We’ve recently updated our valuation analysis.

Franklin Resources Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BEN 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/Revenue2.5x
Enterprise Value/EBITDA8.9x
PEG Ratio3.6x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.3x
TPG TPG
6.5x-6.0%US$10.2b
NTRS Northern Trust
15.9x7.0%US$20.4b
CG Carlyle Group
7.9x1.4%US$13.7b
TROW T. Rowe Price Group
19x5.2%US$28.9b
BEN Franklin Resources
17.6x4.9%US$16.9b

Price-To-Earnings vs Peers: BEN is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (12.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.6%
n/an/an/a

Price-To-Earnings vs Industry: BEN is good value based on its Price-To-Earnings Ratio (17.6x) compared to the US Capital Markets industry average (27.9x)


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 Ratio17.6x
Fair PE Ratio11.2x

Price-To-Earnings vs Fair Ratio: BEN is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).


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 ($33.82) is trading above our estimate of fair value ($33.25)

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


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$33.82
US$26.46
-21.8%
7.5%US$29.00US$23.00n/a13
Jan ’24US$26.38
US$23.00
-12.8%
9.2%US$27.00US$19.00n/a13
Dec ’23US$27.28
US$22.08
-19.0%
9.1%US$26.00US$19.00n/a12
Nov ’23US$22.60
US$21.58
-4.5%
8.8%US$25.00US$19.00n/a12
Oct ’23US$21.52
US$25.00
+16.2%
11.8%US$29.00US$20.00n/a11
Sep ’23US$25.93
US$25.64
-1.1%
10.3%US$29.00US$21.00n/a11
Aug ’23US$27.94
US$25.36
-9.2%
9.6%US$29.00US$21.00n/a11
Jul ’23US$23.58
US$25.45
+7.9%
11.2%US$29.00US$21.00n/a11
Jun ’23US$26.56
US$27.60
+3.9%
4.3%US$29.00US$25.00n/a10
May ’23US$24.59
US$31.55
+28.3%
14.9%US$42.00US$27.00n/a11
Apr ’23US$27.93
US$35.68
+27.8%
13.3%US$44.50US$30.00n/a11
Mar ’23US$28.08
US$36.23
+29.0%
12.2%US$44.50US$30.00n/a11
Feb ’23US$32.14
US$36.55
+13.7%
9.9%US$43.00US$30.00US$32.0111
Jan ’23US$33.49
US$36.36
+8.6%
12.4%US$45.00US$30.00US$26.3811
Dec ’22US$31.82
US$36.10
+13.5%
13.0%US$45.00US$30.00US$27.2810
Nov ’22US$35.15
US$32.55
-7.4%
9.3%US$38.00US$26.00US$22.6010
Oct ’22US$30.10
US$32.95
+9.5%
9.2%US$37.00US$26.00US$21.5211
Sep ’22US$32.27
US$32.68
+1.3%
9.0%US$37.00US$26.00US$25.9311
Aug ’22US$29.55
US$32.77
+10.9%
9.8%US$37.00US$26.00US$27.9411
Jul ’22US$32.26
US$31.93
-1.0%
11.7%US$38.00US$26.00US$23.5814
Jun ’22US$34.51
US$31.50
-8.7%
11.4%US$37.00US$26.00US$26.5614
May ’22US$30.00
US$29.47
-1.8%
11.3%US$36.00US$24.00US$24.5915
Apr ’22US$30.16
US$26.50
-12.1%
13.0%US$36.00US$22.00US$27.9315
Mar ’22US$27.20
US$25.27
-7.1%
8.1%US$29.00US$22.00US$28.0815
Feb ’22US$26.58
US$25.00
-5.9%
8.6%US$28.00US$21.00US$32.1415

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


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