Bendigo & Adelaide Bank Ltd (Since Covid lows, the ASX: BEN ) share price has been a mainstay for some ASX investors. Is now the time to load up on BEN shares? Let’s take a look at one way to value bank shares.Bank shares like Bank of Queensland Limited, Bendigo & Adelaide Bank Ltd (ASX: BEN) and Westpac Banking Corp (ASX: WBC) are very popular in Australia because they tend to have a stable dividend history, and often pay franking credits.In this article, we’ll explain the basics of investing in ASX bank s ...

Core Viewpoint - ANZ Banking Group's share price is currently around $33, and various valuation methods, including the price-earnings (PE) ratio and dividend discount model (DDM), are utilized to assess its value in comparison to its peers in the banking sector [1][3]. Valuation Methods - The PE ratio compares a company's share price to its earnings per share, with ANZ's current PE ratio calculated at 15.4x, compared to the banking sector average of 19x, suggesting potential undervaluation [5][8]. - A sector-adjusted PE valuation for ANZ, based on its earnings per share and the sector average, results in a valuation of $41.70 [8]. - The DDM approach forecasts future dividends instead of profits, with ANZ's last year's dividend of $1.66 assumed to grow at a consistent rate, yielding a valuation of $35.10, which increases to $35.74 with an adjusted dividend of $1.69 [9][13]. Risk and Growth Considerations - The analysis emphasizes the importance of studying the growth of total loans on the balance sheet, as rapid growth may indicate excessive risk, while slow growth may suggest conservatism [15]. - Key areas to focus on include provisions for bad loans, assessment rules for bad loans, and sources of capital, noting that overseas debt markets carry more risk compared to customer deposits [16].

price of ANZ Banking Group (Right now, you could probably use Google or another data provider to see theof ASX: ANZ ) is around $33 per share. But what are ANZ shares really worth? How to get to an share valuation is one of the more popular questions our senior investment analysts get asked by Australian investors, especially those seeking dividend income. It’s not exclusive to ANZ Banking Group, of course.National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA) are also very pop ...

like Commonwealth Bank of Australia (like ASX: CBA ) are front of mind for yield-hungry investors. But with the CBA share price trading around $169, is it undervalued?No one can tell you for certain whether now is the perfect time to buy. In the short run, the share market can seem like a random place. It can be up 2% one day, down 3% the next. There’s often no rhyme or reason (although pundits are paid the big bucks for the evening news to make you think they have a crystal ball).In this article, we’ll go ...

Core Viewpoint - ANZ Banking Group is a leading bank in Australia and New Zealand, with a significant focus on mortgages, personal loans, and credit, making it a key player in the banking sector [2] Group 1: Company Overview - ANZ is one of the Big Four banks in Australia and a leader in the New Zealand banking market [2] - The bank derives much of its revenue from lending activities, with 78% of its total income coming from lending last year [7] Group 2: Financial Metrics - The net interest margin (NIM) for ANZ was 1.57%, which is below the ASX major bank average of 1.78%, indicating a lower-than-average return from lending compared to peers [6] - ANZ's return on equity (ROE) stood at 9.3%, slightly below the sector average of 9.35% [8] - The common equity tier one (CET1) ratio for ANZ was 12.2%, which is above the sector average, indicating a strong capital buffer [10] Group 3: Valuation Insights - The dividend discount model (DDM) suggests an estimated average valuation of ANZ shares at $35.10, with an adjusted valuation of $35.74 based on forecast dividends [12] - The current share price of ANZ is $33.19, indicating that the shares may appear expensive based on the DDM model [13]

Core Viewpoint - Commonwealth Bank of Australia (CBA) is Australia's largest bank with significant market shares in mortgages, credit cards, and personal loans, making it a key player in the Australian financial ecosystem [1]. Group 1: Financial Performance - CBA's net interest margin (NIM) is 1.99%, which is higher than the ASX banking sector average of 1.78%, indicating better profitability from lending activities [5]. - The bank earned 85% of its total income from lending last year, highlighting the importance of lending in its revenue generation [6]. - CBA's return on equity (ROE) stands at 13.1%, surpassing the sector average of 9.35%, which reflects strong profitability relative to shareholder equity [7]. Group 2: Balance Sheet Strength - CBA has a common equity tier one (CET1) ratio of 12.3%, which is above the sector average, indicating a robust capital buffer to protect against financial instability [8]. Group 3: Valuation Insights - Using a dividend discount model (DDM), the estimated average valuation of CBA shares is $98.33, with an adjusted valuation based on expected future dividends rising to $100.66 [11]. - The fair value estimate, considering gross dividend payments including franking credits, is $143.80, suggesting that the current share price of $169.97 may appear expensive [12].

like Bendigo & Adelaide Bank Ltd (like ASX: BEN ) are front of mind for yield-hungry investors. But with the BEN share price trading around $13, is it top value?No one can tell you for certain whether now is the perfect time to buy. In the short run, the share market can seem like a random place. It can be up 2% one day, down 3% the next. There’s often no rhyme or reason (although pundits are paid the big bucks for the evening news to make you think they have a crystal ball).In this article, we’ll go step- ...