How long can the CBA share price keep this up?
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The Commonwealth Bank of Australia (ASX: CBA) share price has embarked on yet another record-setting day.
At midday, Australia’s most valuable bank fetched $152.18 per share. However, investors pushed the black and yellow bank to a new all-time high of $152.47 earlier in the session.
The sustained push higher means CBA shares now boast a 12-month gain of 49%—pulverising the 17.5% achieved by the S&P/ASX 200 Index (ASX: XJO). Yet, all of the increased valuation is attributable to investors’ willingness to pay a greater premium for the banking giant.
As shown in the chart above, CBA’s price-to-earnings (P/E) ratio has inflated by 54.5% in the past year. Meanwhile, cash net profits for…
