Is Lloyds Banking Group plc overvalued?

Lloyds Banking Group plc (LYG) looks overvalued — trading about 26% above its fair value.

Overvalued

Price

$5.50

Fair value

$4.08

Current P/E

12.5

Normal P/E

9.3

Market cap

$79.83B

Dividend yield

3.8%

Return on equity

10.8%

Sector

Financial Services

Fair value compares LYG's current P/E to its own historical "normal" P/E (FAST Graphs-style). Updated 2 Oct 2026.

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