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London Stock Exchange Group (LSEG) Fair Value & Analysis

Financial Services · GB · Market cap 44.0B GBX

LS London Stock Exchange Group LSEG · LSE
Price£90.94
Fair Value£35.54
Upside-60.9%
Quality60/100
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Healthy Growth
Solidly profitable · 13.4% net margin
Low debt · generates free cash flow
1.65% dividend yield
Trails peers (4/15)
Moderate moat 59/100
Evidence: High Range £33.65 – £41.68 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 22 days ago

Share price −3.1% over the past month.

A solid business, but screening 61% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (£41.68). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£122.70 £62.13 Fair Value £35.54 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range £62.13 – £122.70 · fair‑value band £33.65 – £41.68 · the £90.94 price screens above the £35.54 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

London Stock Exchange Group (LSEG) currently trades at £90.94, while our model-based Fair Value estimate is £35.54, implying the stock looks roughly 60.9% overvalued today. We read business quality at 60/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, London Stock Exchange Group generated revenue of £9.3B at a net margin of 13.4%. Revenue grew 4.6% year over year. It earns a return on equity of 6.4%. Net debt stands at £7.8B. Fundamentals as of Jul 17, 2026

Our scenario range runs from £33.65 (bear case) to £41.68 (bull case); at £90.94, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at -53% fair-value upside, at -61%, LSEG screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF £95.25 £203.45 £398.98 80
Residual Income £32.51 £33.91 £35.08 76
Rev-Margin DCF £47.63 £86.77 £142.90 74
All 26 models by family
DCF Models
FCF DCF £99.09 £182.16 £402.99 38
Owner Earnings £94.58 £212.30 £448.11 31
5Y Revenue Exit £47.63 £85.67 £142.84 39
5Y EBITDA Exit £83.20 £165.15 £284.44 41
5Y P/E Exit £49.42 £91.66 £142.46 38
10Y Revenue Exit £61.66 £108.48 £173.47 36
10Y EBITDA Exit £87.61 £171.91 £316.46 37
10Y P/E Exit £64.20 £111.66 £184.57 35
Earnings-Based
Graham-Dodd £17.44 £111.16 £155.38 54
Lynch FV £32.16 £45.94 £59.72 50
PEG = 1.0 £32.16 £45.94 £59.72 46
EPV £25.18 £30.72 £35.57 59
Dividend Discount
Gordon GGM £13.54 £28.15 £44.66 70
DDM Multi-Stage £13.54 £23.74 £29.55 61
Multiples
P/E Multiple £38.48 £51.30 £64.13 63
P/S Multiple £32.71 £43.61 £54.51 58
P/B Multiple £32.71 £43.61 £54.51 55
EV/EBIT £51.90 £71.90 £91.90 53
EV/EBITDA £79.81 £109.11 £138.41 54
EV/Revenue £25.38 £39.72 £54.07 43
Asset-Based
NCAV (Graham) £20.31 £27.22 £40.62 50
Growth DCF
Growth DCF £95.25 £203.45 £398.98 80
Rev-Margin DCF £47.63 £86.77 £142.90 74
Economic Profit
Residual Income £32.51 £33.91 £35.08 76
ROIC Compounder £25.18 £30.72 £35.57 72
Growth Earnings
Growth-Adj P/E £44.59 £63.71 £82.82 68

Widest divergence: DCF Models (£111.66) versus Dividend Discount (£23.74). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 9.3B GBX
Revenue growth (YoY) +4.6%
Net margin 13.4%
Return on equity 6.4%
Free cash flow 3.5B GBX FY2025
P/E ratio 38.1
More key figures
Operating margin 24.9%
EPS (TTM) £2.37
Dividend yield 1.7%
EPS growth (YoY) +80.4%
Net debt 7.8B GBX FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 55 · Market factors (momentum, volatility) 50

Profitability 23
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 2
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 40
Distance to the 52-week high (market factor)
Net Issuance 98
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

London Stock Exchange Group plc provides financial markets infrastructure and data products in the United Kingdom, the United States, Europe, Asia, and internationally. The company operates through four segments: Data & Analytics, FTSE Russell, Risk Intelligence, and Markets.

Full company description

London Stock Exchange Group plc provides financial markets infrastructure and data products in the United Kingdom, the United States, Europe, Asia, and internationally. The company operates through four segments: Data & Analytics, FTSE Russell, Risk Intelligence, and Markets. It offers data, analytics, and AI tools through an open and interoperable architecture; real-time data and news, text, reference, and legal entity information; and cross-asset models and analytics solutions, such as Yield Book fixed income, Lipper fund performance, private credit analytics, and StarMine sentiment analysis. The company also provides index and benchmark solutions; risk intelligence solutions to meet Know Your Customer and Know Your Third Party obligations, perform due diligence, and mitigate identity and payment fraud risks; World-Check Verify, a cloud-native screening API; and World-Check On Demand for continuously updated sanctions, politically exposed persons, adverse media, and enforcement data. In addition, it offers access to various liquidity pools in multiple asset classes comprising equities, fixed income, exchange-traded funds and products, and foreign exchange; capital formation and execution venues consisting of London Stock Exchange, AIM, Turquoise, FXall, FX Matching, and Tradeweb; and clearing and capital optimization solutions for interest rate swap, foreign exchange, and credit default swap OTC derivatives. Further, the company provides securities clearing, capital optimization, and regulatory reporting solutions; software licenses; network connections; hosting services; clearing, settlement, and other post trade services; and events and media services. London Stock Exchange Group plc was founded in 1698 and is based in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

London Stock Exchange Group reported revenue of £9.3B in FY2025 versus £6.5B in FY2021, a compound +9.3%/yr. Reported net income was £1.2B in FY2025, compounding +28.3%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£9.3B
Latest YoY
+5.1%
Avg. growth/yr (3Y)
+6.3%
Avg. growth/yr (5Y)
+35.6%
Avg. growth/yr (26Y)
+17.1%
Revenue +9.3%/yr
FY21 £6.5B
FY22 £7.7B
FY23 £8.4B
FY24 £8.9B
FY25 £9.3B
Net income +28.3%/yr
FY21 £461M
FY22 £790M
FY23 £761M
FY24 £685M
FY25 £1.2B

LSEG screens 61% overvalued. Compare with S&P Global Inc →

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Cite: Fair Value Calculator (2026). "London Stock Exchange Group Fair Value". https://www.fairvalue-calculator.com/stock/LSEG

Peer Group

Financial Data & Stock Exchanges · 55 stocks

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.

Quality Score 58 · Bottom 25%
Fair Value upside −61% · Bottom 25%
Return on equity (TTM) 6% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 13% · Bottom 25%
Operating margin (TTM) 25% · Below median
Revenue growth 5% · Bottom 25%
Dividend yield (TTM) 1.7% · Above median
Debt / equity 0.40× · Higher than median

Valuation Multiples vs Financial Data & Stock Exchanges median · lower = cheaper

P/E (TTM) 38.1× · Pricier than 75% of peers
P/B 2.99× · Cheaper than median
P/S (TTM) 6.33× · Cheaper than median
P/FCF 16.9× · Pricier than median
EV/EBITDA 18.7× · Pricier than median
PEG 0.87× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 23 · sector 69
PAST 25 · sector 77
HEALTH 80 · sector 95
DIVIDEND 33 · sector 32

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Financial Data & Stock Exchanges stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
S&P Global Inc SPGI $450.84 $196.36 -56%
CME Group CME $245.05 $145.51 -41%
Moody's Corporation MCO $504.46 $194.82 -61%
Intercontinental Exchange, Inc ICE $139.65 $75.95 -46%
Deutsche Börse AG DB1 €260.90 €142.42 -45%
Nasdaq, Inc NDAQ $88.08 $41.12 -53%
MSCI Inc MSCI $604.71 $214.91 -64%
Coinbase Global, Inc COIN $160.49 $57.05 -64%
Cboe Global Markets, Inc CBOE $273.41 $136.64 -50%
Hithink RoyalFlush Information Network Co 300033 ¥215.56 ¥55.36 -74%

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Frequently asked questions

Is London Stock Exchange Group (LSEG) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of £35.54 versus a price of £90.94, about −61% (overvalued).
What is the fair value of LSEG?
Our model-based fair value for London Stock Exchange Group is £35.54 (as of Jul 17, 2026), built from audited fundamentals. The current price is £90.94.
What is the quality score of LSEG?
London Stock Exchange Group has a Quality Score of 60/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of London Stock Exchange Group (LSEG)?
London Stock Exchange Group reported trailing-twelve-month revenue of about £9.3B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of LSEG?
The net profit margin of London Stock Exchange Group is about 13.4%, meaning it keeps roughly 13.4% of revenue as net income. Based on the latest reported figures.
Does London Stock Exchange Group pay a dividend?
London Stock Exchange Group currently shows a dividend yield of about 1.63% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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