Is the Bank Worth Its Price Tag?
National Australia Bank (ASX: NAB) reports full-year earnings on Thursday, November 6, and investors have good reason to pay close attention. The bank is currently trading at its most expensive valuation in over a decade, with shares priced at around 2.1 times book value, a hefty 38% premium to its 10-year average. That’s quite a price tag for a business facing margin pressure from expected rate cuts and intense competition in home lending.
So here’s the question investors need answered: can NAB’s earnings justify this premium, or are shareholders paying too much for what might be a cyclical peak?
What are the Best Bank stocks to invest in right now?
Check our buy/sell tips
What to Expect from NAB’s Results
Thursday’s…
