Westpac Banking Corporation (WBC) Fair Value & Analysis
Financial Services · AU · Market cap A$125B
Fair value as of: Aug 13, 2026
From 4 valuation models · updated today
Fair value updated Aug 13, 2026, revised from A$26.31 to A$25.93 (−1.4%) since Jul 17, 2026. Share price −2.6% over the past month.
A solid business, but screening 27% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (A$32.41). The favourable scenario is already priced in.
- Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range A$15.50 – A$42.11 · fair‑value band A$19.45 – A$32.41 · the A$35.70 price screens above the A$25.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Westpac Banking Corporation (WBC) currently trades at A$35.70, while our model-based Fair Value estimate is A$25.93, implying the stock looks roughly 27.4% overvalued today. The Quality Score stands at 59/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Westpac Banking Corporation generated revenue of A$22.3B at a net margin of 31.5%. Revenue grew 1.5% year over year. It earns a return on equity of 9.8%. Net debt stands at A$232B. Fundamentals as of Aug 13, 2026
Our scenario range runs from A$19.45 (bear case) to A$32.41 (bull case); at A$35.70, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -15% fair-value upside, at -27%, WBC screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 4 models by family
Widest divergence: Multiples (A$26.31) versus Asset-Based (A$14.28). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 57 · Market factors (momentum, volatility) 53
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Westpac Banking Corporation provides banking and other financial services in Australia, New Zealand, the Pacific Islands, Asia, the Americas, and Europe. It operates through the Consumer, Business & Wealth, Institutional, and New Zealand segments.
Full company description
Westpac Banking Corporation provides banking and other financial services in Australia, New Zealand, the Pacific Islands, Asia, the Americas, and Europe. It operates through the Consumer, Business & Wealth, Institutional, and New Zealand segments. The company offers bank accounts, home and personal loans, credit cards, international and travel banking services, insurance, superannuation, investments, share trading, margin lending, private banking, and online banking services; savings and transactions accounts, loans and finance, payment solutions, insurance for businesses, foreign exchange and international money transfer, commercial business and industry banking; bank guarantee, business digital wallet, business setup, and business term deposits; and corporate online banking, transaction banking, corporate and structured finance, and trade and supply chain finance services. It serves individuals and consumers; small to medium businesses and commercial and agribusiness customers; high-net-worth individuals; and corporate and institutional and government customers. The company was formerly known as Bank of New South Wales and changed its name to Westpac Banking Corporation in October 1982. Westpac Banking Corporation was founded in 1817 and is headquartered in Sydney, Australia.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Westpac Banking Corporation reported revenue of A$55.0B in FY2025 versus A$21.8B in FY2021, a compound +26.0%/yr. Reported net income was A$6.9B in FY2025, compounding +6.1%/yr from FY2021.
of which total revenue +11.0 pp · buybacks/dilution −1.6 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
WBC screens 27% overvalued. Compare with JPMorgan Chase & Co →
Peer Group
Banks - Diversified · 47 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Banks - Diversified median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 25/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| JPMorgan Chase & Co JPM | $365.18 | $217.97 | -40% |
| Bank of America Corporation BOFA | C$31.78 | C$18.89 | -41% |
| China Construction Bank Corporation 601939 | ¥10.24 | ¥18.21 | +78% |
| Industrial and Commercial Bank of China Limited 601398 | ¥7.52 | ¥14.44 | +92% |
| HSBC Holdings HBCN | 1,610 MXN | 1,364 MXN | -15% |
| Agricultural Bank of China Limited 601288 | ¥6.56 | ¥12.94 | +97% |
| Bank of China Limited 601988 | ¥5.83 | ¥11.24 | +93% |
| Banco Santander, S.A SAN | 55.29 PLN | 31.78 PLN | -43% |
| UBS Group UBSN | 939.75 MXN | 565.49 MXN | -40% |
| Barclays PLC BCSN | 475.00 MXN | 332.60 MXN | -30% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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