Is the CBA share price a buy amid the global tariff sell-off?

Are CBA shares now a bargain after some volatility?

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The Commonwealth Bank of Australia (ASX: CBA) share price has fallen more than 7% since 13 February 2025, as the chart below shows. After a sizeable drop, investors may be wondering whether it's time to jump on the lower price.

Created with Highcharts 11.4.3Commonwealth Bank Of Australia PriceZoom1M3M6MYTD1Y5Y10YALL1 Jan 20256 Apr 2025Zoom ▾13 Jan27 Jan10 Feb24 Feb10 Mar24 MarJan '25Jan '25Feb '25Feb '25Mar '25Mar '25Apr '25Apr '25www.fool.com.au

Over the same time period, the S&P/ASX 200 Index (ASX: XJO) has dropped by 10%, so CBA shares have outperformed.

What's going on with the ASX share market?

Investors have become pessimistic about the US announcement of a tariff rate of at least 10% on nearly all products from virtually all countries. Countries such as China, EU nations and various Asian nations have been hit with an even higher tariff rate. China has responded with a similar tariff rate on the US.

While the ASX isn't overly exposed to exporting to the US, investor confidence is contagious across the world. Weakness in the US and the EU has an impact on ASX share investing. There's also a possibility that tariff pressure on China could lead to lower iron ore demand, lower demand for other commodities and so on which Australia sells. That could be problematic for the ASX as a whole, particularly ASX mining shares like BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG).

However, some ASX shares are exposed to exporting to the US, and they have dropped further, such as Breville Group Ltd (ASX: BRG), Cettire Ltd (ASX: CTT) and Ansell Ltd (ASX: ANN).

Is this an opportunity to buy CBA shares?

The ASX bank share is lower than it was a few weeks ago, so it's better value than it was, in my view.

However, CBA shares are trading at a similar price to where it was at the start of 2024, so it's valuation isn't particularly low.

According to the (independent) forecasts on Commsec, the CBA share price is valued at 24x FY25's estimated earnings.

I think CBA loan growth could be slower in the coming years than in the past decade due to higher interest rates and intense competition between lenders, and elevated property prices.

A slower loan growth rate makes me hesitant to think CBA is worthy of close to its all-time price/earnings (P/E) ratio.

Amid this ASX share market decline, there are plenty of other ASX shares that have fallen further than CBA shares and could be a better buy after the volatility. I think we could make stronger medium-term returns with different stocks that have declined harder during this period and are better value.

I've written a number of articles in the last week about where I'm seeing value, such as Pinnacle Investment Management Group Ltd (ASX: PNI) shares, among others. I'd prefer to put my money there instead.

Motley Fool contributor Tristan Harrison has positions in Fortescue. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Ansell and BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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