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Shawbrook Group (SHAW) Fair Value & Analysis

Financial Services · GB · Market cap 1.8B GBX

SG Shawbrook Group SHAW · LSE
Price£3.45
Fair Value£6.40
Upside+85.5%
Quality41/100
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Healthy Growth
Highly profitable · 32.3% net margin
generates free cash flow
Mixed vs. peers (6/12)
Wide moat 68/100
Evidence: High Range £4.80 – £7.99 Share as image

Fair value as of: Jul 11, 2026

From 6 valuation models · updated 30 days ago

Share price −0.7% over the past month.

Below-average quality, screening 86% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (£4.80). The market is more pessimistic than our downside scenario.
  • 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 (9 months)

£5.21 £3.03 Fair Value £6.40 Oct 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Jul 11, 2026.

How to read this chart

9‑month range £3.03 – £5.21 · fair‑value band £4.80 – £7.99 · the £3.45 price screens below the £6.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Jul 11, 2026.

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Analysis

Shawbrook Group (SHAW) currently trades at £3.45, while our model-based Fair Value estimate is £6.40, implying the stock looks roughly 85.5% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Shawbrook Group generated revenue of £605M at a net margin of 32.3%. Revenue declined 0.1% year over year. It earns a return on equity of 11.4%. Net debt stands at £238M. Fundamentals as of Jul 11, 2026

Our scenario range runs from £4.80 (bear case) to £7.99 (bull case); at £3.45, the current price sits below 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 42% fair-value upside, at 86%, SHAW 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
Residual Income £2.96 £3.24 £4.50 76
Gordon GGM £0.1000 £0.1800 £0.2500 70
P/E Multiple £4.80 £6.40 £7.99 63
All 6 models by family
Dividend Discount
Gordon GGM £0.1000 £0.1800 £0.2500 70
DDM Multi-Stage £0.1000 £0.1700 £0.2000 61
Multiples
P/E Multiple £4.80 £6.40 £7.99 63
P/B Multiple £4.80 £6.40 £7.99 55
Asset-Based
NCAV (Graham) £1.77 £2.38 £3.55 50
Economic Profit
Residual Income £2.96 £3.24 £4.50 76

Widest divergence: Multiples (£6.40) versus Dividend Discount (£0.1700). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 605M GBX
Revenue growth (YoY) -0.1%
Net margin 32.3%
Return on equity 11.4%
Free cash flow 1.0B GBX FY2025
P/E ratio 8.7
More key figures
Operating margin 36.5%
EPS (TTM) £0.3500
EPS growth (YoY) -73.7%
Net debt 238M GBX FY2025

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 44 · Market factors (momentum, volatility) 27

Profitability 35
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 37
Disciplined investing over empire-building
Low Volatility 35
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 0
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

Shawbrook Group PLC, through its subsidiary, Shawbrook Bank Limited, provides lending and savings products and services to private and business customers in the United Kingdom.

Full company description

Shawbrook Group PLC, through its subsidiary, Shawbrook Bank Limited, provides lending and savings products and services to private and business customers in the United Kingdom. It offers personal and business savings; personal, wedding, home improvement, car, debt consolidation, and point of sale loans; and asset, structured, leveraged, fund, platform, revolving credit, point of sale, and other finances, as well as corporate lending. The company also provides buy-to-let mortgages, commercial mortgages, development finance, and bridging finance services. Shawbrook Group PLC was incorporated in 2010 and is based in Brentwood, United Kingdom. Shawbrook Group PLC was formerly a subsidiary of Marlin Bidco Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shawbrook Group reported revenue of £688M in FY2025 versus £466M in FY2021, a compound +10.2%/yr. Reported net income was £196M in FY2025, compounding +7.0%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£688M
Avg. growth/yr (3Y)
+45.2%
Avg. growth/yr (5Y)
+27.4%
Avg. growth/yr (12Y)
+29.5%
Revenue +10.2%/yr
FY21 £466M
FY22 £659M
FY23 £1.2B
FY24 £1.4B
FY25 £688M
Net income +7.0%/yr
FY21 £149M
FY22 £175M
FY23 £212M
FY24 £220M
FY25 £196M

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Cite: Fair Value Calculator (2026). "Shawbrook Group Fair Value". https://www.fairvalue-calculator.com/stock/SHAW

Peer Group

Banks - Regional · 1083 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 41 · Bottom 25%
Fair Value upside +86% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 1% · Below median
Net margin (TTM) 32% · Above median
Operating margin (TTM) 36% · Below median
Revenue growth -0% · Bottom 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 9.9× · Cheaper than median
P/B 1.31× · Pricier than median
P/S (TTM) 4.00× · Pricier than median
P/FCF 2.3× · Cheaper than median
EV/EBITDA 1.7× · 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 100 · sector 39
FUTURE 0 · sector 44
PAST 46 · sector 41
HEALTH 0 · sector 85
DIVIDEND 0 · sector 49

Insider activity: 35/100

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 Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Shawbrook Group (SHAW) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of £6.40 versus a price of £3.45, about +86% (undervalued).
What is the fair value of SHAW?
Our model-based fair value for Shawbrook Group is £6.40 (as of Jul 11, 2026), built from audited fundamentals. The current price is £3.45.
What is the quality score of SHAW?
Shawbrook Group has a Quality Score of 41/100. 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 revenue of Shawbrook Group (SHAW)?
Shawbrook Group reported trailing-twelve-month revenue of about £605M (latest available figure, as of Jul 11, 2026).
What is the net profit margin of SHAW?
The net profit margin of Shawbrook Group is about 32.3%, meaning it keeps roughly 32.3% of revenue as net income. Based on the latest reported figures.

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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