The Commonwealth Bank of Australia, or briefly CBA, is the largest bank in Australia, which has a major market share of mortgages (20 %+), credit cards (25 %+) and personal loans. It has more than 15 million users in Australia, most of whom. Basically, it is included in the ecosystem and financial market of Australian payments.
CBA Share Price
Culture matters
Long -term investors want to invest in great companies and hold them for 5, 10 or 20 years, we believe that a good workplace and staff culture can maintain high quality personnel and can lead to long -term financial success of a company.
Asi’s investors can get in a way like a company Commonwealth Bank of Australia Or ANZ Banking Group (ASX: ANZ) to use HR/Jobs website like seek. The Sik’s website contains data related to the culture of companies, including things like employees. According to recent data we have drawn on the CBA, for example, the company’s overall workplace culture rating was 3.4/5 More than ASX banking sector average rating 3.1.
Watch that (net) margin
Shares of ASX Bank such as CBA need reserves and good profit margins to make their business profitable. Meaning, a bank receives money from term deposit holders and wholesale loans investors and lends this amount to homeowners, businesses and investors. The difference between the bank Payment Researchers and what is Makes from The mortgage (for example) is a pure interest margin or NIM. Remember: When it comes to half, the margin is wider.
If you are planning to predict bank profits like CBA or Macori Group Limited (ASX: mqg), knowing how much money the bank pays and gives borrowers per dollar. That is why NIMCBA is the most important step in profit. In ASX’s major bank shares, we calculated the average NIM by 1.78 % while the Commonwealth Bank of Australia lending margin was 1.99 %, ie the bank developed BetterOn average, return the money from lending to consumers compared to their peers.
The reason for analyst NIM’s close study is that the Australian Commonwealth Bank earned 85 % of its total income (equivalent to income) by lending last year.
Return to the shareholder Equity (ROE)
Returning to the shareholder equity, also known as ‘ROE’, helps you compare a bank’s profit comparison to its total shareholder equity, as shown on his balance sheet. Instrument Cry Better. In the latest whole year, the Commonwealth Bank of Australia’s ROE was 13.1 %, which means that the bank’s shareholder in the annual profit for every $ 100 of the Equity. Created 13.10. This sector was more than 9.35 %.
CBA’s Backup Bank Capital
For Australian banks, CET1 ratio (alias ‘Common Equity Tire One’) is important. The CET1 represents the bank’s capital buffer, which can be avoided by financial elimination – basically, it is the proportion of total assets that are ‘liquid’ or readily available. According to our number, the CET1 ratio of Australia’s Commonwealth Bank was 12.3 % last year. This sector was better than average.
CBA Profit Price – Some measures for bank stock
https://www.youtube.com/watch?v=36mud-1abb4
A Dividnd Discount Model or DDM is a highly efficient way to predict ASX bank shares. We have to take a DDM’s last year’s profit and then apply the risk rating. The total profit last year was $ 4.65. Let’s suppose that every year CBA profit payments increase at a permanent rate, between 2 % and 4 %. We will use multiple risk rates (between 6 % and 11 %) and then use the average price. The calculation we use is: Shares value = full year’s profit / (risk rate-rate growth rate).
| Rate | ||||
| 2.00 % | 3.00 % | 4.00 % | ||
|
Risk rate |
6.00 % | .00 119.00 | 8 158.67 | 8 238.00 |
| 7.00 % | . 95.20 | .00 119.00 | 8 158.67 | |
| 8.00 % | . 79.33 | . 95.20 | .00 119.00 | |
| 9.00 % | .00 68.00 | . 79.33 | . 95.20 | |
| 10.00 % | . 59.50 | .00 68.00 | . 79.33 | |
| 11.00 % | . 52.89 | . 59.50 | .00 68.00 | |
According to this fast and easy DDM model, the CBA shares are estimated at $ 98.33. However, using the ‘adjust’ dividend payment (expected future profits) of 7 4.76 per share, which is a priority move because it uses prediction profits, costs at 100.66. The diagnosis is compared to the current shares of CBA from $ 170.38. Since the company’s profits are fully clarified, we can make more adjustments and make a diagnosis based on ‘gross’ profit payment (this is the value of profit, including Franking Credit). Using gross profit payments, ‘fair price’ projection becomes 3 143.80.
This means that the cost of CBA shares using our simple DDM model may be expensive, but it is one of the many steps before deciding to invest. It is important to consider all the risks and ideas presented here, including the benefit of the railing dividend and the good effects of Franking Credit.
Consider e -mailing our free investment report on your free investment report on analysis and diagnosis (Continue reading). It should be one of the many steps when deciding to invest. Consider reading the annual reports of the Commonwealth Bank of Australia for at least two or three years and then look for good investors and analysis that do not agree with your point of view – a good way to find out if you are making a positive decision based on a strict analysis and consider alternative feedback. Finally, before going with the CBA or ANZ shares, I recommend obtaining a copy of my free investment report.
