0036 GMT - Commonwealth Bank of Australia is seen by Morningstar analysts as a good example of equity markets' failure to always reflect the true value of a business. They reckon that Australia's largest bank is worth about A$98.00 a share, or roughly 10% more than it was at the start of 2024. However, the company's shares have jumped about 40% in that time. The analysts tell clients in a note that for that move to be justified, expectations for all the cash the bank will ever earn--on a discounted basis--would have to be 40% higher than they were a year ago. They concede that they might be wrong on their specific valuation, but insist that the magnitude of the share-price move looks extremely hard to support. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
March 09, 2025 20:36 ET (00:36 GMT)
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