Very few shares in the FTSE 100 (^FTSE) generate an annual dividend yield of over 9%. The average yearly payout of the leading index is currently just 3.6%.
And even fewer of those look undervalued by more than 50% against their peers by my reckoning.
Add in a further condition of projected annual earnings growth of over 25%, and the list becomes very short indeed.
One firm on it is global investment manager M&G (MNG.L).
Share valuation
On the key price-to-book (P/B) stock valuation measurement, M&G currently trades at just 1.3. This is bottom of its competitor group, which has a P/B average of 3.7.
The same applies to M&G’s relative standing on the price-to-sales (P/S) measure of share value. It presently trades at 0.8 compared to a peer group average of 4.4.
So it is a serious bargain on these measures. To find out exactly how much in cash terms, I ran a discounted cash flow analysis.
Using other analysts’…
