CIBC P/B Ratio: 1.15 (April 2024)
CIBC has a low P/B ratio, which makes it a favorable investment. This means that investors may be paying less than the actual value of the stock.
CIBC P/E Ratio: 13.1 (April 2024)
With a P/E ratio that’s lower than the industry average of 20 to 25, CIBC stock appears to be a viable investment. A company with a low but positive P/E ratio means that it is generating high earnings compared to their current valuation and the stock may be undervalued. Conversely, a company with a high negative (or close to 0) P/E ratio means that the company is not profitable, incurring heavy losses compared to its current valuation.
CIBC Dividend Payout Ratio (DPR): 31.62%
Since the industry average for a good DPR is at around 30 to 50%, CIBC’s DPR is in a good spot. This indicates that the dividends that CIBC pays are well-covered by its earnings. Note that a company that has a DPR above 50% or more may not be sustainable.
CIBC Dividend Yield: 5.42%
In many instances, a dividend yield is deemed viable and sustainable if it’s in the range of 5-6%, so CIBC’s yield is about average. A dividend yield that is in double digits would mean that the company is not paying out dividends in a sustainable manner and could be unstable.
Savvy investors may tell you that CIBC bank stocks have slightly higher volatility than the stocks of the other Big Five banks of Canada. This is because CIBC has greater investment and exposure to the Canadian housing market, which was not very good during the pandemic. However, the housing market is predicted to have better prospects in 2024.