Canadian Imperial Bank of Commerce T.CM.PR.S

Canadian Banks are a Bargain

[newcoin]

Trading at ~9.2x f2024 estimates (8.9x f2025 earnings) on average, Canadian bank stocks are very inexpensive and clearly pricing in significant challenges ahead including another huge increase in forecast loan losses from a possible recession. In a more normal environment – characterized by reasonable GDP growth and a stable macro environment – the banks would likely trade around 10.5x earnings, or roughly ~15% higher than today’s levels.

[joebravo]

I'm taking figures from Yahoo site so I'm not sure how accurate they are, but it seems that estimates for 4Q 2023 being $1.60 would equate to Fully Year 2023 Earnings of $6.76. If these are in line with actual earnings in 4Q, then CIBC would have a P/E ratio of 8 for 2023. Long term, all Canadian Banks will do well, but there will be volatility for some time until BofC and US Central