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Will CSL beat CBA to be the ASX’s most valuable company one day?

Tom Richardson
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CSL Limited (ASX: CSL) shares printed a record high of $235 this morning after the blood plasma and influenza products giant posted a net profit of US$1,919 million for FY 2019, which represents 17% growth on a constant currency basis. 

This is an especially impressive result given CSL is no tiddler with a market cap of $106.4 billion based on the $235 share price.

In fact it’s now getting closer to the valuation of the world’s second-largest mining company by revenue in BHP Group Ltd (ASX: BHP).

BHP’s primary listing is on the London stock exchange, which means the only  other ASX-only-listed company now ahead of it by market value is the Commonwealth Bank of Australia (ASX: CBA).

CBA has a market value around $137 billion based on a $77.25 share price. 

CBA just posted an FY19 net profit of $8.57 billion (CSL A$2.82b). So we can see CBA is probably worth its 30% premium for now, but given CSL is growing profits at double digit rates and CBA’s fell 8% last financial year it’s not ridiculous to suggest that CSL may be a more valuable company one day. 

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Tom Richardson owns shares of CSL Ltd. The Motley Fool

You can find Tom on Twitter @tommyr345

Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019