Using the industry peer median P/E multiple (trailing + forward), Ameriprise Financial, Inc. (AMP) has a fair value of $569.21 based on 7 comparable companies in the Asset Management industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Ameriprise Financial, Inc.AMP | 43,287 | 12.4x | 11.6x |
| Morgan StanleyMS | 260,679 | 16.1x | 16.6x |
| The Charles Schwab CorporationSCHW | 167,903 | 20.3x | 16.1x |
| Apollo Global Management, Inc.APO | 64,346 | 15.3x | 14.0x |
| American International Group, Inc.AIG | 40,247 | 13.7x | 14.8x |
| State Street CorporationSTT | 35,163 | 13.4x | 12.4x |
| Prudential Financial, Inc.PRU | 33,084 | 9.3x | 6.6x |
| Northern Trust CorporationNTRS | 25,646 | 15.8x | 15.9x |
| Industry Median | 15.3x | 14.8x | |
| (*) Profit after tax | 3,563 | 3,738 | |
| Equity Value | 54,407 | 55,223 | |
| (/) Outstanding shares | 96 | 96 | |
| Fair Price | $565 | $573 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.