Why I believe the Lloyds share price is far too cheap
I believe the Lloyds(LSE: LLOY) share price is still far too cheap even after rising nearly 200% excluding dividends from its low of 22.2p printed at the end of 2011. It seems that, to some extent, the market still considers Lloyds to be a recovery play, and it is valuing it as such. But this is an incorrect interpretation of where the business is today and what it has achieved over the past decade. Indeed, today Lloyds is one of the most efficient and profitable banks in the whole of Europe and barring any significant unforeseen shocks, it is set to continue on this course for the foreseeable future. Add all of the above together and it quickly becomes apparent how undervalued the shares are today. Assuming the Lloyds share price valuation remains the same through 2020, if profits grow by 25% as targeted, I calculate the shares could be worth 83p, around 25% above current levels. If we throw dividends into the mix, the returns are set to be even higher.