Franklin Resources, Inc.

NYSE:BEN Stock Report

Market Cap: US$10.7b

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 ($20.49) is trading below our estimate of fair value ($46.7)

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 Ratio24.8x
EarningsUS$432.20m
Market CapUS$10.73b

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 Average20.3x
SEIC SEI Investments
19.5x7.0%US$10.7b
JHG Janus Henderson Group
16.9x9.8%US$6.7b
HLNE Hamilton Lane
34.6x21.7%US$8.4b
AMG Affiliated Managers Group
10.1x3.0%US$5.5b
BEN Franklin Resources
24.8x17.9%US$10.7b

Price-To-Earnings vs Peers: BEN is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (20.9x).

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
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
BEN 24.8xIndustry Avg. 23.6xNo. of Companies73PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BEN is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the US Capital Markets industry average (23.6x).

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 Ratio24.8x
Fair PE Ratio20x

Price-To-Earnings vs Fair Ratio: BEN is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (20x).

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$20.49
US$20.39
-0.5%
6.0%US$22.50US$19.00n/a14
Dec ’25US$22.76
US$19.86
-12.8%
6.3%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$21.00US$22.7612
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:04
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

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

Franklin Resources, Inc. is covered by 35 analysts. 8 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
Roger FreemanBarclays
Etienne RicardBMO Capital Markets Equity Research