Up 47% from its 12-month low, is there any value left in Lloyds’ share price?
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Lloyds’ (LSE: LLOY) share price has risen 47% from its 16 April one-year traded low of 49p.
This may be off-putting to some investors who think it cannot possibly rise much more any time soon. Others may see it as a sign of unstoppable bullish momentum and look to jump on the buying bandwagon.
My view as a former investment bank trader and longtime private investor is neither approach is helpful in choosing stocks. The primary concern for me regarding a share’s price is whether there is any value in it.
Is there value left in the stock’s price?
Lloyds looks overvalued on its 10.8 price-to-earnings ratio against its competitor’s 8.9 average.
This group comprises Barclays at…
