Commonwealth Bank of Australia (ASX: CBA) shares have found some momentum again, rising around 6% over the past month.
The shares are now trading around $178.01, putting them back near the upper end of their recent range.
After another strong run, are CBA shares still worth buying in August?
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A big week for CBA shares
Investors will not have to wait long for fresh information.
CBA is scheduled to release its FY26 results on Wednesday. The result should provide a clearer picture of how the bank is navigating competition, higher costs, and changing economic conditions.
The latest update in May was reassuring. Cash profit for the March quarter was approximately $2.7 billion, up 4% compared with the prior corresponding quarter. Lending and deposit growth helped support income, while underlying net interest margins were broadly stable.
I think that solid performance helps explain why CBA continues to command a premium valuation.
The bank has an enormous customer base, a leading digital offering, and a strong deposit franchise. It also continues to grow across home lending and business banking, giving it several ways to increase earnings over time.
But the valuation is still demanding
The quality of CBA has rarely been the main concern for me. The price investors are being asked to pay is another matter.
According to CommSec, consensus earnings per share estimates currently stand at $6.54 in FY26 and $6.72 in FY27.
At $178.01, those forecasts put CBA on price-to-earnings ratios of roughly 27 times and 26.5 times, respectively.
That is a substantial premium for a mature bank, particularly when analysts are only expecting modest earnings growth next year.
I would therefore go into Wednesday's result with high expectations. Stronger-than-expected earnings, margin resilience, or encouraging guidance could help justify the valuation. Any disappointment could quickly test investor enthusiasm after the recent share price rise.
Income adds to the case
CBA also remains an attractive dividend payer.
Consensus estimates point to fully franked dividends of $5.10 per share in FY26 and $5.15 in FY27. At the current price, that works out to a forecast dividend yield of roughly 2.9% before the potential benefit of franking credits.
The yield is not especially high compared with some other ASX banks, but CBA's strong capital position gives me confidence in its ability to continue rewarding shareholders.
Foolish takeaway
Despite the recent 6% rise, I would still be comfortable buying CBA shares in August.
The valuation means I would keep my expectations realistic, and Wednesday's result could create some short-term volatility.
But for investors willing to hold for many years, I think CBA's market position, earnings resilience, and growing fully franked dividend still make it one of the strongest banking businesses on the ASX.
