CIBC (TSX:CM) Valuation in Focus After Major AI Launch and Top Mobile Banking Ranking

Canadian Imperial Bank of Commerce (TSX:CM) is generating fresh attention after launching its AI-powered Real-Time Experience engine and clinching the top spot in Surviscor’s 2025 Mobile Banking Award. These milestones highlight CIBC’s focus on digital banking.

See our latest analysis for Canadian Imperial Bank of Commerce.

Momentum has been building for Canadian Imperial Bank of Commerce, thanks to its string of product launches and fresh digital accolades. While the latest share price sits at $112.52, what really stands out is its remarkable 24.44% year-to-date share price return and an impressive 35.59% total shareholder return over the past year. This signals growing confidence in the bank’s tech-driven strategy.

If CIBC’s digital wins have you curious about what else is out there, now is a great time to broaden your search and discover fast growing stocks with high insider ownership.

Given the strong run CIBC shares have enjoyed and digital innovation still in the spotlight, investors now face a key question: Is CIBC still undervalued at these levels, or is future growth already fully priced in?

Most Popular Narrative: 3.8% Overvalued

The most widely followed narrative suggests Canadian Imperial Bank of Commerce may be trading above its calculated fair value, especially given the recent closing price of CA$112.52 compared to a consensus fair value of CA$108.41. This setup draws attention to the quantitative expectations that have pushed analyst targets close to current market levels, but still imply there is not much upside at this price.

"Rapid population growth and immigration in Canada are building a larger long-term customer base, supporting sustained demand for retail banking, mortgages, and wealth management, which can drive higher revenue growth for CIBC. Accelerating digital adoption, highlighted by CIBC's industry-leading digital registration (over 10 million clients, 81% digital adoption), AI initiatives, and leading customer satisfaction in digital banking, is lowering operational costs and improving net margins."

Read the complete narrative.

Curious what financial bets are behind this premium valuation? There is a bold mix of growth forecasts, profit margin predictions, and ambitious earnings targets packed inside this narrative. Want to see which key numbers underpin the "fair" price and what could make or break the case? Dive into the details and follow the narrative's surprises.

Result: Fair Value of $108.41 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing reliance on Canadian mortgages and rising delinquencies remain potential risks that could quickly change sentiment around CIBC’s growth story.

Find out about the key risks to this Canadian Imperial Bank of Commerce narrative.

Build Your Own Canadian Imperial Bank of Commerce Narrative

If you see things differently or want to dig into the numbers on your own terms, you can craft a fresh perspective in just a few minutes. Do it your way.

Prefer to form your own view? Our platform makes it easy to explore a stock's fundamentals and create your own narrative in minutes.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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