lancashire Holdings Ltd pay a dividend?
Lancashire Holdings Ltd currently shows a dividend yield of 14.03% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Lancashire Holdings Ltd (LRE)?
For today's price to be fair in a discounted-cash-flow model, Lancashire Holdings Ltd would have to grow free cash flow by -23.7 % per year for five years (discount rate 9.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +31.5 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of LRE use?
Our models discount Lancashire Holdings Ltd at 9.0 %: a base by market capitalisation (mid), damped by beta 0.46, 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 Lancashire Holdings Ltd that is -23.7 % per year a year over ten years, using the same discount rate (9.0 %) and the same formula as our fair value.
How much growth has Lancashire Holdings Ltd (LRE) delivered so far?
Over the past 5 years revenue at Lancashire Holdings Ltd grew +31.5 % a year. The price currently implies -23.7 % 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 Lancashire Holdings Ltd (LRE) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Lancashire Holdings Ltd (-23.7 % 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 Lancashire Holdings Ltd (LRE)?
The free-cash-flow yield on the price is 27.37 %: that much free cash flow Lancashire Holdings Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Lancashire Holdings Ltd (LRE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Lancashire Holdings Ltd it is £8.68 per share (as of Oct 22, 2026), against a price of £6.77. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Lancashire Holdings Ltd stock overvalued or undervalued in 2026?
As of Oct 22, 2026, LRE trades below its calculated fair value: price £6.77, fair value £8.68, a gap of about +28% (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 LRE?
No. The price is what the market pays today (£6.77); the fair value is what the company's own numbers justify (£8.68). For Lancashire Holdings Ltd the two are £1.91 per share apart. That gap is exactly why we show both numbers side by side.
How much is Lancashire Holdings Ltd worth?
The market values Lancashire Holdings Ltd at about £1.7B (market capitalisation, as of Oct 22, 2026). Per share that is £6.77; our models calculate a fair value of £8.68 per share.
What do the bullish and bearish scenarios say about LRE?
Our models span a range for Lancashire Holdings Ltd: cautious scenario £6.51, base £8.68, optimistic £10.85 per share (as of Oct 22, 2026, price £6.77). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LRE?
Lancashire Holdings Ltd trades at a price-to-earnings ratio of 6.9 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £8.68 is built from several models across several years. Other multiples: P/B 1.5, P/S 1.5, EV/EBITDA 5.7.
How solid is the balance sheet of Lancashire Holdings Ltd (LRE)?
Balance-sheet figures for Lancashire Holdings Ltd (as of Oct 22, 2026): return on equity 21.7%, debt of 0.30 per unit of equity. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is LRE from its 52-week high?
Lancashire Holdings Ltd trades at £6.77, about 2% below its 52-week high of £6.92 and 29% above the low of £5.24 (as of Oct 26, 2026). Distance from the high says nothing about value: that is what the fair value of £8.68 is for.
Which stocks are comparable to Lancashire Holdings Ltd?
From the same area (Financial Services) we also value Fidelity National Financial, Inc, Medibank Private Limited, AXIS Capital Holdings, First American Financial Corporation, 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 Lancashire Holdings Ltd stock attractive at the current price?
The data as of Oct 22, 2026: price £6.77, calculated fair value £8.68 (+28%), Quality Score 74/100, from 6 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 LRE calculated?
We run Lancashire Holdings Ltd through 6 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 £8.68, 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 12.7 % above its aggregate fair value. Lancashire Holdings Ltd currently trades 22 % 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 Lancashire Holdings Ltd (LRE)?
The closing price on Oct 26, 2026 was £6.77. Our model-based fair value is £8.68, about +28% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Lancashire Holdings Ltd right now?
The rarer combination: high quality (74/100) AND below fair value. That earns a closer look rather than a quick verdict. 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 Lancashire Holdings Ltd (LRE) come from?
Earnings per share at Lancashire Holdings Ltd grew +3.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.3 %, EBIT margin −4.6 %, tax rate −0.8 %, residual (interest, one-offs) +0.0 %. 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 Lancashire Holdings Ltd
How large is the market capitalisation of Lancashire Holdings Ltd (LRE)?
The market capitalisation of Lancashire Holdings Ltd is £1.7B. 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 Lancashire Holdings Ltd (LRE)?
The price-to-sales ratio of Lancashire Holdings Ltd is 0.97 (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 Lancashire Holdings Ltd (LRE)?
Earnings per share at Lancashire Holdings Ltd are £0.9800 (price ÷ EPS = P/E 6.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Lancashire Holdings Ltd (LRE)?
The dividend yield of Lancashire Holdings Ltd is 14.0% (payout 96.9%). 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 Lancashire Holdings Ltd (LRE)?
The net margin of Lancashire Holdings Ltd is 14.1% (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 Lancashire Holdings Ltd (LRE)?
The return on equity (ROE) of Lancashire Holdings Ltd is 21.7% (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 Lancashire Holdings Ltd (LRE)?
On an EBIT basis the return on assets of Lancashire Holdings Ltd is 4.2% (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 Lancashire Holdings Ltd (LRE)?
The operating margin of Lancashire Holdings Ltd is 22.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Lancashire Holdings Ltd (LRE)?
Revenue at Lancashire Holdings Ltd is growing −5.4% versus a year earlier (3y avg +39.5%). 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 Lancashire Holdings Ltd (LRE)?
Earnings per share at Lancashire Holdings Ltd are growing +27.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Lancashire Holdings Ltd (LRE) hold?
Lancashire Holdings Ltd holds more cash than debt, £84.2M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Oct 22, 2026