Commonwealth Bank of Australia clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.
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Description
Commonwealth Bank of Australia (CBA) operates as a provider of financial services and products.
Business Segments
The company operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand Banking seg…
Analysis
Hope premium
Commonwealth Bank of Australia is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium.
On valuation, the picture is expensive. The owner-earnings multiple stands at 26.3×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 10% a year, against analyst forecasts of 5%. The gap between price and consensus is worth watching: demanding expectations.
Growth is moderate; the safety picture is sturdy. The company scores 10/20 on our value-creation score: creating some value. Analyst sentiment is cautious.
No flags apply to this company at this time: accounts, balance sheet, and cash quality all pass. A clean bill of health is meaningful, not just the absence of a warning. This analysis describes numbers; it is not investment advice.
360° rank · history
1007550250
Jan 20231
16
2023202420252026
All-time high
30
Jan 2025
All-time low
1
Jan 2026
Average rank
11
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
9
3
8
8
Price/Earnings
1
3
5
7
Price/Book
1
1
3
5
Dividend Yield
49
25
51
67
Value (overall)
1
3
6
10
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.