Are CBA shares a buy amid record $5.5 billion first half cash profits?

Commonwealth Bank of Australia (ASX: CBA) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed on Friday trading for $173.04. In early afternoon trade on Monday, shares are changing hands for $172.22 apiece, down 0.5%.

For some context, the ASX 200 is down 0.4% at this same time.

If you’ve been following the price charts, you’ll know that shares in Australia’s biggest bank plumbed a one-year closing low of $147.22 on 21 January.

That means, despite today’s dip, CBA shares have gained 17.0% in just over three months.

And that doesn’t include the $2.35 a share fully franked interim dividend CommBank paid out on 30 March. If we add that back into today’s share price, then the cumulative value of CBA stock is up 18.6% since the 21 January lows.

A lot of those gains were achieved in the days following CBA’s half year results (H1 FY 2026) release on 11 February, with investors reacting enthusiastically to the big four bank’s all-time high half year cash profits.

“We have continued to execute our strategy with discipline, maintaining a strong focus on supporting customers while delivering sustainable outcomes for shareholders,” CBA CEO Matt Comyn said on the day.

Which brings us back to our headline question.

Should you buy CBA shares today?

Alto Capital’s Tony Locantro recently analysed the outlook for Australia’s biggest bank stock (courtesy of The Bull).

“Australia’s largest retail bank enjoys a dominant position across mortgages, deposits and consumer banking,” Locantro said.

As for CBA’s profitability, he noted, “The company recently reported a record first half cash net profit after tax in 2026 of $5.445 billion, supported by lending growth and strong deposit volumes.”

Despite that strong result, Locantro believes the ASX 200 bank stock could be trading in overvalued territory.

Summarising his sell recommendation on CBA shares, Locantro concluded:

Recently, the share price had re-rated significantly and traded at a premium to domestic peers and global banking counterparts. With much of the operational strength already reflected in the valuation, the risk-reward balance favours taking profits at current levels.

How does CommBank’s valuation compare to the other big four ASX 200 bank stocks?

CBA shares currently trade on a price to earnings (P/E) ratio of around 28 times.

That compares to a P/E ratio of around 19 times for Westpac Banking Corp (ASX: WBC) shares, a P/E ratio of around 18 times for ANZ Group Holdings Ltd (ASX: ANZ) shares, and a P/E ratio of around 18 times for National Australia Bank Ltd (ASX: NAB).

The post Are CBA shares a buy amid record $5.5 billion first half cash profits? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.