Commonwealth Bank of Australia (ASX: CBA) shares are down 0.13% to $179.17 in late afternoon trading on Tuesday.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.21%.
Australia's largest bank has been a star performer in terms of share price growth since the bank stock run began in November 2023.
Check this out.
CBA shares hit a record high of $183.19 last Wednesday.
Many analysts point out that CBA shares are now the most expensive global banking stock in the world.
CBA shares are currently trading at a price-to-earnings (P/E) ratio of 30.95x.
This is in stark contrast to CBA's big four banking peers.
Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are $29.34, down 0.83% today, giving them a P/E of 13.36x.
Westpac Banking Corporation (ASX: WBC) shares $32.95, down 0.71%, with a P/E of 17.01x.
The National Australia Bank Ltd (ASX: NAB) share price is $38.88, down 0.15%, with a P/E of 17.42x.
With CBA shares trading at such astronomical highs, perhaps you might be thinking it's time to sell.
John Athanasiou, CEO of Red Leaf Securities, says you shouldn't. Here's why.
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Expert says hold your CBA shares
The investment manager says CBA remains a market leader with strong profitability and dividend stability.
Athanasiou says (courtesy The Bull):
The company posted an unaudited cash net profit after tax of $2.6 billion in the third quarter of fiscal year 2025, up 6 per cent on the prior corresponding period.
Operating income was up 1 per cent driven by lending volume growth and higher trading income.
Looking ahead, Athanasiou sees several factors that may dampen share price growth.
… potential superannuation tax changes, elevated valuations and slowing credit growth temper near-term upside.
Investors may consider holding until more clarity on Federal Government policy emerges, or until the macroeconomic outlook improves for banks.
The Federal Government has proposed lifting the tax rate on superannuation earnings, including unrealised capital gains, above $3 million.
What do other analysts think?
There are 16 analysts on the CommSec platform covering CBA shares.
Their consensus rating is a moderate sell, with 9 analysts recommending a strong sell, four a moderate sell, and three saying hold.
If you're keen to lock in your gains, you might like to consider a stop-loss order.
This is a risk management tool whereby you can pre-set a sell price if CBA shares were to fall significantly from here.
