I asked ChatGPT for a discounted cash flow analysis for Lloyds shares. This is what it said…
Lloyds Banking Group (LSE:LLOY) shares have soared over 70% since the start of 2025. Today (15 December), they’re changing hands for around 95p and all eyes appear to be focused on whether they can break the 100p barrier. Based on forecast earnings for 2025, they’re now the most expensive of the FTSE 100’s five banks.
But this doesn’t necessarily mean they’re over-priced. Let’s use the helping hand of artificial intelligence (AI) to try and find out.
One of the most common techniques employed to assess a company’s valuation is a discounted cash flow (DCF) forecast. This looks at the future estimated cash generation of a business and then, by applying a discount rate (9% in…
