4 best numbers to value CBA shares

Core Viewpoint - Commonwealth Bank of Australia (CBA) is a leading financial institution in Australia with a strong market presence and a focus on profitability metrics such as net interest margin (NIM) and return on equity (ROE) [2][6][8]. Group 1: Company Overview - CBA is Australia's largest bank, holding over 20% market share in mortgages, 25% in credit cards, and a significant portion in personal loans, serving more than 15 million customers primarily in Australia [2]. - The bank's workplace culture rating is 3.4 out of 5, which is above the ASX banking sector average of 3.1, indicating a relatively positive employee environment [4]. Group 2: Financial Metrics - CBA's net interest margin (NIM) stands at 1.99%, outperforming the ASX major bank average of 1.78%, highlighting its effective lending practices [6]. - The bank generated 85% of its total income from lending activities last year, emphasizing the importance of lending performance in its overall revenue [7]. - CBA's return on equity (ROE) is reported at 13.1%, significantly higher than the sector average of 9.35%, indicating strong profitability relative to shareholder equity [8]. Group 3: Capital and Valuation - CBA's common equity tier one (CET1) ratio is 12.3%, which is above the sector average, providing a solid capital buffer against financial instability [9]. - The dividend discount model (DDM) suggests an average valuation of CBA shares at $98.33, with an adjusted valuation based on expected future dividends at $100.66, while a gross dividend valuation indicates a fair value of $143.80 [10][11].