What: Shares of Australia and New Zealand Banking Group (ASX: ANZ) have dropped up to 1.8% lower today, following a vicious selloff in the broader S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
So what: ANZ shares, much like their 'Big Four' counterparts, have experienced their fair share of volatility in recent times on the back of Eurozone concerns, a rich valuation and slowdown in the domestic economy.
Indeed, despite boasting the most geographically diversified revenue stream of the major Australian banks, investors have shunned ANZ shares. The souring investor sentiment has resulted in a share price fall of almost 13% over the past three months.
Now what: Despite falling to a low of just $31.85 this morning, shares of ANZ are not yet in the buy zone. As I recently wrote, I believe fair value for ANZ shares is around $31.
However, if you – like me – prefer to get a bargain and not just a good deal, it's important to purchase ANZ shares at a significant discount to their theoretical, or intrinsic, value.
Moreover, if the economy slows as expected, you'll be thankful you were patient and waited for a prudent valuation before hitting the buy button on the bank's shares.
