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Barclays PLC (BARC) Fair Value & Analysis

Financial Services · GB · Market cap 69.1B GBX · ISIN GB0031348658

What is Barclays PLC really worth?

BP Barclays PLC BARC · LSE
Price£4.97
Fair Value£7.06
Upside+42.2%
Quality66/100

A solid business, trading 30% below our fair value of £7.06.

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Strengths

Highly profitable · 26.8% net margin
Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +14.9 %/yr)
!Mixed vs. peers (6/14)
!Moderate moat 64/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 20 out of 100

For context

·2.32% dividend yield
Evidence: Medium Range £5.30 – £8.83

Fair value as of: Aug 27, 2026

From 6 valuation models · updated 8 days ago

Share price −5.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (£5.30). The market is more pessimistic than our downside scenario.
  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

£5.30 £1.19 Fair Value £7.06 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range £1.19 – £5.30 · fair‑value band £5.30 – £8.83 · the £4.97 price screens below the £7.06 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Barclays PLC (BARC) currently trades at £4.97, while our model-based Fair Value estimate is £7.06, implying the stock looks roughly 29.7% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of £6.91 per share, and 3 of the 6 models we run sit above the £4.97 price. Bear case: the Dividend Discount group reads lowest at £2.30, and 3 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Barclays PLC generated revenue of £27.1B at a net margin of 26.8%. Revenue grew 3.9% year over year. It earns a return on equity of 9.6%. The balance sheet holds a net cash position of £9.8B. Fundamentals as of Aug 27, 2026

Our scenario range runs from £5.30 (bear case) to £8.83 (bull case); at £4.97, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at −8% fair-value upside, at 42%, BARC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly £0.2132 per share, which is 3.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence £4.97 £5.45 £7.61 76
Gordon GGM £1.53 £2.78 £4.43 66
DDM Multi-Stage £1.53 £2.30 £3.14 66
All 6 models by family
Dividend Discount
Gordon GGM £1.53 £2.78 £4.43 66
DDM Multi-Stage £1.53 £2.30 £3.14 66
Multiples
P/E Multiple £5.18 £6.91 £8.64 63
P/B Multiple £6.06 £8.07 £10.09 55
Asset-Based
NCAV (Graham) £2.88 £3.86 £5.77 54
Economic Profit
Residual Income best evidence £4.97 £5.45 £7.61 76

Widest divergence: Multiples (£6.91) versus Dividend Discount (£2.30). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 11.6
P/S ratio 1.63 P/E × margin
EPS (TTM) £0.4300 price ÷ EPS = P/E 11.6
Dividend yield 2.3% payout 26.7%
Net margin 14.1% FY2025
Return on equity 9.6% TTM
More key figures
Profitability
Return on assets (EBIT) 0.5% avg 5y
Operating margin 39.8% TTM
Growth
Revenue (TTM) £27.1B TTM
Revenue growth (YoY) +3.9% 3y avg +14.9%
EPS growth (YoY) +8.1%
Balance sheet & cash flow
Free cash flow 16.9B GBX FY2025
Net cash 9.8B GBX FY2025

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 67 · Market factors (momentum, volatility) 69

Profitability 26
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 98
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Barclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK; Barclays UK Corporate Bank; Barclays Private Bank and Wealth Management; Barclays Investment Bank; and Barclays US Consumer Bank segments.

Full company description

Barclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK; Barclays UK Corporate Bank; Barclays Private Bank and Wealth Management; Barclays Investment Bank; and Barclays US Consumer Bank segments. It offers financial services, such as current accounts, savings accounts, mortgages and unsecured lending, such as credit cards and loans retail banking, wholesale banking, investment banking, wealth management, and investment management services, as well as lending products. In addition, the company engages in securities dealing activities and issuing of credit cards. The company was formerly known as Barclays Bank public limited company and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Barclays PLC reported revenue of £50.8B in FY2025 versus £25.1B in FY2021, a compound +19.3%/yr. Reported net income was £7.2B in FY2025, compounding +0.6%/yr from FY2021.

Growth Quality 89/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£50.8B
Latest YoY
−1.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.9%
Avg. revenue growth/yr (34Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+23.6% (21.3 + 2.3)
Revenue +19.3%/yr
FY21 £25.1B
FY22 £33.5B
FY23 £47.8B
FY24 £51.6B
FY25 £50.8B
Net income +0.6%/yr
FY21 £7.0B
FY22 £5.9B
FY23 £5.3B
FY24 £6.3B
FY25 £7.2B
Character of growth · EPS growth decomposed (2014-2025) +22.9 % p.a.
Revenue per share +8.9 %

of which total revenue +7.7 % · buybacks/dilution +1.1 %

EBIT margin +6.7 %
Tax rate +5.1 %
Residual (interest, one-offs) +0.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Barclays PLC Fair Value". https://www.fairvalue-calculator.com/stock/BARC

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Banks - Diversified · 48 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 72 · Top 25%
Fair Value upside +42% · Top 25%
Return on equity (TTM) 10% · Below median
Return on assets 0% · Bottom 25%
Net margin (TTM) 27% · Below median
Operating margin (TTM) 40% · Below median
Revenue growth 4% · Below median
Dividend yield (TTM) 2.3% · Below median
Debt / equity 0.77× · Lower than median

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 11.6× · Cheaper than median
P/B 1.20× · Cheaper than median
P/S (TTM) 3.45× · Cheaper than median
P/FCF 5.5× · Pricier than median
PEG 1.66× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE90 · sector 14
FUTURE20 · sector 25
PAST38 · sector 42
HEALTH62 · sector 48
DIVIDEND46 · sector 70

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $354.22 $217.97 −38%
Bank of America Corporation BAC $61.17 $50.87 −17%
China Construction Bank Corporation 601939 ¥10.55 ¥18.21 +73%
Industrial and Commercial Bank of China Limited 601398 ¥7.86 ¥14.44 +84%
HSBC Holdings HSBC $103.14 $75.89 −26%
Agricultural Bank of China Limited 601288 ¥6.79 ¥12.94 +91%
Royal Bank of Canada RY C$283.11 C$151.80 −46%
Bank of China Limited 601988 ¥6.14 ¥11.24 +83%
Wells Fargo & Company WFC $86.69 $79.60 −8%
Mitsubishi UFJ Financial Group MUFG $22.90 $20.50 −10%

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Frequently asked questions

Is Barclays PLC (BARC) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of £7.06 versus a price of £4.97, about +42% upside (undervalued).
What is the fair value of BARC?
Our model-based fair value for Barclays PLC is £7.06 (as of Aug 27, 2026), built from audited fundamentals. The current price: £4.97.
What is the quality score of BARC?
Barclays PLC has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Barclays PLC (BARC)?
Barclays PLC reported trailing-twelve-month revenue of about £27.1B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of BARC?
The net profit margin of Barclays PLC is about 26.8%, meaning it keeps roughly 26.8% of revenue as net income. Based on the latest reported figures.
Does Barclays PLC pay a dividend?
Barclays PLC currently shows a dividend yield of about 2.32% relative to its recent price (as of Aug 27, 2026).
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