Commonwealth Bank of Australia (ASX: CBA) shares will be in sharp focus tomorrow, Wednesday, August 13.
That's when the S&P/ASX 200 Index (ASX: XJO) bank stock reports on its eagerly awaited full-year FY 2025 results.
As you're likely aware, CBA shares have been on a tear over the past year.
In early afternoon trade today, shares are up 0.3%, changing hands for $179.10 apiece.
That sees shares in Australia's biggest bank up more than 37% over 12 months, smashing the 13% gains delivered by the benchmark index over this same period.
Atop those impressive capital gains, CBA also trades on a 2.7% fully franked trailing dividend yield.
Which brings us back to our headline question. With the bank set to release its results tomorrow, are CBA shares a buy right now?
Image source: Getty Images
Should you buy CBA shares today?
Argonaut's Harrison Massey recently ran his slide rule over CommBank stock (courtesy of The Bull).
"The CBA posted an unaudited cash net profit after tax of $2.6 billion in the third quarter of fiscal year 2025, which was a significant uptick on the prior corresponding period," Massey noted.
Indeed, NPAT in Q4 FY 2025 was up 6% year on year.
But those strong third-quarter results aren't enough to get Massey, who has a sell recommendation on CBA shares, over the fence.
He noted:
Despite the strong share price appreciation, the valuation of CBA and the Australian banking sector in general looks excessive. Commonwealth Bank's price/earnings ratio is significantly higher than most peers, including double its main competitor ANZ.
Indeed, at current prices, CBA trades on a price-to-earnings (P/E) ratio of just over 30 times.
As for the other big three ASX 200 bank stocks:
- ANZ Group Holdings Ltd (ASX: ANZ) shares trade on a P/E ratio of just under 14 times.
- National Australia Bank Ltd (ASX: NAB) shares trade on a P/E ratio of just over 17 times.
- Westpac Banking Corp (ASX: WBC) shares also trade on a P/E ratio of just over 17 times.
And Massey isn't alone in his sell recommendation.
Consensus analyst recommendations on CommSec show 10 strong sell recommendations, four moderate sell recommendations, and one hold.
Not a single analyst is sticking their neck out with a buy recommendation on CBA shares right now.
Of course, that's not entirely a new development for CBA stock.
Analysts have been calling it overvalued and forecasting a significant share price retrace for more than a year now. And we've seen how that year played out.
