Update shared on18 Sep 2025
Fair value Increased 0.34%The consensus analyst price target for Charles Schwab saw a slight increase to $108.37, as bullish analysts cited strong net new asset growth and sustained trading volumes supported by a favorable rate environment, while bearish sentiment persists on concerns about future Fed rate cuts impacting earnings.
Analyst Commentary
- Bullish analysts cite a significant acceleration in net new asset growth, with seasonally adjusted growth nearly 6%—the strongest in over two years.
- Trading activity and trading volumes remain robust, supporting near-term revenue, according to several bullish analysts.
- The existing Federal funds rate environment continues to support net interest income, favoring rate and credit franchises.
- Bullish analysts highlight normalization in volatility and trading volumes, but still see positive scope for rates and credit-related revenues.
- Bearish analysts adjust targets downward to account for anticipated Federal Reserve rate cuts, resulting in lowered earnings estimates for upcoming quarters.
What's in the News
- Charles Schwab is expanding its branch network with over 40 new or relocated locations across the U.S., hiring 400+ branch roles and adding employees in corporate areas to support strong client and asset growth.
- The Board authorized a new share buyback plan.
- Charles Schwab launched a $20 billion share repurchase program.
- The company repurchased 3.95 million shares for $350.56 million in Q2 2025, completing the repurchase of 106.81 million shares for $8.13 billion under the 2022 buyback plan.
Valuation Changes
Summary of Valuation Changes for Charles Schwab
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $108.00 to $108.37.
- The Future P/E for Charles Schwab remained effectively unchanged, moving only marginally from 22.49x to 22.66x.
- The Discount Rate for Charles Schwab remained effectively unchanged, moving only marginally from 8.90% to 8.96%.
Disclaimer
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