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Legal & General Group (Legal & General Group) Intrinsic Value: Projected FCF

: $16.92 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-23), Legal & General Group's Intrinsic Value: Projected FCF is $16.92. The stock price of Legal & General Group is $16.05. Therefore, Legal & General Group's Price-to-Intrinsic-Value-Projected-FCF of today is 1.0.

The historical rank and industry rank for Legal & General Group's Intrinsic Value: Projected FCF or its related term are showing as below:

LGGNY' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.37   Med: 0.62   Max: 1.04
Current: 0.95

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Legal & General Group was 1.04. The lowest was 0.37. And the median was 0.62.

LGGNY's Price-to-Projected-FCF is ranked worse than
50.65% of 928 companies
in the Asset Management industry
Industry Median: 0.92 vs LGGNY: 0.95

Legal & General Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for Legal & General Group's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Legal & General Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.37 27.96 19.82 41.12 17.53

Legal & General Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.82 - 41.12 - 17.53

Competitive Comparison

For the Asset Management subindustry, Legal & General Group's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Legal & General Group Price-to-Projected-FCF Distribution

For the Asset Management industry and Financial Services sector, Legal & General Group's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Legal & General Group's Price-to-Projected-FCF falls into.



Legal & General Group Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Legal & General Group's Free Cash Flow(6 year avg) = $1,657.57.

Legal & General Group's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*1657.568+6108.861*0.8)/1256.200
=16.45

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Legal & General Group  (OTCPK:LGGNY) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Legal & General Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=16.05/16.452570414122
=0.98

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Legal & General Group Intrinsic Value: Projected FCF Related Terms

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Legal & General Group (Legal & General Group) Business Description

Traded in Other Exchanges
Address
One Coleman Street, London, GBR, EC2R 5AA
Legal & General Group PLC operates across four broad business areas of retirement, investment management, capital investment, and insurance. The retirement business provides provide guaranteed retirement income for corporate pension scheme members. Investment Management business provides investment management services for both individuals and corporations, including managing pension funds. Capital investment use customers' pension assets, as well as the group's shareholder capital, to make long-term investments in assets such as clean energy, housing, and SME finance. The Insurance business provides various types of insurance, including life and disability insurance. The company has a global presence but most of its assets under management are derived from the United Kingdom and Europe.