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  • Valuing CBA Shares Using Dividend Yield and PE Ratio
    May 23, 2026, 12:29 AM EDT. Commonwealth Bank of Australia (CBA) shares trade at $165.67 with a price-to-earnings (PE) ratio of 29.4 times, above the banking sector average of 18 times. Calculating fair value by multiplying CBA's earnings per share ($5.63) by the sector PE suggests a valuation near $102.50, indicating current shares may be overvalued relative to peers. The bank's steady dividend payments, common among Australian banks, support dividend discount model (DDM) approaches to valuation, which factor in expected dividends for estimating intrinsic share price. Investors should consider sector comparisons and stable dividend histories when assessing CBA share investment potential.