Is Ameriprise Financial, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Ameriprise Financial, Inc. has moved from very attractive to attractive. The company appears to be overvalued based on its current valuation ratios. The P/E ratio stands at 55, significantly higher than the peer average of 48.17, while the EV to EBITDA ratio is also elevated at 38.44 compared to peers like LPL Financial Holdings, which has a ratio of 14.99. Additionally, the Price to Book Value is 30.32, indicating a premium over its book value.
In terms of peer comparisons, State Street Corp. has a P/E of 16.53, and Cboe Global Markets, Inc. has a P/E of 32.12, both suggesting that Ameriprise is trading at a higher valuation relative to its peers. Despite a strong ROE of 55.32%, the high valuation ratios indicate that the stock may not justify its current price. Over the past year, Ameriprise has underperformed the S&P 500, with a return of -11.27% compared to the index's 19.89%, reinforcing the notion that the stock may be overvalued.