# London Stock Exchange Group plc (LSEG.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Capital Markets. Price 8742p, market value 42.2 billionp.

## Valuation
- **P/E (trailing): 31.4×** (5-yr avg 6503.0×, 3-yr avg 6436.3×). London Stock Exchange Group plc trades at 31.4× trailing earnings, well below its own five-year average of 6503.0×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 16.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.19**. A PEG of 0.19 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.3×**. Each dollar of revenue is priced at 2.3×.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.7×**. Enterprise value is 6.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.1%** (5-yr avg 0.1%). Free cash flow equals 16.1% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Gross margin: 56.8%**. London Stock Exchange Group plc keeps 56.8% of revenue after the direct cost of what it sells.
- **Operating margin: 20.7%**. 20.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 13.4%**. 13.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.3%**. 6.3% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.2%**. Return on all capital, debt included, is 10.2%.
- **Return on assets: 0.2%**. Each dollar of assets produces 0.2% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 5.1%** (3-yr 6.3%/yr, 5-yr 35.6%/yr). Revenue grew 5.1% over the last year, against 35.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 85.2%** (3-yr 18.9%/yr, 5-yr 34.4%/yr). Earnings per share rose 85.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 11.2%/yr**. Free cash flow has compounded at 11.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: 4.0 billionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 1.79%** (2p per share, trailing). London Stock Exchange Group plc yields 1.79%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 57%** (20% of free cash flow). 57% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 10**. 10 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 13.2%/yr** (1-yr 13.1%). The dividend has compounded at 13.2% a year over five years, doubling roughly every 5 years at that pace.
- **Shareholder yield: 9.4%**. Dividends plus net buybacks return 9.4% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (15 analysts). 15 analysts cover London Stock Exchange Group plc; the consensus is strong_buy, with an average price target of 11804p (+35% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -4.9%** (YTD -1.6%, 3-mo -4.9%). The shares are down 4.9% over twelve months including dividends.
- **From 52-week high: -13.8%** (30.8% above the low). Trading 14% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.71** (volatility 33%). Beta of 0.71 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LSEG.L · Page: https://foliofundamentals.com/stocks/lseg.l

Not investment advice.