I compared 5 of the ASX’s best shares. Here’s which one I’d buy today

There are plenty of good shares on the ASX. But being a good share and being a good investment at today’s price aren’t necessarily the same thing.

That is something I think investors should keep in mind, particularly when looking at some of the market’s biggest and most popular names.

I’ve compared five ASX shares that have earned strong reputations over many years and each has qualities that could justify a place in a long-term portfolio.

The question is whether those qualities are already reflected in their share prices.

I’ve looked at their competitive positions, earnings outlooks, financial strength, and valuations before deciding which I would buy today and which I would rather leave on my watchlist.

Here’s what I found.

BHP Group Ltd (ASX: BHP)

I have no trouble seeing why BHP deserves its reputation as one of the best ASX mining shares.

Its copper operations are becoming increasingly important, and I think this is an excellent place to be positioned for the long term.

Copper is needed for everything from electricity networks and renewable energy to data centres and industrial equipment. Increasing demand, combined with the difficulty of developing major new mines, could support attractive prices over time.

BHP also has the assets, experience, and financial resources to invest in additional production without relying entirely on the success of a single project.

In FY 2026, copper overtook iron ore as its biggest earnings contributor, demonstrating how the business is changing.

My hesitation is the share price. After a rise of around 40% over the past 12 months, I think a lot of the good news is already reflected in BHP’s valuation. That leaves me seeing BHP shares as roughly fair value rather than an obvious bargain.

In light of this, I would prefer to wait for a pullback before considering a purchase.

And as I worked through the other four companies, I found myself reaching a similar conclusion with several of them. They are excellent businesses, but their share prices don’t necessarily offer enough value to make me want to buy today.

However, there was one exception. It is a company that I believe has a significant growth opportunity ahead of it, and unlike the others, its valuation still looks reasonable.

Of the five ASX shares I compared, it is the one I would be buying today.

Commonwealth Bank of Australia (ASX: CBA)

CBA is an outstanding bank. I don’t think many investors would seriously dispute that.

It has a strong market position, a huge deposit base, and a history of generating impressive returns for shareholders.

It also enjoys considerable support from retail investors, institutions, and superannuation funds, which helps explain why its shares have continued to command a premium to the other major banks.

For example, based on consensus estimates, CBA shares are trading at around 22 times FY 2027 earnings.

That is a demanding multiple for a mature bank, particularly with interest rates rising again. Higher rates could put pressure on borrowers, while competition for deposits and lending could weigh on margins.

I expect CBA to remain a great business. I just don’t see enough potential return to justify buying its shares today.

CSL Ltd (ASX: CSL)

CSL is a company I have enormous respect for and would happily own in a long-term portfolio.

It has built an outstanding global healthcare business, particularly in plasma therapies, where its scale and expertise give it a strong competitive position.

And despite its recent difficulties, I still believe CSL has a bright future ahead of it.

However, I think the best opportunity to buy this ASX share was when it was trading around $90 earlier this year.

At that price, investors were getting a high-quality business at a bargain valuation. Since then, CSL shares have more than doubled, and I think they now look fairly valued.

There is also still some uncertainty surrounding the company, particularly with its leadership and efforts to improve operational performance.

I remain positive on CSL’s long-term prospects, but after such a strong recovery in its share price, I don’t see enough value to justify buying today. For me, CSL is a hold rather than a buy.

Wesfarmers Ltd (ASX: WES)

If I were ranking these companies purely on management quality and capital allocation, Wesfarmers would be near the top.

The company has built an excellent collection of businesses, with Bunnings and Kmart particularly good examples of brands that Australians keep returning to.

I’ve also been impressed by management’s willingness to invest in new opportunities, change direction, and exit businesses when the economics don’t stack up.

That discipline has helped Wesfarmers create substantial shareholder wealth over time.

And it is still delivering. Underlying net profit increased 8.3% in FY 2026, demonstrating that its businesses can continue making progress even when households are watching their spending.

However, investors have generally been willing to pay a premium for this consistency. Even after pulling back from its highs, Wesfarmers trades at around 30 times earnings.

I think the company will continue performing well, but at that valuation, much of its future growth could already be reflected in the share price.

For that reason, I would prefer to wait for a more appealing entry point.

ResMed Inc (ASX: RMD)

That leaves ResMed, which I think is one of the best ASX shares to buy today.

ResMed makes devices and masks used to treat sleep apnoea, a condition affecting millions of people around the world.

What I like is that its growth doesn’t depend on creating demand for something people don’t need.

A huge number of sleep apnoea sufferers remain undiagnosed or untreated. As awareness and diagnosis improve, more people could start using ResMed’s products.

And patients don’t just buy a machine and disappear. Masks and related supplies need replacing, providing an ongoing source of revenue alongside sales to new patients.

The company’s latest results show how well the business is performing. FY 2026 revenue increased 10% to US$5.7 billion, while free cash flow reached US$1.6 billion. That gives ResMed the financial capacity to develop new products, expand internationally, and reward shareholders.

Yet despite these qualities, its valuation looks reasonable to me, with ResMed shares trading at around 19 times forward earnings.

I think this makes it a great example of quality at a reasonable price, or QARP.

ResMed isn’t without competition or regulatory risks, and its growth won’t be perfectly smooth. But of these five ASX shares, I think it offers the best combination of business quality, long-term earnings potential, and a valuation that leaves room for attractive shareholder returns.

That makes it my top pick today.

The post I compared 5 of the ASX's best shares. Here's which one I'd buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, ResMed, and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.