Lpl Financial Stock Valuation

LPLA
 Stock
  

USD 176.49  8.91  4.81%   

Do you wonder what the value of Lpl Financial Holdings is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Lpl Financial, is its stock price multiplied by the total number of shares outstanding, calculating Lpl Financial's enterprise value requires a different approach. It uses Lpl Financial's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 305.6 M, whereas Enterprise Value is forecasted to decline to about 11.1 B.
Lpl Financial Holdings secures a last-minute Real Value of $193.58 per share. The latest price of the firm is $176.49. At this time, the firm appears to be undervalued. Our model forecasts the value of Lpl Financial Holdings from analyzing the firm fundamentals such as Profit Margin of 5.74 %, current valuation of 16.75 B, and Return On Equity of 29.28 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend taking in undervalued stocks and trading overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
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Lpl Financial Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Lpl Financial's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Lpl Financial Most Recent Valuation Data

Price Book
8.35
Enterprise Value
16 B
Price Sales
1.84
Forward PE
19.08
Trailing PE
32.64
Undervalued
Today 176.49
Please note that Lpl Financial's price fluctuation is very steady at this time. Calculation of the real value of Lpl Financial Holdings is based on 3 months time horizon. Increasing Lpl Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lpl Financial Holdings is useful when determining the fair value of the Lpl Financial stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lpl Financial. Since Lpl Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lpl Financial Stock. However, Lpl Financial's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
158.84
Downside
193.58
Real Value
196.59
Upside
Estimating the potential upside or downside of Lpl Financial Holdings helps investors to forecast how Lpl Financial stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lpl Financial more accurately as focusing exclusively on Lpl Financial's fundamentals will not take into account other important factors:
Earnings
Estimates (5)
LowProjected EPSHigh
6.866.937.03
Details
Hype
Prediction
LowEstimated ValueHigh
173.31176.32179.33
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.080.080.08
Details
7 Analysts
Consensus
LowTarget PriceHigh
184.00202.57228.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Lpl Financial's intrinsic value based on its ongoing forecasts of Lpl Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lpl Financial's closest peers. When choosing an evaluation method for Lpl Financial Holdings, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Lpl Financial Investments

1.09 Billion

Lpl Financial Valuation Drivers Correlation

Many accounts on the financial statements of Lpl Financial Holdings are highly interrelated and sometimes correlated. Consequently, when conducting Lpl Financial's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Lpl Financial
Click cells to compare fundamentals

Lpl Financial Valuation Trend

Knowing Lpl Financial's actual value is paramount for traders to make sound investment determinations. Lpl Financial's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Lpl Financial's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Lpl Financial's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Lpl Financial Market Cap

Lpl Financial Holdings is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Capital Markets industry is now estimated at about 2.52 Trillion. Lpl Financial maintains roughly 14.53 Billion in market capitalization contributing less than 1% to stocks in Capital Markets industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Lpl Financial Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Lpl Financial's current stock value. Our valuation model uses many indicators to compare Lpl Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lpl Financial competition to find correlations between indicators driving Lpl Financial's intrinsic value. More Info.
Lpl Financial Holdings is currently regarded as number one stock in beta category among related companies. It is currently regarded as number one stock in price to sales category among related companies fabricating about  1.76  of Price to Sales per Beta. As of July 7, 2022, Price to Sales Ratio is expected to decline to 1.53. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lpl Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lpl Financial's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lpl Financial's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Lpl Financial's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Lpl Financial and how it compares across the competition.

About Lpl Financial Valuation

The equity valuation mechanism determines the current worth of Lpl Financial Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lpl Financial Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lpl Financial Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Lpl Financial's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lpl Financial's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lpl Financial. We calculate exposure to Lpl Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lpl Financial's related companies.
Last ReportedProjected for 2022
Gross Profit2.5 B2.2 B
Profit Margin 0.06  0.07 
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California. Lpl Financial operates under Capital Markets classification in the United States and is traded on NASDAQ Exchange. It employs 6051000 people.

Lpl Financial Quarterly Enterprise Value

15.35 Billion

Lpl Financial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Lpl Financial's value is low or high relative to the company's performance and growth projections. Determining the market value of Lpl Financial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Lpl Financial represents a small ownership stake in the entity. As a stockholder of Lpl Financial, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Lpl Financial Dividends Analysis For Valuation

Please note that Lpl Financial has scaled down on payment of dividends at this time. The current year Accumulated Retained Earnings Deficit is expected to grow to about 2.5 B, whereas Earning Before Interest and Taxes EBIT is forecasted to decline to about 665.1 M.
There are various types of dividends Lpl Financial can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Lpl Financial shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Lpl Financial Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Lpl Financial pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Lpl Financial by the value of the dividends paid out.

Lpl Financial Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Lpl Financial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio3.44
Earnings Quarterly Growth3.20%
Revenue Growth21.00%
Payout Ratio17.61%
Enterprise Value To Ebitda16.41
Earnings Growth3.10%
Enterprise Value To Revenue2.07

Lpl Financial Current Valuation Indicators

Valuation refers to the process of determining the present value of Lpl Financial Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lpl Financial we look at many different elements of the entity such as Lpl Financial's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Lpl Financial's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Lpl Financial's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lpl Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lpl Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lpl Financial's worth.
Additionally, see Stocks Correlation. Note that the Lpl Financial Holdings information on this page should be used as a complementary analysis to other Lpl Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Complementary Tools for Lpl Financial Stock analysis

When running Lpl Financial Holdings price analysis, check to measure Lpl Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lpl Financial is operating at the current time. Most of Lpl Financial's value examination focuses on studying past and present price action to predict the probability of Lpl Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lpl Financial's price. Additionally, you may evaluate how the addition of Lpl Financial to your portfolios can decrease your overall portfolio volatility.
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Is Lpl Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lpl Financial. If investors know Lpl Financial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lpl Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.031
Market Capitalization
14.8 B
Quarterly Revenue Growth YOY
0.21
Return On Assets
0.0682
Return On Equity
0.29
The market value of Lpl Financial Holdings is measured differently than its book value, which is the value of Lpl Financial that is recorded on the company's balance sheet. Investors also form their own opinion of Lpl Financial's value that differs from its market value or its book value, called intrinsic value, which is Lpl Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lpl Financial's market value can be influenced by many factors that don't directly affect Lpl Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lpl Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Lpl Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lpl Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.