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  5. CM: As I read the charts CM - and others but particularly CM - had two periods of significant improvement beginning in Oct '23 and then Apl '25, peaking in recent weeks around 115, well above historic ... [Canadian Imperial Bank Of Commerce]
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Q: As I read the charts CM - and others but particularly CM - had two periods of significant improvement beginning in Oct '23 and then Apl '25, peaking in recent weeks around 115, well above historic levels. There are three questions here - how stretched are the current valuation, what further progress might one expect, and what caused the value to rise so substantially? I am assume that AI prospects had something to do with the rise in valuation as other Canadian Banks have done well but have no info to support that idea or what might have made CM so outstanding. Look forward to your response.
Asked by Mike on October 22, 2025
5i Research Answer:

We are not so sure it is AI-related; banks have taken cost control seriously and this has helped. We are sure there is a bit of AI benefit there but nothing to specifically address. But credit quality and lower rates (and more on the way) have been big factors. Investors were expecting large loan losses and they just haven't materialized as expected. CM shares are up six months in a row, with the big start in April. Last year it rose in 8 of the 12 months with a big move in August. This year was the Liberation day bounce in April and last year was due to strong earnings and broker upgrades. Historical annual average P/E has averaged 10X with the last decade peak/trough on a weekly basis ranging from 5x to 16x . At 13.4X now it is definitely on the higher end of its historical range. 

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