Lloyds Banking Group plc

LSE:LLOY Stock Report

Market Cap: UK£63.0b

Lloyds Banking Group Valuation

Is LLOY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LLOY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: LLOY (£1.11) is trading below our estimate of future cash flow value (£2.14)

Significantly Below Future Cash Flow Value: LLOY is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LLOY?

Key metric: As LLOY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LLOY. This is calculated by dividing LLOY's market cap by their current earnings.
What is LLOY's PE Ratio?
PE Ratio13.5x
EarningsUK£4.76b
Market CapUK£62.99b

Price to Earnings Ratio vs Peers

How does LLOY's PE Ratio compare to its peers?

The above table shows the PE ratio for LLOY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
BARC Barclays
9.7x8.64%UK£64.9b
NWG NatWest Group
9.2x4.88%UK£54.3b
STAN Standard Chartered
13.9x11.00%UK£49.5b
HSBA HSBC Holdings
17x12.00%UK£262.0b
LLOY Lloyds Banking Group
13.5x11.12%UK£63.0b

Price-To-Earnings vs Peers: LLOY is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the peer average (12.5x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does LLOY's PE Ratio compare vs other companies in the European Banks Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LLOY 13.5xIndustry Avg. 12.2xNo. of Companies36PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LLOY is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the European Banks industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is LLOY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LLOY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.5x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: LLOY is expensive based on its Price-To-Earnings Ratio (13.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LLOY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.11
UK£1.21
+9.10%
15.75%UK£1.40UK£0.53n/a19
Sep ’27UK£1.11
UK£1.21
+9.45%
15.60%UK£1.40UK£0.53n/a19
Aug ’27UK£1.15
UK£1.20
+4.21%
15.20%UK£1.35UK£0.53n/a19
Jul ’27UK£1.12
UK£1.16
+3.62%
15.48%UK£1.35UK£0.53n/a19
Jun ’27UK£1.00
UK£1.15
+15.11%
15.66%UK£1.30UK£0.53n/a18
May ’27UK£0.98
UK£1.15
+16.89%
15.55%UK£1.30UK£0.53n/a18
Apr ’27UK£0.98
UK£1.12
+14.86%
15.51%UK£1.30UK£0.53n/a18
Mar ’27UK£1.02
UK£1.11
+8.35%
15.77%UK£1.30UK£0.53n/a19
Feb ’27UK£1.09
UK£1.06
-2.42%
15.03%UK£1.23UK£0.53n/a19
Jan ’27UK£0.98
UK£0.96
-2.05%
13.84%UK£1.10UK£0.53n/a18
Dec ’26UK£0.95
UK£0.95
0%
13.53%UK£1.10UK£0.53n/a18
Nov ’26UK£0.89
UK£0.94
+4.96%
13.51%UK£1.10UK£0.53n/a18
Oct ’26UK£0.83
UK£0.90
+7.95%
13.60%UK£1.03UK£0.53n/a18
Sep ’26UK£0.80
UK£0.89
+11.58%
13.89%UK£1.03UK£0.53UK£1.1118
Aug ’26UK£0.76
UK£0.86
+13.99%
13.11%UK£1.00UK£0.53UK£1.1518
Jul ’26UK£0.76
UK£0.80
+5.00%
13.87%UK£1.00UK£0.53UK£1.1217
Jun ’26UK£0.77
UK£0.80
+3.27%
13.94%UK£1.00UK£0.53UK£1.0018
May ’26UK£0.71
UK£0.77
+7.70%
13.56%UK£0.90UK£0.53UK£0.9818
Apr ’26UK£0.73
UK£0.76
+4.45%
14.59%UK£0.90UK£0.53UK£0.9818
Mar ’26UK£0.73
UK£0.70
-4.01%
14.77%UK£0.90UK£0.53UK£1.0219
Feb ’26UK£0.62
UK£0.65
+4.77%
13.78%UK£0.83UK£0.53UK£1.0919
Jan ’26UK£0.55
UK£0.65
+18.66%
12.46%UK£0.80UK£0.53UK£0.9818
Dec ’25UK£0.53
UK£0.65
+22.29%
12.80%UK£0.80UK£0.53UK£0.9518
Nov ’25UK£0.54
UK£0.66
+21.59%
13.02%UK£0.83UK£0.53UK£0.8918
Oct ’25UK£0.58
UK£0.63
+7.77%
10.51%UK£0.78UK£0.53UK£0.8318
Sep ’25UK£0.58
UK£0.63
+6.84%
10.05%UK£0.78UK£0.53UK£0.8018
UK£1.21
Fair Value
8.3% undervalued intrinsic discount
19
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/11 17:37
End of Day Share Price 2026/09/11 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Lloyds Banking Group plc is covered by 34 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jesús Gómez DominguezBanco Santander
Amandeep RakkarBarclays
Thomas Andrew RaynerBarclays