As the largest company on the ASX, Commonwealth Bank of Australia (ASX: CBA) stocks are an important part of many investors' portfolios.
Furthermore, the CBA stock price performance influences ASX ETFs that track the ASX 50, ASX 200, etc.
From October 2023, to July 2025, the CBA share price was on a bull run, almost doubling in that span.
During this span, brokers repeatedly warned that it was overpriced. But the CBA stock price continued to climb.
However, since hitting an all-time high in late June, it has shed more than 12%.
Many investors have likely been monitoring this drop closely, wondering when the stock has officially reached a point of value.
Image source: Getty Images
Is it still overpriced?
CBA's share price rose for a few reasons.
There was an increase in home loan and business lending, the net interest margin improved, and reported reduced loan losses. But its recent fall reflects concerns over high valuation and broader economic factors.
Last month, the Motley Fool's Tristan Harrison reported that compared to the other big four banks, it is trading at a very high price-to-earnings (P/E) ratio.
His analysis is certainly worth a read. It now seems the business is not generating the growth to suggest it should trade at such a higher earnings multiple.
It seems brokers tend to agree. Some of the most well known are still tipping a further slide from its current stock price.
What are brokers saying about CBA shares?
Looking around at current valuations from brokers, it is clear that the general consensus is CBA is still trading well above fair value.
For investors looking for all the latest valuations in one place, I have compiled some of the most recent updates below.
CBA shares closed trading yesterday at $167.06.
The broker with the most negative outlook on CBA shares is Macquarie. The latest Macquarie share price target is $106 on CBA shares. This comes along with an underperform rating.
This indicates a downside of 36.56% from current levels.
JP Morgan's price target of $120 and an underweight rating, indicate a further 28% drop.
Bell Potter has a sell recommendation and a $124 price target, which indicates a fall of 25.78%.
Foolish Takeaway
For investors hoping to snap up Australia's largest company at a discount, it would appear brokers believe there is still a further fall to come for CBA shares.
However it's worth noting, this doesn't guarantee the stock price will continue to fall.
The past two years have shown investors value CBA at a premium due to its position in the Australian economic landscape.
