Westpac Banking Corporation · Valuation
ASX: WBC · Financials · Diversified Banks
Fair value estimates vs price
A$ per share · models updated 26 Jul 2026
93.8% above fair value A$19.16, 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$14.13Values 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$22.78Applies 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$27.00Applies the historical median price-to-earnings ratio to current earnings per share.
EPS growth model
A$15.54Projects 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 | $1.99 | $19.81 | $1.41 |
| 2024 | $1.92 | $18.50 | $1.45 |
| 2023 | $1.95 | $18.64 | $1.16 |
| 2022 | $1.52 | $18.13 | $1.12 |
| 2021 | $1.38 | $17.51 | $0.69 |
| 2020 | $0.64 | $18.96 | $0.70 |
| 2019 | $1.90 | $17.57 | $1.33 |
| 2018 | $2.30 | $17.73 | $1.58 |
| 2017 | $2.29 | $17.06 | $1.35 |
| 2016 | $2.18 | $16.53 | $1.53 |
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Is Westpac (WBC) trading above or below its valuation model estimates?
As of July 5, 2026, the valuation models place Westpac Banking Corporation's per-share worth well below the $35.69 closing price recorded on July 3, 2026. The P/E ratio-based model estimates $27.00, the EPS growth model $15.54, the P/B ratio model $22.39, and the dividend discount model $14.13. Westpac's current P/E ratio of 17.9 sits noticeably above its own five-year median P/E of 13.54, indicating the shares are being priced at a higher earnings multiple than their recent historical norm.
For these model outputs to be meaningful, diluted EPS would need to sustain something close to the $1.99 reported in FY2025, a figure that fell as low as $0.64 in FY2020 and has moved between $1.38 and $2.30 over the decade of reported results. The wide dispersion between the $14.13 dividend discount estimate and the $27.00 P/E-based estimate reflects how differently each method weights earnings, book value and payout history, underscoring that these are model-derived estimates rather than confirmed figures.
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.