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 towards a more cautious outlook. The company appears to be overvalued based on its current metrics, particularly 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, State Street Corp. has a P/E of 16.53, and LPL Financial Holdings, Inc. has a P/E of 34.83, suggesting that Ameriprise is trading at a significant premium relative to its peers.
Despite its strong ROE of 55.32%, the high valuation ratios raise concerns about sustainability and growth potential. Over the past year, Ameriprise has underperformed the S&P 500, with a return of -10.88% compared to the index's 19.89%, further reinforcing the notion that the stock may be overvalued in the current market environment.