Franklin Resources Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 FRK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FRK (€23.39) is trading below our estimate of fair value (€48.34)

Significantly Below Fair Value: FRK is trading below fair value by more than 20%.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

FRK 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/Revenue2x
Enterprise Value/EBITDA8.2x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FRK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.4x
DWS DWS Group GmbH KGaA
14.4x13.1%€8.1b
MLP MLP
12.4x10.3%€603.6m
MUX Mutares SE KGaA
2.2x-148.3%€870.8m
DBAN Deutsche Beteiligungs
8.7x25.0%€508.4m
FRK Franklin Resources
14.2x9.4%€13.2b

Price-To-Earnings vs Peers: FRK is expensive based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (9.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: FRK is good value based on its Price-To-Earnings Ratio (14.2x) compared to the German Capital Markets industry average (21.9x).


Price to Earnings Ratio vs Fair Ratio

What is FRK'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.

FRK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.2x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: FRK is good value based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


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 FRK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€23.39
€25.90
+10.7%
6.1%€28.04€23.37n/a12
Apr ’25€25.50
€25.96
+1.8%
6.4%€27.93€22.34n/a13
Mar ’25€25.40
€25.80
+1.6%
6.6%€27.86€22.28n/a13
Feb ’25€24.60
€25.49
+3.6%
6.8%€27.67€22.14n/a13
Jan ’25€27.10
€22.87
-15.6%
9.9%€27.24€19.07n/a12
Dec ’24€22.70
€21.71
-4.4%
5.8%€23.89€19.29n/a12
Nov ’24€21.50
€22.44
+4.3%
7.5%€26.50€19.87n/a12
Oct ’24€23.10
€25.06
+8.5%
7.1%€28.19€22.55n/a12
Sep ’24€24.70
€24.34
-1.5%
6.5%€27.41€21.92n/a12
Aug ’24€26.50
€24.14
-8.9%
7.1%€27.28€20.92n/a12
Jul ’24€24.60
€22.73
-7.6%
9.9%€25.54€18.24n/a12
Jun ’24€22.40
€23.12
+3.2%
10.1%€26.02€18.59n/a12
May ’24€24.10
€22.58
-6.3%
11.4%€25.52€17.32n/a13
Apr ’24€23.99
€24.54
+2.3%
12.5%€31.34€18.44€25.5013
Mar ’24€27.69
€25.18
-9.1%
10.6%€31.79€21.51€25.4013
Feb ’24€28.52
€24.34
-14.6%
7.5%€26.68€21.16€24.6013
Jan ’24€25.00
€21.68
-13.3%
9.2%€25.46€17.91€27.1013
Dec ’23€25.53
€21.43
-16.0%
9.1%€25.23€18.44€22.7012
Nov ’23€23.65
€21.85
-7.6%
8.8%€25.31€19.24€21.5012
Oct ’23€22.46
€25.51
+13.6%
11.8%€29.59€20.41€23.1011
Sep ’23€25.80
€24.97
-3.2%
10.3%€28.25€20.46€24.7011
Aug ’23€26.67
€24.73
-7.3%
9.6%€28.28€20.48€26.5011
Jul ’23€21.96
€24.30
+10.6%
11.2%€27.68€20.04€24.6011
Jun ’23€25.24
€25.91
+2.6%
4.3%€27.22€23.47€22.4010
May ’23€24.53
€29.07
+18.5%
14.9%€38.71€24.88€24.1011
Apr ’23€25.26
€32.43
+28.4%
13.3%€40.44€27.26€23.9911

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


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