Charles Schwab Valuation

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

SCHW (€78.42) is trading above our estimate of [[fair value]] (€74.69)

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

Valuation Score

0/6

Valuation Score 0/6

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.

Below Fair Value: SCHW (€78.42) is trading above our estimate of fair value (€74.69)

Significantly Below Fair Value: SCHW is trading above our estimate of fair value.

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 Ratio	31.7x
Earnings	US$4.69b
Market Cap	US$148.75b

SCHW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.7x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	22.5x
MS Morgan Stanley	20.4x	8.2%	US$217.0b
GS Goldman Sachs Group	17.4x	10.9%	US$198.4b
600030 CITIC Securities	22.4x	14.2%	CN¥422.6b
IBKR Interactive Brokers Group	29.9x	3.2%	US$81.0b
SCHW Charles Schwab	31.7x	18.6%	€148.8b

Price-To-Earnings vs Peers: SCHW is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (22.7x).

Price to Earnings Ratio vs Industry

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

17 Companies	Price / Earnings	Estimated Growth	Market Cap

17 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SCHW is expensive based on its Price-To-Earnings Ratio (31.7x) compared to the European Capital Markets industry average (13.1x).

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 Ratio	31.7x
Fair PE Ratio	n/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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€78.42	€75.58 -3.6%	11.0%	€90.27	€58.58	n/a	20
Nov ’25	€65.55	€70.78 +8.0%	9.5%	€81.58	€56.55	n/a	20
Oct ’25	€57.90	€65.76 +13.6%	9.6%	€78.73	€51.89	n/a	20
Sep ’25	€58.39	€66.39 +13.7%	9.3%	€78.68	€51.86	n/a	20
Aug ’25	€59.42	€68.74 +15.7%	8.7%	€81.30	€56.36	n/a	20
Jul ’25	€68.53	€73.06 +6.6%	8.7%	€84.75	€57.74	n/a	20
Jun ’25	€66.23	€72.50 +9.5%	8.5%	€83.88	€59.00	n/a	20
May ’25	€69.24	€74.17 +7.1%	9.4%	€86.05	€59.86	n/a	20
Apr ’25	€66.90	€68.66 +2.6%	10.3%	€81.00	€54.00	n/a	20
Mar ’25	€61.30	€66.41 +8.3%	9.8%	€78.63	€53.65	n/a	19
Feb ’25	€56.85	€65.89 +15.9%	10.4%	€78.36	€51.63	n/a	19
Jan ’25	€63.40	€66.10 +4.3%	12.7%	€77.86	€47.63	n/a	18
Dec ’24	€56.50	€63.65 +12.7%	12.4%	€78.16	€47.81	n/a	18
Nov ’24	€50.30	€65.99 +31.2%	12.0%	€80.26	€50.99	€65.55	18
Oct ’24	€52.70	€70.44 +33.7%	12.6%	€89.89	€53.93	€57.90	18
Sep ’24	€55.70	€69.55 +24.9%	12.1%	€87.90	€51.82	€58.39	18
Aug ’24	€59.65	€67.75 +13.6%	11.7%	€86.17	€51.70	€59.42	19
Jul ’24	€52.40	€61.22 +16.8%	13.2%	€77.54	€47.43	€68.53	18
Jun ’24	€49.02	€62.79 +28.1%	13.7%	€79.24	€42.88	€66.23	17
May ’24	€46.68	€60.32 +29.2%	15.2%	€77.04	€41.69	€69.24	17
Apr ’24	€48.13	€73.69 +53.1%	18.1%	€101.41	€53.47	€66.90	16
Mar ’24	€72.59	€86.99 +19.8%	11.1%	€102.86	€69.20	€61.30	16
Feb ’24	€71.18	€85.25 +19.8%	10.4%	€98.64	€68.22	€56.85	16
Jan ’24	€77.34	€87.28 +12.9%	11.4%	€114.91	€78.18	€63.40	15
Dec ’23	€77.32	€88.19 +14.1%	8.7%	€100.93	€78.61	€56.50	15
Nov ’23	€80.99	€91.45 +12.9%	9.3%	€105.29	€76.94	€50.30	15

Analyst Forecast: Target price is lower than the current share price.

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