As it should. Bloomberg.
While bleak quarterly results from Australian peers last month helped trim its valuation, Commonwealth Bank remains one of the most expensive bank shares globally. The stock trades at 25 times forward earnings, almost double JPMorgan Chase & Co.’s multiple.
“The banks’ latest results were not good enough to meet lofty expectations or to support elevated trading multiples,” Morgan Stanley analysts led by Richard E Wiles wrote in a note dated March 3. “We retain our negative stance on the major banks and expect them to underperform” Australia’s benchmark in 2025. CBA is up 0.2% this year, while the ASX 200 is down 0.8%.
