CBA is trading significantly above its valuation and is high-risk from a future return perspective

CBA is trading significantly above its valuation and is high-risk from a future return perspective. CBA will need cost efficiencies, loan growth and income from non-traditional banking to accelerate, to justify its current trading price and sustain its earnings momentum. Investors should target a 15% total first-year shareholder return when investing in a major bank at this stage of the cycle. The CBA share price at which the current forward return is 15% is $69. Read the full article published in The Eureka Report (VIEW LINK)