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London Stock Exchange Group PLC LSEG

Morningstar Rating
GBX 9,176.00 +76.00 (0.84%)
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Company Report

LSEG Posts 2021 Ahead of Our Expectations; Trading and Banking Progress Continues; FVE Increased

The London Stock Exchange Group, or LSEG, has doubled down on its market data and analytics strategy. After the Refinitiv acquisition, the new group is now vertically integrated from pretrading data and analytics over trading venues down to post-trade clearing and reporting, albeit dominated by its data business. Importantly, its assets form a strong symbiotic relationship wherein intellectual property generated within one strengthens the offering of the other, inducing demand for the group’s services.

Price vs Fair Value

LSEG is trading at a 7% discount.
Price
GBX 9,100.00
Fair Value
GBX 9,243.00
Uncertainty
Medium
1-Star Price
GBX 11,427.00
5-Star Price
GBX 6,956.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

LSEG is a fully integrated financial exchange with core assets along the financial markets value chain.

Bears

Wide margins and opaque pricing practices by index providers could intensify regulatory oversight in future.

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News

Trading Information

Previous Close Price
GBX 9,100.00
Day Range
GBX 9,172.009,240.00
52-Week Range
GBX 7,784.009,696.00
Bid/Ask
GBX 9,174.00 / GBX 9,178.00
Market Cap
GBX 4.92 Tril
Volume/Avg
62,907 / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
27.18
Price/Sales
5.91
Dividend Yield (Trailing)
1.27%
Dividend Yield (Forward)
1.27%
Total Yield
3.82%

Company Profile

London Stock Exchange Group is a fully integrated financial exchange company covering the financial market value chain from primary and secondary markets across multiple asset classes over data, index and analytics down to clearing and post-trading reporting. With the acquisition of Refinitiv, LSEG generates about two thirds of its revenue from data and analytics including its FTSE Russell and WM/Refinitiv benchmarks as well as data feeds and terminals. The group is also a majority shareholder in Tradeweb, one of the dominant global fixed income trading venues, as well as LCH, the largest clearing house for over-the-counter swaps globally.
Sector
Financial Services
Industry
Financial Data & Stock Exchanges
Stock Style Box
Large Growth
Total Number of Employees
26,230

Competitors

Valuation

Metric
LSEG
ICE
MSCI
Price/Earnings (Normalized)
27.1823.3837.70
Price/Book Value
2.042.93
Price/Sales
5.917.5116.10
Price/Cash Flow
14.9918.9333.01
Price/Earnings
LSEG
ICE
MSCI

Financial Strength

Metric
LSEG
ICE
MSCI
Quick Ratio
0.010.050.86
Current Ratio
1.001.000.93
Interest Coverage
4.704.198.15
Quick Ratio
LSEG
ICE
MSCI

Profitability

Metric
LSEG
ICE
MSCI
Return on Assets (Normalized)
0.25%2.10%21.42%
Return on Equity (Normalized)
8.34%13.14%
Return on Invested Capital (Normalized)
6.01%8.05%33.00%
Return on Assets
LSEG
ICE
MSCI
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Financial Data & Stock Exchanges Industry Comparables

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Capital Allocation
Economic Moat
Market Cap
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MCO
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LNSTY
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LDNXF
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COIN
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MSCI
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NDAQ
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FDS
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