Latest Ratios: P/E Ratio 15.8x · EV/EBITDA 15.1x · ROE 9.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $81.9B | $79.2B | $42.9B | $39.3B | $38.3B | $45.8B | $34.9B | $59.0B | $46.3B | $67.9B | $55.8B |
| Enterprise Value | $132.8B | $117.7B | $68.7B | $54.8B | $38.1B | $61.0B | $70.1B | $117.2B | $96.9B | $95.8B | $100.2B |
| P/E Ratio → | 15.78 | 19.63 | 10.88 | 7.97 | 11.00 | 8.50 | 40.83 | 23.64 | 11.64 | 22.06 | 25.83 |
| P/S Ratio | 1.29 | 1.66 | 2.31 | 2.05 | 2.39 | 2.80 | 2.31 | 3.26 | 2.48 | 3.64 | 3.28 |
| P/B Ratio | 1.33 | 1.66 | 0.93 | 0.83 | 0.87 | 0.86 | 0.71 | 1.23 | 0.92 | 1.38 | 1.14 |
| P/FCF | — | — | — | 29.00 | 2.11 | 13.49 | 1.44 | 7.52 | — | — | — |
| P/OCF | 14.26 | 18.28 | — | 5.77 | 1.74 | 6.91 | 1.29 | 5.23 | — | — | 26.91 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.46 | 3.69 | 2.86 | 2.37 | 3.74 | 4.63 | 6.47 | 5.20 | 5.14 | 5.88 |
| EV / EBITDA | 15.06 | 17.67 | 7.31 | 5.27 | 5.31 | 6.28 | 17.72 | 16.61 | 11.59 | 11.98 | 15.99 |
| EV / EBIT | 15.06 | 17.67 | 11.51 | 7.31 | 7.97 | 8.84 | 57.19 | 26.67 | 16.26 | 17.03 | 25.77 |
| EV / FCF | — | — | — | 40.48 | 2.10 | 17.99 | 2.89 | 14.95 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.9% | 29.9% | 49.5% | 56.5% | 77.3% | 87.2% | 81.0% | 73.1% | 86.3% | 78.5% | 69.9% |
| Operating Margin | 10.2% | 10.2% | 15.9% | 22.1% | 23.0% | 36.9% | 6.6% | 17.7% | 27.6% | 23.7% | 15.9% |
| Net Profit Margin | 7.2% | 7.2% | 11.8% | 16.1% | 18.4% | 30.9% | 7.1% | 11.8% | 20.4% | 16.5% | 8.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.9% | 9.9% | 9.5% | 12.0% | 7.9% | 11.3% | 2.7% | 6.0% | 8.9% | 8.0% | 4.3% |
| ROA | 0.5% | 0.5% | 0.5% | 0.6% | 0.4% | 0.7% | 0.2% | 0.4% | 0.5% | 0.5% | 0.3% |
| ROIC | 3.6% | 3.6% | 3.3% | 4.1% | 2.6% | 3.4% | 0.6% | 2.1% | 3.1% | 3.0% | 2.0% |
| ROCE | 1.6% | 1.6% | 1.5% | 1.9% | 1.2% | 1.7% | 0.3% | 1.2% | 1.7% | 1.5% | 1.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.99 | 1.99 | 1.93 | 1.98 | 2.09 | 1.73 | 2.20 | 2.38 | 2.11 | 1.77 | 1.90 |
| Debt / EBITDA | 14.28 | 14.28 | 9.42 | 9.00 | 12.79 | 9.44 | 27.48 | 16.11 | 12.67 | 10.90 | 14.77 |
| Net Debt / Equity | — | 0.80 | 0.56 | 0.33 | -0.00 | 0.29 | 0.71 | 1.22 | 1.01 | 0.57 | 0.91 |
| Net Debt / EBITDA | 5.78 | 5.78 | 2.75 | 1.49 | -0.03 | 1.57 | 8.89 | 8.25 | 6.06 | 3.49 | 7.08 |
| Debt / FCF | — | — | — | 11.48 | -0.01 | 4.50 | 1.45 | 7.42 | — | — | — |
| Interest Coverage | 0.39 | 0.39 | 0.31 | 0.51 | 1.01 | 2.89 | 0.34 | 0.66 | 2.02 | 1.10 | 0.53 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.12 | 0.12 | 0.14 | 0.17 | 0.19 | 0.17 | 0.16 | 0.13 | 0.13 | 0.14 | 0.12 |
| Quick Ratio | 0.12 | 0.12 | 0.14 | 0.17 | 0.19 | 0.17 | 0.16 | 0.13 | 0.13 | 0.14 | 0.12 |
| Cash Ratio | 0.11 | 0.11 | 0.13 | 0.16 | 0.19 | 0.16 | 0.16 | 0.12 | 0.12 | 0.13 | 0.11 |
| Asset Turnover | — | 0.07 | 0.04 | 0.04 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.1% | 2.5% | 5.4% | 4.2% | 3.8% | 1.9% | 1.3% | 3.9% | 4.8% | 3.4% | 3.6% |
| Payout Ratio | 42.0% | 42.0% | 52.6% | 30.2% | 38.5% | 15.2% | 34.4% | 79.0% | 50.8% | 58.4% | 97.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.3% | 5.1% | 9.2% | 12.6% | 9.1% | 11.8% | 2.4% | 4.2% | 8.6% | 4.5% | 3.9% |
| FCF Yield | — | — | — | 3.4% | 47.4% | 7.4% | 69.5% | 13.3% | — | — | — |
| Buyback Yield | 2.7% | 2.1% | 4.7% | 5.1% | 5.3% | 0.0% | 0.0% | 1.9% | 2.2% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.8% | 4.6% | 10.1% | 9.3% | 9.1% | 1.9% | 1.3% | 5.8% | 7.0% | 3.4% | 3.6% |
| Shares Outstanding | — | $14.9B | $15.8B | $16.4B | $17.4B | $17.9B | $17.8B | $17.8B | $18.1B | $18.1B | $18.0B |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LYG stock.
Lloyds Banking Group plc's current P/E ratio is 15.8x. The historical average is 26.9x. This places it at the 40th percentile of its historical range.
Lloyds Banking Group plc's current EV/EBITDA is 15.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 27.2x.
Lloyds Banking Group plc's return on equity (ROE) is 9.9%. The historical average is 13.6%.
Based on historical data, Lloyds Banking Group plc is trading at a P/E of 15.8x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lloyds Banking Group plc's current dividend yield is 3.07% with a payout ratio of 42.0%.
Lloyds Banking Group plc has 29.9% gross margin and 10.2% operating margin. Operating margin between 10-20% is typical for established companies.
Lloyds Banking Group plc's Debt/EBITDA ratio is 14.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Motor finance conduct exposure
Premium Priced, Discounted Earnings
Trading at 1.46x book and 17.3x trailing earnings, the market prices LYG as a premium UK franchise, yet forward P/E of 15.3 suggests skepticism about earnings sustainability, per recent market data.
The P/B of 1.46x sits well above NatWest's 0.69x and Barclays' 0.91x, implying investors assign a quality premium to Lloyds' deposit-rich, UK-focused model. However, the forward P/E of 15.26x versus trailing 17.26x indicates the market expects earnings to improve, but the modest discount to peers like HSBC (17.83x) suggests limited growth conviction. The PEG of 0.42x, if taken at face value, implies undervaluation relative to expected growth, but given the volatile earnings composition, this metric warrants caution.
ROE Masked by Volatile Income
ROE averaged 2.5% over the last year, far below the cost of equity, as NIM collapsed to 0.4% in 2025Q4 from 2.4% a year earlier, according to quarterly disclosures.
The DuPont decomposition reveals that ROE is being dragged by a razor-thin NIM and an efficiency ratio that spiked to 96.1% in 2025Q4, meaning nearly all revenue is consumed by costs. The fee income percentage swung wildly from 8.2% to 93.1%, indicating that non-interest income is not a stable contributor, and the reported 72.8% revenue growth is likely a distortion from volatile items. Underlying profitability appears weak, with the bank barely covering its cost of equity, suggesting that the current P/B premium is not supported by fundamental returns.
NIM Compression, Cost Creep
Net interest margin fell to 0.4% in 2025Q4 from 2.4% a year earlier, while the efficiency ratio worsened to 96.1%, indicating severe margin pressure and limited cost flexibility, as per financial statements.
The NIM decline reflects lower UK rates and intense mortgage competition, and the structural hedge may provide some offset, but the magnitude of the drop suggests a structural shift in asset yields. The efficiency ratio deterioration from 91.2% in 2023Q4 to 96.1% in 2025Q4 indicates that cost savings are not keeping pace with revenue decline, leaving little operating leverage. Investors should monitor whether the bank can accelerate digital transformation to cut costs, as the current trajectory implies that any further NIM erosion could push the bank into a loss-making position.
Capital Buffer Supports Returns
With equity-to-assets at 5% and CET1 above regulatory minimums, Lloyds maintains a stable capital position, but the reported zero provisions and buybacks raise questions about capital return sustainability, based on reported figures.
The equity-to-assets ratio of 5% is consistent with historical levels and provides a modest buffer, but it is lower than some global peers, reflecting the bank's high leverage. The absence of reported buybacks and dividends in the cash flow data is inconsistent with the bank's historical practice, suggesting either a pause or a data gap; if capital returns are indeed suspended, it would signal a shift in capital allocation priorities. The ongoing FCA motor finance review poses a potential capital consumption risk, which could constrain future distributions if a significant provision is required.
Benign Provisions, Hidden Risks
Loan loss provisions were reported as zero across all quarters, which is unusual for a bank with significant mortgage and unsecured exposure, suggesting either a benign credit environment or data unavailability, per quarterly disclosures.
The zero provision expense across ten quarters is atypical and may indicate that the bank is not building reserves for potential credit deterioration, which could be a concern given the UK's economic uncertainty. The surge in investment securities to $524.7B raises the risk of unrealized losses in the bond portfolio, which could pressure capital if rates rise. While the current credit quality appears stable, the lack of provisioning suggests that any downturn in the UK housing market could force a sudden spike in impairment charges, hitting earnings and capital simultaneously.
P/E Misleads on Bank Value
The P/E ratio is commonly misapplied to banks because provisions and one-off items cause earnings volatility, obscuring underlying profitability; for Lloyds, trailing P/E of 17.3x overstates value, as per market data.
For banks, P/E is distorted by cyclical provisions and non-recurring items, as seen in Lloyds' volatile fee income and revenue swings. A more appropriate metric is P/TBV or P/B, which better reflects the franchise value and capital position; Lloyds trades at 1.46x book, which is more meaningful. Additionally, ROE should be adjusted for one-off items to assess sustainable profitability, and the current ROE of 2.7% is far below the cost of equity, indicating that the P/B premium may not be justified.