Is the Lloyds Banking share price cheap?

Lloyds Banking (LON:LLOY) is a large cap financial services company, which provides a range of banking and financial services, focused on personal and commercial customers.

Right now the Lloyds Banking share price displays favourable value traits, as evidenced by its Value Rank of 87. Let's explore this in more detail.

Breaking down Lloyds Banking's Value Rank

We can see by using Lloyds Banking’s StockReport that the group has a:

• Rolling price to book value of 0.48,
• Trailing twelve month price to earnings ratio of 8.30
• Trailing twelve month price to free cashflow of 2.91
• Rolling dividend yield of 10.5%
• Trailing twelve-month price to sales ratio of 0.52

This combination of financial traits suggests that Lloyds Banking stock might be good value at current levels, although further research is required if this is to be confirmed.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Lloyds Banking that you can find out about here.