The Charles Schwab Corporation

WBAG:SCHW Stock Report

Market Cap: €146.7b

Charles Schwab Valuation

Is SCHW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SCHW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€93.44
Fair Value
15.8% undervalued intrinsic discount
20
Number of Analysts

Below Fair Value: SCHW (€78.72) is trading below our estimate of fair value (€93.44)

Significantly Below Fair Value: SCHW is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCHW?

Key metric: As SCHW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SCHW. This is calculated by dividing SCHW's market cap by their current earnings.
What is SCHW's PE Ratio?
PE Ratio27.8x
EarningsUS$5.48b
Market CapUS$152.30b

Price to Earnings Ratio vs Peers

How does SCHW's PE Ratio compare to its peers?

The above table shows the PE ratio for SCHW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.5x
MS Morgan Stanley
17.2x7.6%US$221.4b
GS Goldman Sachs Group
16.2x8.3%US$218.9b
IBKR Interactive Brokers Group
33.2x2.6%US$93.6b
600030 CITIC Securities
19.3x11.8%CN¥400.1b
SCHW Charles Schwab
27.8x14.4%€152.3b

Price-To-Earnings vs Peers: SCHW is expensive based on its Price-To-Earnings Ratio (27.8x) compared to the peer average (21.2x).

Price to Earnings Ratio vs Industry

How does SCHW's PE Ratio compare vs other companies in the European Capital Markets Industry?

15 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SCHW 27.8xIndustry Avg. 13.9xNo. of Companies42PE01224364860+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SCHW is expensive based on its Price-To-Earnings Ratio (27.8x) compared to the European Capital Markets industry average (13.9x).

Price to Earnings Ratio vs Fair Ratio

What is SCHW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCHW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SCHW's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SCHW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€78.72
€86.65
+10.1%
8.8%€101.15€69.36n/a20
Feb ’26€79.88
€85.33
+6.8%
8.9%€100.11€68.64n/a20
Jan ’26€71.37
€80.41
+12.7%
10.7%€91.05€62.30n/a20
Dec ’25€78.76
€74.63
-5.2%
11.0%€88.97€57.74n/a20
Nov ’25€65.55
€70.78
+8.0%
9.5%€81.58€56.55n/a20
Oct ’25€57.90
€65.76
+13.6%
9.6%€78.73€51.89n/a20
Sep ’25€58.39
€66.39
+13.7%
9.3%€78.68€51.86n/a20
Aug ’25€59.42
€68.74
+15.7%
8.7%€81.30€56.36n/a20
Jul ’25€68.53
€73.06
+6.6%
8.7%€84.75€57.74n/a20
Jun ’25€66.23
€72.50
+9.5%
8.5%€83.88€59.00n/a20
May ’25€69.24
€74.17
+7.1%
9.4%€86.05€59.86n/a20
Apr ’25€66.90
€68.66
+2.6%
10.3%€81.00€54.00n/a20
Mar ’25€61.30
€66.41
+8.3%
9.8%€78.63€53.65n/a19
Feb ’25€56.85
€65.89
+15.9%
10.4%€78.36€51.63€79.8819
Jan ’25€63.40
€66.10
+4.3%
12.7%€77.86€47.63€71.3718
Dec ’24€56.50
€63.65
+12.7%
12.4%€78.16€47.81€78.7618
Nov ’24€50.30
€65.99
+31.2%
12.0%€80.26€50.99€65.5518
Oct ’24€52.70
€70.44
+33.7%
12.6%€89.89€53.93€57.9018
Sep ’24€55.70
€69.55
+24.9%
12.1%€87.90€51.82€58.3918
Aug ’24€59.65
€67.75
+13.6%
11.7%€86.17€51.70€59.4219
Jul ’24€52.40
€61.22
+16.8%
13.2%€77.54€47.43€68.5318
Jun ’24€49.02
€62.79
+28.1%
13.7%€79.24€42.88€66.2317
May ’24€46.68
€60.32
+29.2%
15.2%€77.04€41.69€69.2417
Apr ’24€48.13
€73.69
+53.1%
18.1%€101.41€53.47€66.9016
Mar ’24€72.59
€86.99
+19.8%
11.1%€102.86€69.20€61.3016
Feb ’24€71.18
€85.25
+19.8%
10.4%€98.64€68.22€56.8516
Analyst Price Target
Consensus Narrative from 20 Analysts
€85.11
Fair Value
7.5% undervalued intrinsic discount
20
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/12 01:03
End of Day Share Price 2025/02/12 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Charles Schwab Corporation is covered by 42 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Stephen BiggarArgus Research Company
Roger FreemanBarclays
Benjamin BudishBarclays