Are ANZ Banking Group shares as good as a guess today?

With the ANZ share price trading around $26.71, are ANZ Banking Group (ASX: ANZ) shares today, tomorrow or next month is as good as a guess. However, over the longer term, shares with a consistent track record of profits, dividends and/or cash flow will often revert to their underlying analyst price target.

What is the valuation of ANZ shares?

According to this quick and simple DDM model, a valuation of ANZ shares is $10. 20. However, using an ‘adjusted’ or expected dividend payment of $1. 40 per share, which is the preferred measure because it uses forecast dividends, the valuation goes to $23. 79. The valuation compares to ANZ’s current share price of $26. 71.

What is ANZ Banking?

ANZ Banking Group is a leading Australian and Kiwi bank, with an additional presence throughout the oceanic region. ANZ is one of the Big Four Aussie banks and a leader in the NZ banking market, deriving much of its revenue from mortgages, personal loans and credit.