Canadian Imperial Bank of Commerce

Financial ServicesBanks - DiversifiedNYSE

$110.07

Market Cap: $101.99B

Canadian Imperial Bank of Commerce (CM) Valuation Summary

Updated Apr 28, 2026 22:22

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$158.42 – $1,549.53	$397.11	+262.4%
Growth Exit 10Y	$391.54 – $2,625.84	$777.48	+609.6%
EBITDA Exit 5Y	$258.02 – $568.44	$400.97	+265.9%
EBITDA Exit 10Y	$517.25 – $1,131.26	$782.35	+614.0%
▸ Trading Multiples
P/E	$71.48 – $120.80	$103.07	-5.9%
EV/EBITDA	—	N/A	—
EV/Revenue	-$166.13 – $69.42	$12.06	-89.0%
▸ PEG
PEG Fair Value	$52.32 – $52.32	$52.32	-52.2%
▸ Earnings Power Value
Earnings Power Value	—	N/A	—
▸ Dividend Discount
Dividend Discount	$43.26 – $94.23	$60.96	-44.4%

Valuation History

DCF Analysis

Fair Value

$397.11

Market Price

$110.07

Upside / Downside

+260.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Canadian Imperial Bank of Commerce's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 23.7% to 7.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 134, DPO 349, DIO 60). At a 8.1% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $397.11 per share, suggesting CM is undervalued by 260.8% at the current price of $110.07.

FCFF Present Value Calculation

WACC

8.06%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	-4,772	-5,704	-6,582	-7,324	-7,846	-8,121
(−) Net Interest	24,507	29,294	33,806	37,615	40,299	41,709
(+) D&A	764	923	1,097	1,337	1,610	1,667
EBITDA	20,499	24,513	28,321	31,629	34,063	35,255

(−) Tax	0	0	0	0	0	0
(−) CapEx	1,415	1,692	1,952	2,172	2,327	2,409
(−) ΔWC	-1,990	28	27	23	16	16
Free Cash Flow (FCFF)	21,074	22,793	26,342	29,434	31,720	32,830

Terminal Value						719,831
WACC / Discount Rate	8.1%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	20,273	20,291	21,701	22,439	22,378	488,528

Enterprise Value	595,610
Projection Period	107,082	18.0%
Terminal Value	488,528	82.0%

(−) Current Net Debt	222,055

Equity Value	373,555
(/) Outstanding Shares	941

Fair Price	$397.11

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
6.1%	$614	$733	$899	$1145	$1550
7.1%	$425	$492	$577	$691	$849
8.1%	$304	$346	$397	$461	$543
9.1%	$220	$248	$282	$322	$371
10.1%	$158	$179	$202	$229	$261

Current price: $110.07. Green = undervalued, Red = overvalued.

Fair Value

$777.48

Market Price

$110.07

Upside / Downside

+606.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Canadian Imperial Bank of Commerce's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 25.6% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 134, DPO 349, DIO 60). At a 8.1% WACC with mid-year discounting, the terminal value (71% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $777.48 per share, suggesting CM is undervalued by 606.3% at the current price of $110.07.

FCFF Present Value Calculation

WACC

8.06%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	-4,844	-5,972	-7,229	-8,587	-10,006	-11,434	-12,809	-14,059	-15,115	-15,909	-16,466
(−) Net Interest	24,879	30,674	37,128	44,102	51,391	58,727	65,785	72,209	77,631	81,711	84,571
(+) D&A	764	927	1,117	1,396	1,744	2,173	2,564	2,970	3,375	3,762	3,894
EBITDA	20,799	25,629	31,016	36,911	43,129	49,466	55,541	61,119	65,891	69,563	71,998

(−) Tax	0	0	0	0	0	0	0	0	0	0	0
(−) CapEx	1,437	1,771	2,144	2,547	2,968	3,391	3,799	4,170	4,483	4,718	4,884
(−) ΔWC	-1,988	34	38	41	43	43	42	38	32	24	25
Free Cash Flow (FCFF)	21,350	23,823	28,834	34,323	40,118	46,031	51,700	56,911	61,376	64,821	67,090

Terminal Value											1,471,008
WACC / Discount Rate	8.1%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	20,538	21,208	23,754	26,166	28,303	30,052	31,236	31,819	31,756	31,036	677,538

Enterprise Value	953,406
Projection Period	275,868	28.9%
Terminal Value	677,538	71.1%

(−) Current Net Debt	222,055

Equity Value	731,352
(/) Outstanding Shares	941

Fair Price	$777.48

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
6.1%	$1201	$1383	$1635	$2010	$2626
7.1%	$863	$960	$1085	$1250	$1480
8.1%	$648	$706	$777	$866	$980
9.1%	$500	$537	$582	$635	$700
10.1%	$392	$417	$447	$481	$522

Current price: $110.07. Green = undervalued, Red = overvalued.

Fair Value

$400.97

Market Price

$110.07

Upside / Downside

+264.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Canadian Imperial Bank of Commerce's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 23.7% to 7.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 134, DPO 349, DIO 60). At a 8.1% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 20.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $400.97 per share, suggesting CM is undervalued by 264.3% at the current price of $110.07.

FCFF Present Value Calculation

WACC

8.06%

3% – 20%

EV/EBITDA Exit Multiple

20.77x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	-4,772	-5,704	-6,582	-7,324	-7,846	-8,042
(−) Net Interest	24,507	29,294	33,806	37,615	40,299	41,306
(+) D&A	764	923	1,097	1,337	1,610	1,651
EBITDA	20,499	24,513	28,321	31,629	34,063	34,914

(−) Tax	0	0	0	0	0	—
(−) CapEx	1,415	1,692	1,952	2,172	2,327	—
(−) ΔWC	-1,990	28	27	23	16	—
Free Cash Flow (FCF)	21,074	22,793	26,342	29,434	31,720	—

Peers' EBITDA Multiple						20.8x
Terminal Value						725,170
WACC / Discount Rate	8.06%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	20,273	20,291	21,701	22,439	22,378	492,152

Enterprise Value	599,234
Projection Period	107,082	17.9%
Terminal Value	492,152	82.1%

(−) Current Net Debt	222,055
Equity Value	377,179
(÷) Outstanding Shares	941M
Fair Price	$401	+264.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	16.8x	18.8x	20.8x	22.8x	24.8x
6.1%	$347	$403	$458	$513	$568
7.1%	$323	$376	$429	$481	$534
8.1%	$300	$351	$401	$451	$502
9.1%	$279	$327	$375	$423	$471
10.1%	$258	$304	$350	$396	$442

Current price: $110.07. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$782.35

Market Price

$110.07

Upside / Downside

+610.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Canadian Imperial Bank of Commerce's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 25.6% to 5.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 134, DPO 349, DIO 60). At a 8.1% WACC with mid-year discounting, the terminal value (71% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 20.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $782.35 per share, suggesting CM is undervalued by 610.8% at the current price of $110.07.

FCFF Present Value Calculation

WACC

8.06%

3% – 20%

EV/EBITDA Exit Multiple

20.77x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	-4,844	-5,972	-7,229	-8,587	-10,006	-11,434	-12,809	-14,059	-15,115	-15,909	-16,307
(−) Net Interest	24,879	30,674	37,128	44,102	51,391	58,727	65,785	72,209	77,631	81,711	83,753
(+) D&A	764	927	1,117	1,396	1,744	2,173	2,564	2,970	3,375	3,762	3,856
EBITDA	20,799	25,629	31,016	36,911	43,129	49,466	55,541	61,119	65,891	69,563	71,303

(−) Tax	0	0	0	0	0	0	0	0	0	0	—
(−) CapEx	1,437	1,771	2,144	2,547	2,968	3,391	3,799	4,170	4,483	4,718	—
(−) ΔWC	-1,988	34	38	41	43	43	42	38	32	24	—
Free Cash Flow (FCF)	21,350	23,823	28,834	34,323	40,118	46,031	51,700	56,911	61,376	64,821	—

Peers' EBITDA Multiple											20.8x
Terminal Value											1,480,955
WACC / Discount Rate	8.06%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	20,538	21,208	23,754	26,166	28,303	30,052	31,236	31,819	31,756	31,036	682,119

Enterprise Value	957,988
Projection Period	275,868	28.8%
Terminal Value	682,119	71.2%

(−) Current Net Debt	222,055
Equity Value	735,933
(÷) Outstanding Shares	941M
Fair Price	$782	+610.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	16.8x	18.8x	20.8x	22.8x	24.8x
6.1%	$795	$879	$963	$1047	$1131
7.1%	$715	$792	$868	$945	$1021
8.1%	$643	$713	$782	$852	$922
9.1%	$577	$641	$704	$768	$832
10.1%	$517	$575	$634	$692	$750

Current price: $110.07. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$103.07

Market Price

$110.07

Upside / Downside

-6.4%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Canadian Imperial Bank of Commerce (CM) has a fair value of $103.07 based on 7 comparable companies in the Banks - Diversified industry.

P/E Valuation — Banks - Diversified

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Canadian Imperial Bank of CommerceCM	103,540	17.4x	—
Wells Fargo & CompanyWFC	249,744	12.9x	15.3x
Bank of MontrealBMO	106,960	17.9x	—
The Bank of Nova ScotiaBNS	94,547	18.2x	—
Sumitomo Mitsui Financial Group, Inc.SMFG	80,123	10.4x	—
Barclays PLCBCS	79,621	10.8x	—
Lloyds Banking Group plcLYG	78,339	15.5x	—
Nu Holdings Ltd.NU	70,081	25.0x	23.8x
Industry Median		15.5x	19.5x
(*) Profit after tax		6,237
Equity Value		96,954
(/) Outstanding shares		941
Fair Price		$103

Fair Value

$12.06

Market Price

$110.07

Upside / Downside

-89.0%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Canadian Imperial Bank of Commerce (CM) has a fair value of $12.06 based on 6 comparable companies in the Banks - Diversified industry.

EV/Revenue Valuation — Banks - Diversified

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Canadian Imperial Bank of CommerceCM	103,540	7.1x	—
Wells Fargo & CompanyWFC	249,744	4.1x	6.1x
Bank of MontrealBMO	106,960	6.3x	—
The Bank of Nova ScotiaBNS	94,547	7.7x	—
Barclays PLCBCS	79,621	0.1x	—
Lloyds Banking Group plcLYG	78,339	1.4x	—
Nu Holdings Ltd.NU	70,081	6.1x	6.9x
Industry Median		5.1x	6.5x
(*) Revenue		45,884
= Enterprise Value		233,399
(-) Net Debt		222,055
Equity Value		11,344
(/) Outstanding shares		941
Fair Price		$12

PEG Fair Value

Fair Value

$52.32

Market Price

$110.07

Upside / Downside

-52.5%

Verdict

Overvalued

Using the PEG framework with historical EPS growth of 8.3% plus 2.9% dividend yield, the company has a fair value of $52.32 based on TTM EPS (FY2025) of $6.34. The current PEG ratio is 2.09.

PEG Ratio

2.09Expensive

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 17.3 ÷ (5.3% + 2.9%) = 2.09

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateHistorical	5.3%
Dividend Yield	+2.9%
Adjusted Growth (clamped 8–25%)	8.3%
Fair P/E	8.3x
TTM EPS (FY2025)	$6.34
Fair Value	$52.32

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$4.8B	$5.15	—
FY2022	$4.6B	$4.94	-4.0%
FY2023	$3.7B	$3.83	-22.6%
FY2024	$5.3B	$5.39	+40.8%
FY2025	$6.2B	$6.34	+17.7%

4Y Historical EPS CAGR: 5.3%

Dividend Discount Model

Fair Value

$60.96

Market Price

$110.07

Upside / Downside

-44.6%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 10.4% and projected dividend growth of 9.6%, the fair value is $60.96 per share. The DDM range is $43.26 – $94.23 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$3.14

Dividend Yield

2.91%

Payout Ratio

47.4%

Dividend Coverage

2.11x

DPS CAGR (4Y)9.6%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$3.14	47.4%	+35.6%
2024	$2.32	41.4%	+26.8%
2023	$1.83	45.2%	-24.8%
2022	$2.43	47.8%	+11.5%
2021	$2.18	41.2%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$3.44	9.6%	0.9059	$3.12
2027	$3.77	9.6%	0.8207	$3.10
2028	$4.14	9.6%	0.7435	$3.07
2029	$4.53	9.6%	0.6736	$3.05
2030	$4.97	9.6%	0.6102	$3.03
Terminal Value	$5.14 DPS	3.5%		$45.58

PV of Projected Dividends$15.37

PV of Terminal Value$45.58

Fair Value per Share$60.96

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	7.6%	8.6%	9.6%	10.6%	11.6%
8.4%	$80	$83	$87	$90	$94
9.4%	$66	$69	$72	$75	$78
10.4%	$56	$59	$61	$64	$66
11.4%	$49	$51	$53	$55	$57
12.4%	$43	$45	$47	$49	$51

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.