Lloyds Banking Group (LSE:LLOY) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Lloyds Banking Group Forward PE Ratio Related Terms
Lloyds Banking Group Forward PE Ratio Historical Data
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The historical data trend for Lloyds Banking Group's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lloyds Banking Group Forward PE Ratio Chart
Lloyds Banking Group Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
10.00
10.73
9.83
6.60
9.03
8.70
7.02
6.05
6.04
8.11
9.90
Lloyds Banking Group Quarterly Data
2015-12
2016-06
2016-12
2017-06
2017-12
2018-06
2018-12
2019-06
2019-12
2020-06
2020-12
2021-06
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
10.00
7.92
10.73
10.67
9.83
8.61
6.60
7.67
9.03
10.36
8.70
8.99
7.02
7.80
6.69
6.26
6.05
6.21
5.56
5.55
6.04
7.40
8.55
8.14
8.11
9.92
10.50
8.65
9.90
9.04
Lloyds Banking Group Forward PE Ratio Competitor Comparison
For the Banks - Regional subindustry, Lloyds Banking Group's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lloyds Banking Group Forward PE Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Lloyds Banking Group's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Lloyds Banking Group's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Lloyds Banking Group (LSE:LLOY) has a Forward PE Ratio of 10.95 as of Jul. 11, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Lloyds Banking Group and its competitors. According to the industry distribution chart, Lloyds Banking Group ranks #385 out of 816 companies in the Banks industry, placing it in the top 47.2%.
Is Lloyds Banking Group's Forward PE Ratio too high?
Lloyds Banking Group's current Forward PE Ratio is 10.95. The Banks industry median Forward PE Ratio is 11.00. Lloyds Banking Group's value of 10.95 is 0.5% below this industry median. Based on the distribution chart, Lloyds Banking Group ranks #385 out of 816 companies in the Banks industry, which is above the industry midpoint. Overall, Lloyds Banking Group has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lloyds Banking Group's Forward PE Ratio compare to competitors?
According to the Banks industry distribution chart, Lloyds Banking Group ranks #385 out of 816 companies for Forward PE Ratio. This puts Lloyds Banking Group in the upper half of its industry. The industry median Forward PE Ratio is 11.00. Lloyds Banking Group's value of 10.95 is 0.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Banks company?
The median Forward PE Ratio among Banks companies is 11.00, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lloyds Banking Group's current Forward PE Ratio of 10.95 is 0.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Lloyds Banking Group and its competitors. For the Banks industry, the median Forward PE Ratio is 11.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lloyds Banking Group's current Forward PE Ratio is 10.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lloyds Banking Group stock overvalued right now?
Based on GuruFocus' analysis, Lloyds Banking Group (LSE:LLOY) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.70, compared to a current price of £1.12 — trading 60.2% above its estimated fair value. The current Forward PE Ratio is 10.95 and 0.5% below the Banks industry median of 11.00. Lloyds Banking Group's overall GF Score™ is 54/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Lloyds Banking Group (LSE:LLOY), the current Forward PE Ratio is 10.95 as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lloyds Banking Group (LSE:LLOY) Overvalued in 2026?
Based on GuruFocus' analysis, Lloyds Banking Group stock appears to be overvalued.
The current stock price of £1.12 is trading 60.2% above its estimated GF Value™ of £0.70.
GuruFocus considers Lloyds Banking Group to be Significantly Overvalued.
Key valuation signals for LSE:LLOY:
Forward PE Ratio: 10.95
GF Value™: £0.70 vs. price of £1.12 (60.2% above fair value)
Industry Position: 0.5% below the Banks median (#385 of 816)
No single metric tells the full story. See the LSE:LLOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lloyds is a retail and commercial bank headquartered in the United Kingdom. The bank operates via three business segments: retail, commercial banking, and insurance and wealth. In retail, Lloyds offers primarily mortgages (66% of loan portfolio), credit cards, and current accounts to its customers. Its commercial banking operation provides lending, transaction banking, working capital management, and debt capital market services to large companies and financial institutions in the UK. Insurance and wealth round out the product lineup with life and property insurance as well as pension solutions and high-net-worth asset management services.
54GF Score
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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