Up 200% with a P/E below 12! Can the Barclays share price keep defying gravity?
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The Barclays (LSE: BARC) share price is a work of wonder. It’s up 200% over five years and 80% in the last 12 months. Right now it seems unstoppable, jumping another 7% in the week after the Budget spared the big FTSE 100 banks a new windfall tax on profits. How long can the excitement last?
Given the mighty rally investors might expect Barclays shares to be overpriced, but the price-to-earnings ratio is a modest 11.9, comfortably below today’s FTSE 100 average of around 17. True, it was only at six or seven just a couple of years ago, but it’s still pretty cheap.
Soaring FTSE 100 sector
The price-to-book sits at roughly 0.78. I remember the days when it was 0.4, but it still…
