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Commonwealth Bank of Australia is a banks-diversified business based in Australia. Commonwealth Bank of Australia shares (CBA) are listed on the Australian Securities Exchange (ASX) and all prices are in Australian Dollars. Commonwealth Bank of Australia has a trailing 12-month revenue of around $21.2 billion. If you're looking to buy shares, check out the steps below.
How to buy shares in Commonwealth Bank of Australia
- Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
- 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.
- 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. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- 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.
- Check in on your investment. Congratulations, you own a part of Commonwealth Bank of Australia. Optimise your portfolio by tracking how your stock — and even 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 can affect your stock.
What's in this guide?
- Commonwealth Bank of Australia key stats
- Compare share trading platforms
- Is Commonwealth Bank of Australia stock a buy or sell?
- Commonwealth Bank of Australia performance over time
- Is Commonwealth Bank of Australia suitable for ethical investing?
- Are Commonwealth Bank of Australia shares over-valued?
- Commonwealth Bank of Australia's financials
- How volatile are Commonwealth Bank of Australia shares?
- Does Commonwealth Bank of Australia pay a dividend?
- Have Commonwealth Bank of Australia shares ever split?
- Other common questions
Commonwealth Bank of Australia share priceUse our graph to track the performance of CBA stocks over time.
Commonwealth Bank of Australia shares at a glance
|52-week range||$61.5584 - $106.57|
|50-day moving average||$97.6883|
|200-day moving average||$88.2853|
|Dividend yield||$2.48 (2.37%)|
|Earnings per share (TTM)||$4.501|
Compare share trading platforms
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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. This is not a recommendation, however. 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
|1 week (2021-06-11)||0.56%|
|1 month (2021-05-21)||3.96%|
|3 months (2021-03-19)||20.33%|
|6 months (2020-12-18)||22.57%|
|1 year (2020-06-19)||48.41%|
|2 years (2019-06-20)||22.97%|
|3 years (2018-06-20)||41.75%|
|5 years (2016-06-20)||37.37%|
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 24x. In other words, Commonwealth Bank of Australia shares trade at around 24x 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||$21.2 billion|
|Operating margin TTM||50.22%|
|Gross profit TTM||$21.5 billion|
|Return on assets TTM||0.67%|
|Return on equity TTM||9.28%|
|Market capitalisation||$187.9 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
|Total ESG score||22.97|
|Total ESG percentile||42.55|
|Level of controversy||4|
Commonwealth Bank of Australia share dividends
Dividend payout ratio: 68.7% of net profits
Recently Commonwealth Bank of Australia has paid out, on average, around 68.7% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.37% 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 2.37% return on their shares, in the form of dividend payments. In Commonwealth Bank of Australia's case, that would currently equate to about A$2.48 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 15 February 2021 (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 $61.5584 up to $106.57. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Commonwealth Bank of Australia's is 0.6788. 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 integrated financial services in Australia, New Zealand, Europe, Asia, North America, and internationally. It offers retail, premium, business, and institutional banking; and funds management, insurance, and share-broking products and services. The company operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, New Zealand, and International Financial Services segments. It offers transaction and savings accounts, term deposits, personal and business loans, credit cards, insurance products, international payment, and private banking services, as well as home, car, and personal loans. The company also provides advisory services for high net worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and merchant, international and foreign exchange, and risk management services. It operates through 940 branches and 2,700 ATMs. The company was founded in 1911 and is based in Sydney, Australia.
Frequently asked questions
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