| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 117.90 | 28 |
| Intrinsic value (DCF) | 53.09 | -43 |
| Graham-Dodd Method | 33.70 | -64 |
| Graham Formula | 122.70 | 33 |
Canadian Imperial Bank of Commerce (CIBC) is a leading diversified financial institution headquartered in Toronto, Canada, with operations spanning personal, business, commercial, and capital markets banking. Founded in 1867, CIBC operates through four key business segments: Canadian Personal and Business Banking, Canadian Commercial Banking and Wealth Management, U.S. Commercial Banking and Wealth Management, and Capital Markets. The bank offers a comprehensive suite of financial products, including chequing and savings accounts, mortgages, loans, credit cards, investment services, and insurance solutions. CIBC serves retail, corporate, and institutional clients across Canada, the U.S., and international markets, leveraging its strong domestic presence and growing U.S. commercial banking footprint. With a market capitalization of approximately $64 billion, CIBC is a significant player in North America's financial services sector, known for its wealth management expertise and capital markets division. The bank's strategic focus on digital transformation and cross-border expansion positions it competitively in an evolving banking landscape.
CIBC presents a mixed investment profile with strengths in its diversified revenue streams, strong Canadian retail banking presence, and growing U.S. commercial banking operations. The bank's trailing P/E ratio of ~9.3x (based on diluted EPS of $10.13) appears attractive relative to peers, while its dividend yield of ~5.2% (based on a $2.685 annual dividend) offers income appeal. However, investors should weigh CIBC's higher beta (1.246) against sector peers, reflecting greater volatility, along with its substantial total debt load of ~$208 billion. The bank's capital markets segment provides earnings upside but also introduces cyclical risks. CIBC's U.S. expansion strategy could drive long-term growth but faces execution risks in a competitive market. The bank's liquidity position appears solid with ~$56 billion in cash and equivalents, supporting its dividend sustainability.
CIBC operates in a highly competitive Canadian banking oligopoly dominated by the 'Big Five' banks. Its competitive positioning is strongest in Canadian retail and commercial banking, where it benefits from scale, brand recognition, and an entrenched customer base. However, CIBC lags larger peers like RBC and TD in total assets and geographic diversification. The bank has carved out a niche in wealth management, where its Wood Gundy and Private Wealth arms compete effectively. In capital markets, CIBC maintains a strong mid-market position but lacks the global reach of larger Canadian and U.S. bulge bracket firms. CIBC's U.S. commercial banking expansion through its Chicago-based operations provides differentiation but faces stiff competition from regional U.S. banks and Canadian peers with larger U.S. footprints. The bank's digital capabilities have improved but still trail digital-first competitors. CIBC's relatively smaller scale compared to Canadian peers limits some cost advantages but allows for more targeted growth strategies. Its competitive edge lies in personalized commercial banking services and specialized industry expertise in sectors like real estate and energy.