Westpac Banking Corporation (WBC) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Westpac Banking Corporation stock A$25.93, price A$37.03, that is 30.0% below the price, quality 64 out of 100. Rating: overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range A$15.50 – A$42.11 · fair‑value band A$18.98 – A$32.41 · the A$37.03 price screens above the A$25.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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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.
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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.
Stock analysis
Westpac Banking Corporation (WBC) currently trades at A$37.03, while our model-based Fair Value estimate is A$25.93, 30% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of A$26.75 per share, and 0 of the 6 models we run sit above the A$37.03 price.
Bear case: the Asset-Based group reads lowest at A$12.22, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: A$18.98 (bear) to A$32.41 (bull), the price of A$37.03 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
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.
Key figures
Market cap A$133B (≈ $91.7B) Large · P/E ratio 18.6 · P/S ratio 6.12 · EPS (TTM) A$1.99 · Dividend yield 4.2% · Net margin 31.3% · Return on equity 9.5% · Return on assets (EBIT) 0.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 66 out of 100 (low confidence).
What moves the price
The share trades about 12% below its 52-week high and 10% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −15% fair-value upside, at −30%, WBC screens richer than that median.
Fair Value models
BearA$18.98Fair Value A$25.93BullA$32.41
Price A$37.03 · Downside -30.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then (A$0.4500 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+1.3%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+41.9%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+26.5%
Start year 2020 (pandemic). Over 10 years: +10.2% a year
Revenue growth 35 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+7.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+9.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.6%
Dividend (yield on the price)4.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.7.2% vs −2.1%, picking up
Profit margin 2019 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.54% → 18%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−14.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (Australia: IMF forecast 3.0% a year to 2030, 2.9% from 2016 to 2025) that is about −1.7% a year for the price and −17.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (47 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Very negative
AI conclusion: Moderate moat from domestic scale offers some strength yet limited differentiation and thin signals leave the bank exposed amid intense competition.
Main risk: Revolut with its new Australian banking licence and existing customer base could capture deposits, savings and mortgages from Westpac and other major banks, forcing lower prices or margins on core products.
Bull case: Westpac could leverage its scale, technology investments and customer relationships to retain or regain share while partnering with or matching fintech offerings in key segments.
Bear case: If fintechs like Revolut scale rapidly in Australia, Westpac might lose significant share in deposits and lending, leading to sustained pressure on revenues and the need for further cost cuts.
Westpac is cutting hundreds of roles this month as part of a broader restructure in a weak housing market. Efficiency improvements may lift returns in the long run, but they could also affect service levels and institutional knowledge at a time when competition in Australian banking remains intense. Do the cost reductions strengthen the business more than they risk eroding customer relationships and operational resilience?
Compare Westpac Banking Corporation with another stock
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Peer Groupⓘ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.Banks - Diversified · 46 stocks
Beats the industry median on 4/15 measures
Overall it trails its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside−30.0% · Below median
Profitability
Return on equity (12 months)9.5% · Below median
Return on assets0.6% · Below median
Net margin (12 months)31.3% · Above median
Operating margin (12 months)39.8% · Below median
Growth and dividend
Revenue growth (quarter YoY)−6.4% · Bottom 25%
Dividend yield (12 months)4.2% · Top 25%
Balance sheet
Debt / equity2.38× · Highest 25%
Valuation Multiplesvs Banks - Diversified median · lower = cheaper
P/E (12 months)18.6× · Priciest 25%
P/B1.83× · Pricier than median
P/S (12 months)6.12× · Priciest 25%
Price / free cash flow9.8× · Pricier than median
EV/EBITDA24.2× · Priciest 25%
PEG1.25× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)0· sector 36
PAST (return on equity)38· sector 47
HEALTH (low debt)0· sector 40
DIVIDEND (yield)83· sector 69
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Westpac Banking Corporation (WBC) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of A$25.93 versus a price of A$37.03, about 30% lower (overvalued).
What is the fair value of WBC?
Our model-based fair value for Westpac Banking Corporation is A$25.93 (as of Nov 6, 2026), built from audited fundamentals. The current price: A$37.03.
What is the quality score of WBC?
Westpac Banking Corporation has a Quality Score of 64/100. 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 price target for Westpac Banking Corporation (WBC)?
Our model-based price target is the fair value of A$25.93 (as of Nov 6, 2026) from 6 valuation models. Cautious scenario A$18.98, optimistic scenario A$32.41. It is a calculation from audited fundamentals, not an analyst target.
What is the Westpac Banking Corporation stock forecast for 2026?
Our models put fair value at A$25.93, about 30% lower versus a price of A$37.03 (overvalued). Cautious scenario A$18.98, optimistic scenario A$32.41. The calculation is refreshed regularly with new filings.
What is the revenue of Westpac Banking Corporation (WBC)?
Westpac Banking Corporation reported trailing-twelve-month revenue of about A$21.7B (latest available figure, as of Nov 6, 2026).
Does Westpac Banking Corporation pay a dividend?
Westpac Banking Corporation currently shows a dividend yield of 4.16% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Westpac Banking Corporation (WBC)?
For today's price to be fair in a discounted-cash-flow model, Westpac Banking Corporation would have to grow free cash flow by +1.2 % per year for five years (discount rate 8.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +26.5 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of WBC use?
Our models discount Westpac Banking Corporation at 8.4 %: a base by market capitalisation (large), damped by beta 0.72, country premium for Australia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Westpac Banking Corporation that is +1.2 % per year a year over ten years, using the same discount rate (8.4 %) and the same formula as our fair value.
How much growth has Westpac Banking Corporation (WBC) delivered so far?
Over the past 5 years revenue at Westpac Banking Corporation grew +26.5 % a year. The price currently implies +1.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Westpac Banking Corporation (WBC) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Westpac Banking Corporation (+1.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Westpac Banking Corporation (WBC)?
The free-cash-flow yield on the price is 10.18 %: that much free cash flow Westpac Banking Corporation produces per unit of market value. When it exceeds the discount rate of our models (8.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Westpac Banking Corporation (WBC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Westpac Banking Corporation it is A$25.93 per share (as of Nov 6, 2026), against a price of A$37.03. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Westpac Banking Corporation stock overvalued or undervalued in 2026?
As of Nov 6, 2026, WBC trades above its calculated fair value: price A$37.03, fair value A$25.93, a gap of about −30% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of WBC?
No. The price is what the market pays today (A$37.03); the fair value is what the company's own numbers justify (A$25.93). For Westpac Banking Corporation the two are A$11.10 per share apart. That gap is exactly why we show both numbers side by side.
How much is Westpac Banking Corporation worth?
The market values Westpac Banking Corporation at about A$133B (market capitalisation, as of Nov 6, 2026). Per share that is A$37.03; our models calculate a fair value of A$25.93 per share.
What do the bullish and bearish scenarios say about WBC?
Our models span a range for Westpac Banking Corporation: cautious scenario A$18.98, base A$25.93, optimistic A$32.41 per share (as of Nov 6, 2026, price A$37.03). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of WBC?
Westpac Banking Corporation trades at a price-to-earnings ratio of 18.6 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$25.93 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 6 of the years ex one-offs: 15.2. Other multiples: PEG 1.3, P/B 1.8, P/S 6.1, EV/EBITDA 24.2.
What is the PEG ratio of WBC?
The PEG ratio of Westpac Banking Corporation is 1.25 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Westpac Banking Corporation (WBC)?
Balance-sheet figures for Westpac Banking Corporation (as of Nov 6, 2026): return on equity 9.5%, debt of 2.38 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is WBC from its 52-week high?
Westpac Banking Corporation trades at A$37.03, about 12% below its 52-week high of A$42.11 and 10% above the low of A$33.68 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of A$25.93 is for.
Which stocks are comparable to Westpac Banking Corporation?
From the same area (Financial Services) we also value JPMorgan Chase & Co, China Construction Bank Corporation, Industrial and Commercial Bank of China Limited, Agricultural Bank of China Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Westpac Banking Corporation stock attractive at the current price?
The data as of Nov 6, 2026: price A$37.03, calculated fair value A$25.93 (−30%), Quality Score 64/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of WBC calculated?
We run Westpac Banking Corporation through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of A$25.93, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Westpac Banking Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Westpac Banking Corporation (WBC)?
The closing price on Nov 6, 2026 was A$37.03. Our model-based fair value is A$25.93, about 30% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Westpac Banking Corporation right 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 (64/100) 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.
Where does the earnings growth of Westpac Banking Corporation (WBC) come from?
Earnings per share at Westpac Banking Corporation grew −2.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.4 %, EBIT margin −11.4 %, tax rate −0.2 %, residual (interest, one-offs) +0.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Westpac Banking Corporation
How large is the market capitalisation of Westpac Banking Corporation (WBC)?
The market capitalisation of Westpac Banking Corporation is A$133B (≈ $91.7B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Westpac Banking Corporation (WBC)?
The price-to-sales ratio of Westpac Banking Corporation is 6.12 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Westpac Banking Corporation (WBC)?
Earnings per share at Westpac Banking Corporation are A$1.99 (price ÷ EPS = P/E 18.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Westpac Banking Corporation (WBC)?
The dividend yield of Westpac Banking Corporation is 4.2% (payout 77.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Westpac Banking Corporation (WBC)?
The net margin of Westpac Banking Corporation is 31.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Westpac Banking Corporation (WBC)?
The return on equity (ROE) of Westpac Banking Corporation is 9.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Westpac Banking Corporation (WBC)?
On an EBIT basis the return on assets of Westpac Banking Corporation is 0.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Westpac Banking Corporation (WBC)?
The operating margin of Westpac Banking Corporation is 39.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Westpac Banking Corporation (WBC)?
Revenue at Westpac Banking Corporation is growing −6.4% versus a year earlier (3y avg +41.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Westpac Banking Corporation (WBC)?
Earnings per share at Westpac Banking Corporation are growing −4.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Westpac Banking Corporation (WBC) carry?
The net debt of Westpac Banking Corporation is A$232B (fiscal year 2025, ≈ 17.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026