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Is the Westpac Banking share price cheap?

Jack Brumby

Westpac Banking (ASX:WBCis a large cap thatprovides a range of banking and financial services across consumer, business and institutional banking and wealth management.

Right now the Westpac Banking share price displays favourable value traits, as evidenced by its Value Rank of 84. Let's explore this in more detail.

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Breaking down Westpac Banking's Value Rank

We can see by using Westpac Banking’s StockReport that the group has a:

  • Rolling price to book value of 0.89,
  • Trailing twelve month price to earnings ratio of 6.67
  • Trailing twelve month price to free cashflow of 9.84
  • Rolling dividend yield of 9.47%
  • Trailing twelve-month price to sales ratio of 2.78

This combination of financial traits suggests that Westpac Banking stock might be good value at current levels, although further research is required if this is to be confirmed.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Westpac Banking (ASX:WBC) is to these three factors. We go into greater detail on factor investing in this video

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.