Like most ASX 200 shares, the Commonwealth Bank of Australia (ASX: CBA) share price had a tough time in September.
During the month, the banking giant's shares lost almost 3% of their value.
This is actually slightly better than the S&P/ASX 200 Index (ASX: XJO), which fell approximately 3.5% over the period.
Why did the CBA share price tumble last month?
Investors were selling off ASX 200 shares indiscriminately last month amid heightened market volatility. This was sparked by higher-than-expected inflation in the United States, which has reset interest rate expectations once again.
Instead of the rate hike cycle being over, the market now expects the US Federal Reserve to lift rates at least one more time. Especially with oil prices nearing US$100 a barrel again, which could make inflation harder to tame than previously hoped.
All in all, this has caused concerns that rates could be higher for longer and stifle economic growth.
Last month CBA announced that the courts had approved its settlement of a consumer credit insurance class action.
Australia's largest bank agreed to pay $50 million in damages for consumer credit insurance for credit cards and personal loans that were sold between 1 January 2010 and 7 March 2018.
Should you invest?
Unfortunately, as has long been the case, the broker community largely believes that the CBA share price is fully valued at current levels.
The most bullish broker would have to be UBS, which has a neutral rating and a $105 price target on the bank's shares. This implies a potential upside of almost 6% for investors over the next 12 months. This potential return increases beyond 10% if you include the broker's dividend estimate of $4.76 per share in FY 2024.