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Overvalued
Morningstar Quantitative Rating as of 10 NOV 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 24.05 Fair value 32.38 One-star price 43.60
Morningstar Quantitative Rating as of 10 NOV 2026.
Morningstar Quantitative Rating as of 10 NOV 2026. The slider runs from the five-star price (24.05) to the one-star price (43.60).
| Ratios |
|---|
| Currency (Price/reporting): AUD/AUD |
| Exchange Rate: 1.0000 |
| Price - closing or last bid | 37.29 |
| Price - 12 month high | 43.32 |
| Price - 12 month low | 33.46 |
| Pricing date | 10 NOV 2026 |
| Volume - avg. trading volume for the last ten days | 6.68 |
| Market capitalization | 127,358.91 |
| 12 Month High price date | 25 FEB 2026 |
| 12 Month Low price date | 24 AUG 2026 |
| Volume - avg. trading volume for the last 3 months | 5.16 |
| Price - 1 Day % Change | 0.08% |
| Price - 13 week price percent change | 4.45% |
| Price - 26 week price percent change | -0.40% |
| Price - 5 Day % Change | 1.28% |
| Price - 52 week price percent change | -5.64% |
| Price - YTD price percent change | -3.39% |
| Price % Change Month To Date | 10.59% |
| EPS excluding extraordinary items - most recent fiscal year | 1.989 |
| EPS excluding extraordinary items - trailing 12 month | 1.989 |
| EPS Normalized - most recent fiscal year | 1.992 |
| Revenue/share - most recent fiscal year | 6.439 |
| Revenue/share - trailing 12 month | 6.439 |
| Book value per share - most recent fiscal year | 20.785 |
| Book value per share - most recent half-year | 20.785 |
| Book value (tangible) per share - most recent fiscal year | 17.902 |
| Book value (tangible) per share - most recent half-year | 17.902 |
| Cash per share - most recent fiscal year | 13.613 |
| Cash per share - most recent half-year | 13.613 |
| Cash Flow per share - most recent fiscal year | 2.620 |
| Cash Flow per share - trailing 12 month | 2.620 |
| Dividend per share - most recent fiscal year | 1.540 |
| Dividends per share - trailing 12 month | 1.540 |
| EBITD per share - trailing 12 month | — |
| EPS Basic excluding extraordinary items - most recent fiscal year | 1.993 |
| EPS Basic excluding extraordinary items - trailing 12 month | 1.993 |
| EPS including extraordinary items - most recent fiscal year | 1.993 |
| EPS including extraordinary items - trailing 12 month | 1.993 |
| Free Cash Flow per share - trailing 12 month | 2.319 |
| P/E excluding extraordinary items, most recent fiscal year | 18.75 |
| P/E Normalized, most recent fiscal year | 18.72 |
| Price to sales - most recent fiscal year | 5.79 |
| Price to Tangible Book - most fiscal year | 2.09 |
| Price to Free Cash Flow per Share - most recent fiscal year | 16.08 |
| Price to Cash Flow per share - trailing 12 month | 14.23 |
| Price to Book - most recent fiscal year | 1.79 |
| P/E excluding extraordinary items high, trailing 12 months | 21.54 |
| P/E excluding extraordinary items low, trailing 12 months | 16.60 |
| Net Debt, LFI | 966,028.00 |
| Net Debt, LFY | 1,012,064.00 |
| Dividend Yield - 5 Year Average | 4.94% |
| Dividend Yield - indicated annual dividend divided by closing price | 4.18% |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 4.13% |
| Free Cash Flow - most recent fiscal year | 8,138.00 |
| LT debt/equity - most recent fiscal year | — |
| Payout ratio - most recent fiscal year | 77.43% |
| Total debt/total equity - most recent fiscal year | 1,484.86% |
| LT debt/equity - most recent half-year | — |
| Total debt/total equity - most recent half-year | 1,434.51% |
| Free Cash Flow - trailing 12 month | 8,138.00 |
| Payout ratio - trailing 12 month | 77.43% |
| Revenue - most recent fiscal year | 22,602.00 |
| Revenue - trailing 12 month | 22,602.00 |
| EBITD - most recent fiscal year | — |
| EBITD - trailing 12 month | — |
| Earnings before taxes - most recent fiscal year | 9,809.00 |
| Earnings before taxes - trailing 12 month | 9,809.00 |
| Net Income available to common - most recent fiscal year | 6,806.00 |
| Net Income available to common - trailing 12 months | 6,806.00 |
| Earnings before taxes Normalized - most recent fiscal year | 10,004.00 |
| Net Income Available to Common, Normalized - most recent fiscal year | 6,992.00 |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | 1.99 |
| Net Profit Margin % - 1st historical fiscal year | 30.21% |
| Net Profit Margin % - trailing 12 month | 30.21% |
| Operating margin - 1st historical fiscal year | — |
| Operating margin - trailing 12 month | — |
| Pretax margin - trailing 12 month | 43.40% |
| Pretax margin - 1st historical fiscal year | 43.40% |
| Operating Margin - 5 year average | — |
| Pretax Margin - 5 year average | 44.95% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 35.60% |
| Free Operating Cash Flow/Revenue, TTM | 36.01% |
| Net Profit Margin - 5 year average | 31.03% |
| Return on average assets - most recent fiscal year | 0.59% |
| Return on average assets - trailing 12 month | 0.59% |
| Return on average equity - most recent fiscal year | 9.55% |
| Return on average equity - trailing 12 month | 9.55% |
| Return on average assets - 5 year average | 0.63% |
| Return on average equity - 5 year average | 9.18% |
| Net Income/employee - most recent fiscal year | 195,114.29 |
| Revenue/employee - most recent fiscal year | 645,771.43 |
| Revenue growth rate, 5 year | 1.46% |
| EPS growth rate, 5 year | 7.62% |
| Growth rate% - dividend, 3 year | 4.75% |
| Revenue/share (5 yr growth) | 4.76% |
| Growth rate% - Revenue, 3 year | 1.88% |
| Growth rate% - EPS, 3 year | 0.63% |
| Book value per share growth rate, 5 year | 1.12% |
| Capital Spending growth rate, 5 year | 1.67% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | — |
Financial forecast (AUD, millions except per share)
| Actuals | Estimates | |||||||
| 2026 | 2027 | 2028 | ||||||
| Estimate breakdown | ||||||||
Financials (AUD, millions)
| Period end: | SEP 22 | SEP 23 | SEP 24 | SEP 25 | SEP 26 |
| Fiscal year: | 2022 | 2023 | 2024 | 2025 | 2026 |
| Period length: | 12 months | 12 months | 12 months | 12 months | 12 months |
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
WBC +1%: Delivered a largely in-line FY26 result, with softer net interest margins weighing on earnings, however it was the improved credit quality that stood out, providing some reassurance amid higher rates and pressure on borrowers.
Unlike ANZ, Westpac delivered a poor trading update here, in August and the stock has suffered accordingly, i.e. earnings drive share prices over time. While we believe WBC is behind ANZ in our order of preference after underperforming through 2026, we can see some catch up ahead of its ~80c fully franked dividend in November, with the chance for a special dividend firmly in play, as we highlighted recently here.
We covered WBC’s disappointing August 3Q26 trading update here, and the stock has underperformed its peers since, as is generally the case in the current market.
Westpac has now fallen ~20% from its recent highs as sentiment towards the banks has deteriorated sharply. The trigger has been a sudden slowdown in lending activity, particularly mortgages, with application volumes dropping materially across the majors. The market’s concern is straightforward: if credit growth slows sharply, revenue momentum follows, while costs and investment spend remain sticky.
Westpacs 3Q26 trading update was poorly received by a market that focused on a clear slowdown in mortgage applications and the prospect of softer housing credit growth into FY27 covered here. We’ve seen nothing in the recent bank results to make us consider increasing our underweight stance towards the influential sector although we are conscious most pundits are backing the same horse on this call. The banks ~4.5% fully franked yield should be supportive into weakness, but its elevated valuation is similarly likely to cap any short term attempts to test/break above $40.
We covered WBC’s poorly received trading update here yesterday, the almost 6% fall took a whopping 25-points off the ASX200 all on its own. On balance we thought the result was “ok”, but as we flagged last week, the banks are likely to be cautious around the struggling Australian property market.
WBC -5.88%: 3Q26 trading update was broadly in line, but the market focused on a clear slowdown in mortgage applications and the prospect of softer housing credit growth into FY27.
The banks had a great session yesterday, which may have surprised some given the negativity around housing, consumer pressure and the risk of rising bad debts. One factor receiving little attention is the excess capital sitting on bank balance sheets, with Westpac a prime example.
WBC -2.26%: fell after delivering a missed 1H26 result after net income missed consensus and the dividend came in slightly below expectations. Operationally, there were positives — revenue grew, costs were broadly contained, headcount fell, and capital remains strong — but the market is now looking harder at the sustainability of bank earnings as rates rise, energy costs bite, and credit risk starts to move higher.
WBC -2.61%: Fell today after the bank flagged two emerging pressure points ahead of its upcoming result – potential rising bad debts due to the fuel price squeeze caused by the Middle East Conflict, and weaker markets division revenues.
MM remains long and bullish WBC
MM is long and bullish towards WBC
WBC is MM’s preferred bank for Income
MM is buying WBC in the Active Income Portfolio, allocating 5% around $35
MM believes WBC is a good income opportunity ~$34
MM believes WBC is a good income opportunity ~$34
MM is long and cautiously bullish toward WBC around $35
MM is long and cautiously bullish towards WBC
MM is mildly positive WBC ~$36
MM is cautiously bullish WBC based on the prospect of a Special Dividend
Westpac is Australia's oldest bank and financial services group, with a significant franchise in Australia and New Zealand in the consumer, small business, corporate, and institutional sectors, in addition to its major presence in wealth management. Westpac is among a handful of banks around the globe currently retaining very high credit ratings. The bank benefits from a large national branch network and significant market share, particularly in home loans and retail deposits.
CNBC Asia – Talking GDP & Banks
Australia is headed for a recession but some stocks there could still be attractive
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