Commonwealth Bank of Australia

DB:CWW Stock Report

Market Cap: €160.2b

Commonwealth Bank of Australia Valuation

Is CWW 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 CWW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€79.59
Fair Value
20.6% overvalued intrinsic discount
12
Number of Analysts

Below Fair Value: CWW (€96) is trading above our estimate of fair value (€79.59)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CWW. This is calculated by dividing CWW's market cap by their current earnings.
What is CWW's PE Ratio?
PE Ratio28x
EarningsAU$9.48b
Market CapAU$265.12b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CWW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.1x
CBK Commerzbank
10.6x11.1%€22.4b
RY Royal Bank of Canada
15.2x5.4%CA$241.1b
PCZ ProCredit Holding
5x12.2%€523.0m
C Citigroup
13.5x9.7%US$149.2b
CWW Commonwealth Bank of Australia
28x4.4%€265.1b

Price-To-Earnings vs Peers: CWW is expensive based on its Price-To-Earnings Ratio (28x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CWW 28.0xIndustry Avg. 8.3xNo. of Companies41PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CWW is expensive based on its Price-To-Earnings Ratio (28x) compared to the European Banks industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is CWW'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.

CWW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: CWW is expensive based on its Price-To-Earnings Ratio (28x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).

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 CWW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€97.64
€61.42
-37.1%
11.2%€71.90€48.34n/a12
Jan ’26€92.41
€60.19
-34.9%
10.0%€69.70€48.48n/a12
Dec ’25€97.36
€60.41
-37.9%
9.4%€69.92€49.07n/a12
Nov ’25€85.41
€61.07
-28.5%
11.3%€76.36€49.07n/a13
Oct ’25€82.95
€61.30
-26.1%
10.3%€74.62€49.33n/a14
Sep ’25€85.40
€59.09
-30.8%
9.4%€72.89€48.19n/a15
Aug ’25€80.36
€57.32
-28.7%
9.9%€69.81€48.23n/a15
Jul ’25€77.87
€57.20
-26.5%
10.1%€70.97€49.03n/a15
Jun ’25€73.07
€57.15
-21.8%
10.0%€71.01€49.06n/a15
May ’25€69.97
€55.86
-20.2%
9.5%€66.93€48.55n/a15
Apr ’25€72.29
€55.55
-23.2%
9.4%€66.35€48.39n/a15
Mar ’25€69.61
€55.28
-20.6%
9.2%€66.51€48.50n/a15
Feb ’25€69.00
€54.79
-20.6%
9.6%€66.52€48.38€96.5114
Jan ’25€68.82
€54.66
-20.6%
8.8%€64.21€48.93€92.4114
Dec ’24€63.14
€54.26
-14.1%
8.8%€63.74€48.57€97.3614
Nov ’24€57.68
€54.12
-6.2%
9.5%€62.95€47.96€85.4114
Oct ’24€61.62
€54.57
-11.4%
9.3%€63.50€48.38€82.9514
Sep ’24€60.84
€53.48
-12.1%
8.9%€62.32€47.48€85.4015
Aug ’24€63.95
€54.21
-15.2%
8.0%€61.41€48.17€80.3615
Jul ’24€60.99
€54.67
-10.4%
7.2%€61.04€48.83€77.8715
Jun ’24€59.44
€54.40
-8.5%
7.4%€60.76€48.61€73.0715
May ’24€59.90
€54.28
-9.4%
7.7%€62.17€47.83€69.9715
Apr ’24€60.47
€56.27
-6.9%
7.4%€64.00€49.23€72.2915
Mar ’24€63.02
€58.85
-6.6%
7.1%€66.75€53.27€69.6116
Feb ’24€71.35
€61.08
-14.4%
7.5%€68.36€54.69€69.0016
Analyst Price Target
Consensus Narrative from 12 Analysts
€61.54
Fair Value
56.0% overvalued intrinsic discount
12
Number of Analysts

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 Analysis2025/02/05 20:10
End of Day Share Price 2025/02/05 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.

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 Github.

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
Craig StaffordBarrenjoey Markets Pty Limited
Jonathan MottBarrenjoey Markets Pty Limited