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Paragon Banking Group (PAG) Fair Value & Analysis

Financial Services · GB · Market cap 1.3B GBX

PB Paragon Banking Group PAG · LSE
Price£7.92
Fair Value£7.59
Upside-4.2%
Quality95/100
Evidence: High Range £7.59 – £13.35

Fair value as of: Jun 26, 2026

From 26 valuation models · updated 3 days ago

Share price −0.5% over the past month.

Price vs Fair Value (12 months)

£9.74 £7.39 Fair Value £7.59 Jun 2025 Jun 2026

12‑month range £7.39 – £9.74 · fair‑value band £7.59 – £13.35 · the £7.92 price screens above the £7.59 fair value. As of Jun 26, 2026.

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Analysis

Paragon Banking Group (PAG) currently trades at £7.92, while our model-based Fair Value estimate is £7.59 — implying the stock looks roughly 4.2% overvalued today. We read business quality at 95/100 (high 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, Paragon Banking Group generated revenue of £506M at a net margin of 35.7%. Revenue grew 2.9% year over year. It earns a return on equity of 12.7%. Net debt stands at £1.7B. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 506M GBX
Revenue growth (YoY) +2.9%
Net margin 35.7%
Return on equity 12.7%
Free cash flow 328M GBX FY2025
P/E ratio 8.3
More key figures
Operating margin 49.1%
EPS (TTM) £0.8800
Dividend yield 6.0%
EPS growth (YoY) -17.4%
Net debt 1.7B GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

Paragon Banking Group PLC provides financial products and services in the United Kingdom. It operates in two segments, Mortgage Lending and Commercial Lending. The Mortgage Lending segment offers buy-to-let mortgages, and owner-occupied first and second charge lending. The Commercial Lending segment comprises equipment leasing, development finance, structured lending, and other offerings for SME customers, as well as motor finance business. This segment also provides hire purchase, business loans, and operating and finance leasing. In addition, it offers a range of savings products; and deposits taking, residential mortgages, loan and vehicle finance, surveyors and property consulting, contract hire, asset administration, asset and development finance, consumer loan finance, and asset investment services, as well as acts as an asset finance broker. The company was formerly known as The Paragon Group of Companies PLC and changed its name to Paragon Banking Group PLC in September 2017…

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Paragon Banking Group reported revenue of £1.2B in FY2025 versus £355M in FY2021, a compound +36.8%/yr. Reported net income was £180M in FY2025, compounding +2.3%/yr from FY2021.

Revenue +36.8%/yr
FY21 £355M
FY22 £779M
FY23 £455M
FY24 £501M
FY25 £1.2B
Net income +2.3%/yr
FY21 £165M
FY22 £314M
FY23 £154M
FY24 £186M
FY25 £180M

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Frequently asked questions

Is Paragon Banking Group (PAG) undervalued?
As of Jun 26, 2026, our model estimates a fair value of £7.59 versus a price of £7.92 — about −4% (overvalued). Model-based estimate, not financial advice.
What is the fair value of PAG?
Our 21-model fair value for Paragon Banking Group is £7.59 (as of Jun 26, 2026), built from audited fundamentals. The current price is £7.92.
What is the quality score of PAG?
Paragon Banking Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Paragon Banking Group (PAG)?
Paragon Banking Group reported trailing-twelve-month revenue of about £506M (latest available figure, as of Jun 26, 2026).
What is the net profit margin of PAG?
The net profit margin of Paragon Banking Group is about 35.7%, meaning it keeps roughly 35.7% of revenue as net income. Based on the latest reported figures.
Does Paragon Banking Group pay a dividend?
Paragon Banking Group currently shows a dividend yield of about 5.95% relative to its recent price (as of Jun 26, 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.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.