Commonwealth Bank of Australia

ASX:CBA Stock Report

Market Cap: AU$256.1b

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 Future Cash Flow Value

  • Significantly Below Future Cash Flow 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.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: CBA (A$154.19) is trading above our estimate of future cash flow value (A$122.83)

Significantly Below Future Cash Flow Value: CBA is trading above our estimate of future cash flow 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 Ratio23.6x
EarningsAU$10.91b
Market CapAU$256.12b

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 Average16.2x
WBC Westpac Banking
16.7x3.31%AU$115.6b
NAB National Australia Bank
19.5x8.90%AU$116.3b
ANZ ANZ Group Holdings
19x7.51%AU$110.4b
BFL BSP Financial Group
9.5xn/aAU$3.7b
CBA Commonwealth Bank of Australia
23.6x2.36%AU$256.1b

Price-To-Earnings vs Peers: CBA is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the peer average (16.2x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CBA 23.6xIndustry Avg. 11.5xNo. of Companies207PE0612182430+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CBA is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the Global Banks industry average (11.5x).

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 Ratio23.6x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: CBA is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

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$154.19
AU$125.21
-18.79%
11.12%AU$144.99AU$90.00n/a14
Sep ’27AU$159.15
AU$125.21
-21.32%
11.12%AU$144.99AU$90.00n/a14
Aug ’27AU$177.53
AU$123.32
-30.53%
10.93%AU$144.40AU$90.00n/a14
Jul ’27AU$160.73
AU$122.57
-23.74%
10.42%AU$142.26AU$90.00n/a14
Jun ’27AU$163.30
AU$124.28
-23.89%
11.00%AU$142.26AU$90.00n/a14
May ’27AU$173.04
AU$125.95
-27.21%
11.67%AU$142.00AU$90.00n/a14
Apr ’27AU$171.90
AU$126.17
-26.60%
11.61%AU$143.07AU$90.00n/a14
Mar ’27AU$174.62
AU$127.55
-26.95%
12.16%AU$143.07AU$90.00n/a13
Feb ’27AU$149.36
AU$121.56
-18.61%
12.21%AU$146.00AU$99.81n/a14
Jan ’27AU$160.57
AU$121.62
-24.26%
13.41%AU$146.00AU$99.81n/a14
Dec ’26AU$151.64
AU$121.36
-19.97%
13.75%AU$146.00AU$96.07n/a14
Nov ’26AU$171.64
AU$121.31
-29.32%
13.32%AU$146.00AU$100.00n/a14
Oct ’26AU$167.06
AU$120.54
-27.84%
13.65%AU$146.00AU$100.00n/a13
Sep ’26AU$168.95
AU$117.82
-30.26%
13.37%AU$146.00AU$100.00AU$159.1513
Aug ’26AU$175.06
AU$115.88
-33.80%
12.30%AU$143.00AU$97.49AU$177.5313
Jul ’26AU$182.58
AU$115.57
-36.70%
12.06%AU$143.00AU$97.49AU$160.7313
Jun ’26AU$175.95
AU$115.26
-34.49%
11.97%AU$143.00AU$97.49AU$163.3013
May ’26AU$167.25
AU$114.37
-31.62%
11.42%AU$142.00AU$98.00AU$173.0413
Apr ’26AU$153.23
AU$111.98
-26.92%
11.88%AU$142.00AU$90.75AU$171.9012
Mar ’26AU$156.74
AU$111.98
-28.56%
11.74%AU$142.00AU$90.75AU$174.6212
Feb ’26AU$160.56
AU$106.39
-33.74%
11.02%AU$131.30AU$88.00AU$149.3613
Jan ’26AU$153.25
AU$104.24
-31.98%
10.90%AU$131.30AU$88.00AU$160.5713
Dec ’25AU$158.58
AU$101.02
-36.30%
12.38%AU$131.30AU$80.00AU$151.6413
Nov ’25AU$142.09
AU$99.56
-29.93%
11.26%AU$124.50AU$80.00AU$171.6413
Oct ’25AU$133.34
AU$99.41
-25.45%
10.31%AU$121.00AU$80.00AU$167.0614
Sep ’25AU$139.50
AU$98.09
-29.68%
9.39%AU$121.00AU$80.00AU$168.9515
AU$125.21
Fair Value
23.1% overvalued intrinsic discount
14
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 Analysis2026/09/11 08:56
End of Day Share Price 2026/09/11 00:00
Earnings2026/06/30
Annual Earnings2026/06/30

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 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 20 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
Jonathan MottBarrenjoey Markets Pty Limited
Matthew DungerBofA Global Research
Andrew ScottCGS International