Should you buy Lloyds TSB shares?

The market was underwhelmed by recent results from the UK's fifth-largest bank, prompting a sharp fall in Lloyds TSB's share price. But Charlie Gibson thinks this could have been an overreaction.

As Keynes proverbially put it, "The markets can stay irrational for longer than participants can stay solvent". So it's nice to get some evidence of order in the financial world particularly the one we've been living through for the past fortnight.

The chartbelow takes some of the firms I follow and plots their historic p/e multiple against what the City expects their future earnings growth to be.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Charlie Gibson

Charles has previously written for the MoneyWeek, giving readers his share tips regularly and covering other topics on the side such as stock markets and the economy. He has also written for The Business, Shares, Investors Chronicle and The Evening Standard, and Charles has presented on LBC and been a guest on BBC One and BBC World. Aside from his journalist background, Charles graduated as a chemist from the University of Oxford specialising in ligand gated ion channels.