Commonwealth Bank of Australia

ASX:CBA Stock Report

Market Cap: AU$267.1b

Commonwealth Bank of Australia Valuation

Is CBA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CBA (A$155.99) is trading above our estimate of fair value (A$115.01)

Significantly Below Fair Value: CBA is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CBA?

Key metric: As CBA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CBA. This is calculated by dividing CBA's market cap by their current earnings.
What is CBA's PE Ratio?
PE Ratio27.5x
EarningsAU$9.48b
Market CapAU$267.06b

Price to Earnings Ratio vs Peers

How does CBA's PE Ratio compare to its peers?

The above table shows the PE ratio for CBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.2x
NAB National Australia Bank
16.1x2.3%AU$116.4b
WBC Westpac Banking
15.7x-0.06%AU$112.8b
ANZ ANZ Group Holdings
13x3.3%AU$87.3b
BFL BSP Financial Group
7.9xn/aAU$3.2b
CBA Commonwealth Bank of Australia
27.5x4.4%AU$267.1b

Price-To-Earnings vs Peers: CBA is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the peer average (13.4x).

Price to Earnings Ratio vs Industry

How does CBA's PE Ratio compare vs other companies in the Global Banks Industry?

17 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CBA 27.5xIndustry Avg. 10.1xNo. of Companies166PE0612182430+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CBA is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the Global Banks industry average (10.1x).

Price to Earnings Ratio vs Fair Ratio

What is CBA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.5x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: CBA is expensive based on its Price-To-Earnings Ratio (27.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CBA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$155.99
AU$99.32
-36.3%
10.0%AU$115.00AU$80.00n/a12
Dec ’25AU$158.58
AU$98.50
-37.9%
9.4%AU$114.00AU$80.00n/a12
Nov ’25AU$142.09
AU$99.56
-29.9%
11.3%AU$124.50AU$80.00n/a13
Oct ’25AU$133.34
AU$99.41
-25.4%
10.3%AU$121.00AU$80.00n/a14
Sep ’25AU$139.50
AU$98.09
-29.7%
9.4%AU$121.00AU$80.00n/a15
Aug ’25AU$136.27
AU$95.09
-30.2%
9.9%AU$115.80AU$80.00n/a15
Jul ’25AU$126.20
AU$93.33
-26.0%
10.1%AU$115.80AU$80.00n/a15
Jun ’25AU$119.54
AU$93.20
-22.0%
10.0%AU$115.80AU$80.00n/a15
May ’25AU$113.92
AU$92.06
-19.2%
9.5%AU$110.30AU$80.00n/a15
Apr ’25AU$120.34
AU$91.84
-23.7%
9.4%AU$109.70AU$80.00n/a15
Mar ’25AU$117.36
AU$91.18
-22.3%
9.2%AU$109.70AU$80.00n/a15
Feb ’25AU$114.10
AU$90.61
-20.6%
9.6%AU$110.00AU$80.00n/a14
Jan ’25AU$111.80
AU$89.37
-20.1%
8.8%AU$105.00AU$80.00n/a14
Dec ’24AU$104.19
AU$89.37
-14.2%
8.8%AU$105.00AU$80.00AU$158.5814
Nov ’24AU$96.87
AU$90.27
-6.8%
9.5%AU$105.00AU$80.00AU$142.0914
Oct ’24AU$99.97
AU$90.24
-9.7%
9.3%AU$105.00AU$80.00AU$133.3414
Sep ’24AU$101.35
AU$90.11
-11.1%
8.9%AU$105.00AU$80.00AU$139.5015
Aug ’24AU$105.85
AU$90.03
-14.9%
8.0%AU$102.00AU$80.00AU$136.2715
Jul ’24AU$100.27
AU$89.56
-10.7%
7.2%AU$100.00AU$80.00AU$126.2015
Jun ’24AU$96.80
AU$89.53
-7.5%
7.4%AU$100.00AU$80.00AU$119.5415
May ’24AU$100.44
AU$90.79
-9.6%
7.7%AU$104.00AU$80.00AU$113.9215
Apr ’24AU$98.32
AU$91.45
-7.0%
7.4%AU$104.00AU$80.00AU$120.3415
Mar ’24AU$99.05
AU$91.69
-7.4%
7.1%AU$104.00AU$83.00AU$117.3616
Feb ’24AU$110.15
AU$93.81
-14.8%
7.5%AU$105.00AU$84.00AU$114.1016
Jan ’24AU$102.60
AU$94.12
-8.3%
8.1%AU$110.00AU$84.00AU$111.8016
Dec ’23AU$108.42
AU$94.12
-13.2%
8.1%AU$110.00AU$84.00AU$104.1916

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 06:26
End of Day Share Price 2024/12/19 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Commonwealth Bank of Australia is covered by 36 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett Le MesurierAxiome Equities
Russell WrightBarclay Pearce Capital Pty Limited
Craig StaffordBarrenjoey Markets Pty Limited