Will the big four banksunderperform the market?
Yes.The incredible share price performance of the big four banks in 2024 took justabout everyone by surprise. That’s because there was no good reason for it.
The big four banks did not deliver better than expected earningsgrowth and the outlook isn’t any brighter.
The only change is that investors are willing to pay more forthe same earnings. In the case of CBA, investors value the bank at 25 times future earnings, compared to 17 times two years ago. The Australian banks have now become outliers globally, as banks with similar or better earnings profiles are deemed less valuable.
A repeat of 2024’s share price run will have to rely on themarket paying even more for those earnings at a time when they’re facingmounting challenges. The big four banks are priced for perfection, and it won’ttake too much to go wrong – or to go right for other beaten-up sectors of theASX – for them to underperform the broader market.
Will the big four banksunderperform the market?Yes.The...
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Last
$182.53 |
Change
-0.320(0.18%) |
Mkt cap ! $305.4B | |||
| Open | High | Low | Value | Volume |
| $182.51 | $183.00 | $180.13 | $1.091B | 6.388M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 400 | $182.50 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $182.55 | 3394 | 1 |
View Market Depth
| Last trade - 16.10pm 20/06/2025 (20 minute delay) ? |
| CBA (ASX) Chart |