Legal & General Group (LSE:LGEN) is reshaping its leadership bench by appointing Ludovic Le Du as Global Head of ETF and Index Distribution and Pauline Plunkett as Managing Director for Europe.
Recent leadership moves come at a time when Legal & General Group’s share price has a year-to-date return of 10.82% and a 1-year total shareholder return of 32.14%, while the 90-day share price return has slipped 0.62%.
Spot fresh leadership stories at work by comparing Legal & General Group with a hand picked 5 high quality undiscovered gems that are quietly building scale in asset management and financial services.
Bulls point to Legal & General Group’s asset management scale and fresh ETF leadership. Bears flag the 90 day share price slip and modest revenue contraction. Which story fits the current valuation better?
Most Popular Narrative: 6% Overvalued
Against a last close of £2.91, the most followed fair value estimate for Legal & General Group sits at £2.74, which implies a small premium baked into the price and puts extra weight on how well management executes its current playbook.
The accelerating growth of defined contribution pension systems and workplace pension assets is expanding the addressable market for both retail and institutional asset management, as demonstrated by 21% net flow growth in workplace DC, positioning the company for sustained AUM increases and higher recurring fee income.
See why 250 investors see Legal & General Group as 6% overvalued.
Result: Fair Value of £2.74 (OVERVALUED)
Still, the story can change fast if bulk annuity competition squeezes Legal & General Group’s new business margins or if UK pension de risking volumes stay soft.
Find out about the key risks to this Legal & General Group narrative.
Another View: Legal & General Group Through Cash Flows
That 6% premium to the £2.74 fair value is one story. A very different one comes from the SWS DCF model, which puts Legal & General Group’s future cash flow value near £5.52, suggesting the current £2.91 price screens as heavily undervalued. Which version of “fair” do you trust more?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Legal & General Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 7 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed signals on Legal & General Group so far, right? Act while sentiment is still split and examine both sides of the story with 2 key rewards and 2 important warning signs
Looking for more investment ideas beyond Legal & General Group?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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