Westpac Banking Corporation

DB:WBC Stock Report

Market Cap: €67.2b

Westpac Banking Valuation

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

Discounted Cash Flow
Simply Wall St
€23.42
Fair Value
18.8% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: WBC (€19.93) is trading below our estimate of fair value (€24.16)

Significantly Below Fair Value: WBC 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 WBC?

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

The above table shows the Price to Earnings ratio for WBC. This is calculated by dividing WBC's market cap by their current earnings.
What is WBC's PE Ratio?
PE Ratio15.7x
EarningsAU$7.02b
Market CapAU$110.35b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WBC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.8x
CBK Commerzbank
8.7x8.7%€23.5b
PCZ ProCredit Holding
5.3x12.2%€564.2m
PNC PNC Financial Services Group
14.1x9.6%US$76.8b
BMO Bank of Montreal
15.1x9.3%CA$104.5b
WBC Westpac Banking
15.8x-0.2%€110.7b

Price-To-Earnings vs Peers: WBC is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (10.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WBC 15.7xIndustry Avg. 8.4xNo. of Companies45PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WBC is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the European Banks industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is WBC'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.

WBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: WBC is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (11x).

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 WBC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€19.03
€18.02
-5.3%
11.8%€24.36€15.99n/a12
Feb ’26€19.86
€17.33
-12.8%
14.7%€23.98€11.99n/a13
Jan ’26€18.91
€16.98
-10.2%
13.1%€22.18€11.99n/a13
Dec ’25€20.00
€16.88
-15.6%
11.0%€20.04€12.15n/a14
Nov ’25€18.88
€16.58
-12.2%
11.1%€20.24€12.27n/a14
Oct ’25€19.05
€16.56
-13.1%
10.8%€20.32€12.32n/a15
Sep ’25€18.82
€16.03
-14.8%
9.0%€18.43€12.13n/a15
Aug ’25€17.48
€15.16
-13.3%
8.3%€17.19€12.10n/a15
Jul ’25€16.55
€15.22
-8.0%
8.3%€17.30€12.18n/a15
Jun ’25€15.60
€15.30
-2.0%
8.4%€17.36€12.29n/a15
May ’25€15.52
€14.48
-6.7%
10.5%€16.99€11.23n/a14
Apr ’25€15.43
€14.32
-7.2%
10.8%€16.90€11.16n/a14
Mar ’25€15.60
€14.08
-9.7%
11.4%€16.97€10.61n/a14
Feb ’25€14.10
€13.32
-5.5%
10.9%€16.91€10.57€19.8614
Jan ’25€13.85
€13.22
-4.5%
10.5%€17.19€10.75€18.9114
Dec ’24€12.65
€13.23
+4.6%
11.0%€17.00€10.62€20.0015
Nov ’24€12.16
€12.90
+6.1%
11.4%€16.78€10.49€18.8815
Oct ’24€12.63
€13.08
+3.6%
11.9%€17.03€10.64€19.0515
Sep ’24€12.70
€13.01
+2.4%
11.0%€16.62€10.39€18.8216
Aug ’24€13.25
€13.54
+2.2%
10.1%€17.00€11.53€17.4816
Jul ’24€12.72
€13.63
+7.1%
10.1%€17.09€11.60€16.5516
Jun ’24€12.26
€13.67
+11.5%
10.2%€17.01€11.54€15.6016
May ’24€13.16
€14.13
+7.4%
10.8%€17.34€11.36€15.5216
Apr ’24€13.02
€14.82
+13.8%
12.5%€18.46€11.69€15.4316
Mar ’24€13.90
€15.64
+12.5%
12.5%€19.07€12.08€15.6016
Feb ’24€15.02
€16.00
+6.6%
12.7%€19.42€12.30€14.1016
Analyst Price Target
Consensus Narrative from 13 Analysts
€17.48
Fair Value
8.8% overvalued intrinsic discount
13
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 Analysis2025/02/19 21:47
End of Day Share Price 2025/02/19 00:00
Earnings2024/12/31
Annual Earnings2024/09/30

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

Westpac Banking Corporation is covered by 30 analysts. 11 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
Benjamin BrayshawBarrenjoey Markets Pty Limited