We’ve recently updated our valuation analysis.

Lloyds Banking Group Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LLOY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio5.5x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.6x
NWG NatWest Group
10.9x10.2%UK£29.6b
BARC Barclays
5.9x3.0%UK£29.9b
STAN Standard Chartered
9.9x12.6%UK£19.6b
HSBA HSBC Holdings
11.8x14.4%UK£117.8b
LLOY Lloyds Banking Group
9.1x1.7%UK£35.7b

Price-To-Earnings vs Peers: LLOY is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (9.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.2%
n/an/an/a

Price-To-Earnings vs Industry: LLOY is good value based on its Price-To-Earnings Ratio (9.1x) compared to the European Banks industry average (10x)


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 Ratio9.1x
Fair PE Ratio7.7x

Price-To-Earnings vs Fair Ratio: LLOY is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).


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.

Below Fair Value: LLOY (£0.53) is trading below our estimate of fair value (£1.01)

Significantly Below Fair Value: LLOY is trading below fair value by more than 20%.


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£0.53
UK£0.64
+20.0%
18.6%UK£1.05UK£0.48n/a22
Jan ’24UK£0.45
UK£0.64
+41.9%
18.9%UK£1.05UK£0.48n/a20
Dec ’23UK£0.46
UK£0.64
+38.1%
19.3%UK£1.05UK£0.48n/a20
Nov ’23UK£0.42
UK£0.61
+45.2%
22.2%UK£1.00UK£0.36n/a20
Oct ’23UK£0.41
UK£0.64
+55.2%
17.1%UK£0.95UK£0.47n/a20
Sep ’23UK£0.43
UK£0.63
+48.6%
17.0%UK£0.95UK£0.45n/a20
Aug ’23UK£0.45
UK£0.63
+40.1%
17.7%UK£0.97UK£0.45n/a20
Jul ’23UK£0.42
UK£0.61
+42.7%
18.4%UK£0.97UK£0.45n/a20
Jun ’23UK£0.45
UK£0.61
+34.2%
17.1%UK£0.97UK£0.45n/a20
May ’23UK£0.46
UK£0.60
+30.2%
16.5%UK£0.91UK£0.40n/a22
Apr ’23UK£0.47
UK£0.60
+26.5%
15.3%UK£0.88UK£0.44n/a21
Mar ’23UK£0.46
UK£0.62
+34.9%
16.9%UK£0.98UK£0.42n/a21
Feb ’23UK£0.52
UK£0.61
+16.7%
15.0%UK£0.93UK£0.42UK£0.5323
Jan ’23UK£0.48
UK£0.60
+25.5%
14.5%UK£0.90UK£0.42UK£0.4523
Dec ’22UK£0.48
UK£0.60
+25.3%
14.5%UK£0.90UK£0.42UK£0.4623
Nov ’22UK£0.51
UK£0.58
+13.2%
16.2%UK£0.90UK£0.42UK£0.4223
Oct ’22UK£0.45
UK£0.53
+17.5%
15.3%UK£0.64UK£0.27UK£0.4122
Sep ’22UK£0.44
UK£0.53
+20.6%
15.6%UK£0.64UK£0.27UK£0.4322
Aug ’22UK£0.46
UK£0.53
+16.0%
14.9%UK£0.62UK£0.27UK£0.4522
Jul ’22UK£0.48
UK£0.52
+8.5%
14.4%UK£0.62UK£0.27UK£0.4223
Jun ’22UK£0.50
UK£0.51
+1.9%
14.1%UK£0.62UK£0.27UK£0.4521
May ’22UK£0.45
UK£0.48
+6.3%
15.8%UK£0.62UK£0.27UK£0.4622
Apr ’22UK£0.43
UK£0.44
+3.5%
15.5%UK£0.62UK£0.27UK£0.4722
Mar ’22UK£0.39
UK£0.41
+6.0%
19.0%UK£0.62UK£0.17UK£0.4622
Feb ’22UK£0.34
UK£0.39
+17.1%
19.4%UK£0.62UK£0.17UK£0.5223

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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