The Charles Schwab Corporation

DB:SWG Stock Report

Market Cap: €129.0b

Charles Schwab Valuation

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

Below Fair Value: SWG (€70.25) is trading above our estimate of fair value (€68.36)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SWG 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SWG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.6x
FTK flatexDEGIRO
14.7x12.3%€1.4b
T2G Tradegate Wertpapierhandelsbank
113.4xn/a€2.7b
DBK Deutsche Bank
6.8x10.3%€30.1b
DB1 Deutsche Börse
19.6x5.7%€34.2b
SWG Charles Schwab
31.8x16.4%€138.9b

Price-To-Earnings vs Peers: SWG is good value based on its Price-To-Earnings Ratio (31.8x) compared to the peer average (38.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a7.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SWG is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the German Capital Markets industry average (21x).


Price to Earnings Ratio vs Fair Ratio

What is SWG'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.

SWG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.8x
Fair PE Ratio26x

Price-To-Earnings vs Fair Ratio: SWG is expensive based on its Price-To-Earnings Ratio (31.8x) compared to the estimated Fair Price-To-Earnings Ratio (26x).


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 SWG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€70.25
€73.85
+5.1%
10.3%€86.00€54.22n/a20
Apr ’25€66.70
€68.66
+2.9%
10.3%€81.00€54.00n/a20
Mar ’25€61.20
€66.41
+8.5%
9.8%€78.63€53.65n/a19
Feb ’25€57.35
€65.89
+14.9%
10.4%€78.36€51.63n/a19
Jan ’25€63.05
€66.10
+4.8%
12.7%€77.86€47.63n/a18
Dec ’24€57.25
€63.65
+11.2%
12.4%€78.16€47.81n/a18
Nov ’24€49.08
€65.99
+34.5%
12.0%€80.26€50.99n/a18
Oct ’24€51.50
€70.44
+36.8%
12.6%€89.89€53.93n/a18
Sep ’24€54.60
€69.55
+27.4%
12.1%€87.90€51.82n/a18
Aug ’24€59.70
€67.75
+13.5%
11.7%€86.17€51.70n/a19
Jul ’24€52.25
€61.22
+17.2%
13.2%€77.54€47.43n/a18
Jun ’24€49.60
€62.79
+26.6%
13.7%€79.24€42.88n/a17
May ’24€46.72
€60.32
+29.1%
15.2%€77.04€41.69€69.3017
Apr ’24€47.18
€73.69
+56.2%
18.1%€101.41€53.47€66.7016
Mar ’24€73.20
€86.99
+18.8%
11.1%€102.86€69.20€61.2016
Feb ’24€70.72
€85.25
+20.5%
10.4%€98.64€68.22€57.3516
Jan ’24€77.01
€87.28
+13.3%
11.4%€114.91€78.18€63.0515
Dec ’23€78.41
€88.19
+12.5%
8.7%€100.93€78.61€57.2515
Nov ’23€80.98
€91.45
+12.9%
9.3%€105.29€76.94€49.0815
Oct ’23€73.47
€90.20
+22.8%
8.0%€102.05€79.60€51.5013
Sep ’23€70.22
€86.69
+23.5%
9.1%€99.82€72.87€54.6013
Aug ’23€67.41
€83.85
+24.4%
9.1%€97.50€71.18€59.7012
Jul ’23€59.50
€86.10
+44.7%
14.4%€116.87€70.31€52.2513
Jun ’23€65.35
€86.01
+31.6%
14.3%€114.71€63.42€49.6013
May ’23€65.36
€89.60
+37.1%
14.1%€114.80€67.20€46.7214

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


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