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, indicating a shift in perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 55, a Price to Book Value of 30.32, and an EV to EBITDA of 38.44. In comparison, peers such as Morgan Stanley have a P/E of 18.52, while The Charles Schwab Corp. boasts a more favorable P/E of 25.67, highlighting the relative overvaluation of Ameriprise.
Despite the attractive dividend yield of 37.68% and a strong ROE of 55.32%, the high valuation ratios suggest that the stock may not be justified at its current price of 452.77. Recent performance shows that Ameriprise has underperformed against the S&P 500, with a year-to-date return of -14.96% compared to the index's 16.30%, further reinforcing the notion of overvaluation in the current market context.