Stock fact sheet · data as of
Lloyds Banking Group plc (LYG): fair value, margin of safety and Wheel Score
Ticker symbol LYG · Financial Services · Banks - Regional · United Kingdom · ADR · Blend Income
LYG is an American depositary share (ADR): the US listing of Lloyds Banking Group plc, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is LYG undervalued?
At 5.27 (close of 5 Nov 2026), LYG trades 47% below the GLS average fair value of 9.92. That average comes from 8 models run on the latest filings, and 7 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Lloyds Banking Group plc the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 8 models disagree widely: DDM gives 3.24 while DCF gives 22.32. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for LYG, so the nightly engine files it under Blend (value score 72, growth score 71, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for LYG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 22.32 | +324% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 7.49 | +42% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 19.16 | +264% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 7.38 | +40% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 7.65 | +45% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 5.82 | +11% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 3.24 | -38% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 6.31 | +20% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -76.68 | -1555% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 2.75 | -48% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: LYG passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 3.3%, ROE 9.8%, ROA 0.5% - with debt at 2.00 times equity and negative free cash flow.
The dividend yield is high at 4.18% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 3.3% |
|---|---|---|---|
| GLS Moat | 3.9 / 10 | ROE | 9.8% |
| Debt / equity | 2.00 | ROA | 0.5% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 47: Weak
LYG scores 47 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 4/9 (under 6), and the parts are thin too - value strong, premium strong, moat fair, health fair, red flags fair, option trading weak, stability strong. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 4,962 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 27.9M shares a day on a market cap of $77.2B, with a beta of 0.94; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 47% below fair value | |
| Premium | Strong | implied volatility 48% | |
| Moat | Fair | moat 3.9/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Fair | Red Flags score 75/100 | |
| Option trading | Weak | 134 contracts a day, 4,962 open interest | |
| Stability | Strong | beta 0.94, $77.2B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for LYG in the nightly calendar.
Analysts downgraded LYG 1 time in the last 30 days with no upgrades; the latest action was a downgrade by RBC Capital on 16 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Lloyds Banking Group plc by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| DB Deutsche Bank AG | 36.73 | 76.89 | +52% | 51Fair | $68.1B |
| PNC The PNC Financial Services Group, Inc. | 233.45 | 161.88 | -44% | 40Weak | $92.7B |
| USB U.S. Bancorp | 61.03 | 60.45 | -1% | 48Weak | $95.1B |
| TFC Truist Financial Corporation | 50.87 | 92.14 | +45% | 77Good | $61.0B |
| NU Nu Holdings Ltd. | 11.99 | 22.62 | +47% | 53Fair | $57.9B |
| IBN ICICI Bank Limited | 31.26 | 40.56 | +23% | 46Weak | $112.2B |
| MFG Mizuho Financial Group, Inc. | 9.80 | 9.23 | -6% | 37Weak | $118.5B |
| FITB Fifth Third Bancorp | 54.72 | 69.09 | +21% | 80Good | $49.6B |
| HDB HDFC Bank Limited | 24.33 | 59.81 | +59% | 91Prime | $124.8B |
| KB KB Financial Group Inc. | 114.98 | 238.31 | +52% | 49Weak | $40.6B |
| BSBR Banco Santander (Brasil) S.A. | 4.76 | 8.85 | +46% | 37Weak | $35.6B |
| HBANL Huntington Bancshares Incorporated | 24.69 | 21.93 | -13% | 23No options | $34.1B |
⚖ Compare LYG with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about LYG
Is LYG undervalued right now?
By the GLS models, yes: at 5.27 the stock is 47% below the average fair value of 9.92 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of LYG and what does it mean?
LYG scores 47 out of 100 (Weak) - it fails Wheel Trade Filter 4. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for LYG?
9.92 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lloyds Banking Group plc report earnings next?
No upcoming earnings date is recorded for LYG in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does LYG have listed options, and how liquid are they?
Yes. The nightly snapshot found 24 listed contracts with 4,962 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is LYG an ADR?
Yes. LYG is an American depositary share (ADR): the US listing of Lloyds Banking Group plc, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.