Have Analysts Taken Janus Henderson (JHG)'s Valuation Into Account?

Janus Henderson may be undervalued with poor growth indicators, but the 9 analysts following the company give it an rating of hold. Their target prices range from $20.5 to $30.0 per share, for an average of $25.37. At today's price of $26.7, Janus Henderson is trading 5.26% away from its average target price, suggesting there is an analyst consensus of little upside potential for the stock.

Janus Henderson Group plc is an asset management holding entity. Based in London, United Kingdom, the mid-cap Finance company has 2,119 full time employees. Janus Henderson has offered a 6.0% dividend yield over the last 12 months.

Janus Henderson has a trailing twelve month P/E ratio of 12.0, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of 2.34, the company has a forward P/E ratio of 11.4.

The average compound growth rate of the company's historical and projected earnings per share is 1.1%. On this basis, the company's PEG ratio is 10.23, which suggests that it is overpriced.

On the other hand, the market is potentially undervaluing Janus Henderson in terms of its book value because its P/B ratio is 1.0. In comparison, the sector average P/B ratio is 1.57. The company's shares are currently -25.7% below their Graham number, indicating that its shares have a margin of safety.

So why does Janus Henderson get a bad rating from most analysts despite its seemingly attractive valuation? One reason could be its worrying EPS growth rate of 0.2%.