ANZ Banking Group share price is on watch this month as ASX investors scramble to put a rough share valuation on the company. In this update, you’ll discover how to value a bank share like ANZ Banking Group, but remember this is just a quick version.Theshare price is on watch this month as ASX investors scramble to put a rough share valuation on the company. In this update, you’ll discover how to value a bank share like ANZ Banking Group, but remember this is just a quick version.Australia’s big banks make ...

Commonwealth Bank of Australia share price is on watch this month as ASX investors scramble to put a rough valuation on the company. In this update, you’ll discover how to value a bank share like Commonwealth Bank of Australia, but remember this is just a quick version.Theshare price is on watch this month as ASX investors scramble to put a rough valuation on the company. In this update, you’ll discover how to value a bank share like Commonwealth Bank of Australia, but remember this is just a quick version. ...

Core Viewpoint - The Commonwealth Bank of Australia (CBA) share price is currently trading at approximately $170.38, making it one of the most actively traded shares on the ASX, which is significant as ASX bank shares constitute about one-third of the Australian stock market by market capitalization and the All Ordinaries Index [1]. Valuation Methods - The Price-to-Earnings (PE) ratio for CBA is calculated to be 30.3x based on its current share price and earnings per share (EPS) of $5.63, which is notably higher than the banking sector average PE of 20x [4][5]. - A sector-adjusted PE valuation for CBA, using the sector average PE ratio, results in a valuation of $112.03 [5]. - The Dividend Discount Model (DDM) is highlighted as a robust method for valuing bank shares, assuming consistent dividend growth [6][7]. - Using the DDM formula, the valuation of CBA shares is estimated at $98.33 based on last year's dividend of $4.65, with an adjusted dividend payment leading to a valuation of $100.66 [10]. - When considering fully franked dividends, the valuation increases to $143.80 using a forecast gross dividend payment of $6.80 [11]. Growth and Risk Rates - Different growth and risk rates yield varying valuations for CBA shares, with a 2% growth rate and a 6% risk rate resulting in a valuation of $119.00, while a 4% growth rate and a 10% risk rate yield a valuation of $59.50 [12]. - Analysts are encouraged to conduct extensive qualitative research, including assessments of growth strategies, economic indicators, and consumer sentiment, before finalizing their valuation models [13].

Core Viewpoint - Westpac Banking Corp's share price is under scrutiny as ASX investors attempt to establish a target valuation for the company [1][2] Valuation Methods - The PE ratio is a common method for valuing bank shares, comparing a company's share price to its earnings per share [3] - Three approaches to using the PE ratio include intuitive buying/selling thresholds, comparing with sector averages, and calculating a sector-adjusted PE valuation [4] - Westpac's current share price is $39.1, with an earnings per share of $1.92, resulting in a PE ratio of 20.4x, slightly above the banking sector average of 20x [5] Dividend Discount Model (DDM) - DDM is a traditional valuation model that uses dividends to estimate a company's value, factoring in a risk rate [6][7] - The formula for DDM is Share price = full-year dividend / (risk rate – dividend growth rate), and it is advisable to calculate with various growth and risk assumptions [8] - Using a blended growth and risk rate, the valuation of WBC shares is estimated at $35.10, while an adjusted dividend payment leads to a valuation of $34.05 [10] Fully Franked Dividends - Fully franked dividends allow for an additional valuation adjustment based on gross dividend payments, resulting in a valuation of $48.64 when using a forecast gross dividend payment of $2.30 [11] Growth and Risk Rate Analysis - Different growth and risk rate scenarios yield a range of valuations for WBC shares, with a 2% growth rate and a 6% risk rate resulting in a valuation of $40.25, while a 4% growth rate and a 10% risk rate yield $20.13 [12] Additional Considerations - When analyzing bank shares like Westpac, it is essential to consider net interest margins, regulatory challenges, and the management team's effectiveness [13]

Bank of Queensland Limited (The ASX: BOQ ) share price is in focus today (and just about every day, given it’s amongst the most traded ASX shares). The BOQ share price is currently trading around $7.27.ASX bank shares make up around one-third of the Aussie stock market, measured by the market cap and the All Ordinaries Index.Within the financial sector, ASX bank shares are far and away the most popular. We will step through the absolute basics of valuing a bank share like Bank of Queensland Limited. If you’ ...

Group 1 - The share buyback program is set to run from June 2, 2025, to January 30, 2026, with a total budget of up to DKK 1,000 million and a maximum of 1,600,000 shares to be repurchased [1][2] - As of the latest report, a total of 774,977 shares have been bought back, representing 3.05% of the bank's share capital [2] - The average purchase price for shares bought back under the program is DKK 1,420.33, with a total expenditure of DKK 512,421,962 for the shares repurchased during the reporting period [2] Group 2 - The transactions conducted under the share buyback program comply with EU regulations, specifically EU Commission Regulation No. 596/2014 and EU Commission Delegated Regulation No. 2016/1052 [2] - The bank executed a total of 360,777 shares under the current buyback program, with the most recent purchases occurring on September 22, 2025 [2][4] - The detailed transaction report includes various purchase prices and volumes, indicating active management of the buyback program [4][5][6]

Bendigo & Adelaide Bank Ltd share price is on watch this month as ASX investors scramble to put a rough price target on the company. In this update, you’ll discover how to value a bank share like Bendigo & Adelaide Bank Ltd, but remember this is just a quick version.Theshare price is on watch this month as ASX investors scramble to put a rough price target on the company. In this update, you’ll discover how to value a bank share like Bendigo & Adelaide Bank Ltd, but remember this is just a quick version.Aus ...

Group 1 - The share buyback program is set to run from June 2, 2025, to January 30, 2026, with a total budget of up to DKK 1,000 million, allowing for the repurchase of a maximum of 1,600,000 shares [1] - As of the latest announcement, a total of 341,400 shares have been repurchased under the program at an average price of DKK 1,418.09, totaling DKK 484,134,425 [2] - The bank now owns 755,600 shares, which corresponds to 3.00% of its share capital, following the completion of the buyback transactions [2] Group 2 - The transactions conducted under the share buyback program comply with EU regulations, specifically EU Commission Regulation No. 596/2014 and EU Commission Delegated Regulation No. 2016/1052 [2] - The average purchase price for shares repurchased during the reporting period varied, with prices ranging from DKK 1,415.45 to DKK 1,470.19 on specific dates [2] - The total number of shares repurchased from January 28, 2025, to May 28, 2025, was 414,200 at an average price of DKK 1,207.12, contributing to a total buyback of 755,600 shares [2]

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].

Core Viewpoint - The article discusses the valuation of bank shares in Australia, particularly focusing on ANZ Banking Group and Westpac Banking Corp, highlighting the importance of dividend history and franking credits in investment decisions [1][2]. Valuation Techniques - The Price-Earnings (PE) ratio is a common method used to value bank shares, comparing a company's share price to its earnings per share [3][4]. - A comparison of a company's PE ratio with its sector average can indicate whether the share price is overvalued or undervalued [4]. - The article applies mean reversion by multiplying profits per share by the sector average PE ratio to estimate a fair value for bank shares [4][5]. Dividend Discount Model (DDM) - The DDM is highlighted as a suitable valuation method for banks due to their stable dividend payments, contrasting with growth-focused industries [6][7]. - Key inputs for DDM include the dividend per share, assumed annual growth rate (e.g., 2%), and required return (e.g., 7%) [7][9]. - The valuation formula is Share Price = Full-Year Dividend / (Risk Rate - Dividend Growth Rate), and it is recommended to use a range of assumptions for more balanced estimates [8][9]. Valuation Results for Westpac Banking Corp (WBC) - Using the current share price of WBC ($38.55) and its earnings per share ($1.92), the calculated PE ratio is 20.1x, compared to the sector average of 19x [5]. - The sector-adjusted PE valuation for WBC is estimated at $37.24 [5]. - The DDM approach yields a valuation of WBC shares at $35.10, adjusting for dividends results in a valuation of $34.05, while considering gross dividends (including franking credits) raises the valuation to $48.64 [10][11]. Growth and Risk Rate Analysis - The article provides a table showing various valuations based on different growth rates (2% to 4%) and risk rates (6% to 11%), indicating how these factors influence share price estimates [12]. - For example, at a 2% growth rate and a 6% risk rate, the valuation is $40.25, while at a 4% growth rate and a 10% risk rate, it drops to $20.13 [12]. Investment Considerations - The article emphasizes that while these models are useful, thorough qualitative research is essential before making investment decisions, including understanding growth strategies and economic indicators [13].