Commonwealth Bank of Australia

SWX:CBA Stock Report

Market Cap: CHF112.8b

Commonwealth Bank of Australia Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 (CHF53) is trading below our estimate of fair value (CHF53.44)

Significantly Below Fair Value: CBA is trading below fair value, but not by a significant amount.

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 Ratio6.6x

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 Average12.5x
LLBN Liechtensteinische Landesbank
13xn/aCHF2.1b
RY Royal Bank of Canada
12.6x2.4%CA$189.7b
BCVN Banque Cantonale Vaudoise
18.3x0.2%CHF8.6b
600036 China Merchants Bank
6.1x6.7%CN¥856.6b
CBA Commonwealth Bank of Australia
19.3x2.9%CHF189.0b

Price-To-Earnings vs Peers: CBA is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a0.7%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: CBA is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the European Banks industry average (7.7x).

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 Ratio19.3x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: CBA is expensive based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (19x).

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
CurrentCHF53.00
CHF54.70
+3.2%
9.4%CHF65.21CHF47.56n/a15
Apr ’25CHF53.00
CHF53.44
+0.8%
9.4%CHF63.83CHF46.55n/a15
Mar ’25CHF53.00
CHF52.48
-1.0%
9.2%CHF63.14CHF46.05n/a15
Feb ’25CHF53.00
CHF51.08
-3.6%
9.6%CHF62.01CHF45.10n/a14
Jan ’25CHF53.00
CHF51.67
-2.5%
8.8%CHF60.71CHF46.25n/a14
Dec ’24CHF53.00
CHF51.70
-2.4%
8.8%CHF60.75CHF46.28n/a14
Nov ’24CHF53.00
CHF51.57
-2.7%
9.5%CHF59.98CHF45.70n/a14
Oct ’24CHF53.00
CHF52.80
-0.4%
9.3%CHF61.43CHF46.81n/a14
Sep ’24CHF53.00
CHF51.08
-3.6%
8.9%CHF59.52CHF45.35n/a15
Aug ’24CHF53.00
CHF52.11
-1.7%
8.0%CHF59.03CHF46.30n/a15
Jul ’24CHF53.00
CHF53.39
+0.7%
7.2%CHF59.61CHF47.69n/a15
Jun ’24CHF53.00
CHF52.86
-0.3%
7.4%CHF59.04CHF47.23n/a15
May ’24CHF53.00
CHF53.37
+0.7%
7.7%CHF61.14CHF47.03n/a15
Apr ’24CHF53.00
CHF56.10
+5.8%
7.4%CHF63.80CHF49.08CHF53.0015
Mar ’24CHF53.18
CHF58.12
+9.3%
7.1%CHF65.92CHF52.61CHF53.0016
Feb ’24CHF53.00
CHF61.19
+15.5%
7.5%CHF68.49CHF54.79CHF53.0016
Jan ’24CHF53.00
CHF59.74
+12.7%
8.1%CHF69.82CHF53.32CHF53.0016
Dec ’23CHF53.00
CHF59.74
+12.7%
8.1%CHF69.82CHF53.32CHF53.0016
Nov ’23CHF53.00
CHF59.04
+11.4%
7.6%CHF69.28CHF53.54CHF53.0016
Oct ’23CHF53.00
CHF58.31
+10.0%
9.3%CHF70.18CHF49.12CHF53.0016
Sep ’23CHF53.00
CHF61.70
+16.4%
10.4%CHF73.81CHF51.67CHF53.0017
Aug ’23CHF53.00
CHF61.44
+15.9%
11.5%CHF73.42CHF51.40CHF53.0017
Jul ’23CHF53.00
CHF61.64
+16.3%
11.8%CHF73.22CHF51.26CHF53.0017
Jun ’23CHF53.00
CHF65.91
+24.4%
10.7%CHF78.15CHF52.79CHF53.0017
May ’23CHF53.00
CHF65.91
+24.4%
11.5%CHF79.71CHF52.91CHF53.0017
Apr ’23CHF53.00
CHF66.04
+24.6%
11.8%CHF80.21CHF53.24CHF53.0017

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

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