Should I buy Lloyds shares to add to my portfolio today?
Since I last covered Lloyds (LSE: LLOY) shares, their value has increased by almost 10%. Whats more, the share price is up 35% year-to-date and over 50% year-on-year, briefly touching 50p earlier this month. Lets take a closer look. Lloyds shares valuation  Lloyds shares currently trade at a price-to-book (P/B) ratio of 0.7x. This means that the share price is trading at levels less than the current book value. This may point towards the stock being undervalued and is a good metric to consider when deciding whether to add Lloyds to my portfolio. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... In addition to this, my fellow Fool Alan Oscroft highlighted the potential of a falling price-earnings (P/E) ratio. Lloyds shares finished 2020 with a P/E figure of 33x, due to a pandemic-induced hit to earnings. Pre-pandemic EPS figures would generate a P/E ratio of around 15, which isnt far off the current ratio of 17. As a companys profits increase, its often expected that this would lead to a rise in share price. However, when a rise in share price doesnt occur with a rise in profits, the P/E ratio will fall. A falling P/E ratio can therefore be a sign of an undervalued stock. If so, it certainly helps the investment case. Positive results  Lloyds 2021 Q1 results highlighted some encouraging numbers, including a 680m statutory profit after tax. This was up 30% from the previous quarter. In addition to this, net income was up 2% over the same period, reaching 3.7bn. These numbers highlight the encouraging position of Lloyds, aligned with what the firm highlighted as its critical role in the pandemic recovery. It will also be publishing its half-year results on 29 July. If this report contains similar encouraging numbers, I expect Lloyds shares to rise throughout early August. If this is the case, now could be a great time to add it to my portfolio at a discounted price. Potential risks  Although the numbers seem promising, Lloyds shares still carry risks. The current ultra-low interest rate environment of the UK economy is a downfall for Lloyds. This is likely to continue for at least the immediate future. Low rates set by the Bank of England reduce the rate that can be charged to borrowers, thus curtailing banks profits. This is a risk I must consider before adding Lloyds shares to my portfolio. In addition to this, the pandemic still poses a threat. The prolonging of restrictions greatly reduces economic capacity. All restrictions are set to be lifted on 19 July. However, with cases rising daily, some critics are sceptical of this coming to fruition. Increased cases reduce the likelihood of any economic surge. Although I believe that Lloyds currently offers great value, I am too sceptical of the UK economic outlook to add it to my portfolio just yet. I want to see how the economy performs if (and its a big if) restrictions are lifted. Only when I have a firmer idea of the countrys macroeconomic outlook, would I consider buying the shares.