Ive been comparing CBA to American prices banks to gauge how overpriced CBA is. I didn't even realize CBA is trading at almost a 100% earnings premium to ANZ. CBA 28 times earnings, ANZ 14.5 times earnings. I cannot fathom why investors are accepting such a horrible return just to own CBA. You see crowded trades in the USA for Nvidia - the biggest company on the US markets. High growth, high margins, big potential. Then here in Australia, a crowded trade to earn 2.95% on a company that does 13% ROE and hasn't improved EPS for 10 years.
All this talk about lack of innovation and low productivity being responsible for our low GDP. Well what do you expect from a country that values a bank so highly? Its a national embarrassment how obsessed we are with this overrated bank.
CBA Price at posting:
$158.41 Sentiment: Sell Disclosure: Not Held
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