Commonwealth Bank of Australia · Valuation
ASX: CBA · Financials · Diversified Banks
Fair value estimates vs price
A$ per share · models updated 26 Jul 2026
84.5% above fair value A$94.35, the median of our 4 model estimates.
Different models answer different questions. A wide spread between them usually means the market is pricing growth or risk that historical figures don't capture. Estimates are recomputed as new results and prices land.
Dividend discount model
A$61.42Values the bank as the sum of its expected future dividends, discounted back to today. Suits banks because payouts are the main way they return capital.
P/B multiple
A$125.57Applies the bank's historical price-to-book ratio to its current book value per share. Book value is the anchor metric for lenders.
P/E multiple
A$110.51Applies the historical median price-to-earnings ratio to current earnings per share.
EPS growth model
A$78.19Projects earnings per share forward at the historical growth rate, then discounts back to a present value.
Trailing P/E history
Monthly price ÷ trailing diluted EPS · extremes above 100 excluded from stats
Per-share fundamentals
The inputs behind the models
| FY | EPS | Book value / sh | Dividend / sh |
|---|---|---|---|
| 2025 | $6.04 | $47.03 | $4.75 |
| 2024 | $5.58 | $40.97 | $4.27 |
| 2023 | $5.84 | $40.00 | $3.95 |
| 2022 | $6.01 | $39.74 | $3.57 |
| 2021 | $5.40 | $40.70 | $2.14 |
| 2020 | $5.21 | $37.96 | $4.03 |
| 2019 | $4.69 | $36.72 | $3.61 |
| 2018 | $5.18 | $36.64 | $2.90 |
| 2017 | $5.59 | $35.11 | $3.35 |
| 2016 | $5.29 | $34.20 | $3.29 |
Looking for value across the whole market? The ASX screener lists every covered company trading below our fair-value models, refreshed each trading day.
Is Commonwealth Bank of Australia (CBA) overvalued or undervalued based on its valuation models?
Several valuation models are used to estimate a per-share value for Commonwealth Bank of Australia, each producing a different figure against the $165.02 close recorded on 2026-07-03. The P/E ratio valuation model estimates $108.51, the EPS growth valuation model estimates $76.78, the P/B ratio valuation model estimates $123.22, and the dividend discount model (DDM) estimates $61.42. All four model outputs fall below the current share price, though each relies on different assumptions about earnings, book value, or dividend growth, and none should be read as a single definitive fair value.
The current price-to-earnings ratio stands at 27.31, notably above the company's own five-year median P/E of 17.96, suggesting the market is pricing the shares at a higher earnings multiple than has typically applied historically. Diluted EPS itself has been uneven across reported years, ranging from a low of $4.686 in FY2019 to a high of $6.042 in FY2025, which means growth-dependent model outputs are sensitive to which years anchor the trend.
For any of these estimates to be meaningful as a reference point, the underlying assumptions in each model would need to hold going forward, including the persistence of the earnings, book value, and dividend patterns embedded in the reported figures used to calibrate them. These are model-derived estimates rather than reported facts, and the divergence between them, from $61.42 to $123.22, itself illustrates the sensitivity of valuation outputs to the method chosen.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 4 Jul 2026 · How this works
Data is general information only, not financial advice. Figures are as reported in company filings (some ASX companies report in USD); share prices are AUD.