Commonwealth Bank of Australia (ASX:CBA) 10-Year RORE % : 5.71% (As of Dec. 2025)


ASX:CBA Commonwealth Bank of Australia ASX:CBA
66 GF Score
Price A$165.02
GF Value A$155.33
Valuation Fairly Valued
! 2 Warning Signs
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What is Commonwealth Bank of Australia 10-Year RORE %?

Commonwealth Bank of Australia ASX:CBA +2.41% 66 10-Year RORE % is 5.71 as of Dec. 2025. GuruFocus rates ASX:CBA with a GF Score™ of 66/100 and a GF Value™ of A$155.33 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,091 Banks companies, Commonwealth Bank of Australia ranks worse than 66.73% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Commonwealth Bank of Australia's 10-Year RORE % for the quarter that ended in Dec. 2025 was 5.71%.

The industry rank for Commonwealth Bank of Australia's 10-Year RORE % or its related term are showing as below:

ASX:CBA's 10-Year RORE % is ranked worse than
66.73% of 1091 companies
in the Banks industry
Industry Median: 10.19 vs ASX:CBA: 5.71

Commonwealth Bank of Australia  (ASX:CBA) 10-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Commonwealth Bank of Australia 10-Year RORE % Related Terms


Commonwealth Bank of Australia 10-Year RORE % Historical Data

* Premium members only.

The historical data trend for Commonwealth Bank of Australia's 10-Year RORE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Commonwealth Bank of Australia 10-Year RORE % Chart

Commonwealth Bank of Australia Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
10-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.31 10.58 4.83 1.36 5.45

Commonwealth Bank of Australia Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
10-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.56 1.36 3.39 5.45 5.71

ASX:CBA vs JPM, BAC, WFC: 10-Year RORE % Comparison

For the Banks - Diversified subindustry, Commonwealth Bank of Australia's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Commonwealth Bank of Australia 10-Year RORE % vs Banks Industry

For the Banks industry and Financial Services sector, Commonwealth Bank of Australia's 10-Year RORE % distribution charts can be found below:

* The bar in red indicates where Commonwealth Bank of Australia's 10-Year RORE % falls into.


ASX:CBA
66GF Score
Commonwealth Bank of Australia ASX:CBA
10-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Commonwealth Bank of Australia 10-Year RORE % Calculation

Commonwealth Bank of Australia's 10-Year RORE % for the quarter that ended in Dec. 2025 is calculated as:

10-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 10-year -Cumulative Dividends per Share for 10-year )
=( 6.181-5.385 )/( 55.373-41.44 )
=0.796/13.933
=5.71 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2025 and 10-year before.

Frequently Asked Questions Learn more about 10-Year RORE % →
What does a 10-Year RORE % of 5.71 mean?
Commonwealth Bank of Australia (ASX:CBA) has a 10-Year RORE % of 5.71 as of Dec. 2025. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Commonwealth Bank of Australia and its competitors. According to the industry distribution chart, Commonwealth Bank of Australia ranks #728 out of 1091 companies in the Banks industry, placing it in the top 66.7%.
Is Commonwealth Bank of Australia's 10-Year RORE % too high?
Commonwealth Bank of Australia's current 10-Year RORE % is 5.71. The Banks industry median 10-Year RORE % is 10.19. Commonwealth Bank of Australia's value of 5.71 is 44% below this industry median. Based on the distribution chart, Commonwealth Bank of Australia ranks #728 out of 1091 companies in the Banks industry, which is below the industry midpoint. Overall, Commonwealth Bank of Australia has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Commonwealth Bank of Australia's 10-Year RORE % compare to JPM and BAC?
According to the Banks industry distribution chart, Commonwealth Bank of Australia ranks #728 out of 1091 companies for 10-Year RORE %. This places Commonwealth Bank of Australia in the lower half of its industry. The industry median 10-Year RORE % is 10.19. Commonwealth Bank of Australia's value of 5.71 is 44% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for a Banks company?
The median 10-Year RORE % among Banks companies is 10.19, based on 1,091 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Commonwealth Bank of Australia's current 10-Year RORE % of 5.71 is 44% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Commonwealth Bank of Australia and its competitors. For the Banks industry, the median 10-Year RORE % is 10.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Commonwealth Bank of Australia's current 10-Year RORE % is 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Commonwealth Bank of Australia stock overvalued right now?
Based on GuruFocus' analysis, Commonwealth Bank of Australia (ASX:CBA) is currently considered Fairly Valued. The stock's GF Value™ is A$155.33, compared to a current price of A$165.02 — trading 6.2% above its estimated fair value. The current 10-Year RORE % is 5.71 and 44% below the Banks industry median of 10.19. Commonwealth Bank of Australia's overall GF Score™ is 66/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Commonwealth Bank of Australia (ASX:CBA), the current 10-Year RORE % is 5.71 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Commonwealth Bank of Australia (ASX:CBA) Overvalued in 2026?

Based on GuruFocus' analysis, Commonwealth Bank of Australia stock appears to be overvalued. The current stock price of A$165.02 is trading 6.2% above its estimated GF Value™ of A$155.33. GuruFocus considers Commonwealth Bank of Australia to be Fairly Valued.

Key valuation signals for ASX:CBA:

  • 10-Year RORE %: 5.71
  • GF Value™: A$155.33 vs. price of A$165.02 (6.2% above fair value)
  • GF Score™: 66/100 with 2 warning signs
  • Industry Position: 44% below the Banks median (#728 of 1091)

No single metric tells the full story. See the ASX:CBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Commonwealth Bank of Australia Business Description

Address 11 Harbour Street, Commonwealth Bank Place South, Level 1, Sydney, NSW, AUS, 2000
Commonwealth Bank is Australia's largest bank with operations spanning Australia, New Zealand, and Asia. Its core business is the provision of retail, business, and institutional banking services. The bank has emphasized its focus on banking in recent years with a numbers of asset divestments in wealth management and insurance.
66GF Score

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10-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$165.02
Price
A$155.33
GF Value