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M&G plc (MNG) Fair Value & Analysis

Financial Services · GB · Market cap 8.4B GBX

MG M&G plc MNG · LSE
Price£3.54
Fair Value£1.84
Upside-48.0%
Quality62/100
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Mixed Growth
Thin margins · 4.1% net margin
High debt · generates free cash flow
5.84% dividend yield
Mixed vs. peers (6/14)
Moderate moat 52/100
Evidence: High Range £1.38 – £2.30 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Share price +5.2% over the past month.

A solid business, but screening 48% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (£2.30). The favourable scenario is already priced in.
  • Solid but not exceptional quality (62/100) 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)

£3.54 £1.12 Fair Value £1.84 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £1.12 – £3.54 · fair‑value band £1.38 – £2.30 · the £3.54 price screens above the £1.84 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

M&G plc (MNG) currently trades at £3.54, while our model-based Fair Value estimate is £1.84, implying the stock looks roughly 48.0% overvalued today. We read business quality at 62/100 (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, M&G plc generated revenue of £7.3B at a net margin of 4.1%. Revenue grew 37.0% year over year. It earns a return on equity of 9.7%. Net debt stands at £2.0B. Fundamentals as of Jul 18, 2026

Our scenario range runs from £1.38 (bear case) to £2.30 (bull case); at £3.54, 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 -51% fair-value upside, at -48%, MNG screens cheaper 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 £3.16 £6.63 £12.21 80
Residual Income £1.14 £1.25 £1.62 76
Rev-Margin DCF £5.01 £10.04 £20.51 74
All 26 models by family
DCF Models
FCF DCF £3.41 £5.61 £12.49 38
Owner Earnings £1.30 £3.70 £8.56 31
5Y Revenue Exit £4.45 £8.70 £17.64 39
5Y EBITDA Exit £5.02 £9.86 £19.36 41
5Y P/E Exit £1.89 £4.52 £8.01 38
10Y Revenue Exit £3.99 £10.70 £15.31 36
10Y EBITDA Exit £4.62 £11.90 £24.85 37
10Y P/E Exit £2.39 £5.32 £9.92 35
Earnings-Based
Graham-Dodd £0.8600 £6.01 £8.44 54
Lynch FV £3.11 £4.44 £5.77 50
PEG = 1.0 £3.11 £4.44 £5.77 46
EPV £1.82 £2.22 £2.56 59
Dividend Discount
Gordon GGM £1.78 £3.54 £5.36 70
DDM Multi-Stage £1.78 £3.06 £3.74 61
Multiples
P/E Multiple £1.90 £2.54 £3.17 63
P/S Multiple £1.62 £2.15 £2.69 58
P/B Multiple £1.62 £2.15 £2.69 55
EV/EBIT £6.75 £9.22 £11.69 53
EV/EBITDA £5.46 £7.51 £9.55 54
EV/Revenue £4.33 £6.47 £8.61 43
Asset-Based
NCAV (Graham) £0.6600 £0.8800 £1.32 50
Growth DCF
Growth DCF £3.16 £6.63 £12.21 80
Rev-Margin DCF £5.01 £10.04 £20.51 74
Economic Profit
Residual Income £1.14 £1.25 £1.62 76
ROIC Compounder £2.40 £3.62 £4.67 72
Growth Earnings
Growth-Adj P/E £4.00 £5.72 £7.43 68

Widest divergence: Growth DCF (£6.63) versus Asset-Based (£0.8800). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 7.3B GBX
Revenue growth (YoY) +37.0%
Net margin 4.1%
Return on equity 9.7%
Free cash flow 612M GBX FY2025
P/E ratio 26.4
More key figures
Operating margin 48.5%
EPS (TTM) £0.1200
Dividend yield 6.5%
EPS growth (YoY) +5.3%
Net debt 2.0B GBX FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 46 · Market factors (momentum, volatility) 80

Profitability 20
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 56
Earnings quality: real cash, not paper profit
Fin. Strength 9
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 95
Distance to the 52-week high (market factor)
Net Issuance 68
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

M&G plc, through its subsidiaries, provides investment and savings products to institutional clients and individual policyholders in the United Kingdom and internationally. The company operates through Asset Management and Life segments.

Full company description

M&G plc, through its subsidiaries, provides investment and savings products to institutional clients and individual policyholders in the United Kingdom and internationally. The company operates through Asset Management and Life segments. The Asset Management segment offers managed investment products, such as equities, fixed income, and multi-asset, as well as real estate investment products and services to wholesale clients and institutional investors. The Life segment provides corporate pension solutions, individual life and pensions, and international solutions and advice; and Prudential guaranteed income plan. This segment also offers level annuities, which provide a fixed annuity payment; fixed increase annuities, which incorporate a periodic automatic fixed increase in annuity payments; inflation-linked annuities, which incorporate a periodic increase based on a defined inflation index; and with-profits annuities, written in the with-profits fund, combining income features of annuity contracts with the investment-smoothing features of with-profits products. The company was formerly known as M&G Prudential PLC and changed its name to M&G plc in September 2019. M&G plc was founded in 1848 and is headquartered in London, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

M&G plc reported revenue of £21.7B in FY2025 versus £16.2B in FY2021, a compound +7.5%/yr. Reported net income was £302M in FY2025, compounding +38.1%/yr from FY2021.

Growth Quality 57/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£21.7B
Latest YoY
+92.6%
Avg. growth/yr (5Y)
+6.6%
Avg. growth/yr (9Y)
−2.6%
Revenue +7.5%/yr
FY21 £16.2B
FY22 −£7.9B
FY23 £10.7B
FY24 £11.3B
FY25 £21.7B
Net income +38.1%/yr
FY21 £83.0M
FY22 −£1.6B
FY23 £297M
FY24 −£360M
FY25 £302M

MNG screens 48% overvalued. Compare with Fondul Proprietatea SA →

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Cite: Fair Value Calculator (2026). "M&G plc Fair Value". https://www.fairvalue-calculator.com/stock/MNG

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Asset Management · 963 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 63 · Above median
Fair Value upside −48% · Below median
Return on equity (TTM) 10% · Above median
Return on assets 1% · Below median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 48% · Below median
Revenue growth 37% · Above median
Dividend yield (TTM) 5.8% · Above median
Debt / equity 2.08× · Higher than 75% of peers

Valuation Multiples vs Asset Management median · lower = cheaper

P/E (TTM) 29.3× · Pricier than 75% of peers
P/B 3.59× · Pricier than 75% of peers
P/S (TTM) 1.53× · Cheaper than 75% of peers
P/FCF 18.4× · Pricier than median
EV/EBITDA 4.8× · 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 37
FUTURE 100 · sector 6
PAST 39 · sector 26
HEALTH 0 · sector 95
DIVIDEND 100 · sector 70

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

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 Asset Management stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Fondul Proprietatea SA FP $0.0420 $0.0800 +90%
BlackRock, Inc BLK $1,036 $504.81 -51%
Blackstone Inc BX $124.56 $16.35 -87%
Investor AB INVEB kr 394.40 kr 788.80 +100%
Brookfield Corporation BN C$62.45 C$10.12 -84%
KKR & Co KKR $100.94 $44.88 -56%
AB Industrivärden INDUA kr 532.50 kr 1,065 +100%
Jio Financial Services Limited JIOFIN ₹242.98 ₹40.19 -83%
Bajaj Holdings BAJAJHLDNG ₹10,398 ₹9,202 -12%
HDFC Asset Management Company HDFCAMC ₹2,729 ₹301.41 -89%

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Frequently asked questions

Is M&G plc (MNG) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £1.84 versus a price of £3.54, about −48% (overvalued).
What is the fair value of MNG?
Our model-based fair value for M&G plc is £1.84 (as of Jul 18, 2026), built from audited fundamentals. The current price is £3.54.
What is the quality score of MNG?
M&G plc has a Quality Score of 62/100. 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 M&G plc (MNG)?
M&G plc reported trailing-twelve-month revenue of about £7.3B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of MNG?
The net profit margin of M&G plc is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does M&G plc pay a dividend?
M&G plc currently shows a dividend yield of about 6.52% relative to its recent price (as of Jul 18, 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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