How long can CBA's earnings multiple premium remain over comparative banks, in other countries as well as this one.
The divergence is staggering. We have seen weakness in banks globally, but CBA is an outlier that defies gravity when it comes to what one usually expects in a bank valuation. Never before has CBA been priced at these levels, whilst other banks price multiples sit within expectation.
No one has actually come up for a reason for why in the past year, CBA is trading at 30-50% premiums to its historical average in terms of price multiple/dividend yield, of which the data set goes back over 30 years.
Its almost as if CBA is a collectable and people just like owning it for ownership's sake. I find peoples and some factions of the media's obsession with this bank to be really bizarre. They talk about it like it's their favorite sports team. It's very weird & melodramatic.
CBA Price at posting:
$155.99 Sentiment: Sell Disclosure: Not Held
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