Commonwealth Bank of Australia
ASX: CBA · Financials · Diversified Banks
- Market cap
- A$291.5B
- P/E (trailing)
- 28.8
- P/B ratio
- 3.70
- Dividend / share
- $4.75
- 52-week range
- –
- Intrinsic value
- A$94.35
Share price
ASX: CBA · AUD
Valuation
Full valuation analysis →Fair-value estimate per share, updated 26 Jul 2026
A$94.35 The median of our 4 model estimates
84.5% above fair value Against the A$174.03 price.
- Dividend discount model
- A$61.42
- P/B multiple
- A$125.57
- P/E multiple
- A$110.51
- EPS growth model
- A$78.19
Total revenue
As reported · financial years
Earnings per share
Diluted · as reported
Net interest margin
As reported: the spread between lending and funding rates
Strong NIM of 2.08% in FY25: above the Australian big-four cluster.
Shares outstanding
Diluted · falling means buybacks, rising means dilution
Strong buybacks -6.1% year-on-year, -0.2% a year over 10 years: share count has been stable over the long run.
Deposits & loans
Customer deposits vs net loans: funding stability at a glance
Financial health
Latest financial year (FY25)
- Net interest margin
- 2.08%
- Strong
- Return on equity
- 12.8%
- Solid
- Cost-to-income
- 46.0%
- Good
- CET1 capital
- 12.3%
- Strong
Verdicts are graded against what's normal for the sector (Financials), not a one-size-fits-all bar. Hover a tile for the reasoning.
Cost-to-income ratio
Operating costs as a share of income: lower is leaner
Good 46.0% in FY25: a lean cost base.
CET1 capital ratio
Core equity capital buffer against losses, vs APRA's "unquestionably strong" 10.25%
Strong 12.3% in FY25: a thick capital buffer, well above the APRA benchmark.
Loan impairment expense
Provisions for bad loans: spikes mark credit-cycle stress; below zero means write-backs
Dividends per share
Full dividend history →Per financial year, as reported in the accounts
Typical for AU banks 79% of FY25 earnings paid out: in line with big-four payout norms.
Five-year snapshot
Figures as reported in the company's filings
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Net interest income | $18.8B | $19.5B | $23.1B | $22.8B | $24.0B |
| Total revenue | $24.4B | $24.9B | $27.5B | $26.9B | $28.3B |
| Net profit | $10.2B | $10.8B | $10.1B | $9.4B | $10.1B |
| EPS (diluted) | $5.40 | $6.01 | $5.84 | $5.58 | $6.04 |
| Dividend / share | $2.14 | $3.57 | $3.95 | $4.27 | $4.75 |
What does Commonwealth Bank of Australia (CBA) do?
Commonwealth Bank of Australia is a diversified banking group that serves households and businesses across Australia, New Zealand and a number of international markets. Its household-facing operations centre on everyday transaction and savings accounts, term deposits and home lending, alongside credit cards and personal finance such as car loans and buy-now-pay-later arrangements. On the business side, the bank extends overdrafts, equipment finance, margin lending and specialised accounts for trusts, farms and treasury management, while a separate New Zealand arm mirrors much of this retail and commercial activity offshore.
It also underwrites personal insurance lines covering health, travel, pets, income protection and life, plus cover for cars and the home, and supports larger clients through markets-related services such as capital raising, debt capital markets access, equity trading and broader risk management alongside everyday transaction banking. The lender traces its history to 1911, runs from a Sydney head office, has traded on the ASX since 1991, counts roughly 51,000 full-time staff, and is currently run by chief executive Matt Comyn.
Book value per share
Net assets per share: the base a bank's P/B multiple is paid on
Steady growth +4.2% a year over 10 years: healthy book compounding on top of the dividend.
Common questions about CBA
Is CBA undervalued right now? +–
The median of our 4 model estimates puts Commonwealth Bank of Australia's fair value at A$94.35 per share against a price of A$174.03, 84.5% above the estimate as at 26 Jul 2026. Model estimates are a starting point, not advice. See the full valuation breakdown.
Does CBA pay a dividend? +–
Commonwealth Bank of Australia paid $4.75 per share in its most recent financial year with a recorded dividend. The dividend history chart above shows the full payout record.
How fast is CBA growing? +–
Net profit has compounded at 1.1% a year over the last five financial years, and 1.1% a year over ten.
What is CBA's P/E ratio? +–
Commonwealth Bank of Australia trades on a trailing price-to-earnings ratio of 28.8, based on diluted earnings of $6.04 per share in FY25.
Compare CBA with peers
How has Commonwealth Bank of Australia (CBA) performed financially, and how does its share price compare to estimated fair value?
Commonwealth Bank of Australia's net interest income rose from $16.9B in FY2016 to $24.0B in FY2025, while non-interest income fell from $7.6B to $4.3B over the same period, after peaking at $11.7B in FY2017. Net income eased from $9.2B in FY2016 to a low of $8.6B in FY2019, before climbing to $10.8B in FY2022 and settling at $10.1B in FY2025. Diluted earnings per share followed a similar pattern, dropping to $4.69 in FY2019 and ending the period at $6.04, the highest of the ten years reported.
Profitability metrics have held in a narrow band across the period: net interest margin ranged from a low of 1.9% in FY2022 to a high of 2.2% in FY2018, ending FY2025 at 2.1%. Provisions for loan losses have varied widely, from a low of $357M in FY2022 to a high of $2.5B in FY2020, before settling at $726M in FY2025. The bank's CET1 capital ratio, a measure of capital strength, rose from 10.6% in FY2016 to 12.3% in FY2025, having peaked at 13.1% in FY2021.
As of July 3, 2026, Commonwealth Bank of Australia shares closed at $165.02, trading on a price-to-earnings ratio of 27.3, above the stock's own five-year median of 18.0. The valuation models applied to the bank, current as of July 5, 2026, place estimated fair value below that closing price across the board: $108.51 from the PE-ratio model, $76.78 from the EPS-growth model, $123.22 from the PB-ratio model, and $61.42 from the dividend discount model. These are modeled estimates, not fixed targets, but each currently sits beneath the $165.02 share price.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 6 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.