ANZ share price at $35: here’s how I would value them

Group 1: Core Insights - ANZ Banking Group shares are currently priced around $34.79, with a calculated PE ratio of 16.2x compared to the banking sector average of 18x, suggesting a sector-adjusted valuation of $38.89 [6] - The financial sector, including ANZ, is favored by Australian investors, particularly for dividend income, due to its oligopolistic nature and limited competition from international banks [3][2] - The Dividend Discount Model (DDM) is highlighted as a more effective valuation method for banks, with ANZ shares valued between $35.10 and $35.74 based on different growth and risk rate assumptions [11][10] Group 2: Valuation Techniques - The PE ratio is a common valuation tool that compares a company's share price to its earnings per share, providing a price-to-earnings multiple [4][5] - DDM relies on historical or forecasted dividends, assuming consistent growth, and requires a risk rate for discounting future dividends [8][9] - Various growth and risk rate scenarios yield a range of valuations for ANZ shares, indicating the importance of sensitivity analysis in valuation [11]