Canadian Imperial Bank of Commerce executives must be exasperated.
Despite trouncing rival Canadian lenders on everything from core earnings growth to return on equity since the end of the credit crisis, CIBC’s shares still trade at a lower price-earnings multiple relative to other bank stocks.
This may seem like a petty issue. Who cares about a simple P/E multiple when your stock’s gained 22 per cent in the past year? But in the banking world, a fat multiple is a sign of sheer strength.