Dont want to go too off topic, but look at these numbers for CBA
Earnings per share has gone basically nowhere in 10 years. Yet, the share price is up about 65% in that same time, not including dividends.
This doesnt take into account the inflation on those EPS, so the 2023 EPS of 583c is likely to actually be lower than the 2014 EPS.
Shares on issue have also increased by about 50million. So your EPS is diluted even further.
NAB much the same
ANZ the same.
WBC the same.
For what its worth, this is WHC
Its earnings are all over the place which make it a hard choice for a long term hold, much better (as others have pointed out) for a cyclical trade.
I think the reason we see such high multiples in the banks is due to the monumental move to index investing as well as Australias large superannuation scheme.
(20min delay)