With the WBC share price nearing $26 here’s a few techniques to value it
Right now, you could probably use Google or another data provider to see the price of Westpac Banking Corp $Westpac Banking Corp(WBC.AU$ is around $26 per share. But what are WBC shares really worth?
Getting to an analyst valuation is one of the more popular questions or topics our senior investment analysts get asked by Australian investors, especially those seeking dividend income. It’s not exclusive to Westpac Banking Corp, of course.
Bank of Queensland Limited $Bank of Queensland Ltd(BOQ.AU$ and National Australia Bank Ltd $National Australia Bank Ltd(NAB.AU$ are also very popular stocks on the ASX.
Before we walk through two valuation models you might use to answer the question yourself, let’s consider why investors like bank shares in the first place.
Alongside the tech and industrial sectors, the financials/banking industry is a favourite for Australian investors. The largest banks, including Commonwealth Bank of Australia and National Australia Bank operate in an ‘oligopoly’.
And while large international banks, such as HSBC, have tried to encroach on our ‘Big Four’, the success of foreign competitors has been very limited. In Australia, ASX bank shares are particularly favoured by dividend investors looking for franking credits.
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