Lloyds Banking Group (LSE:LLOY) Moat Score: 6/10 (As of Jun. 29, 2026)


LSE:LLOY Lloyds Banking Group PLC LSE:LLOY
54 GF Score
Price £1.09
GF Value £0.70
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Lloyds Banking Group Moat Score?

Lloyds Banking Group LSE:LLOY -0.77% 54 Moat Score is 6 as of Jun. 29, 2026. GuruFocus rates LSE:LLOY with a GF Score™ of 54/100 and a GF Value™ of £0.70 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,614 Banks companies, Lloyds Banking Group ranks better than 97.83% on this metric.

Lloyds Banking Group has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Lloyds Banking Group has Narrow Moat: Lloyds Banking Group has a strong narrow moat due to its significant market share in the UK, brand strength, and customer loyalty. It benefits from economies of scale and regulatory barriers in the banking sector, but lacks the global reach and network effects to warrant a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Lloyds Banking Group might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Lloyds Banking Group  (LSE:LLOY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Lloyds Banking Group Moat Score Related Terms

Lloyds Banking Group Moat Score Competitor Comparison

For the Banks - Regional subindustry, Lloyds Banking Group's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Banks Industry

For the Banks industry and Financial Services sector, Lloyds Banking Group's Moat Score distribution charts can be found below:

* The bar in red indicates where Lloyds Banking Group's Moat Score falls into.


LSE:LLOY
54GF Score
Lloyds Banking Group PLC LSE:LLOY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Lloyds Banking Group (LSE:LLOY) has a Moat Score of 6 as of Jun. 29, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Lloyds Banking Group ranks #35 out of 1614 companies in the Banks industry, placing it in the top 2.2%.
Is Lloyds Banking Group's Moat Score too high?
Lloyds Banking Group's current Moat Score is 6. Based on the distribution chart, Lloyds Banking Group ranks #35 out of 1614 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. 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 Moat Score compare to competitors?
According to the Banks industry distribution chart, Lloyds Banking Group ranks #35 out of 1614 companies for Moat Score. This places Lloyds Banking Group in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Banks company?
A good Moat Score depends on the Banks industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Lloyds Banking Group's current Moat Score is 6. 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 £1.09 — trading 56% above its estimated fair value. The current Moat Score is 6. Lloyds Banking Group's overall GF Score™ is 54/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Lloyds Banking Group (LSE:LLOY), the current Moat Score is 6 as of Jun. 29, 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 £1.09 is trading 56% above its estimated GF Value™ of £0.70. GuruFocus considers Lloyds Banking Group to be Significantly Overvalued.

Key valuation signals for LSE:LLOY:

  • Moat Score: 6
  • GF Value™: £0.70 vs. price of £1.09 (56% above fair value)
  • GF Score™: 54/100 with 5 warning signs

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 Banking Group Business Description

Address 33 Old Broad Street, London, GBR, EC2N 1HZ
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

Get the complete analysis for LSE:LLOY

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.09
Price
£0.70
GF Value