LPLA Relative Valuation
LPLA'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, LPLA is overvalued; if below, it's undervalued.
Historical Valuation
LPL Financial Holdings Inc (LPLA) is now in the Fair zone, suggesting that its current forward PE ratio of 20.51 is considered Fairly compared with the five-year average of 18.24. The fair price of LPL Financial Holdings Inc (LPLA) is between 291.69 to 385.35 according to relative valuation methord.
Relative Value
Fair Zone
291.69-385.35
Current Price：361.23
Fair
20.96
PE
1Y
3Y
5Y
Trailing
Forward
12.35
EV/EBITDA
LPL Financial Holdings Inc. (LPLA) has a current EV/EBITDA of 12.35. The 5-year average EV/EBITDA is 10.52. The thresholds are as follows: Strongly Undervalued below 7.69, Undervalued between 7.69 and 9.11, Fairly Valued between 11.94 and 9.11, Overvalued between 11.94 and 13.35, and Strongly Overvalued above 13.35. The current Forward EV/EBITDA of 12.35 falls within the Overvalued range.
12.83
EV/EBIT
LPL Financial Holdings Inc. (LPLA) has a current EV/EBIT of 12.83. The 5-year average EV/EBIT is 13.15. The thresholds are as follows: Strongly Undervalued below 8.14, Undervalued between 8.14 and 10.65, Fairly Valued between 15.65 and 10.65, Overvalued between 15.65 and 18.15, and Strongly Overvalued above 18.15. The current Forward EV/EBIT of 12.83 falls within the Historic Trend Line -Fairly Valued range.
1.41
PS
LPL Financial Holdings Inc. (LPLA) has a current PS of 1.41. The 5-year average PS is 1.61. The thresholds are as follows: Strongly Undervalued below 1.18, Undervalued between 1.18 and 1.39, Fairly Valued between 1.82 and 1.39, Overvalued between 1.82 and 2.03, and Strongly Overvalued above 2.03. The current Forward PS of 1.41 falls within the Historic Trend Line -Fairly Valued range.
16.47
P/OCF
LPL Financial Holdings Inc. (LPLA) has a current P/OCF of 16.47. The 5-year average P/OCF is 11.98. The thresholds are as follows: Strongly Undervalued below 0.34, Undervalued between 0.34 and 6.16, Fairly Valued between 17.80 and 6.16, Overvalued between 17.80 and 23.62, and Strongly Overvalued above 23.62. The current Forward P/OCF of 16.47 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/FCF
LPL Financial Holdings Inc. (LPLA) has a current P/FCF of 0.00. The 5-year average P/FCF is 14.96. The thresholds are as follows: Strongly Undervalued below 3.80, Undervalued between 3.80 and 9.38, Fairly Valued between 20.54 and 9.38, Overvalued between 20.54 and 26.11, and Strongly Overvalued above 26.11. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
LPL Financial Holdings Inc (LPLA) has a current Price-to-Book (P/B) ratio of 5.73. Compared to its 3-year average P/B ratio of 7.88 , the current P/B ratio is approximately -27.27% higher. Relative to its 5-year average P/B ratio of 8.05, the current P/B ratio is about -28.80% higher. LPL Financial Holdings Inc (LPLA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.48%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.80% , the current FCF yield is about -100.00% lower.
5.86
P/B
Median3y
7.88
Median5y
8.05
-6.76
FCF Yield
Median3y
2.48
Median5y
2.80
Competitors Valuation Multiple
The average P/S ratio for LPLA's competitors is , providing a benchmark for relative valuation. LPL Financial Holdings Inc Corp (LPLA) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 46.45%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LPLA increased by 13.07% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.79 to 34.52.
The secondary factor is the Revenue Growth, contributed 46.45%to the performance.
Overall, the performance of LPLA in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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