The AMP Ltd (ASX: AMP) share price has recovered 16% since hitting its 2023 low amid improvements in its banking and wealth management operations. Stock in the 174-year-old company last traded at $1.14.
Could the turn-around be permanent or is the previously embattled S&P/ASX 200 Index (ASX: XJO) stock destined to tumble once more? Let's take a look.
AMP shares back in the green
The AMP share price has been on the up and up in recent months. Here's an overview of how it's been performing:
| Length of time | AMP share price performance |
| One week | +3.6% |
| One month | +7.5% |
| One year | +10.7% |
Though, it's been a volatile ride. The stock recently plummeted 28% from its February high to its March low. It's also still more than 70% lower than it was five years ago when it was beginning to battle backlash from the Hayne Royal Commission.
The AMP share price has recently been bolstered by the company's latest quarterly bank, assets under management (AUM), and cash flows update.
AMP Bank saw its loan book grow $200 million last quarter, while its Australia Wealth Management business' AUM lifted $2 billion, and its cash outflows improved 30% to $600 million.
It also recently returned to dividend following a two-year hiatus and offloaded the majority of its remaining stake in Collimate Capital.
Does AMP look cheap?
But all that doesn't mean much if AMP shares are still trading above the company's true value. One way to assess if that might be the case is by diving into its fundamentals.
AMP's actual earnings per share (EPS) came in at 12 cents for financial year 2022. That gives it a 9.5 price-to-earnings (P/E) ratio.
That compares favourably against many of its peers. Though, it's certainly not unheard of. For instance, Bank of Queensland Ltd (ASX: BOQ) shares currently boast an 8.34 P/E ratio, according to CommSec data.
It also declared a 2.5 cent per share dividend in February. If it backs that up in its half-year results, the stock will boast a 4.38% dividend yield at its current share price – that's decent, but a touch below the ASX 200's average of 4.58% according to S&P Global.
Finally, AMP offers a 0.84 price-to-book (P/B) ratio right now, per CommSec data. Again, that's a respectable ratio. However, it's similar to those offered by some of its peers, as my Fool colleague Bronwyn recently discussed.
What do experts think?
So, AMP shares do look like decent value in some respects – but arguably not by an enormous margin. Meanwhile, one top broker is sceptical of the company's future.
UBS was disappointed by AMP's recent quarterly results, The Australian reports. It said the company's wealth management and banking businesses both missed its forecasts for the period.
As a result, it maintained its sell rating and a $1 price target on AMP shares – representing a potential 12% downside.
