Franklin Templeton (BEN): A Fresh Look at Valuation Following New Binance Digital Asset Alliance

If you have been following Franklin Resources (BEN), you probably sat up when news broke about their new partnership with Binance. The duo’s fresh alliance is designed to push the frontier in digital assets by bringing together Franklin Templeton’s know-how in securities tokenization and Binance’s worldwide trading network. While this move is not a big earnings surprise, it is a signal that Franklin Resources is willing to innovate and possibly shift toward a new growth lane as digital markets mature.

Franklin Resources’ journey this year has already been interesting. After a steady climb, the stock is now up over 24% compared to a year ago, with a 20% return in 2024 alone. The past month saw a bit of a pullback, but the longer-term trend since this news has been positive. Investors have also witnessed strong annual net income growth alongside Franklin’s gradual revenue gains, adding more substance to the story. The big question now is whether this strategic alliance can act as the next catalyst.

With investors weighing what this digital shift might mean, is Franklin Resources now an undervalued bet on the future or is the market already factoring in the upside?

Most Popular Narrative: 3% Undervalued

The prevailing narrative suggests that Franklin Resources is currently undervalued, with analysts seeing modest upside potential based on the company’s near-term and long-term growth prospects.

The company is utilizing recent technology innovations, such as tokenized funds and blockchain-enabled products like Benji, and is already in active discussions with distributors about white-labeling its digital asset wallet. These technology investments are expected to lower transaction and operating costs and could open new digital channels for distribution, enhancing net margins over time.

What’s really behind this “undervalued” label? A surge in digital initiatives, ambitious international growth, and a financial forecast that could surprise even the most seasoned market watchers. Curious which assumptions tip the scale and what analysts believe will unlock future value for shareholders? The numbers driving this story might defy expectations. Find out what’s fueling the optimism.

Result: Fair Value of $25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent client outflows or slow monetization of new digital strategies could present challenges to Franklin Resources’ growth outlook if these risks are not managed effectively.

Find out about the key risks to this Franklin Resources narrative.

Another View: Challenging the Numbers

Looking through a different lens, Franklin Resources actually appears expensive versus its industry when we compare valuation multiples. This alternative method signals a more cautious outlook. Which approach captures the full story?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Franklin Resources to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Franklin Resources Narrative

If you see things differently or want to dig into the numbers yourself, you can craft your own perspective in just a few minutes. Do it your way.

A great starting point for your Franklin Resources research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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