Is Ameriprise Financial, Inc. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Ameriprise Financial, Inc. has moved from fair to attractive, indicating a more favorable assessment of the company's worth. Based on the metrics provided, Ameriprise appears to be undervalued, particularly when considering its P/E ratio of 55, which is significantly higher than the peer average of 48.17 for similar companies like Morgan Stanley and The Charles Schwab Corp., which have P/E ratios of 18.52 and 25.67, respectively. Additionally, the company’s Price to Book Value stands at 30.32, while its EV to EBITDA is at 38.44, both suggesting a premium valuation compared to peers.
Despite the attractive valuation grade, Ameriprise's recent stock performance shows a mixed picture, with a year-to-date return of -7.71%, underperforming the S&P 500's 12.22% return over the same period. However, over the longer term, the company has shown impressive growth with a 5-year return of 211.58%, outpacing the S&P 500's 96.61%. This long-term performance, combined with its attractive valuation metrics, reinforces the conclusion that Ameriprise Financial, Inc. is currently undervalued.