CSL Ltd (ASX: CSL) shares have been one of the more spectacular ASX recovery stories of the past few months.

After a difficult period for the healthcare giant, investors have returned quickly as confidence in its earnings outlook improved.

With the shares now trading around $173.18, I think the valuation deserves another look.

A very different price

Back in June, CSL shares could be bought for just $90.

At that level, I thought the stock looked dirt cheap for a global healthcare business with strong market positions across plasma therapies, vaccines, and specialist medicines.

The market clearly agreed eventually. At around $173.18 on Tuesday, CSL shares have almost doubled in roughly three months.

That is an extraordinary move for a company of this size, and it changes the valuation discussion quite considerably.

The easy answer is that CSL is no longer cheap in the way it was at $90.

But I do not think that automatically makes the shares expensive.

What does the valuation look like now?

According to consensus estimates, CSL is expected to generate earnings per share of $9.01 in FY27, rising to $9.51 in FY28 and $10.10 in FY29.

At the current share price, that puts CSL on a PE ratio of roughly 19 times forecast FY27 earnings.

While I would not call that cheap, I think it is still a reasonable price for a business with CSL’s global position and the prospect of returning to steady earnings growth.

The valuation also becomes a little more attractive if those earnings forecasts are delivered. Based on the FY29 estimate, the shares are trading at around 17 times earnings.

That gives investors some room for the earnings recovery to do more of the work from here.

Why I still see value

CSL still has several qualities I like as a long-term investment.

Its plasma collection network, scale in immunoglobulin therapies, and established global operations are difficult to replicate.

There is also potential for earnings to improve as the business works through the operational issues and restructuring that weighed on investor confidence previously.

I would not expect the next few years to be completely smooth.

CSL still needs to show that it can deliver the earnings recovery the market is now pricing in, and any disappointment could put pressure on the share price after such a strong rebound.

Even so, I think the current valuation leaves the stock in a reasonable position if earnings continue moving higher.

Foolish takeaway

CSL shares looked exceptionally cheap around $90 in June.

At $173.18, I do not think that description fits anymore.

The shares have almost doubled, and investors are now paying around 19 times forecast FY27 earnings.

For me, that moves CSL from dirt cheap to decent value.

I would still be comfortable buying at today’s price for the long term, but I think the opportunity now rests much more on future earnings growth than on an obviously depressed valuation.

The post Are CSL shares still cheap after almost doubling since June? appeared first on The Motley Fool Australia.

More reading

• UBS names its 10 top ASX picks for the next 3-6 months
• CSL led the ASX healthcare shares rebound. Can it continue?
• These ASX shares benefit from a high Aussie dollar
• CSL shares are up 94% from their low. What are brokers forecasting next?
• Looking to bank the upcoming CSL dividend? You better hurry!

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

Three thousand dollars is a good starting point for buying ASX shares.

The important element to focus on is diversification.

The three companies below are chosen to do different jobs.

One pays you now, one is geared to markets, and one is as close to defensive as our market gets.

1. Woodside Energy Group Ltd (ASX: WDS)

Woodside is the income anchor.

The shares trade near $32.33 on a price-to-earnings ratio of about 14.5 and a fully franked yield close to 5%.

That is the cheapest multiple and the highest yield of the three by a wide margin.

However, the company is still performing. The first half of calendar 2026 demonstrated this.

Operating revenue rose 13% to US$7.45 billion and net profit after tax reached US$1.67 billion.

Production came in at 86.5 million barrels of oil equivalent, and the interim dividend was 57 US cents fully franked at an 80% payout ratio.

Gearing is at 20.6%, marginally above the target range, which is the one number worth watching.

There are many things to like about this company.

2. Macquarie Group Ltd (ASX: MQG)

Macquarie Group is the geared exposure to markets.

FY26 net profit rose 30% to $4.85 billion, return on equity recovered to 14.0%, and earnings per share climbed 30% to $12.77.

The company’s full-year dividend was $7.00, though only 35% franked, which is important if you are buying this stock for income.

Importantly, assets under management reached $748 billion at 30 June, up 4% in a quarter.

Chief executive Shemara Wikramanayake described the year in characteristically measured terms:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities.

At current levels the shares trade on a price-to-earnings ratio near 19.7, which is not obviously cheap.

The future investment case depends on Commodities and Global Markets and Macquarie Capital both still running hot.

3. Wesfarmers Ltd (ASX: WES)

Wesfarmers is the awkward stock in this list.

Results were good: FY26 revenue rose 3.4% to $47.3 billion and net profit excluding significant items rose 8.3% to $2.87 billion.

Bunnings lifted earnings before tax 5.1% to $2.46 billion and Kmart Group added 6.0% to $1.11 billion.

The company’s full-year dividend rose 7.8% to $2.22 fully franked.

The problem however is the price.

At $77.30 the shares trade on a price-to-earnings ratio above 30 for a business growing revenue at 3.4%, and the broker consensus sits at a modest sell.

I still want it here, because a strong Australian dollar is lowering Kmart’s landed costs and the shares are already down more than 13% over twelve months.

Managing director Rob Scott pointed to the operating discipline behind the result:

Our businesses focused on mitigating cost pressures through productivity initiatives and were able to deliver more value, better service and increased convenience for our retail and business customers.

Why these ASX shares work together

They barely overlap.

Woodside is leveraged to LNG prices and a project starting up this quarter.

Macquarie rises and falls with market activity and deal flow.

Wesfarmers depends on Australian households and imported goods.

A poor year for one does not mean a poor year for the others.

Foolish takeaway

None of these three ASX shares are bargains, and only Woodside looks cheap.

What the current package gives you is a 5% franked yield, exposure to global markets, and a defensive retailer bought after a 13% fall.

Woodside is the one I would size largest, because the dividend is paid whether or not the share price cooperates.

Wesfarmers is the one that needs the most patience, given where the multiple sits.

Three thousand dollars invested this September will not change your life, and that has never been the point of buying ASX shares.

The post Top 3 ASX shares to buy with $3,000 in September appeared first on The Motley Fool Australia.

More reading

• Which ASX shares win when the Aussie dollar is strong?
• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• These ASX shares benefit from a high Aussie dollar
• How Woodside shares are building a ‘unique position’ to supply global LNG markets
• What Warren Buffett’s investing style can teach superannuation investors

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

Which ASX shares benefit from a strong Australian dollar is an important question for investors betting on a stronger AUD.

The currency has done a lot of work over the past year.

It buys near 72 US cents, according to the Reserve Bank’s daily exchange rates.

Twelve months ago, it bought around 65.5 US cents.

That is a move of roughly 10%.

Why the currency matters for ASX shares

The mechanism is relatively straightforward.

Companies that import goods and sell them here pay less for their stock.

Companies that sell in United States dollars and report in Australian dollars bring home less.

The Reserve Bank’s commodity price index shows how large this effect has become.

Over the year to August, the index rose 15.5% measured in special drawing rights but only 5.8% measured in Australian dollars.

Roughly ten percentage points of a true commodity upswing has been eaten by the currency.

The Reserve Bank has raised the cash rate three times in 2026, to 4.35%, and held it there in August.

Its August statement made the connection explicit.

Despite depreciating since the May Statement, the Australian dollar remains higher than at the start of the year, consistent with the tightening in monetary policy in Australia compared with other economies.

Wesfarmers: The importer’s advantage

Wesfarmers Ltd (ASX: WES) is one of the clearest domestic beneficiaries.

Kmart and Bunnings both source heavily from Asia in United States dollars.

A stronger Australian dollar lowers the landed cost of everything on the shelf.

FY26 revenue rose 3.4% to $47.3 billion, with net profit after tax was up 8.3% excluding significant items to $2.87 billion.

Bunnings earned $2.46 billion before tax on revenue of $20.4 billion, while Kmart Group lifted earnings 6.0% to $1.11 billion.

The important nuance came from Kmart Group managing director Aleksandra Spaseska on the results call.

From a fuel and an ocean freight perspective, it is an inflationary environment. The strengthening of the Australian dollar plays a mitigating impact to all of that.

She also explained why the benefit arrives more slowly than investors would have liked.

The business hedges twelve to eighteen months ahead, so spot rate moves do not flow through immediately.

For investors, that means most of the currency benefit from this year’s move is still ahead of Wesfarmers.

ResMed: The other side of the trade

ResMed Inc (ASX: RMD) shows the opposite.

The business itself is performing well.

FY26 revenue rose 10% to US$5.65 billion, with non-GAAP earnings per share up 17% to US$11.17.

The problem for Australian holders is translation.

ResMed lists here through CDIs and declares its dividend in United States dollars, converted at the record date.

The most recent quarterly payment of US$0.66 per underlying share converted to just 9.28 Australian cents per CDI at an exchange rate of 0.7112.

The same American dividend buys fewer Australian cents when the currency is high.

The same arithmetic applies to the share price itself.

Despite this, chief executive Mick Farrell was upbeat about the underlying business.

We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy.

Foolish takeaway

Currency may be a tailwind or a headwind.

However, I would not buy Wesfarmers purely because the Aussie dollar is high.

The shares sit on a price-to-earnings ratio above 30, and most brokers are cool on them.

Nor would I sell ResMed over an exchange rate, since its weakness this year owes more to a product safety action than to the currency.

What the strong dollar does is change the order in which good businesses compound.

The post Which ASX shares win when the Aussie dollar is strong? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares to buy with $3,000 in September
• CSL led the ASX healthcare shares rebound. Can it continue?
• 4 high conviction ASX stock picks from Canaccord Genuity
• These ASX shares benefit from a high Aussie dollar
• What Warren Buffett’s investing style can teach superannuation investors

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