Main Thesis
The purpose of this article is to evaluate Westpac Banking Corp. (WBK) as an investment option at its current market price. While WBK presents a value opportunity, with a low P/E and high dividend yield, other factors make me leery of recommending the stock. The macroeconomic situation in Australia continues to face trouble, with growth slowing and employment gains capped in the short-term. This has kept interest rates are record low levels, and even sparked talks of a rate cut, which continues to pressure bank margins. Furthermore, income-oriented investors in the