Robinhood Markets, Inc.

NasdaqGS:HOOD Stock Report

Market Cap: US$31.2b

Robinhood Markets Valuation

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

Below Fair Value: HOOD ($36.08) is trading above our estimate of fair value ($7.87)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HOOD. This is calculated by dividing HOOD's market cap by their current earnings.
What is HOOD's PE Ratio?
PE Ratio60.8x
EarningsUS$525.00m
Market CapUS$31.15b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HOOD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
LPLA LPL Financial Holdings
23.6x13.5%US$23.5b
RJF Raymond James Financial
16x4.3%US$33.1b
FUTU Futu Holdings
21.5x22.8%US$12.0b
XP XP
11.1x12.4%US$8.9b
HOOD Robinhood Markets
60.8x6.1%US$31.2b

Price-To-Earnings vs Peers: HOOD is expensive based on its Price-To-Earnings Ratio (60.8x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

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

22 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADX Adams Diversified Equity Fund
4xn/aUS$2.52b
CET Central Securities
4.5xn/aUS$1.32b
GAM General American Investors Company
4.1xn/aUS$1.16b
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
HOOD 60.8xIndustry Avg. 23.7xNo. of Companies75PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HOOD is expensive based on its Price-To-Earnings Ratio (60.8x) compared to the US Capital Markets industry average (23.7x).

Price to Earnings Ratio vs Fair Ratio

What is HOOD'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.

HOOD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio60.8x
Fair PE Ratio20.9x

Price-To-Earnings vs Fair Ratio: HOOD is expensive based on its Price-To-Earnings Ratio (60.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.9x).

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 HOOD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$36.08
US$30.35
-15.9%
25.7%US$51.00US$20.00n/a17
Nov ’25US$23.97
US$26.34
+9.9%
14.3%US$33.00US$20.00n/a16
Oct ’25US$22.33
US$24.44
+9.4%
17.1%US$32.00US$17.00n/a16
Sep ’25US$20.12
US$23.53
+17.0%
18.8%US$32.00US$17.00n/a16
Aug ’25US$20.24
US$22.84
+12.9%
18.4%US$30.00US$16.00n/a16
Jul ’25US$22.79
US$21.84
-4.2%
20.0%US$30.00US$16.00n/a16
Jun ’25US$20.90
US$20.80
-0.5%
20.9%US$30.00US$16.00n/a15
May ’25US$16.65
US$19.00
+14.1%
24.8%US$30.00US$12.00n/a16
Apr ’25US$19.41
US$16.55
-14.7%
33.3%US$30.00US$11.00n/a15
Mar ’25US$16.58
US$13.88
-16.3%
24.9%US$25.00US$11.00n/a14
Feb ’25US$10.91
US$12.74
+16.8%
25.6%US$23.00US$9.60n/a14
Jan ’25US$12.74
US$11.61
-8.9%
29.2%US$23.00US$9.00n/a14
Dec ’24US$9.32
US$11.39
+22.2%
30.6%US$23.00US$9.00n/a14
Nov ’24US$9.08
US$12.19
+34.3%
31.1%US$24.00US$9.00US$23.9713
Oct ’24US$9.81
US$12.85
+31.0%
31.3%US$25.00US$9.00US$22.3312
Sep ’24US$11.11
US$12.90
+16.1%
30.9%US$25.00US$9.00US$20.1212
Aug ’24US$12.87
US$11.92
-7.4%
35.7%US$25.00US$8.00US$20.2412
Jul ’24US$9.98
US$11.58
+16.1%
37.5%US$25.00US$8.00US$22.7912
Jun ’24US$9.02
US$11.58
+28.4%
37.5%US$25.00US$8.00US$20.9012
May ’24US$8.82
US$11.63
+31.9%
37.1%US$25.00US$8.10US$16.6512
Apr ’24US$9.71
US$11.63
+19.7%
37.2%US$25.00US$8.00US$19.4112
Mar ’24US$9.73
US$12.00
+23.3%
35.0%US$25.00US$8.00US$16.5812
Feb ’24US$10.78
US$11.46
+6.3%
38.6%US$25.00US$8.00US$10.9112
Jan ’24US$8.14
US$12.42
+52.5%
40.5%US$28.00US$8.00US$12.7412
Dec ’23US$9.87
US$12.42
+25.8%
40.9%US$28.00US$7.00US$9.3212
Nov ’23US$11.92
US$10.44
-12.4%
15.6%US$13.00US$7.00US$9.0811

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

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