Let's get one thing straight: Love it or hate it, Commonwealth Bank of Australia (ASX: CBA) is a good business.
Go online and it becomes clear they are the bank which has invested the most in technology. They are the most convenient and easiest to get involved with.
Meanwhile in store, they have staff who are experienced and ready to get you onboard.
Should you buy Commonwealth Bank of Australia shares in 2017?
Unfortunately, investing requires us to do more than be a consumer in a store or online. Sure, it's the most important part, in my opinion.
But we also have to consider the valuation of a company's shares and its future outlook to ensure it makes a great investment.
In my opinion, Commbank shares are a little too expensive to justify an investment at today's prices.
Indeed, across many measures the company's shares appear priced to reflect its premium brand and offering.
But if we also consider the potential for a setback in property prices it is clear that a lot has to go right for the company's shares to be a bargain today.
Of course, Commbank shares are expected to pay a 'YUUGE' dividend equivalent to more than 5% fully franked. That'll keep shareholders company for a little while. However, if the downside risks appear too great, it still does not make sense to buy a share for its dividend.
Buy, hold or sell in 2017
At today's prices, Commbank shares trade at a premium to their peers and the market, which may be justified. But, investors should weigh the risks of buying into an expensive share.
If I held Commbank shares from a lower price, I'd continue to hold on in 2017. But as a buyer, I'd like to see a price towards — or below — $70 before purchasing Commbank shares.
