Robinhood Markets, Inc.

NasdaqGS:HOOD Stock Report

Market Cap: US$33.9b

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 ($38.33) is trading above our estimate of fair value ($9.06)

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 Ratio64.5x
EarningsUS$525.00m
Market CapUS$33.88b

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 Average21.9x
RJF Raymond James Financial
15.4x6.0%US$31.6b
LPLA LPL Financial Holdings
24.4x15.8%US$24.6b
IBKR Interactive Brokers Group
27.4x3.4%US$74.3b
FUTU Futu Holdings
20.3x22.7%US$11.6b
HOOD Robinhood Markets
64.5x17.1%US$33.9b

Price-To-Earnings vs Peers: HOOD is expensive based on its Price-To-Earnings Ratio (64.5x) compared to the peer average (21.9x).

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
3.6xn/aUS$2.26b
CET Central Securities
4.4xn/aUS$1.29b
GAM General American Investors Company
4.2xn/aUS$1.20b
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
HOOD 64.5xIndustry Avg. 23.6xNo. of Companies73PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HOOD is expensive based on its Price-To-Earnings Ratio (64.5x) compared to the US Capital Markets industry average (23.6x).

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 Ratio64.5x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: HOOD is expensive based on its Price-To-Earnings Ratio (64.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).

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$38.33
US$45.24
+18.0%
24.2%US$60.00US$20.00n/a17
Dec ’25US$37.54
US$33.12
-11.8%
28.5%US$55.00US$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$9.00US$37.5414
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:49
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Robinhood Markets, Inc. is covered by 22 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Benjamin BudishBarclays
Craig SiegenthalerBofA Global Research
Christopher AllenCitigroup Inc