Valuation as at 2026-08-04 · refreshed with the ASX 300 Most Undervalued screen
About Commonwealth Bank of Australia
Commonwealth Bank of Australia provides retail and commercial banking services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers savings and term deposit accounts, commonwealth direct investment accounts, and retail transaction accounts, as well as specialized accounts, such as statutory trust, society cheque, farm management, cash and treasury management, and business foreign currency deposit accounts.
Source: Yahoo Finance company profile · factual description, not KashVector commentary
Commonwealth Bank of Australia CBA.AX
Financial Services · Banks - Diversified
CBA.AX's price & financial trends
Annual reporting periods — this market does not have reliable quarterly data on Yahoo (either it isn’t required, or coverage is incomplete), so annual is the most granular consistent series across free cash flow and dividends.
Data refreshed 2026-08-04
Share price · last 2 years
Earnings per share (diluted)
Return on equity
Dividend per share
🏦 Bank/Insurer — valued with the Dividend Discount Model
DCF is not used for bank/insurer stocks: deposits or reserves are a raw material rather than funding, so there's no clean free cash flow. This valuation uses the Dividend Discount Model (DDM) instead.
Intrinsic value estimate · 5-year forecast
Assumptions used in this valuation
Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.
| Bear | Base | Bull | |
|---|---|---|---|
| Dividend growth | 2.3% | 4.5% | 6.8% |
| Terminal growth | 2.5% | 2.5% | 2.5% |
| Cost of equity | 10.66% | 9.66% | 8.66% |
Cost of Equity (CAPM) = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 0.81 × 6.00% = 9.66%
These numbers come from running Commonwealth Bank of Australia's dividends through the mechanical DDM formula and assumptions above — not from any view on the news, management, or CBA.AX's competitive position. What is DDM?
Want to test your own dividend growth or cost-of-equity assumptions?Open the full interactive calculator, pre-filled with CBA.AX →
More ASX 300 Most Undervalued stocks
Not financial advice. DDM valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.
About this valuation
Refreshed on the same cycle as the ASX 300 Most Undervalued screen. Change any assumption yourself in the full interactive tool.
Frequently asked questions
Is CBA.AX undervalued?
The Base-case DDM estimates intrinsic value at $77.16 vs a current price of $180.72 — a -57.3% margin, so the Base case reads overvalued. This is a mechanical output, not advice.