CSL Ltd (ASX: CSL) shares have finally shown some life.
The biotechnology giant's share price has risen around 15% since this time last week. That is a big move in a short period, particularly for a company that has been under such heavy pressure.
The question now is whether the recent bounce has taken away the opportunity, or whether it is simply the first sign that investors are starting to reassess the risk/reward.
I think it is the latter.
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CSL shares still look reasonably valued
The first thing that stands out to me is the valuation.
Even after that rebound, CSL shares are trading around $108 and are down 55% over the past 12 months.
This means that based on consensus earnings per share estimates, CSL is trading on around 13.4 times FY26 earnings. That falls to about 12.9 times FY27 earnings and around 12.8 times FY28 earnings.
For a global healthcare company with CSL's scale, those multiples do not look demanding to me.
Of course, the market is applying a lower valuation for a reason. Investors have become more cautious about earnings growth, execution, guidance, margins, and the pace of recovery.
But a lot of that caution now appears to be reflected in the share price.
At previous points in its history, CSL often traded at a far richer valuation because investors were willing to pay up for reliability and growth. The market is taking a much more sceptical view today.
That creates a different type of opportunity. Investors do not need the company to regain its old premium immediately. They need CSL to stabilise, improve execution, and show that earnings can start moving in the right direction again.
The dividend is more appealing
The dividend also looks more interesting after the share price falls.
Using consensus dividend per share estimates, CSL is forecast to pay $3.57 per share in FY26, $3.72 in FY27, and $3.79 in FY28.
At a $108 share price, that implies forward dividend yields of around 3.3%, 3.4%, and 3.5%, respectively.
CSL has rarely been viewed as an income stock. Investors have usually owned it for growth, global healthcare exposure, and long-term compounding.
But the yield now adds another layer to the investment case. It gives shareholders a reasonable income stream while they wait for the business to rebuild confidence.
Foolish Takeaway
I do not think the recent rebound means investors have missed the chance to buy CSL shares.
The share price has moved higher quickly, but it remains far below where it was a year ago. The valuation still looks reasonable, the dividend yield has become more attractive, and expectations are much lower than they used to be.
CSL still has work to do, and this is unlikely to be a smooth recovery story. But if the business starts rebuilding earnings momentum, today's share price could still prove to be an attractive entry point.
