Based on the provided data, I'll analyze if CM (Canadian Imperial Bank of Commerce) is overvalued through multiple valuation metrics and recent developments.
Valuation Analysis
CM's current P/E ratio of 11.97 for Q4 2024 is relatively modest for a major bank, suggesting reasonable valuation from an earnings perspective. The EV/EBITDA of 19.01 indicates a premium valuation compared to historical levels.
Price-to-Book Analysis
The P/B ratio of 1.53 in Q4 2024 shows a moderate premium to book value, which is acceptable for a well-established bank with stable operations.
Recent Performance
The current price of $62.98 and recent analyst consensus price target of $68.86 suggests about 9.3% upside potential. Desjardins analyst maintains a Buy rating with an even more optimistic C$100 target.
Market Position
Recent job growth data in Canada (76,000 jobs added in January 2025) indicates a strengthening economy, which is positive for Canadian banks. The unemployment rate dropped to 6.6%, suggesting improving economic conditions.
Conclusion
Based on reasonable P/E ratios, moderate P/B values, and positive economic indicators, CM is not overvalued at current levels. The bank's valuation metrics are within acceptable ranges for the banking sector.