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If you have ever wondered whether Canadian Imperial Bank of Commerce is offering fair value at its current share price, this breakdown is designed to give you a clear, numbers first view.
The stock last closed at C$125.84, with a 1 year return of 42.9%, a 3 year return of 136.4% and a 5 year return of 184.3%. The 7 day and 30 day returns are slightly negative at 0.9% and 0.3% respectively, and the year to date return is also 0.3% lower.
Recent attention on Canadian bank stocks has been shaped by ongoing regulatory commentary and sector wide discussions about credit quality and capital requirements. These themes have been central to how investors think about large banks, and they help frame the recent share price performance for Canadian Imperial Bank of Commerce.
Canadian Imperial Bank of Commerce currently has a valuation score of 4 out of 6. This means it screens as undervalued on four of the six checks we will walk through next. We will also finish by looking at a broader way to think about valuation that goes beyond any single model.
The Excess Returns model asks a simple question: does Canadian Imperial Bank of Commerce generate returns on its equity that sit meaningfully above the return investors require, and are those returns likely to persist?
Here, the starting point is book value of CA$67.37 per share and a stable earnings figure of CA$10.18 per share, based on weighted future Return on Equity estimates from 13 analysts. That implies an average Return on Equity of 14.52%. The model compares this with a cost of equity of CA$5.03 per share, producing an excess return of CA$5.15 per share.
Those excess returns are then capitalised over time, using a stable book value of CA$70.09 per share, sourced from weighted future Book Value estimates from 9 analysts. The outcome of this calculation is an Excess Returns intrinsic value of about CA$186.50 per share.
Against the recent share price of CA$125.84, this implies the shares trade at a 32.5% discount to the model’s estimate of value. On this measure alone, the stock screens as undervalued.
Result: UNDERVALUED
Our Excess Returns analysis suggests Canadian Imperial Bank of Commerce is undervalued by 32.5%. Track this in your watchlist or portfolio, or discover 875 more undervalued stocks based on cash flows.
Story Continues
CM Discounted Cash Flow as at Feb 2026
For a profitable bank, the P/E ratio is a practical way to check whether the share price lines up with the earnings the business is already generating. You are essentially asking how many dollars investors are paying today for each dollar of current earnings.
What counts as a “normal” P/E depends on how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can support a higher multiple, while slower expected growth or higher risk usually point to a lower one.
Canadian Imperial Bank of Commerce currently trades on a P/E of 14.44x. That is above the Banks industry average of 11.13x and a little below the peer group average of 15.09x. Simply Wall St also calculates a “Fair Ratio” of 14.75x, which is the P/E that might be expected given factors such as earnings growth, profit margins, industry, market cap and company specific risks.
This Fair Ratio is more tailored than a simple comparison with peers or the broad industry, because it adjusts for the company’s own growth profile and risk characteristics rather than assuming all banks should trade at the same level. With the current 14.44x P/E only slightly below the 14.75x Fair Ratio, the shares appear to be about fairly valued on this metric.
Result: ABOUT RIGHT
TSX:CM P/E Ratio as at Feb 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you put a clear story behind your numbers by linking your view of Canadian Imperial Bank of Commerce to your own fair value, revenue, earnings and margin assumptions.
A Narrative connects three things in one place: the company’s story, a financial forecast and a resulting fair value that you can compare with the current share price to help you decide whether you see Canadian Imperial Bank of Commerce as potentially attractive, fully priced or expensive based on your own inputs.
On Simply Wall St, Narratives sit inside the Community page. You can quickly build or browse them, and they refresh automatically when new information such as news or earnings is added to the platform.
For example, one Canadian Imperial Bank of Commerce Narrative might assume a higher fair value with stronger future profitability. Another might set a lower fair value with more conservative profit margins, showing how two investors can look at the same bank and reach different, but clearly explained, conclusions.
Do you think there’s more to the story for Canadian Imperial Bank of Commerce? Head over to our Community to see what others are saying!
TSX:CM 1-Year Stock Price Chart
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.
Companies discussed in this article include CM.TO.
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