AMP Fair Value Estimate
$1876.18332.4% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Ameriprise Financial Inc
Exchange: NYSESector: Financial ServicesIndustry: Asset Management
At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 130 years 1. With extensive investment advice, global asset management capabilities and insurance solutions, and a nationwide network of more than 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs. 1 Company founded June 29, 1894 The AdvisorHub Advisors to Watch lists are generated using a combination of (i) an advisor’s scale as a function of assets, production, number of households and team size; (ii) year-over-year growth in assets; and (iii) professionalism, which includes regulatory record, community involvement and team makeup. The number of advisors placed on each list can vary from year to year. Certain awards include a demographic component to qualify. These awards for each applicable year are based on data from the previous two calendar years and are not indicative of this advisor’s/team’s future performance. Neither Ameriprise Financial nor its advisors pay a fee to AdvisorHub in exchange for the ranking or its use. Ameriprise Financial Services, LLC is an Equal Opportunity Employer. Ameriprise Financial cannot guarantee future financial results. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2025 Ameriprise Financial, Inc. All rights reserved.
Did you know?
Profit margin stands at 19.3%.
Current Price
$433.94
-0.63%GoodMoat Value
$1876.18
332.4% undervaluedProfile
Valuation (TTM)
Market Cap$40.32B
P/E11.32
EV$35.85B
P/B6.16
Shares Out92.91M
P/Sales2.18
Revenue$18.48B
EV/EBITDA7.39
Ameriprise Financial Inc (AMP) Valuation
GoodMoat Analysis
Ameriprise Financial appears deeply undervalued based on the GoodMoat Target, offering a massive margin of safety. Its valuation multiples are low, with a P/E of 11.8x that is attractive relative to its high profitability, though it warrants a sector-specific lens for financials.
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The valuation assessment reveals a significant discrepancy. The current price of $451.89 is 76% below the GoodMoat Target of $1,876.18. According to the framework's DCF-based Margin of Safety bands, this implies a MoS well over 40%, placing it in the 'Deeply Undervalued' category. This is a substantial starting point for a value investor. On a multiple basis, the forward P/E of 11.8x is low, especially when considered against the company's exceptional ROE of 54.4% and strong profit margin of 19.3%. For context, a P/E in the low teens can be reasonable for a slower-growing financial firm, but it appears cheap given Ameriprise's high returns on equity. The 19.4% Free Cash Flow Yield is also highly favourable, indicating strong cash generation relative to its market value. However, as per Section 7 (Sector-Specific Rules), financials like Ameriprise require analysis beyond P/E. The Debt/Equity ratio of 0.9 is manageable but should be monitored alongside net interest margins and credit quality, which are not provided in this dataset. While the low P/E and high FCF yield suggest a cheap stock, the massive discount to the target price is the most compelling quantitative factor, though it necessitates verifying the underlying assumptions of that target model against the company's fundamentals and sector norms.
AMP Valuation Metrics
FCF$8.16B
FCF Growth Rate24.44%
EPS Growth (CAGR)24.44%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →AMP Valuation & Fair Value Analysis
Ameriprise Financial Inc (AMP) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Ameriprise Financial Inc is $1876.18. The current stock price is $433.94, suggesting the stock is 332.4% undervalued.
The price-to-earnings (P/E) ratio is 11.32. Price-to-book ratio is 6.16. Price-to-sales ratio is 2.18. Enterprise value to EBITDA is 7.39. PEG ratio is -5.81.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Ameriprise Financial Inc's intrinsic value.