LPL Financial Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: LPLA * (MX$3760) is trading below our estimate of fair value (MX$5208.24)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LPLA *. This is calculated by dividing LPLA *'s market cap by their current preferred multiple.
What is LPLA *'s n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	n/a

LPLA * 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	2.1x
Enterprise Value/EBITDA	11.5x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does LPLA *'s PE Ratio compare to its peers?

The above table shows the PE ratio for LPLA * 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	25x
ACTINVR B Corporación Actinver S. A. B. de C. V	6.9x	12.3%	Mex$8.9b
VALUEGF O Value Grupo Financiero. de	22.6x	n/a	Mex$15.2b
FINAMEX O Casa de Bolsa Finamex. de	14.9x	n/a	Mex$1.9b
HOOD Robinhood Markets	55.6x	3.5%	US$29.0b
LPLA * LPL Financial Holdings	20.9x	13.4%	Mex$21.0b

Price-To-Earnings vs Peers: LPLA * is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

How does LPLA *'s PE Ratio compare vs other companies in the South American Capital Markets Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.2%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.2%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: LPLA * is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the South American Capital Markets industry average (9.8x).

Price to Earnings Ratio vs Fair Ratio

What is LPLA *'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.

LPLA * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LPLA *'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?

Analyst Forecast: Insufficient data to show price forecast.