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How to buy Commonwealth Bank Of Australia (CBA) shares in Australia

Learn how to easily invest in Commonwealth Bank Of Australia shares.

Commonwealth Bank of Australia (CBA) is Australia's largest bank and provides financial services in Australia, New Zealand, Asia, Europe and other parts of the world. These services include institutional banking, personal insurance, savings accounts, credit cards and loans. Founded in 1911, the bank is one of the oldest financial institutions in Australia and can be traded on the Australian Securities Exchange (ASX).

How to buy shares in Commonwealth Bank Of Australia

To buy shares listed in Australia such as Commonwealth Bank Of Australia, you'll need to sign up to a broker with access to the ASX. Our table can help you compare share trading platforms and choose. Then follow these steps.

  1. Open and fund your brokerage account.
    Complete an application with your personal and financial details, including your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
  2. Search for Commonwealth Bank Of Australia.
    Find the share by name or ticker symbol: CBA. Research its history to confirm it's a solid investment against your financial goals.
  3. Purchase now or later.
    Buy today with a market order or use a limit order to delay your purchase until Commonwealth Bank Of Australia reaches your desired price. Look into dollar-cost averaging to spread out your risk, which smooths out buying at consistent intervals and amounts.
  4. Decide on how many to buy.
    At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
  5. Check on your investment.
    Congratulations, you own a part of Commonwealth Bank Of Australia. Optimise your portfolio by tracking how your stock and the business performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that affect your stock.

Commonwealth Bank Of Australia stock price (ASX:CBA)

Use our graph to track the performance of CBA stocks over time.

Commonwealth Bank Of Australia shares at a glance

Information last updated 2024-05-16.
52-week range$91.3982 - $122.55
50-day moving average $116.9044
200-day moving average $109.0529
Target price$93.43
PE ratio 21.2257
Dividend yield $4.55 (3.59%)
Earnings per share (TTM) $5.76

Compare share trading platforms

The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
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Is it a good time to buy Commonwealth Bank Of Australia stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Commonwealth Bank Of Australia price performance over time

Historical closes compared with the last close of A$122.26

1 week (2024-05-09) 4.42%
1 month (2024-04-17) 9.22%
3 months (2024-02-16) 5.14%
6 months (2023-11-17) 19.31%
1 year (2023-05-17) 25.86%
2 years (2022-05-17) 16.31%
3 years (2021-05-17) 25.02%
5 years (2019-05-17) 67.87%

Is Commonwealth Bank Of Australia under- or over-valued?

Valuing Commonwealth Bank Of Australia stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Commonwealth Bank Of Australia's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Commonwealth Bank Of Australia's P/E ratio

Commonwealth Bank Of Australia's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, Commonwealth Bank Of Australia shares trade at around 21x recent earnings.

That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Commonwealth Bank Of Australia's PEG ratio

Commonwealth Bank Of Australia's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.54. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Commonwealth Bank Of Australia's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Commonwealth Bank Of Australia financials

Revenue TTM $26.1 billion
Operating margin TTM 56.72%
Gross profit TTM $26.4 billion
Return on assets TTM 0.78%
Return on equity TTM 13.46%
Profit margin 37.04%
Book value 43.529
Market capitalisation $204.6 billion

TTM: trailing 12 months

Commonwealth Bank Of Australia's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Commonwealth Bank Of Australia.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Commonwealth Bank Of Australia's total ESG risk score

Total ESG risk: 22.97

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Commonwealth Bank Of Australia's overall score of 22.97 (as at 12/31/2018) is nothing to write home about – landing it in it in the 43rd percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Commonwealth Bank Of Australia is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Commonwealth Bank Of Australia's environmental score

Environmental score: 2.14/100

Commonwealth Bank Of Australia's social score

Social score: 10.25/100

Commonwealth Bank Of Australia's governance score

Governance score: 9.86/100

Commonwealth Bank Of Australia's controversy score

Controversy score: 4/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Commonwealth Bank Of Australia scored a 4 out of 5 for controversy – the second-lowest score possible, reflecting that Commonwealth Bank Of Australia has a damaged public profile.

Environmental, social, and governance (ESG) summary

Commonwealth Bank Of Australia was last rated for ESG on: 2019-01-01.

Total ESG score 22.97
Total ESG percentile 42.55
Environmental score 2.14
Social score 10.25
Governance score 9.86
Level of controversy 4

Commonwealth Bank Of Australia share dividends

78%

Dividend payout ratio: 78.18% of net profits

Recently Commonwealth Bank Of Australia has paid out, on average, around 78.18% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.59% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Commonwealth Bank Of Australia shareholders could enjoy a 3.59% return on their shares, in the form of dividend payments. In Commonwealth Bank Of Australia's case, that would currently equate to about A$4.55 per share.

Commonwealth Bank Of Australia's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 20 February 2024 (the "ex-dividend date").

Have Commonwealth Bank Of Australia's shares ever split?

Commonwealth Bank Of Australia's shares were split on 5 October 1999.

Commonwealth Bank Of Australia share price volatility

Over the last 12 months, Commonwealth Bank Of Australia's shares have ranged in value from as little as $91.3982 up to $122.55. A popular way to gauge a stock's volatility is its "beta".

CBA.AU volatility(beta: 0.91)Avg. volatility(beta: 1.00)LowHigh

Beta measures a share's volatility in relation to the market. The market (AU average) beta is 1, while Commonwealth Bank Of Australia's is 0.907. This would suggest that Commonwealth Bank Of Australia's shares are less volatile than average (for this exchange).

Commonwealth Bank Of Australia overview

Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides retail, premium, business, offshore, and institutional banking services; and funds management, superannuation, and share broking products and services, as well as car, health, life, income protection, and travel insurance. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.

Past developments

September 9: CBA has reported $10.16 billion in net profits in its FY2023 earnings report - up 6% from the previous year. It also announced a dividend of $4.50 per share, an increase of 17% on FY22.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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