Nestwest (LSE: NWG) Actions fired at the lights. Over the past year, they increased by 50% and 390% in five years, with dividends at the top.

. Barclays (LSE: BARC) The price of shares also goes great weapons, climbing 68% in the last 12 months and 290% in five years.

Investors who have supplies (or both) will be delighted. Those who can’t kick. As always, what happens next is a substantial problem.

The obvious answer is that nobody knows. If they did, they would be multi -religion. All we can do is give our best shot.

The valuations still look attractive

One way to look forward is to check customary valuation methods. In terms of price to profit, both banks look decent value. Natwest is 10.02, while Barclays is 10.68. Figure 15 is seen as a fair value, so both seem underestimated with the range of growth.

Banks’ investors also like to exploit the price -to -book price (p/b) ratio, which compares the market capitalization of the company with the basic accounting value. AP/B around one is considered solid, while everything below two can still look profitable. Natwest has 1.11. Barclays has only 0.72. Both look like a decent value of this measure. Barclays is surprisingly inexpensive, considering the recent performance.

The goals of the analysts are hopeful

Another imperfect but useful guide is to look at 12-month broker forecasts. They are not always valid, but they give a feeling where the market believes that actions can change.

18 Analysts dealing with NATWWs produce the median target 603.6 pence, i.e. 17.75% higher than today’s price. Forecasts range from 500p to 700p.

In the case of Barclays 17 analysts covering actions, it provides a median target 410.55 pence, which is a smaller augment of 7.57% from today. There is a wide range again, from 290p to 500p.

These goals suggest slower growth, which is natural only after such a robust run. However, they still point to progress, especially at Natwest.

Returns increased by dividends

Both banks also award investors through dividends. It is forecasted that Natww will bring 5.79% the following year. Add this to your growth forecast, and the total return increases to 23.54%. This will change 10,000 pounds in 12,354 GBP, which is a very decent turn. If this happens.

Barclays has a lower performance of the 2.36%forecast. It usually favors the purchase of shares compared to dividends, which is another way to reward shareholders. If this forecast is correct, its total return will reach 9.93%, which transforms 10,000 GBP into 10 993 GBP.

Economic risk remains. Inflation is sticky, growth is ponderous and consumers are under pressure. Barclays also has a gigantic exposure to the US through its investment bank and although Wall Street is robust, there are always fears of recession. Interest rate discounts can support the economy, but also the net interest margins would narrow, which squeezes bank profitability.

My approach

I think growth must ponderous down, but I still believe in one FTSE 100 Banks are worth considering buying in today’s valuations. Personally, I favor Natwest because I prefer a dividend income from the purchase. None of us knows what is around the corner, so investors should spread the risk and invest with a long -term view.