London Stock Exchange Group (FRA:LS4C) ROE %: 5.78% (As of Dec. 2025) — 34% Below Median


FRA:LS4C London Stock Exchange Group PLC FRA:LS4C
88 GF Score
Price €94.60
GF Value €128.07
Valuation Modestly Undervalued
! 5 Warning Signs
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What is London Stock Exchange Group ROE %?

London Stock Exchange Group FRA:LS4C -4.23% 88 ROE % is 5.78% as of Dec. 2025, which is 34% below its 10-year median of 8.80. GuruFocus rates FRA:LS4C with a GF Score™ of 88/100 and a GF Value™ of €128.07 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 791 Capital Markets companies, London Stock Exchange Group ranks worse than 50.57% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. London Stock Exchange Group's annualized net income for the quarter that ended in Dec. 2025 was €1,372 Mil. London Stock Exchange Group's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €23,745 Mil. Therefore, London Stock Exchange Group's annualized ROE % for the quarter that ended in Dec. 2025 was 5.78%.

The historical rank and industry rank for London Stock Exchange Group's ROE % or its related term are showing as below:

FRA:LS4C' s ROE % Range Over the Past 10 Years
Min: 2.93   Med: 8.8   Max: 22.88
Current: 5.86

During the past 13 years, London Stock Exchange Group's highest ROE % was 22.88%. The lowest was 2.93%. And the median was 8.80%.

FRA:LS4C's ROE % is ranked worse than
50.57% of 791 companies
in the Capital Markets industry
Industry Median: 6 vs FRA:LS4C: 5.86

London Stock Exchange Group  (FRA:LS4C) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=1371.888/23744.6365
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1371.888 / 10687.004)*(10687.004 / 932715.2895)*(932715.2895 / 23744.6365)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.84 %*0.0115*39.2811
=ROA %*Equity Multiplier
=0.15 %*39.2811
=5.78 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=1371.888/23744.6365
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1371.888 / 2236.176) * (2236.176 / 2505.982) * (2505.982 / 10687.004) * (10687.004 / 932715.2895) * (932715.2895 / 23744.6365)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6135 * 0.8923 * 23.45 % * 0.0115 * 39.2811
=5.78 %

Note: The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


London Stock Exchange Group ROE % Related Terms


London Stock Exchange Group ROE % Historical Data

* Premium members only.

The historical data trend for London Stock Exchange Group's ROE % 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.

London Stock Exchange Group ROE % Chart

London Stock Exchange Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.07 5.19 3.07 2.98 5.67

London Stock Exchange Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROE % 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 2.76 3.00 2.99 5.80 5.78

FRA:LS4C vs SPGI, CME, ICE: ROE % Comparison

For the Financial Data & Stock Exchanges subindustry, London Stock Exchange Group's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Capital Markets Industry

For the Capital Markets industry and Financial Services sector, London Stock Exchange Group's ROE % distribution charts can be found below:

* The bar in red indicates where London Stock Exchange Group's ROE % falls into.


FRA:LS4C
88GF Score
London Stock Exchange Group PLC FRA:LS4C
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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London Stock Exchange Group ROE % Calculation

London Stock Exchange Group's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=1427.906/( (27784.343+22612.137)/ 2 )
=1427.906/25198.24
=5.67 %

London Stock Exchange Group's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Jun. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=1371.888/( (24877.136+22612.137)/ 2 )
=1371.888/23744.6365
=5.78 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 5.78% mean?
London Stock Exchange Group (FRA:LS4C) has a ROE % of 5.78% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on London Stock Exchange Group and its competitors. This is 34% below median its historical median of 8.80. Over the past decade, London Stock Exchange Group's ROE % has ranged from 2.93 to 22.88. According to the industry distribution chart, London Stock Exchange Group ranks #400 out of 791 companies in the Capital Markets industry, placing it in the top 50.6%.
Is London Stock Exchange Group's ROE % too high?
London Stock Exchange Group's current ROE % of 5.78% is 34% below median its 10-year median of 8.80. Over the past 10 years, this metric has ranged from a low of 2.93 to a high of 22.88. The Capital Markets industry median ROE % is 6.00. London Stock Exchange Group's value of 5.78% is 3.7% below this industry median. Based on the distribution chart, London Stock Exchange Group ranks #400 out of 791 companies in the Capital Markets industry, which is below the industry midpoint. Overall, London Stock Exchange Group has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does London Stock Exchange Group's ROE % compare to SPGI and CME?
According to the Capital Markets industry distribution chart, London Stock Exchange Group ranks #400 out of 791 companies for ROE %. This places London Stock Exchange Group in the lower half of its industry. The industry median ROE % is 6.00. London Stock Exchange Group's value of 5.78% is 3.7% below this benchmark. Historically, London Stock Exchange Group's own ROE % has ranged from 2.93 to 22.88 over the past decade. While the company's 10-year median is 8.80 vs. the industry median of 6.00, London Stock Exchange Group has consistently been below 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 ROE % for a Capital Markets company?
The median ROE % among Capital Markets companies is 6.00, based on 791 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. London Stock Exchange Group's current ROE % of 5.78% is 3.7% below 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on London Stock Exchange Group and its competitors. For the Capital Markets industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. London Stock Exchange Group's current ROE % is 5.78%, which is 34% below median its own 10-year median of 8.80. 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 (FRA:LS4C) is currently considered Modestly Undervalued. The stock's GF Value™ is €128.07, compared to a current price of €94.60 — trading 26.1% below its estimated fair value. The current ROE % is 5.78%, which is 34% below median its 10-year median of 8.80 and 3.7% below the Capital Markets industry median of 6.00. London Stock Exchange Group's overall GF Score™ is 88/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For London Stock Exchange Group (FRA:LS4C), the current ROE % is 5.78% 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 (FRA:LS4C) Overvalued in 2026?

Based on GuruFocus' analysis, London Stock Exchange Group stock appears to be undervalued. The current stock price of €94.60 is trading 26.1% below its estimated GF Value™ of €128.07. GuruFocus considers London Stock Exchange Group to be Modestly Undervalued.

Key valuation signals for FRA:LS4C:

  • ROE %: 5.78% (34% below median its 10-year median of 8.80)
  • GF Value™: €128.07 vs. price of €94.60 (26.1% below fair value)
  • GF Score™: 88/100 with 5 warning signs
  • Industry Position: 3.7% below the Capital Markets median (#400 of 791)

No single metric tells the full story. See the FRA:LS4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


London Stock Exchange Group Business Description

Address 10 Paternoster Square, London, GBR, EC4M 7LS
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.
88GF Score

Get the complete analysis for FRA:LS4C

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€94.60
Price
€128.07
GF Value