London Stock Exchange GroupMEX:LSEN 78 Gross Margin % is 89.07% as of Dec. 2025, which is 2% above its 10-year median of 87.48. GuruFocus rates MEX:LSEN with a GF Score™ of 78/100 and a GF Value™ of MXN2,536.64 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 618 Capital Markets companies, London Stock Exchange Group ranks better than 88.19% on this metric.
London Stock Exchange Group (MEX:LSEN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
London Stock Exchange Group had a gross margin of 89.07% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
London Stock Exchange Group Gross Margin % Related Terms
London Stock Exchange Group Gross Margin % Historical Data
* 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.
MEX:LSEN vs SPGI, CME, ICE: Gross Margin % Comparison
For the Financial Data & Stock Exchanges subindustry, London Stock Exchange Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
London Stock Exchange Group Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, London Stock Exchange Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where London Stock Exchange Group's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
London Stock Exchange Group (MEX:LSEN) has a Gross Margin % of 89.07% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on London Stock Exchange Group and its competitors. This is near median its historical median of 87.48. Over the past decade, London Stock Exchange Group's Gross Margin % has ranged from 69.27 to 90.91. According to the industry distribution chart, London Stock Exchange Group ranks #73 out of 618 companies in the Capital Markets industry, placing it in the top 11.8%.
Is London Stock Exchange Group's Gross Margin % too high?
London Stock Exchange Group's current Gross Margin % of 89.07% is near median its 10-year median of 87.48. Over the past 10 years, this metric has ranged from a low of 69.27 to a high of 90.91. The Capital Markets industry median Gross Margin % is 48.29. London Stock Exchange Group's value of 89.07% is 84.5% above this industry median. Based on the distribution chart, London Stock Exchange Group ranks #73 out of 618 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, London Stock Exchange Group has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does London Stock Exchange Group's Gross Margin % compare to SPGI and CME?
According to the Capital Markets industry distribution chart, London Stock Exchange Group ranks #73 out of 618 companies for Gross Margin %. This places London Stock Exchange Group in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.29. London Stock Exchange Group's value of 89.07% is 84.5% above this benchmark. Historically, London Stock Exchange Group's own Gross Margin % has ranged from 69.27 to 90.91 over the past decade. While the company's 10-year median is 87.48 vs. the industry median of 48.29, London Stock Exchange Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.29, based on 618 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. London Stock Exchange Group's current Gross Margin % of 89.07% is 84.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on London Stock Exchange Group and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. London Stock Exchange Group's current Gross Margin % is 89.07%, which is near median its own 10-year median of 87.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is London Stock Exchange Group stock overvalued right now?
Based on GuruFocus' analysis, London Stock Exchange Group (MEX:LSEN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN2,536.64, compared to a current price of MXN1,939.00 — trading 23.6% below its estimated fair value. The current Gross Margin % is 89.07%, which is near median its 10-year median of 87.48 and 84.5% above the Capital Markets industry median of 48.29. London Stock Exchange Group's overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For London Stock Exchange Group (MEX:LSEN), the current Gross Margin % is 89.07% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is London Stock Exchange Group (MEX:LSEN) Overvalued in 2026?
Based on GuruFocus' analysis, London Stock Exchange Group stock appears to be undervalued.
The current stock price of MXN1,939.00 is trading 23.6% below its estimated GF Value™ of MXN2,536.64.
GuruFocus considers London Stock Exchange Group to be Modestly Undervalued.
Key valuation signals for MEX:LSEN:
Gross Margin %: 89.07% (near median its 10-year median of 87.48)
GF Value™: MXN2,536.64 vs. price of MXN1,939.00 (23.6% below fair value)
Industry Position: 84.5% above the Capital Markets median (#73 of 618)
No single metric tells the full story. See the MEX:LSEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 clearinghouse for over-the-counter swaps globally.
78GF Score
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