Legal & General Group Plc
Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates through Institutional Retirement, Asset Management, Insurance, and Retail Retirement segments. The Institutional Retirement segment offers annuity co…
Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates through Institutional Retirement, Asset Management, Insurance, and Retail Retirement segments. The Institutional Retirement segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products; and writes assured payment policies (APP). The Asset Management segment provides unit linked institutional pensions, segregated investment management mandates, and collective investment schemes; index fund management; pooled and segregated active fixed income funds; active equity management; solutions for cash management requirements for institutional investors; solutions and liability driven investment; multi-asset funds; private markets strategies for physical real estate, private corporate debts, infrastructure debts, and real estate loans; and direct investment services. The Retail Retirement segment offers protection products, such as health, disability, critical illness, and accident; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace and retail savings scheme that provides corporate pension scheme solutions. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Other models: GBP 0.87–9.21 (median 1.17). The recommended value is 150% above that median, so treat the upside with extra caution.
Why: Banks, insurers and other financials are valued on the dividends they pay, not on free cash flow.
Details and the full model are below.
Market price within modeled range
Uses reported dividends of GBP 0.2052 per share from Fiscal year 2025, with 2.4% perpetual growth (base growth capped at the terminal rate) and 9.6% discount rates. The range varies growth and discount assumptions by 1 percentage point; it is illustrative, not a statistical confidence interval or investment advice.
Assumptions: growth 5.48%, discount rate 9.60%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 5.5% (sector default 5.4%, own revenue history 5.6%).
Adjust assumptions
Why this model: Banks, insurers and other financials are valued on the dividends they pay, not on free cash flow.
Compare models- Recommended: Dividend discount model — GBP 2.92 (-4.0%)
-
EPS-based Gordon proxy
— GBP 1.17 (-61.7%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
-
DCF (trailing free cash flow)
— GBP 10.68 (+251.2%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
-
FCFF (steady state)
— GBP 9.21 (+202.9%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
-
EV/EBITDA (12x)
— GBP 0.87 (-71.5%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
-
Fade DCF (10-year growth fade)
— GBP 10.62 (+249.4%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
-
EV/Sales (Rule of 40)
— GBP 6.66 (+119.0%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 2.26 | -34.4% |
| Base GBP 2.92 | -4.2% |
| Bull GBP 4.08 | 25.5% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 3.04 the market implies perpetual dividend growth of about this rate (discount rate 9.6%).
Compare: the market implies 2.7% a year, this model assumes 2.4%. The market expects more than this model does, which is why it reads as overvalued.
How the Dividend discount model value changes with growth (rows) and discount rate (columns). Green cells are above the current price. Dividend growth cannot exceed the long-run rate, so duplicate capped scenarios are omitted.
| Growth \ Discount | 7.6% | 8.6% | 9.6% | 10.6% | 11.6% |
|---|---|---|---|---|---|
| -1.6% | 2.19 | 1.98 | 1.80 | 1.66 | 1.53 |
| 0.4% | 2.86 | 2.51 | 2.24 | 2.02 | 1.84 |
| 2.4% | 4.04 | 3.39 | 2.92 | 2.56 | 2.28 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 48 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 2 of 5 years | 8 / 20 |
| Growth | revenue +5.6% a year | 20 / 20 |
| Balance sheet | net debt 7.2x EBITDA | 0 / 20 |
| Margins | EBITDA margin 5% | 0 / 20 |
Peers in Financials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| LGEN.L (this company) | GBP 3.04 | -4.2% | 37.1 | 8.1 | 6.7% | 48 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.44 | 68.5% | 3.7 | 0.6 | 1.3% | 76 |
| LRE.L Lancashire Holdings Limited | GBP 6.88 | 45.6% | 7.1 | 1.6 | 3.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.73 | 36.6% | 6.7 | 0.7 | 7.0% | 78 |
| V Visa Inc. | USD 414.00 | 34.6% | 8.7 | – | 0.2% | 100 |
| PRU.L Prudential plc | GBP 9.24 | 34.2% | 8.0 | 1.6 | 1.9% | 78 |
| AGS.BR ageas SA/NV | EUR 76.95 | 33.0% | 8.1 | 1.5 | 5.0% | 76 |
| NWG.L NatWest Group plc | GBP 5.86 | 30.3% | 8.2 | 1.3 | 5.0% | 88 |
| ACGL Arch Capital Group | USD 108.49 | 30.3% | 8.5 | 1.6 | 0.1% | 100 |
| Peer median | 8.1 | 1.5 | ||||
Dividends
Paid in the last 12 months: GBP 0.00 per share · yield 0.07% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.002 |
| 2025 | 0.002 |
| 2024 | 0.002 |
| 2023 | 0.002 |
| 2022 | 0.002 |
| 2021 | 0.002 |
Annual financial statement
Saved annual report · Fiscal year 2025 · EODHD annual statements · period ended 31 Dec 2025
| Revenue | GBP 24,047,000,000 |
|---|---|
| EBITDA | GBP 1,106,000,000 |
| EBIT | GBP 972,000,000 |
| Net income | GBP 498,000,000 |
| Free cash flow | GBP 4,497,000,000 |
| Capital expenditures | GBP 51,000,000 |
| Debt | GBP 25,114,000,000 |
| Cash | GBP 17,098,000,000 |
| Working capital | GBP 25,499,000,000 |
| Shares outstanding | 6,076,000,000 |
| Reported dividends per share | GBP 0.2052 |