This morning, shares in Barclays (LSE: BARC) (NYSE: BCS.US) passed the 300p mark. If they can end the session at this level, it will be their highest price since April 2011.

In the last six months, Barclays shares have benefited from three developments. First, political progress in the eurozone has calmed previously panicky investors. Second, we are now in a bull market. Conditions like these are great for shares -- especially financials like Barclays. The third reason for Barclays' big rise is the effect that the LIBOR scandal had on its share price in 2012.

Barclays and LIBOR: controversy and opportunity

Before Barclays' role in the LIBOR scandal broke in 2012, the shares were trading around 200p. As panic reached a crescendo, the shares fell as low as 150p.

The announcement of former CEO Bob Diamond's departure was a great point to buy shares in the company. It showed that Barclays were willing to lose people associated with the wrongdoing and that a new corporate ethos was required.

The fundamentals

Even after recent strong rises, Barclays' stock still looks attractive. In February, the bank will report its earnings for 2012. Expectations are that Barclays will announce earnings per share (EPS) of 35.5p and a dividend of 6.5p per share. At today's price, that puts the shares on a historic price-to-earnings (P/E) ratio of 8.5 and a yield of 2.2%.

It gets better.

Barclays is forecast to grow its earnings and dividend substantially in 2013. The forecast yield for 2013 rises to 2.4% and the expected increase in profits mean that the shares today trade on a 2013 P/E of just 8.

My verdict

Barclays shares are cheap right now. Unfortunately, the whiff of the LIBOR scandal still surrounds the company. This week, lawyers acting for a former customer of Barclays' have been alleging that senior executives at the bank had more knowledge of the wrongdoings than has previously been acknowledged.

Despite that, I would be buying Barclays shares now if I did not already have plenty of exposure to the sector.

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