Lloyds (LSE: Lloy) shares are traded near the highest level on October 23 of 78 points.

I think the driving force behind this is the latest in a series of shares. This tends to support the stock price, where purchased shares are canceled, thus reducing the general offer.

Modern programs include 2 billion pounds in 2023, and 2 billion pounds in 2024. There is a re -purchase of another 2 billion pounds this year.

Lloyds said this is part of its strategic effort to improve the benefit of the structure and improve the arrow’s profits.

However, I always feel anxious that the company provides an actual offer for its own stocks that may pay attention to the weak basic assessments over time.

How do the basic works look?

It is a growth in the company’s profits, which operates its share price and increases its long -term profits. It is not just a company to buy its own shares, because this ultimately becomes not sustainable over the years.

The risk of LLOYDs is at the level determined by the wrong selling compensation, which will be due to car insurance customers.

Another is any constant decrease in interest rates in the main UK market. This can press net benefits ’revenues – the difference in money made of interest and loans.

Lloyd’s recent results were not good in any case. In the entire 2024, the legal profit fell after the tax by 19 % on an annual basis to 4.477 billion pounds. In the first quarter of 2025, the same measurement decreased by 7 % to 1.134 billion pounds.

Are the stocks exaggerated now?

Just because the share price has increased a lot, it does not mean that there is no value in it. It may simply be that the work itself deserves more than it was before, and the new price reflects this.

On the price ratio to profits. Lloyds looks exaggerated in 12 versus the average of his 9.3 counterpart. These include Barclays In 8.2, Natest In 8.7, Carted Standard In 9.7, and HSBC In 10.5.

It is also exaggerated-and if it is little-by a price of 2.6 compared to the average competitor of 2.5. The same applies to the price ratio to the book from 1 against an average of 0.9 of its peers.

However, the reduced cash flow analysis draws a different image. Using other and self -analyst numbers, this indicates that LLOYDS shares are less than 45 % in the current 77p. Therefore, its fair value is 1.40 pounds technically.

However, this figure reflects the expectations of the consensus that its profits will increase by 14.9 % annually to the end of 2027. I am not sure that this reflects either the current currently clear operational distress in its results or future risks.

Will I buy the arrow?

In addition to the other risks I see in the bank, I am still concerned about its sub -price. This is not officially placed in the “Penny Share” arc, as the bank has the maximum market for more than 100 million pounds.

However, this means that stocks have the same risks that volatility of severe prices as stocks. Each 1p step in Lloyds shares currently constitute 1.3 % of the full value of the stock!

I think this, and the other risks, are sufficient to deter me from buying shares.

For investors who have much higher risk than I have, the shares may be worth considering.