Would You Be Crazy to Buy CBA Shares at $143?

What is the latest on CBA shares?

CBA shares have been on a wild ride in recent months, hitting a high of $143 in early August before falling back to around $130. So, what's the latest on CBA shares? Are they a good buy at current levels?

CBA shares are still a good value

Despite the recent pullback, CBA shares are still trading at a discount to their intrinsic value. According to Morningstar, CBA shares are worth $150, which means they are currently trading at a 14% discount. This discount is likely due to the recent market volatility, but it does not reflect the long-term value of CBA shares.

CBA is a well-run company

CBA is one of the best-run companies in Australia. The company has a strong track record of profitability and growth. In the past five years, CBA has grown its earnings per share by an average of 10% per year. CBA also has a strong balance sheet, with plenty of cash on hand and low levels of debt.

The Australian economy is recovering

The Australian economy is recovering from the pandemic, and this is good news for CBA. As the economy recovers, businesses and consumers will need more banking services, which will benefit CBA. CBA is also well-positioned to benefit from the growing demand for digital banking services.

Risks to consider

There are some risks to consider before buying CBA shares. One risk is the potential for a further decline in the Australian economy. Another risk is the potential for increased competition from other banks. However, these risks are outweighed by the long-term value of CBA shares.

Conclusion

CBA shares are a good buy at current levels. The company is well-run, the Australian economy is recovering, and CBA shares are trading at a discount to their intrinsic value. While there are some risks to consider, the long-term potential of CBA shares outweighs these risks.