Commonwealth Bank of Australia's (ASX: CBA) shares might have jumped 82c or 1% today, but there are signs suggesting the stock may be starting to experience fatigue.
Indeed, it has rallied hard in recent years and has heavily outperformed the S&P/ASX 200 Index's (Index: ^AXJO) (ASX: XJO) 15.2% return over the last 12 months. It also recently recorded an all-time high price of $82.685 and continues to threaten moving past that level.
But with the stock now trading on a projected P/E ratio of 15.3 and a Price-Book ratio of 2.92, it seems investors may be starting to grow wary of the excessive valuation. Not even its 4.7% fully franked dividend yield seems all that appealing anymore, considering each of the other banks offer an even greater yield.
Westpac Banking Corp (ASX: WBC), for instance, yields 5.3% while National Australia Bank Ltd (ASX: NAB) goes one better and yields just under 6%, fully franked. Australia and New Zealand Banking Group (ASX: ANZ) also yields 5.1%.
Given the momentum the stock has had up until the last fortnight or so, I wouldn't be surprised to see it surpass its all-time high at some stage soon, but I would be astonished if the gains made from this point onwards were anything too exciting.
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