Undervalued19 Jul 2022 17:11
Barclays: Fundamentals Indicate Strong Upside
Jul. 19, 2022 8:20 AM ETBarclays PLC (BCS)C, GS, JPM, MS7 Comments5 Likes
Summary
Major financial services companies are trading ridiculously cheap. But the valuation for European banks, including Barclays, is borderline ridiculous.
Barclays is the UK's biggest investment bank with diversified revenue exposure to retail and investment banking, wealth management and global markets.
Barclays is trading at P/E of 3.9x and a P/B of incredible 0.3x.
I believe that investors who accumulate at these levels will enjoy 100% upside within 3 years.
I support my argument with a residual earnings valuation, which implies a fair implied share price for BCS of $15.14. Strong Buy.