A Look at Ameriprise Financial’s Valuation as Earnings Power and Tangible Book Value Strengthen
Ameriprise Financial (AMP) is back in focus as investors reexamine its track record of compounded earnings growth, sharply rising tangible book value, and consistently high returns on equity that signal durable competitive strength.
See our latest analysis for Ameriprise Financial.
The recent pullback, with a negative year to date share price return despite a solid three year total shareholder return of 53.65%, suggests sentiment has cooled even as the long term wealth creation story remains intact.
If Ameriprise has you thinking about where else durable growth and strong balance sheets might be hiding, now is a good time to explore screener containing None undiscovered stocks with strong fundamentals.
So with Ameriprise trading below analyst targets yet boasting standout earnings, book value, and return on equity, is the recent pullback a mispricing to exploit, or is the market already factoring in years of future growth?
Most Popular Narrative: 10.1% Undervalued
With Ameriprise last closing at $478.21 against a narrative fair value of about $532, the story centers on steady compounding rather than explosive growth.
Analysts expect earnings to reach $4.0 billion (and earnings per share of $45.59) by about September 2028, up from $3.2 billion today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as $3.4 billion.
Curious how modest revenue growth, fatter margins, shrinking share count and a re rated earnings multiple can still unlock meaningful upside? The full narrative explains the specific profit roadmap behind that fair value.
Result: Fair Value of $532.18 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained market volatility and competitive pressure on adviser recruitment costs could squeeze margins and derail the expected earnings and valuation upside.
Find out about the key risks to this Ameriprise Financial narrative.
Build Your Own Ameriprise Financial Narrative
If you see the story differently or prefer to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Ameriprise Financial.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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