Risk factor
Significant default risk
Profitability factor
Greatly overvalued vs peers
About
Commonwealth Bank of Australia (CBA) offers an extensive array of financial services to both individual consumers and businesses across Australia, New Zealand, and other international territories. The institution is organized into several key operational segments: Retail Banking Services, Business Banking, Institutional Banking and Markets, and its New Zealand operations. Its product range includes various deposit options such as savings accounts and term deposits, general banking accounts, credit cards, and a wide selection of lending products like personal, business, and home loans, alongside financing for vehicles and equipment, and business overdrafts. CBA also facilitates international payments. Beyond core banking, it provides a comprehensive suite of insurance products, including coverage for homes and contents, motor vehicles, health, life, income protection, pets, and travel. For its corporate clientele, the bank supplies business credit cards, capital raising solutions, transaction banking services, and sophisticated risk management offerings. Commonwealth Bank of Australia was established in Sydney, Australia, in 1911, where its headquarters remain.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E. Editor's note: P/C
Target Price
The average target price of CBA.AX is 118 and suggests 27.9% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to