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London Stock Exchange Group PLC LSEG

Morningstar Rating
GBX 9,122.00 +76.00 (0.84%)
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Company Report

London Stock Exchange Group: Income Meets Expectations; First Microsoft Products in First-Half 2024

We maintain our GBX 9,800 per share fair value estimate for London Stock Exchange Group after its first-quarter trading update release, which was in line with expectations. Total income of GBP 2.182 billion in the quarter matched consensus estimates collected by the exchange group prior to the release exactly. On a constant currency basis, income growth of 7% was good, supported by a strong quarter for Tradeweb, strong inflows into FTSE Russell-related products, and a good performance in OTC derivatives clearing. Our wide economic moat rating for London Stock Exchange Group is unchanged.

Price vs Fair Value

LSEG is trading at a 33% premium.
Price
GBX 9,046.00
Fair Value
GBX 2,379.00
Uncertainty
Medium
1-Star Price
GBX 94,781.00
5-Star Price
GBX 7,332.00
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 9,046.00
Day Range
GBX 9,012.009,124.00
52-Week Range
GBX 7,784.009,696.00
Bid/Ask
GBX 9,122.00 / GBX 9,124.00
Market Cap
GBX 4.83 Tril
Volume/Avg
171,634 / 1.8 Mil

Key Statistics

Price/Earnings (Normalized)
28.21
Price/Sales
6.13
Dividend Yield (Trailing)
1.27%
Dividend Yield (Forward)
1.27%
Total Yield
3.80%

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
MSCI
ICE
Price/Earnings (Normalized)
28.2135.2123.16
Price/Book Value
2.122.88
Price/Sales
6.1314.907.33
Price/Cash Flow
15.5530.8117.76
Price/Earnings
LSEG
MSCI
ICE

Financial Strength

Metric
LSEG
MSCI
ICE
Quick Ratio
0.010.920.05
Current Ratio
1.001.001.00
Interest Coverage
4.708.264.19
Quick Ratio
LSEG
MSCI
ICE

Profitability

Metric
LSEG
MSCI
ICE
Return on Assets (Normalized)
0.25%21.55%2.34%
Return on Equity (Normalized)
8.34%13.01%
Return on Invested Capital (Normalized)
6.01%33.21%8.16%
Return on Assets
LSEG
MSCI
ICE
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