Is Ameriprise Financial, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Ameriprise Financial, Inc. moved from very attractive to attractive. The company appears to be overvalued based on its current valuation metrics. The P/E ratio stands at 55, significantly higher than the peer average of 48.17, while the EV to EBITDA ratio is 38.44, which also exceeds the industry average. Additionally, the Price to Book Value is at 30.32, indicating a premium over its book value compared to peers like The Charles Schwab Corp., which has a P/E of 25.67 and an EV to EBITDA of 9.95.
In terms of performance, Ameriprise has underperformed relative to the S&P 500 over the past year, with a return of -10.80% compared to the index's 19.89%. This trend is further emphasized by its year-to-date return of -15.03% against the S&P 500's 16.30%. Given these valuation ratios and the recent stock performance, Ameriprise Financial, Inc. seems to be trading at a premium, suggesting it is overvalued in the current market context.