the London Stock Exchange Group (LSE:LSEG) The share price has punished investors over the past 12 months. The stock rose during the first half of the year on the back of optimism about… Microsoft Break even, it now trades 1% lower than it did five years ago – during the pandemic.

Obviously, this is not a good statistic for investors who have held the stock for a long period of time.

However, the data appears to be on their side and the side of potential investors. The stock looks much cheaper now than it has in some time. Is the stock price more attractive than ever? I'm not sure.

But my conviction tells me this stock can go much higher.

The really important thing

Every investment should be made based on valuation and operational data. Here, earnings multiples and margins are key.

In the first half of 2025, adjusted EBITDA reached 49.5%, up 100 basis points. This shows us the company's operational leverage across its four sectors: Data & Analytics, Risk Intelligence, FTSE Russell and Markets.

This high-margin profile supports an outstanding valuation, with recurring subscription revenue providing predictability in a competitive sector.

The consensus forecast is for adjusted EPS to grow from 403p in 2025 to 496p in 2027. This represents a compound annual growth rate of approximately 10.4% over this period, supported by strong organic income growth (+7% in 2025) and effective cost control.

It is worth noting that it is not very much FTSE 100 index Companies offer this level of earnings growth or margins. Furthermore, strong cash generation supports a healthy dividend, with 2025 expected to yield 140.8 pence per share.

This implies a return of about 1.6% at the current share price, rising with the return in subsequent years. Not groundbreaking but worth noting.

At the current price, the stock is trading on a forward price-to-earnings ratio of 22 times 2025, 20 times 2026, and 18 times 2027. This may seem expensive, but the combination of margin strength, double-digit growth, and rising earnings suggests otherwise.

What are the risks?

Like every investment, there are risks. Competition in financial data and analytics may put pressure on prices, while slower-than-expected adoption of new products may limit growth. There are a lot of good products out there.

Furthermore, currency fluctuations and regulatory changes are always a risk.

However, investors must weigh these factors alongside the company's strong margins and earnings potential.

Personally, I think the risks are worth taking. The LSE group actually represents a very unique opportunity on the FTSE 100. It offers technology-type margins with a good economic moat and a strong earnings outlook. They are much less cyclical than banks or oil stocks.

Additionally, it looks like this tie-up with Microsoft could be really valuable. I'm intrigued to see where the latest agent announcement goes next.

I definitely think this is a stock worth considering. And I'm not alone. The 17 analysts covering the stock have 16 Buy ratings and just 1 Hold. The average stock price target is 39%, which is higher than the current stock price.