Is Ameriprise Financial, Inc. overvalued or undervalued?

As of 16 May 2025, the valuation grade for Ameriprise Financial, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current financial metrics. Key ratios include a P/E ratio of 55, a Price to Book Value of 30.32, and an EV to EBIT of 38.44.
In comparison to its peers, Ameriprise's P/E ratio is significantly higher than Morgan Stanley's 16.79 and The Charles Schwab Corp.'s 27.45, indicating a premium valuation relative to these competitors. Additionally, Ameriprise's ROE stands at a robust 55.32%, but this is overshadowed by the high valuation multiples. While the stock has outperformed the S&P 500 over the past year with a return of 17.71% compared to 10.26%, the elevated valuation suggests caution for potential investors.