The Charles Schwab Corporation

NYSE:SCHW Stock Report

Market Cap: US$132.0b

Charles Schwab Valuation

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

Below Fair Value: SCHW ($72.34) is trading above our estimate of fair value ($60.37)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SCHW 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/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SCHW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
MS Morgan Stanley
18.1x11.3%US$152.9b
GS Goldman Sachs Group
18.2x15.5%US$142.4b
IBKR Interactive Brokers Group
19.9x4.1%US$46.9b
RJF Raymond James Financial
15.6x5.7%US$26.6b
SCHW Charles Schwab
28.4x14.8%US$132.0b

Price-To-Earnings vs Peers: SCHW is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the peer average (18x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SCHW is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the US Capital Markets industry average (19.4x).


Price to Earnings Ratio vs Fair Ratio

What is SCHW'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.

SCHW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.4x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: SCHW is expensive based on its Price-To-Earnings Ratio (28.4x) compared to the estimated Fair Price-To-Earnings Ratio (21x).


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 SCHW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$72.34
US$73.00
+0.9%
10.1%US$87.00US$58.00n/a20
Mar ’25US$66.47
US$71.79
+8.0%
9.8%US$85.00US$58.00n/a19
Feb ’25US$62.27
US$71.47
+14.8%
10.4%US$85.00US$56.00n/a19
Jan ’25US$68.80
US$72.17
+4.9%
12.7%US$85.00US$52.00n/a18
Dec ’24US$63.16
US$69.22
+9.6%
12.4%US$85.00US$52.00n/a18
Nov ’24US$52.82
US$69.89
+32.3%
12.0%US$85.00US$54.00n/a18
Oct ’24US$54.90
US$74.44
+35.6%
12.6%US$95.00US$57.00n/a18
Sep ’24US$60.50
US$75.17
+24.2%
12.1%US$95.00US$56.00n/a18
Aug ’24US$65.72
US$74.68
+13.6%
11.7%US$95.00US$57.00n/a19
Jul ’24US$56.68
US$67.11
+18.4%
13.2%US$85.00US$52.00n/a18
Jun ’24US$52.70
US$67.35
+27.8%
13.7%US$85.00US$46.00n/a17
May ’24US$51.81
US$66.56
+28.5%
15.2%US$85.00US$46.00n/a17
Apr ’24US$52.38
US$79.94
+52.6%
18.1%US$110.00US$58.00n/a16
Mar ’24US$77.41
US$93.03
+20.2%
11.1%US$110.00US$74.00US$66.4716
Feb ’24US$78.25
US$92.47
+18.2%
10.4%US$107.00US$74.00US$62.2716
Jan ’24US$83.26
US$92.67
+11.3%
11.4%US$122.00US$83.00US$68.8015
Dec ’23US$81.73
US$90.87
+11.2%
8.7%US$104.00US$81.00US$63.1615
Nov ’23US$79.89
US$90.33
+13.1%
9.3%US$104.00US$76.00US$52.8215
Oct ’23US$71.87
US$88.38
+23.0%
8.0%US$100.00US$78.00US$54.9013
Sep ’23US$71.72
US$86.85
+21.1%
9.1%US$100.00US$73.00US$60.5013
Aug ’23US$68.72
US$86.00
+25.1%
9.1%US$100.00US$73.00US$65.7212
Jul ’23US$63.92
US$90.62
+41.8%
14.4%US$123.00US$74.00US$56.6813
Jun ’23US$69.57
US$92.23
+32.6%
14.3%US$123.00US$68.00US$52.7013
May ’23US$66.33
US$96.00
+44.7%
14.1%US$123.00US$72.00US$51.8114
Apr ’23US$83.54
US$104.86
+25.5%
10.9%US$132.00US$89.00US$52.3814
Mar ’23US$77.86
US$103.43
+32.8%
11.7%US$132.00US$77.00US$77.4114

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


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