Why Are LSE Shares Cheap?

VIDEO: The latest in our video series looks at wide moat London Stock Exchange Group

James Gard 27 September, 2021 | 1:42PM
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James Gard: Each week we look at one stock that is cheap or expensive and why? This week is the turn of London Stock Exchange Group, which has a Four-star rating from Morningstar. The Group owns the London Stock Exchange, which dates back to 1801. These days, companies use the LSE to raise money by issuing shares and bonds. So when you buy a stock, an investment trust or an ETF, the chances are it will be traded on the LSE. The company also owns indices such as the FTSE. LSE shares trade around £78 per share, but Morningstar analysts have recently raised their fair value estimate to £92 per share. LSE shares boomed last year amongst the market turmoil, but have fallen back in 2021. Investors are anxious about the acquisition of Refinitiv a data company. However, our analysts think the LSE Group will be much stronger after having bought Refinitiv.

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James Gard  is content editor for Morningstar.co.uk