Canadian Imperial Bank of Commerce

AI-generated fair value estimate for this company.

Method: Excess-return (residual income) model on book value: C$65.68B common equity divided by 907.94M shares equals C$72.33 book value per share, converted at 1 USD = 1.4254 CAD to US$50.74 per share; normalized sustainable ROE of 15% versus TTM net income of US$6.89B; 10% cost of equity; 4% long-run loan and earnings growth; implied justified price-to-book of 1.83x applied to book value per share.

Reasoning: For a bank, franchise value is best captured by the return generated on equity capital relative to its cost of capital, not by discounting free cash flow, which is not economically meaningful for a lender; CIBC's current double-digit ROE and disciplined Canadian and US retail-and-commercial banking franchise justify a premium to book value under the Gordon-growth excess-return framework.