The ANZ Group Holdings Ltd (ASX: ANZ) share price is trading around $37.20 on Tuesday.
At that level, I would not describe the big four bank as obviously cheap.
But I think there is enough on offer to make the shares attractive, particularly for investors looking for income.
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A fair price for a major bank
According to CommSec, consensus estimates put ANZ's earnings per share at $2.57 in FY26 and $2.55 in FY27.
That means the shares are trading on a PE ratio of around 14.5 times forecast earnings.
For me, that sits closer to fair value than bargain territory.
The earnings forecasts are also essentially flat, so I would not buy ANZ expecting rapid profit growth over the next couple of years.
But that does not make the investment unattractive.
ANZ remains one of Australia's largest banks, with substantial operations across retail, business, and institutional banking. Its scale gives it access to a large customer and deposit base, while its business mix provides several sources of earnings.
I think paying a reasonable multiple for that kind of established banking franchise can still produce a worthwhile result over time.
Income is a bigger part of the case
The dividend is where ANZ becomes more interesting to me.
Consensus forecasts are for dividends of $1.66 per share in both FY26 and FY27.
At the current ANZ share price, that equates to a forward dividend yield of around 4.5%.
These payments are expected to be partially franked, rather than fully franked, so investors should keep that in mind when comparing ANZ with other Australian banks.
Still, I think the cash yield itself is attractive.
Further, the expected payment is comfortably below projected earnings per share. That gives me more confidence in the sustainability of its dividend than I would have if the bank were distributing nearly everything it earned.
Risks
There are risks to consider, of course. Competition remains intense in the banking sector, credit losses can rise if economic conditions deteriorate, and bank margins can move as interest rates and funding costs change.
Those considerations are another reason I would not call ANZ shares cheap at $37.20.
Foolish takeaway
I think the current ANZ share price offers fair value rather than an obvious bargain.
That is still enough for me to consider the shares a buy.
The near-term earnings outlook is subdued, but investors are getting exposure to a large banking franchise alongside a forecast dividend yield of around 4.5%.
For income-focused investors who are comfortable with relatively modest growth expectations, I think ANZ looks like a worthwhile option in September.
