Franklin Resources, Inc.

NYSE:BEN Stock Report

Market Cap: US$11.2b

Franklin Resources Valuation

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

Below Fair Value: BEN ($21.64) is trading below our estimate of fair value ($42.37)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BEN. This is calculated by dividing BEN's market cap by their current earnings.
What is BEN's PE Ratio?
PE Ratio26.2x
EarningsUS$432.20m
Market CapUS$11.25b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.5x
SEIC SEI Investments
18.9x7.0%US$10.2b
HLNE Hamilton Lane
44.7x23.1%US$10.9b
JHG Janus Henderson Group
17.4x6.1%US$6.9b
NTRS Northern Trust
13.1x-9.4%US$21.4b
BEN Franklin Resources
26.2x18.5%US$11.2b

Price-To-Earnings vs Peers: BEN is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (23.5x).

Price to Earnings Ratio vs Industry

How does BEN'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
BEN 26.2xIndustry Avg. 23.7xNo. of Companies75PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BEN is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the US Capital Markets industry average (23.7x).

Price to Earnings Ratio vs Fair Ratio

What is BEN'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.

BEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.2x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: BEN is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

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 BEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$21.64
US$19.79
-8.6%
6.2%US$22.00US$18.00n/a14
Nov ’25US$20.84
US$20.59
-1.2%
7.1%US$24.00US$19.00n/a14
Oct ’25US$19.71
US$22.38
+13.5%
9.7%US$27.00US$20.00n/a14
Sep ’25US$20.24
US$23.19
+14.6%
8.6%US$27.00US$20.00n/a13
Aug ’25US$22.24
US$23.85
+7.3%
7.0%US$27.00US$21.00n/a12
Jul ’25US$22.13
US$25.35
+14.6%
6.6%US$28.00US$23.00n/a12
Jun ’25US$23.60
US$25.35
+7.4%
6.6%US$28.00US$23.00n/a12
May ’25US$22.77
US$25.94
+13.9%
7.5%US$29.00US$23.00n/a12
Apr ’25US$27.62
US$27.88
+1.0%
6.4%US$30.00US$24.00n/a13
Mar ’25US$27.42
US$27.79
+1.3%
6.6%US$30.00US$24.00n/a13
Feb ’25US$27.05
US$27.63
+2.2%
6.8%US$30.00US$24.00n/a13
Jan ’25US$29.79
US$25.19
-15.4%
9.9%US$30.00US$21.00n/a12
Dec ’24US$25.63
US$23.63
-7.8%
5.8%US$26.00US$21.00n/a12
Nov ’24US$22.55
US$23.71
+5.1%
7.5%US$28.00US$21.00US$20.8412
Oct ’24US$24.58
US$26.67
+8.5%
7.1%US$30.00US$24.00US$19.7112
Sep ’24US$26.87
US$26.65
-0.8%
6.5%US$30.00US$24.00US$20.2412
Aug ’24US$28.79
US$26.54
-7.8%
7.1%US$30.00US$23.00US$22.2412
Jul ’24US$26.71
US$24.92
-6.7%
9.9%US$28.00US$20.00US$22.1312
Jun ’24US$24.42
US$24.88
+1.9%
10.1%US$28.00US$20.00US$23.6012
May ’24US$26.13
US$24.77
-5.2%
11.4%US$28.00US$19.00US$22.7713
Apr ’24US$26.94
US$26.69
-0.9%
12.4%US$34.00US$20.00US$27.6213
Mar ’24US$29.10
US$27.00
-7.2%
10.5%US$34.00US$23.00US$27.4213
Feb ’24US$32.01
US$26.54
-17.1%
7.5%US$29.00US$23.00US$27.0513
Jan ’24US$26.38
US$23.00
-12.8%
9.2%US$27.00US$19.00US$29.7913
Dec ’23US$27.28
US$22.08
-19.0%
9.1%US$26.00US$19.00US$25.6312
Nov ’23US$22.60
US$21.58
-4.5%
8.8%US$25.00US$19.00US$22.5512

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

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