Lloyds Banking Group shares undervalued by 37.4%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 27 Jan 26
Source: Yahoo Finance
Lloyds Banking Group's shares rose 3.08% and reached a 52-week high.
Recent analysis indicates that Lloyds' shares are undervalued by 37.4%, with an intrinsic value estimated at £1.63 per share, compared to the current price of £1.02. This suggests that the market may not fully reflect its profit potential, despite a significant increase in share price over the past year.
Investors should consider the implications of this valuation, as the market sentiment remains cautious, reflected in the company's P/E ratio being significantly above the industry average.
Analyst Views on LYG
About LYG
Lloyds Banking Group plc is a United Kingdom-based financial services company. The Company provides a range of banking and financial services that are focused primarily on retail and commercial customers. The Company operates through three segments: Retail, Commercial Banking, and Insurance, Pensions and Investments. The Retail segment offers a range of financial services products to personal customers, including current accounts, savings, mortgages, credit cards, unsecured loans, motor finance and leasing solutions. The Commercial Banking segment serves small and medium businesses, as well as corporate and institutional clients, providing lending, transactional banking, working capital management, debt financing and risk management services. The Insurance, Pensions and Investments segment offers insurance, investment and pension management products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
