Lloyds (LSE: LLOY) share price has dropped from its 4 February one-year traded high of £1.14 to just above the £1 level.

And this has exacerbated the already glaring mismatch between the stock’s ‘fair value’ and its price. That value figure factors in the fundamentals of the underlying business rather than the short-term noise reflected in a stock’s price.

This difference is enormously useful for long-term investors to know, as share prices tend to converge to this fair value over time.

So, what level are we looking at here for the true worth of the stock?

What do the fundamentals show?

Long‑term investors like me are ultimately buying a stream of future business cash…