BEN Valuation

Franklin Resources Inc

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25.660

+0.12(0.470%)1D

Overview
Forecast
Valuation
Earnings

BEN Relative Valuation

BEN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BEN is overvalued; if below, it's undervalued.

Historical Valuation

Franklin Resources Inc (BEN) is now in the Fair zone, suggesting that its current forward PE ratio of 10.57 is considered Fairly compared with the five-year average of 9.57. The fair price of Franklin Resources Inc (BEN) is between 25.18 to 30.52 according to relative valuation methord.

Relative Value

Fair Zone

25.18-30.52

Current Price：25.54

Fair

10.57

Trailing

Forward

7.85

EV/EBITDA

Franklin Resources Inc. (BEN) has a current EV/EBITDA of 7.85. The 5-year average EV/EBITDA is 6.91. The thresholds are as follows: Strongly Undervalued below 4.60, Undervalued between 4.60 and 5.75, Fairly Valued between 8.07 and 5.75, Overvalued between 8.07 and 9.23, and Strongly Overvalued above 9.23. The current Forward EV/EBITDA of 7.85 falls within the Historic Trend Line -Fairly Valued range.

9.09

EV/EBIT

Franklin Resources Inc. (BEN) has a current EV/EBIT of 9.09. The 5-year average EV/EBIT is 7.70. The thresholds are as follows: Strongly Undervalued below 4.87, Undervalued between 4.87 and 6.28, Fairly Valued between 9.12 and 6.28, Overvalued between 9.12 and 10.53, and Strongly Overvalued above 10.53. The current Forward EV/EBIT of 9.09 falls within the Historic Trend Line -Fairly Valued range.

1.54

Franklin Resources Inc. (BEN) has a current PS of 1.54. The 5-year average PS is 1.49. The thresholds are as follows: Strongly Undervalued below 0.82, Undervalued between 0.82 and 1.16, Fairly Valued between 1.82 and 1.16, Overvalued between 1.82 and 2.16, and Strongly Overvalued above 2.16. The current Forward PS of 1.54 falls within the Historic Trend Line -Fairly Valued range.

11.95

P/OCF

Franklin Resources Inc. (BEN) has a current P/OCF of 11.95. The 5-year average P/OCF is 8.27. The thresholds are as follows: Strongly Undervalued below 4.91, Undervalued between 4.91 and 6.59, Fairly Valued between 9.95 and 6.59, Overvalued between 9.95 and 11.63, and Strongly Overvalued above 11.63. The current Forward P/OCF of 11.95 falls within the Strongly Overvalued range.

8.87

P/FCF

Franklin Resources Inc. (BEN) has a current P/FCF of 8.87. The 5-year average P/FCF is 9.31. The thresholds are as follows: Strongly Undervalued below 5.96, Undervalued between 5.96 and 7.64, Fairly Valued between 10.99 and 7.64, Overvalued between 10.99 and 12.67, and Strongly Overvalued above 12.67. The current Forward P/FCF of 8.87 falls within the Historic Trend Line -Fairly Valued range.

Franklin Resources Inc (BEN) has a current Price-to-Book (P/B) ratio of 1.08. Compared to its 3-year average P/B ratio of 1.02 , the current P/B ratio is approximately 6.59% higher. Relative to its 5-year average P/B ratio of 1.13, the current P/B ratio is about -4.15% higher. Franklin Resources Inc (BEN) has a Forward Free Cash Flow (FCF) yield of approximately 10.91%. Compared to its 3-year average FCF yield of 9.16%, the current FCF yield is approximately 19.09% lower. Relative to its 5-year average FCF yield of 8.69% , the current FCF yield is about 25.50% lower.

1.08

P/B

Median3y

1.02

Median5y

1.13

10.91

FCF Yield

Median3y

9.16

Median5y

8.69

Competitors Valuation Multiple

The average P/S ratio for BEN's competitors is 3.64, providing a benchmark for relative valuation. Franklin Resources Inc Corp (BEN) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -3.69%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

BEN.N

Franklin Resources Inc

Colliers International Group Inc

Stifel Financial Corp

Performance Decomposition

Market capitalization of BEN increased by 32.31% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 26.65 to 48.99.

The secondary factor is the Revenue Growth, contributed -3.69%to the performance.

Overall, the performance of BEN in the past 1 year is driven by P/E Change. Which is more unsustainable.

-3.69%

2.14B → 2.06B

Revenue Growth

-47.79%

10.84 → 5.66

Margin Expansion

83.79%

26.65 → 48.99

P/E Change

32.31%