Lloyds Banking Group plc (LYG) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: Lloyds Banking Group plc

Market cap $76B · 52 weeks $5 – $6 (19 % below the high) · P/E 10.1× · 2027 expected P/E 7.7× · Dividend 4.1 % · Next earnings February 4, 2027 · expected EPS $0.14 · Closing price, Oct 30 · accounts published Oct 29.

• Valuation: P/B 1.2× (justified).
• Business: ROTCE 11.9 % (fair).
• Balance sheet: Capital/assets 5.0 % (fragile).
• Earnings: 5 of 8 (uneven).

What would it be worth at its usual multiples?

At a P/B justified by its ROTCE del 11,9 % (1.3×) $5 (+4 %); at its peers' median (1.2×) $5 (-5 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in banking: 2 of 5 pass

• ROA 0.6 %, fails.
• Equity / Assets (Tier 1 proxy) 5.0 %, fails.
• ROTCE 11.9 %, borderline.
• P/B (Price / Book) 1.2×, passes.
• Sustainable dividend yield 4.1 %, passes.

Against its peers (reference peers) — Lloyds Banking Group plc: P/E 10.1×; P/B 1.2×; ROE 13.1 %; $75.5B. NatWest Group plc (P/E 6.1×; P/B 1.2×; ROE 16.2 %; $30.6B), Barclays PLC (P/E 8.7×; P/B 0.9×; ROE 10.8 %; $74.1B), HSBC Holdings plc (P/E 12.3×; P/B 1.4×; ROE 14.2 %; $293B).

Expensive or cheap against its last ten fiscal years?

Precio / valor contable at each close: today 1.2× · median 1.0× · minimum 0.5× · maximum 2.0× · cheap below 0.9× · expensive above 1.3×. It has been cheaper than today 72% of the time over its last ten fiscal years.

Dividend

tight (only raised recently) · Yield 4.1 % ($0.18 per ADS in 2025) · 5-year growth +38 % a year · Free cash flow coverage payout 42 % · With $1,000 invested today you'd collect $40.60 a year ($3.38 a month).