HOOD PE Ratio & Valuation,Is HOOD Overvalued

HOOD Relative Valuation

HOOD'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, HOOD is overvalued; if below, it's undervalued.

Historical Valuation

Robinhood Markets Inc (HOOD) is now in the Overvalued zone, suggesting that its current forward PS ratio of 19.02 is considered Overvalued compared with the five-year average of 74.89. The fair price of Robinhood Markets Inc (HOOD) is between 29.99 to 87.81 according to relative valuation methord. Compared to the current price of 116.68 USD , Robinhood Markets Inc is Overvalued By 32.88%.

Relative Value

Fair Zone

29.99-87.81

Current Price：116.68

32.88%

Overvalued

47.66

NaN

EV/EBITDA

Robinhood Markets Inc. (HOOD) has a current EV/EBITDA of NaN. The 5-year average EV/EBITDA is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBITDA of NaN falls within the range.

NaN

EV/EBIT

Robinhood Markets Inc. (HOOD) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.

19.02

Robinhood Markets Inc. (HOOD) has a current PS of 19.02. The 5-year average PS is 9.30. The thresholds are as follows: Strongly Undervalued below -2.48, Undervalued between -2.48 and 3.41, Fairly Valued between 15.19 and 3.41, Overvalued between 15.19 and 21.08, and Strongly Overvalued above 21.08. The current Forward PS of 19.02 falls within the Overvalued range.

38.32

P/OCF

Robinhood Markets Inc. (HOOD) has a current P/OCF of 38.32. The 5-year average P/OCF is 20.60. The thresholds are as follows: Strongly Undervalued below -103.37, Undervalued between -103.37 and -41.39, Fairly Valued between 82.59 and -41.39, Overvalued between 82.59 and 144.58, and Strongly Overvalued above 144.58. The current Forward P/OCF of 38.32 falls within the Historic Trend Line -Fairly Valued range.

38.87

P/FCF

Robinhood Markets Inc. (HOOD) has a current P/FCF of 38.87. The 5-year average P/FCF is 82.37. The thresholds are as follows: Strongly Undervalued below -441.23, Undervalued between -441.23 and -179.43, Fairly Valued between 344.18 and -179.43, Overvalued between 344.18 and 605.98, and Strongly Overvalued above 605.98. The current Forward P/FCF of 38.87 falls within the Historic Trend Line -Fairly Valued range.

Robinhood Markets Inc (HOOD) has a current Price-to-Book (P/B) ratio of 12.09. Compared to its 3-year average P/B ratio of 4.50 , the current P/B ratio is approximately 168.71% higher. Relative to its 5-year average P/B ratio of 3.32, the current P/B ratio is about 264.51% higher. Robinhood Markets Inc (HOOD) has a Forward Free Cash Flow (FCF) yield of approximately 1.12%. Compared to its 3-year average FCF yield of 1.65%, the current FCF yield is approximately -32.25% lower. Relative to its 5-year average FCF yield of -0.96% , the current FCF yield is about -216.96% lower.

12.09

P/B

Median3y

4.50

Median5y

3.32

1.12

FCF Yield

Median3y

1.65

Median5y

-0.96

Competitors Valuation Multiple

The average P/S ratio for HOOD's competitors is 9.40, providing a benchmark for relative valuation. Robinhood Markets Inc Corp (HOOD) exhibits a P/S ratio of 19.02, which is 102.35% above the industry average. Given its robust revenue growth of 100.00%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of HOOD increased by 125.16% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 637.00M to 1.27B.

The secondary factor is the Margin Expansion, contributed 85.31%to the performance.

Overall, the performance of HOOD in the past 1 year is driven by Revenue Growth. Which is more sustainable.

100.00%

637.00M → 1.27B

Revenue Growth

85.31%

23.55 → 43.64

Margin Expansion

-60.15%

120.92 → 48.19

P/E Change

125.16%

51.95 → 116.97

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Robinhood Markets Inc (HOOD) currently overvalued or undervalued?

What is Robinhood Markets Inc (HOOD) fair value?

HOOD'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. The fair price of Robinhood Markets Inc (HOOD) is between 29.99 to 87.81 according to relative valuation methord.

How does HOOD's valuation metrics compare to the industry average?

What is the current P/B ratio for Robinhood Markets Inc (HOOD) as of Jan 08 2026?

As of Jan 08 2026, Robinhood Markets Inc (HOOD) has a P/B ratio of 12.09. This indicates that the market values HOOD at 12.09 times its book value.

What is the current FCF Yield for Robinhood Markets Inc (HOOD) as of Jan 08 2026?

As of Jan 08 2026, Robinhood Markets Inc (HOOD) has a FCF Yield of 1.12%. This means that for every dollar of Robinhood Markets Inc’s market capitalization, the company generates 1.12 cents in free cash flow.

What is the current Forward P/E ratio for Robinhood Markets Inc (HOOD) as of Jan 08 2026?

As of Jan 08 2026, Robinhood Markets Inc (HOOD) has a Forward P/E ratio of 47.66. This means the market is willing to pay $47.66 for every dollar of Robinhood Markets Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Robinhood Markets Inc (HOOD) as of Jan 08 2026?

As of Jan 08 2026, Robinhood Markets Inc (HOOD) has a Forward P/S ratio of 19.02. This means the market is valuing HOOD at $19.02 for every dollar of expected revenue over the next 12 months.

HOOD Valuation