Ameriprise Stock Valuation

AMP
 Stock
  

USD 280.90  8.27  2.86%   

What is the intrinsic value of Ameriprise stock? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Ameriprise Financial, is its stock price multiplied by the total number of shares outstanding, calculating Ameriprise Financial's enterprise value requires a different approach. It uses Ameriprise Financial's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 13th of August 2022, Tangible Asset Value is likely to grow to about 178.1 B, while Free Cash Flow is likely to drop about 3 B.
Ameriprise Financial shows a prevailing Real Value of $280.04 per share. The current price of the firm is $280.9. At this time, the firm appears to be fairly valued. Our model approximates the value of Ameriprise Financial from analyzing the firm fundamentals such as profit margin of 23.48 %, and Return On Equity of 65.04 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor obtaining undervalued instruments and abandoning overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Ameriprise Financial Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Ameriprise Financial's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Ameriprise Most Recent Valuation Data

Price Book
7.06
EPS Estimate Next Quarter
5.93
Price Sales
2.22
Forward Annual Dividend Yield
0.0176
EBITDA
4.9 B
Dividend Share
4.64
Ex Dividend Date
2022-08-05
Fairly Valued
Today 280.90
Please note that Ameriprise Financial's price fluctuation is very steady at this time. Calculation of the real value of Ameriprise Financial is based on 3 months time horizon. Increasing Ameriprise Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Ameriprise Financial Services is useful when determining the fair value of the Ameriprise stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Ameriprise Financial. Since Ameriprise Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Ameriprise Stock. However, Ameriprise Financial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
277.81
Downside
280.04
Real Value
318.09
Upside
Estimating the potential upside or downside of Ameriprise Financial Services helps investors to forecast how Ameriprise stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Ameriprise Financial more accurately as focusing exclusively on Ameriprise Financial's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
22.3022.3022.30
Details
Hype
Prediction
LowEstimated ValueHigh
286.14288.37290.60
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
2.902.963.03
Details
8 Analysts
Consensus
LowTarget PriceHigh
265.00328.75365.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Ameriprise Financial's intrinsic value based on its ongoing forecasts of Ameriprise Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Ameriprise Financial's closest peers. When choosing an evaluation method for Ameriprise Financial, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Ameriprise Financial Investments

36.97 Billion

Ameriprise Valuation Drivers Correlation

Many accounts on the financial statements of Ameriprise Financial are highly interrelated and sometimes correlated. Consequently, when conducting Ameriprise's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Ameriprise
Click cells to compare fundamentals

Ameriprise Valuation Trend

Knowing Ameriprise Financial's actual value is paramount for traders to make sound investment determinations. Ameriprise Financial's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Ameriprise Financial's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Ameriprise Financial's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Ameriprise Market Cap

Ameriprise Financial Services is number one stock in market capitalization category among related companies. Market capitalization of Asset Management industry is presently estimated at about 143.77 Billion. Ameriprise Financial totals roughly 30.11 Billion in market capitalization claiming about 21% of stocks in Asset Management industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Ameriprise Financial Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Ameriprise Financial's current stock value. Our valuation model uses many indicators to compare Ameriprise Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ameriprise Financial competition to find correlations between indicators driving Ameriprise Financial's intrinsic value. More Info.
Ameriprise Financial Services is number one stock in price to earning category among related companies. It is number one stock in beta category among related companies totaling about  0.10  of Beta per Price to Earning. The ratio of Price to Earning to Beta for Ameriprise Financial Services is roughly  9.69 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Ameriprise Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ameriprise Financial's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ameriprise Financial's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Ameriprise Financial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Ameriprise Financial and how it compares across the competition.

About Ameriprise Financial Valuation

The equity valuation mechanism determines the current worth of Ameriprise Financial Services on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Ameriprise Financial Services. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ameriprise Financial based exclusively on its fundamental and basic technical indicators. By analyzing Ameriprise Financial's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Ameriprise Financial's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ameriprise Financial. We calculate exposure to Ameriprise Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ameriprise Financial's related companies.
Fiscal Year End
December
Industry
Asset Management
Concentration
Asset Management & Custody Banks
Full Time Employees
12 K
Service Category
Capital Markets
Employer Id Number
13-3180631
Last ReportedProjected for 2022
Gross Profit12.1 B11.7 B
Profit Margin 0.20  0.18 
Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota. Ameriprise Financial operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs 12000 people.

Ameriprise Financial Quarterly Enterprise Value

21.4 Billion

Ameriprise Financial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Ameriprise Financial's value is low or high relative to the company's performance and growth projections. Determining the market value of Ameriprise Financial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Ameriprise Financial represents a small ownership stake in the entity. As a stockholder of Ameriprise, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Ameriprise Financial Dividends Analysis For Valuation

As of 13th of August 2022, Dividend Yield is likely to grow to 0.0204, while Payment of Dividends and Other Cash Distributions is likely to drop (551.3 M). . Ameriprise Financial Earnings per Basic Share are very stable at the moment as compared to the past year. Ameriprise Financial reported last year Earnings per Basic Share of 23.53. As of 13th of August 2022, Earnings per Diluted Share is likely to grow to 24.82, while Accumulated Retained Earnings Deficit are likely to drop about 15.6 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-511 M-551.3 M
Dividend Yield 0.015  0.0204 
Dividends per Basic Common Share 4.43  3.97 
There are various types of dividends Ameriprise Financial can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Ameriprise shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Ameriprise Financial Services directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Ameriprise pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Ameriprise Financial by the value of the dividends paid out.

Ameriprise Financial Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Ameriprise Financial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio9.91
Earnings Quarterly Growth27.90%
Revenue Growth2.70%
Payout Ratio17.40%
Enterprise Value To Ebitda5.07
Earnings Growth35.50%
Enterprise Value To Revenue1.79

Ameriprise Financial Current Valuation Indicators

Valuation refers to the process of determining the present value of Ameriprise Financial Services and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Ameriprise we look at many different elements of the entity such as Ameriprise's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Ameriprise Financial's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Ameriprise Financial's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Ameriprise Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Ameriprise Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Ameriprise Financial's worth.
Please continue to Trending Equities. Note that the Ameriprise Financial information on this page should be used as a complementary analysis to other Ameriprise Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Complementary Tools for Ameriprise Stock analysis

When running Ameriprise Financial price analysis, check to measure Ameriprise Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ameriprise Financial is operating at the current time. Most of Ameriprise Financial's value examination focuses on studying past and present price action to predict the probability of Ameriprise Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ameriprise Financial's price. Additionally, you may evaluate how the addition of Ameriprise Financial to your portfolios can decrease your overall portfolio volatility.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Is Ameriprise Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ameriprise Financial. If investors know Ameriprise will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ameriprise Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.36
Market Capitalization
30.8 B
Quarterly Revenue Growth YOY
0.027
Return On Assets
0.0184
Return On Equity
0.65
The market value of Ameriprise Financial is measured differently than its book value, which is the value of Ameriprise that is recorded on the company's balance sheet. Investors also form their own opinion of Ameriprise Financial's value that differs from its market value or its book value, called intrinsic value, which is Ameriprise Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ameriprise Financial's market value can be influenced by many factors that don't directly affect Ameriprise Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ameriprise Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Ameriprise Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ameriprise Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.