Forecast

Financial forecast

Project revenue, EBITDA, net income and free cash flow for the next 5 or 10 years. Growth starts at the same rate the valuation uses and fades to the long-run rate, with margins held at today's level. Bear and bull cases move growth by the company's own revenue volatility. It is a model of what the assumptions imply, not a prediction.

Legal & General Group Plc (LGEN.L)

Price updated 06 Nov 2026 14:48; Fiscal year 2025; Annual financials downloaded 06 Nov 2026 16:18.

Starts from Fiscal year 2025 financials in GBP and a share price of GBP 3.04. Growth begins at 5.5% a year (the valuation's blended assumption) and fades to 2.4% by year 10. Margins held at EBITDA 4.6%, net 2.1%, free cash flow 18.7% of revenue. Bear and bull move starting growth by 6.0 points and long-run growth by 1 point.

Free cash flow is more than twice net income, which is often a one-off (working capital or timing). Lean on the net income line.
For banks, insurers and holding companies, revenue and cash flow mix in interest and investment flows. Read net income rather than free cash flow.
GBP 2.92Model fair value (Dividend discount model); range GBP 2.26 to GBP 4.08
-4%Fair value vs today's price
LowModel confidence
25%Share of the gap to fair value the price closes by year 5

Confidence: Earnings-based DCF disagrees strongly; annual data only; value is more than 1.5x the Earnings-based DCF value.

6.1%/yrModel-implied annual total return over 10 years, base case (price plus dividends). Raw model level; the screener shows a calibrated ranking instead
GBP 35.37BRevenue in year 10 (base)
GBP 732.59MNet income in year 10 (base)
GBP 6.62BFree cash flow in year 10 (base)
GBP 0.12Dividend per share in year 10 (base)
GBP 4.43Implied share price in year 10 (base), today GBP 3.04
35.8%Year-10 free cash flow per share vs today's price

Dividend per share over time

GBP 0.00 GBP 0.05 GBP 0.10 GBP 0.16 GBP 0.21 FY2020 FY2022 FY2024 Fiscal year 2025 +1 +3 +5 +7 +9 +10
Solid: reported Dashed: base projection Shaded: bear to bull range
Dividend per share in year 10 by scenario
CaseStarting growthYear 10Annual growth
Bear -0.5% GBP 0.09 -8.4%
Base 5.5% GBP 0.12 -5.2%
Bull 11.5% GBP 0.17 -2.0%

Base case by year

YearGrowthRevenueEBITDANet incomeFree cash flowEPSFCF / shareDividend / shareBook / shareImplied price
Fiscal year 2025– GBP 24.05BGBP 1.11BGBP 498.00MGBP 4.50B 0.080.740.210.383.04
Year 15.5% GBP 25.36BGBP 1.17BGBP 525.29MGBP 4.74B 0.090.780.090.383.20
Year 25.1% GBP 26.67BGBP 1.23BGBP 552.28MGBP 4.99B 0.090.820.090.383.36
Year 34.8% GBP 27.95BGBP 1.29BGBP 578.76MGBP 5.23B 0.100.860.100.383.51
Year 44.5% GBP 29.19BGBP 1.34BGBP 604.54MGBP 5.46B 0.100.900.100.383.66
Year 54.1% GBP 30.39BGBP 1.40BGBP 629.39MGBP 5.68B 0.100.940.100.383.80
Year 63.8% GBP 31.54BGBP 1.45BGBP 653.11MGBP 5.90B 0.110.970.110.383.95
Year 73.4% GBP 32.62BGBP 1.50BGBP 675.49MGBP 6.10B 0.111.000.110.384.08
Year 83.1% GBP 33.62BGBP 1.55BGBP 696.33MGBP 6.29B 0.111.030.110.384.21
Year 92.7% GBP 34.55BGBP 1.59BGBP 715.42MGBP 6.46B 0.121.060.120.384.32
Year 102.4% GBP 35.37BGBP 1.63BGBP 732.59MGBP 6.62B 0.121.090.120.384.43

EPS and free cash flow per share assume today's share count. Dividends assume today's payout ratio and book value grows with retained earnings. The implied share price follows the valuation models and is not a price target; override growth settings do not change the model fair value. Margins stay at today's level except where the notes say they drift toward their average, so it does not model margin expansion, buybacks, acquisitions or recessions. It is for information and education only and is not investment advice. See the methodology for how the growth rate is blended.