Is the Westpac Banking share price cheap?

Westpac Banking (ASX:WBC) is a large cap thatprovides a range of banking and financial services across consumer, business and institutional banking and wealth management.

Right now the Westpac Banking share price displays favourable value traits, as evidenced by its Value Rank of 84. Let's explore this in more detail.

Breaking down Westpac Banking's Value Rank

We can see by using Westpac Banking’s StockReport that the group has a:

• Rolling price to book value of 0.89,
• Trailing twelve month price to earnings ratio of 6.67
• Trailing twelve month price to free cashflow of 9.84
• Rolling dividend yield of 9.47%
• Trailing twelve-month price to sales ratio of 2.78

This combination of financial traits suggests that Westpac Banking stock might be good value at current levels, although further research is required if this is to be confirmed.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Westpac Banking that you can find out about here.