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Lloyds Banking Group (LYG) Fair Value & Analysis

Financial Services · AR · Market cap 30.1T ARS

LB Lloyds Banking Group LYG · BA
Price4,138 ARS
Fair Value8,275 ARS
Upside+100.0%
Quality62/100
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Expensive Growth
Highly profitable · 26.5% net margin
negative free cash flow
Ranks above peers (8/12)
Wide moat 69/100
Evidence: Medium Range 6,206 ARS – 10,344 ARS Share as image

Fair value as of: Jul 27, 2026

From 10 valuation models · updated 11 days ago

Share price +7.3% over the past month.

A solid business, screening 100% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (6,206 ARS). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

4,655 ARS 136.92 ARS Fair Value 8,275 ARS Feb 2021 Jun 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range 136.92 ARS – 4,655 ARS · fair‑value band 6,206 ARS – 10,344 ARS · the 4,138 ARS price screens below the 8,275 ARS fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

Full chart & analysis →

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Analysis

Lloyds Banking Group (LYG) currently trades at 4,138 ARS, while our model-based Fair Value estimate is 8,275 ARS, implying the stock looks roughly 100.0% undervalued today. We read business quality at 62/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Lloyds Banking Group generated revenue of 19.1B ARS at a net margin of 26.5%. Revenue grew 11.5% year over year. It earns a return on equity of 10.8%. Net debt stands at 37.5B ARS. Fundamentals as of Jul 27, 2026

Our scenario range runs from 6,206 ARS (bear case) to 10,344 ARS (bull case); at 4,138 ARS, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 75% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 100%, LYG screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income 4,419 ARS 4,928 ARS 8,130 ARS 76
Growth-Adj P/E 6,031 ARS 8,617 ARS 11,203 ARS 68
P/E Multiple 7,301 ARS 9,735 ARS 12,169 ARS 63
All 10 models by family
DCF Models
Owner Earnings 8,176 ARS 9,500 ARS 11,614 ARS 31
Earnings-Based
Graham-Dodd 3,308 ARS 10,108 ARS 13,424 ARS 54
Lynch FV 2,168 ARS 3,103 ARS 4,031 ARS 50
PEG = 1.0 2,168 ARS 3,103 ARS 4,031 ARS 46
Multiples
P/E Multiple 7,301 ARS 9,735 ARS 12,169 ARS 63
P/S Multiple 3,925 ARS 5,233 ARS 6,541 ARS 58
P/B Multiple 6,206 ARS 8,275 ARS 10,344 ARS 55
Asset-Based
NCAV (Graham) 2,487 ARS 3,339 ARS 4,982 ARS 50
Economic Profit
Residual Income 4,419 ARS 4,928 ARS 8,130 ARS 76
Growth Earnings
Growth-Adj P/E 6,031 ARS 8,617 ARS 11,203 ARS 68

Widest divergence: DCF Models (9,500 ARS) versus Earnings-Based (3,103 ARS). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 19.1B ARS
Revenue growth (YoY) +11.5%
Net margin 26.5%
Return on equity 10.8%
Free cash flow −622M ARS FY2025
P/E ratio 3.5
More key figures
Operating margin 41.4%
EPS (TTM) 1,166 ARS
EPS growth (YoY) +44.7%
Net debt 37.5B ARS FY2025

Figures from reported company fundamentals · as of Jul 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 47 · Market factors (momentum, volatility) 70

Profitability 40
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial products and services for retail and commercial customers in the United Kingdom. It operates in three segments: Retail; Commercial Banking; and Insurance, Pensions and Investments.

Full company description

Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial products and services for retail and commercial customers in the United Kingdom. It operates in three segments: Retail; Commercial Banking; and Insurance, Pensions and Investments. The Retail segment offers a range of financial service products, including current accounts, savings, mortgages, credit cards, unsecured loans, motor finance, and leasing solutions to personal customers. Its Commercial Banking segment provides lending, transactional banking, working capital management, debt financing, and risk management services to small and medium businesses, corporates, and institutions. The Insurance, Pensions and Investments segment offers insurance, investment, and pension management products and services. It also provides life assurance; and digital banking services. The company offers its products and services under the Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, MBNA, Schroders Personal Wealth, Black Horse, Lex Autolease, Birmingham Midshires, LDC, AMC, Embark Group, Lloyds Living, Cavendish Online, Tusker, and HGP brands. The company was formerly known as Lloyds TSB Group plc and changed its name to Lloyds Banking Group plc in January 2009. Lloyds Banking Group plc was founded in 1695 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lloyds Banking Group reported revenue of 20.0B ARS in FY2025 versus 16.3B ARS in FY2021, a compound +5.2%/yr. Reported net income was 4.7B ARS in FY2025, compounding −5.3%/yr from FY2021.

Growth Quality 42/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
20.0B ARS
Latest YoY
+7.7%
Avg. growth/yr (3Y)
+7.7%
Revenue +5.2%/yr
FY21 16.3B ARS
FY22 16.1B ARS
FY23 19.2B ARS
FY24 18.6B ARS
FY25 20.0B ARS
Net income −5.3%/yr
FY21 5.8B ARS
FY22 3.8B ARS
FY23 5.5B ARS
FY24 4.4B ARS
FY25 4.7B ARS

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Cite: Fair Value Calculator (2026). "Lloyds Banking Group Fair Value". https://www.fairvalue-calculator.com/stock/LYG

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Banks - Regional · 1082 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Below median
Fair Value upside +100% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 1% · Bottom 25%
Net margin (TTM) 27% · Below median
Operating margin (TTM) 41% · Above median
Revenue growth 12% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 3.5× · Cheaper than 75% of peers
P/B 0.44× · Cheaper than 75% of peers
P/S (TTM) 1.10× · Cheaper than 75% of peers
PEG 0.28× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 39
FUTURE 58 · sector 44
PAST 43 · sector 41
HEALTH 0 · sector 85
DIVIDEND 0 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 27, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%
Woori Financial Group 316140 31,500 KRW 55,811 KRW +77%

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Frequently asked questions

Is Lloyds Banking Group (LYG) overvalued or undervalued?
As of Jul 27, 2026, our model estimates a fair value of 8,275 ARS versus a price of 4,138 ARS, about +100% (undervalued).
What is the fair value of LYG?
Our model-based fair value for Lloyds Banking Group is 8,275 ARS (as of Jul 27, 2026), built from audited fundamentals. The current price is 4,138 ARS.
What is the quality score of LYG?
Lloyds Banking Group has a Quality Score of 62/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Lloyds Banking Group (LYG)?
Lloyds Banking Group reported trailing-twelve-month revenue of about 19.1B ARS (latest available figure, as of Jul 27, 2026).
What is the net profit margin of LYG?
The net profit margin of Lloyds Banking Group is about 26.5%, meaning it keeps roughly 26.5% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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