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Westpac Banking Corporation (WBC) Fair Value & Analysis

Financial Services · AU · Market cap A$125B (≈ $90.1B) · ISIN AU000000WBC1

What is Westpac Banking Corporation really worth?

WB Westpac Banking Corporation WBC · AU
PriceA$34.96
Fair ValueA$25.93
Upside−25.8%
Quality59/100

A solid business, but trading 35% above our fair value of A$25.93.

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Strengths

Healthy Growth (revenue 5y +26.5 %/yr)
Highly profitable · 31.5% net margin
Wide moat 66/100

Risks

!High debt · generates free cash flow
!Trails peers (5/15)
!Weak on future: 8 out of 100

For context

·4.41% dividend yield
Evidence: High Range A$19.45 – A$32.41

Fair value as of: Sep 5, 2026

From 4 valuation models · updated today

Share price −8.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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)

A$42.11 A$15.50 Fair Value A$25.93 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 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$34.96 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 Sep 5, 2026.

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Analysis

Westpac Banking Corporation (WBC) currently trades at A$34.96, while our model-based Fair Value estimate is A$25.93, implying the stock looks roughly 34.8% overvalued today. The Quality Score stands at 59/100 (solid quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of A$26.31 per share, and 0 of the 4 models we run sit above the A$34.96 price. Bear case: the Asset-Based group reads lowest at A$14.28, and 4 of the 4 models stay below the price. Evidence for this calculation is 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 Sep 5, 2026

Our scenario range runs from A$19.45 (bear case) to A$32.41 (bull case); at A$34.96, 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 18% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −8% fair-value upside, at −26%, WBC screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly A$0.4564 per share, which is 1.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence A$18.48 A$20.37 A$30.18 76
P/E Multiple A$19.73 A$26.31 A$32.88 63
P/B Multiple A$22.37 A$29.83 A$37.29 55
All 4 models by family
Multiples
P/E Multiple A$19.73 A$26.31 A$32.88 63
P/B Multiple A$22.37 A$29.83 A$37.29 55
Asset-Based
NCAV (Graham) A$10.65 A$14.28 A$21.31 54
Economic Profit
Residual Income best evidence A$18.48 A$20.37 A$30.18 76

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

P/E ratio 17.2
P/S ratio 2.16 P/E × margin
EPS (TTM) A$2.03 price ÷ EPS = P/E 17.2
Dividend yield 4.4% payout 75.9%
Net margin 12.6% FY2025
Return on equity 9.8% TTM
More key figures
Profitability
Return on assets (EBIT) 0.9% avg 5y
Operating margin 50.4% TTM
Growth
Revenue (TTM) A$22.3B TTM
Revenue growth (YoY) +1.5% 3y avg +41.9%
EPS growth (YoY) +5.4%
Balance sheet & cash flow
Free cash flow A$13.6B FY2025
Net debt A$232B FY2025 · ≈ 17.1 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 57 · Market factors (momentum, volatility) 50

Profitability 25
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 96
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 32
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
A$55.0B
Latest YoY
+1.3%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+41.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.5%
Avg. revenue growth/yr (35Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+10.0% (5.6 + 4.4)
Revenue +26.0%/yr
FY21 A$21.8B
FY22 A$19.3B
FY23 A$43.8B
FY24 A$54.3B
FY25 A$55.0B
Net income +6.1%/yr
FY21 A$5.5B
FY22 A$5.7B
FY23 A$7.2B
FY24 A$7.0B
FY25 A$6.9B
Character of growth · EPS growth decomposed (2014-2025) −2.4 % p.a.
Revenue per share +9.4 %

of which total revenue +11.0 % · buybacks/dilution −1.4 %

EBIT margin −11.4 %
Tax rate −0.2 %
Residual (interest, one-offs) +0.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

WBC screens 35% overvalued. Compare with JPMorgan Chase & Co →

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Cite: Fair Value Calculator (2026). "Westpac Banking Corporation Fair Value". https://www.fairvalue-calculator.com/stock/WBC

Peer Group

Banks - Diversified · 48 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.

Quality Score 61 · Above median
Fair Value upside −26% · Bottom 25%
Return on equity (TTM) 10% · Below median
Return on assets 1% · Below median
Net margin (TTM) 32% · Below median
Operating margin (TTM) 50% · Above median
Revenue growth 2% · Bottom 25%
Dividend yield (TTM) 4.4% · Above median
Debt / equity 2.38× · Higher than 75% of peers

Valuation Multiples vs Banks - Diversified median · lower = cheaper

P/E (TTM) 17.2× · Pricier than median
P/B 1.24× · Cheaper than median
P/S (TTM) 4.04× · Pricier than median
P/FCF 6.6× · Pricier than median
EV/EBITDA 20.1× · Pricier than 75% of peers
PEG 1.25× · Cheaper than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 14
FUTURE8 · sector 25
PAST39 · sector 42
HEALTH0 · sector 48
DIVIDEND88 · sector 70

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.

None of the checked exposures detected

Similar stocks

10 more Banks - Diversified stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
JPMorgan Chase & Co JPM $354.22 $217.97 −38%
Bank of America Corporation BAC $61.17 $50.87 −17%
China Construction Bank Corporation 601939 ¥10.55 ¥18.21 +73%
Industrial and Commercial Bank of China Limited 601398 ¥7.86 ¥14.44 +84%
HSBC Holdings HSBC $103.14 $75.89 −26%
Agricultural Bank of China Limited 601288 ¥6.79 ¥12.94 +91%
Royal Bank of Canada RY C$283.11 C$151.80 −46%
Bank of China Limited 601988 ¥6.14 ¥11.24 +83%
Wells Fargo & Company WFC $86.69 $79.60 −8%
Mitsubishi UFJ Financial Group MUFG $22.90 $20.50 −10%

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Frequently asked questions

Is Westpac Banking Corporation (WBC) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of A$25.93 versus a price of A$34.96, about −26% upside (overvalued).
What is the fair value of WBC?
Our model-based fair value for Westpac Banking Corporation is A$25.93 (as of Sep 5, 2026), built from audited fundamentals. The current price: A$34.96.
What is the quality score of WBC?
Westpac Banking Corporation has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Westpac Banking Corporation (WBC)?
Westpac Banking Corporation reported trailing-twelve-month revenue of about A$22.3B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of WBC?
The net profit margin of Westpac Banking Corporation is about 31.5%, meaning it keeps roughly 31.5% of revenue as net income. Based on the latest reported figures.
Does Westpac Banking Corporation pay a dividend?
Westpac Banking Corporation currently shows a dividend yield of about 4.41% relative to its recent price (as of Sep 5, 2026).
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