Barclays Share Discussion Threads

[bernie37] 21/2/2018 16:38

Barclays PLC (LSE:BARC) is currently trading at a trailing P/E of 16.9x, which is higher than the industry average of 16x. While BARC might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. In this article, I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio. View our latest analysis for Barclays

What you need to know about the P/E ratio

LSE:BARC PE PEG Gauge Feb 21st 18
LSE:BARC PE PEG Gauge Feb 21st 18
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A common ratio used for relative valuation is the P/E ratio. By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each pound of the company’s earnings.

P/E Calculation for BARC

Price-Earnings Ratio = Price per share ÷ Earnings per share

BARC Price-Earnings Ratio = £2.01 ÷ £0.119 = 16.9x

The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. We want to compare the stock’s P/E ratio to the average of companies that have similar characteristics as BARC, such as size and country of operation. A common peer group is companies that exist in the same industry, which is what I use. At 16.9x, BARC’s P/E is higher than its industry peers (16x). This implies that investors are overvaluing each dollar of BARC’s earnings. Therefore, according to this analysis, BARC is an over-priced stock.

Assumptions to watch out for

While our conclusion might prompt you to sell your BARC shares immediately, there are two important assumptions you should be aware of. Firstly, our peer group contains companies that are similar to BARC. If this isn’t the case, the difference in P/E could be due to other factors. For example, if you are comparing lower risk firms with BARC, then its P/E would naturally be lower than its peers, as investors would value those with lower risk at a higher price. The second assumption that must hold true is that the stocks we are comparing BARC to are fairly valued by the market. If this is violated, BARC’s P/E may be lower than its peers as they are actually overvalued by investors.

[bernie37] 21/2/2018 16:33

Another day, another bank reporting results, with Barclays PLC (LON:BARC) the latest the post its full-year results on Thursday.

Like its peer, the FTSE 100-listed lender is facing some large exceptional items which are going to drag down its reported profits for 2017, one of which is a £1bn charge to profits thanks to President Trump’s US tax reforms.


However, that charge does mean in the meantime Barclays will need to write down an estimated £1bn of its US deferred tax assets, a bit of accounting jiggery pokery which will reduce reported profits but doesn’t really tell us anything about Barclays in the real world.

Like Lloyds, Barclays may also face further PPI charges, with PPI costs for 2017 to come to at least £700mln, taking Barclays’ total PPI bill to £9.1bn.

[bernie37] 21/2/2018 16:29

Barclays PLC BARC is scheduled to report its 2017 results on Thursday at 0700 GMT. Here's what you need to know:

SALES FORECAST: Analysts expect Barclays to report total income of GBP21.17 billion, according to a FactSet consensus of 17 estimates. This compares with GBP21.45 billion in 2016.

PROFIT: Analysts expect Barclays to report pretax profit of GBP4.02 billion, according to a FactSet consensus of 11 estimates. This compares with GBP3.23 billion in 2016.

WHAT TO WATCH:

INVESTMENT BANK STRUGGLES: Barclays' third-quarter results were poorly received by shareholders due to a drop in profit in the investment banking division, notes AJ Bell. Barclays CEO Jes Staley has championed further spending on the unit, but the decision may be questioned if the division continues to drag on profitability, says AJ Bell.

CONDUCT ISSUES: Any further updates on investigations into Barclays by regulators will be eagerly waited, especially progress on a settlement to its legal fight with the U.S. Department of Justice over mortgage-backed securities sales. Barclays is also facing U.S. and U.K. investigations over its fundraising with Qatar in 2008, while CEO Staley is being probed over an attempt to identify a whistleblower.

[smurfy2001] 21/2/2018 15:33

Indeed i'm wondering if l should dump my CFD

[cszjrh2] 21/2/2018 14:15

I was expecting a steady rise this week ahead of tomorrow's results and was thinking I might sell my holding this afternoon expecting the price to drop back tomorrow...Given the absence of a rise I'll probably hold now.

[bernie37] 21/2/2018 09:30

Lloyds Bank Launches £1Bn Buyback
By Max Colchester
Updated Feb. 21, 2018 3:58 a.m. ET | WSJ Pro
Lloyds Banking Group PLC (LLOY.LN) said Wednesday it was launching a 1 billion pound ($1.4 billion) share buyback alongside a new strategy aimed at making it one of the most cost-efficient banks in Europe.

The British retail bank said that its full-year net profit rose 50% to GBP3 billion, as revenues rose 6% to GBP18.5 billion amid a solid U.K. economy. The results, which set a record for the group, missed analyst estimates.

The...

[diku] 20/2/2018 23:26

Wednesday here!...

[mondaytuesday] 20/2/2018 22:25

I have a target of 240p.

Anyone have a problem with that?

No? Good.

[manics] 20/2/2018 17:31

Governments.
Lawmen. Both local and on the international stage.
Generations

-all coming together. Working together. To make sure the great guys are never again afforded opportunity they once had. And indeed did squander.

imo.

[portside1] 20/2/2018 15:46

my children will have a great week at Cheltenham they make thousands .

they are very lucky

[manics] 20/2/2018 15:04

The great transfer of wealth from the Baby Boomers who did so viley grab it from future generations. Yes we shall take back from property but we shall also transfer out of their SIPP's and portfolios for our great betterment imo.

Just as every other generation before us and them.

[manics] 20/2/2018 15:01

Alright people. Let's DO this.

[smurfy2001] 20/2/2018 13:50

Ouch.

Departing HSBC chief Stuart Gulliver has signed off with mixed results for 2017, hitting several hard-fought targets but also coming in below analysts’ expectations on profits and revenues in the fourth quarter.

[portside1] 20/2/2018 13:46

arclays BCS is slated to announce fourth-quarter and 2017 results on Feb 22, before the opening bell. For the to-be-reported quarter, it is expected to record year-over-year growth in revenues and earnings.

Encouraging investment banking performance, lower costs and a decline in credit impairment charges were the primary reasons for the improvement in last quarter’s results. However, fall in trading revenues and lower net interest income were the undermining factors.

Activities of the company in the fourth quarter failed to win analysts’ confidence. As a result, the Zacks Consensus Estimate for earnings of 13 cents remained stable over the last seven days. Nevertheless, the figure reflects significant improvement on a year-over-year basis.

[bernie37] 20/2/2018 13:44

What's in Store for Barclays (BCS) This Earnings Season?

[portside1] 20/2/2018 10:08

keith vas mp why are they not investigating were is millions have come from and is tax fiddling , iyts all their to read I now see a TOP MP AS CALLED FOR ACTION AND INVESTIGATION

[portside1] 20/2/2018 10:04

FCA will not take action against rbs their criminal acts on lies and corruption
and r/I . and the scum directors not charged its criminal .

the sfo /fca are a complete waste of time and just put the phone down .

they are not open to facts ,

[portside1] 20/2/2018 10:01

when i phoned the USELESS FCA I ASKED THEM IF I COULD NAME THE LOW LIFE PERSON WHO ATTEMPTED TO DESTROY THE EMPLOYEE , THEY WOULD NOT RESPOND SO CAN I NAME THE PERSON ITS COMMON KNOWLEDGE WHO HE IS , HE IS A NASTY PIECE OF WORK

[clond] 20/2/2018 09:40

None of that bothers me - we have known all that for months which is why we now sit 25% behind rbs and lloyd's based on 15 months ago.
It what else that will come out of the woods next that hasn't been planned for.

[manics] 20/2/2018 09:23

"Staley had attempted to identify a whistleblower.."

I mean do come on people. We're at firm Mickey Mouse levels here imo.

[keifer derrin] 20/2/2018 09:11

Finance blogger Frances Coppola is not so sure that Barclays will have anything
positive to say when it releases its full-year results on Thursday.

"Barclays has got problems in its investment division which is not doing anything like as well as it had been hoping," she told Today.

"I'm not convinced because they've got this huge rock ahead - known as the mortgage mis-selling suit in America, and rumours are that it's going to be vast, so if it does report a profit and they haven't put in anymore provisions against that, then it will be a very risky profit indeed."

On top of Barclays' woes in the US, earlier this month the UK's Serious Fraud Office charged the bank with "unlawful financial assistance" related to a £12bn loan which it took from Qatar in 2008 in order to avoid a government bailout during the financial crisis.

And if that isn't enough, Barclays is also awaiting a decision from the Financial Conduct Authority over chief executive Jes Staley.

Staley had attempted to identify a whistleblower who was concerned about a senior job being given to a friend of the chief executive.

[portside1] 20/2/2018 08:42

Greece Italy spain france are in financial trouble big time

the eu is bankrupt

german refuses to put no more money into nato
nato as far as Germany is concerned is not their problem

the polish minister says it is a eu disgrace to not pay their part