Commonwealth Bank of Australia

ASX:CBA Stock Report

Market Cap: AU$194.4b

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$114.64) is trading above our estimate of fair value (A$96.49)

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?

Other financial metrics that can be useful for relative valuation.

CBA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio10.5x

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 Average11.6x
NAB National Australia Bank
14.1x0.9%AU$105.6b
WBC Westpac Banking
12.6x-1.8%AU$90.2b
ANZ ANZ Group Holdings
12.3x1.7%AU$87.0b
BFL BSP Financial Group
7.5xn/aAU$2.7b
CBA Commonwealth Bank of Australia
19.6x1.9%AU$194.4b

Price-To-Earnings vs Peers: CBA is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (11.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CBA is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the Global Banks industry average (8.8x).


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 Ratio19.6x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: CBA is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).


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$114.64
AU$92.02
-19.7%
9.4%AU$109.70AU$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$80.00n/a14
Nov ’24AU$96.87
AU$90.27
-6.8%
9.5%AU$105.00AU$80.00n/a14
Oct ’24AU$99.97
AU$90.24
-9.7%
9.3%AU$105.00AU$80.00n/a14
Sep ’24AU$101.35
AU$90.11
-11.1%
8.9%AU$105.00AU$80.00n/a15
Aug ’24AU$105.85
AU$90.03
-14.9%
8.0%AU$102.00AU$80.00n/a15
Jul ’24AU$100.27
AU$89.56
-10.7%
7.2%AU$100.00AU$80.00n/a15
Jun ’24AU$96.80
AU$89.53
-7.5%
7.4%AU$100.00AU$80.00n/a15
May ’24AU$100.44
AU$90.79
-9.6%
7.7%AU$104.00AU$80.00n/a15
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
Nov ’23AU$106.05
AU$93.74
-11.6%
7.6%AU$110.00AU$85.00AU$96.8716
Oct ’23AU$90.70
AU$91.40
+0.8%
9.3%AU$110.00AU$77.00AU$99.9716
Sep ’23AU$96.05
AU$91.95
-4.3%
10.4%AU$110.00AU$77.00AU$101.3517
Aug ’23AU$101.08
AU$92.04
-8.9%
11.5%AU$110.00AU$77.00AU$105.8517
Jul ’23AU$90.70
AU$92.59
+2.1%
11.8%AU$110.00AU$77.00AU$100.2717
Jun ’23AU$106.71
AU$96.14
-9.9%
10.7%AU$114.00AU$77.00AU$96.8017
May ’23AU$103.88
AU$95.92
-7.7%
11.5%AU$116.00AU$77.00AU$100.4417
Apr ’23AU$104.53
AU$95.51
-8.6%
11.8%AU$116.00AU$77.00AU$98.3217

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


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