It’s a strong day for the S&P/ASX 200 Index (ASX: XJO), with the benchmark up 0.86% and trading above 8,400 points. But one standout performer is once again the Commonwealth Bank of Australia (ASX: CBA), with its share price hitting a new all-time high.

CBA shares surged from yesterday’s close of $172.43 to open at $173.10 this morning. By midday, the stock touched $176.40 — a new record for the country’s largest bank.

Investors have become used to CBA’s string of record-breaking highs. From $115 last year to $120, then $130, $140, and $150, the stock has relentlessly climbed. 2025 alone has seen it jump past $165 in February and reach $170 just last Friday. Today, $175 is in the rearview mirror.

As of writing, CBA shares are trading at $176.25, marking a 2.17% daily gain. That’s a 14.77% increase year to date and a 44.7% surge over the past 12 months — a performance that has left many wondering: is it too late to get in?

Is it too late to buy CBA shares?

Many market experts are becoming increasingly cautious. With CBA now trading at a price-to-earnings (P/E) ratio above 30 and offering a dividend yield of just 2.7%, the valuation appears stretched when compared to global peers.

For comparison, the average US bank trades at a P/E of around 13, and UK banks even lower. This means investors in CBA are paying more than double for each dollar of earnings.

According to CBA’s own CommSec platform, of the 15 analyst ratings available, 13 are marked as sell, and only two are hold recommendations. Very few are bullish at these levels.

This disconnect between share price momentum and valuation has created a dilemma for prospective buyers. While the stock’s recent trajectory suggests $180 could be within reach, the fundamentals tell a different story.

Investors buying at current levels are relying heavily on continued price gains, as the dividend yield alone offers little income upside. And with many analysts calling the stock overvalued, the risk of a pullback can’t be ignored.

Measure before you buy CBA Shares?

Despite repeated warnings of overvaluation, CBA shares continue to defy expectations. Whether this latest high signals the top or just another step toward $180 remains to be seen.

If you’re considering an entry now, make sure your strategy factors in limited dividend returns and the potential for valuation-driven volatility.

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