LPL Financial Valuation
| LPLA Stock | USD 325.15 0.57 0.17% |
At this time, the firm appears to be overvalued. LPL Financial Holdings secures a last-minute Real Value of $310.11 per share. The latest price of the firm is $325.15. Our model forecasts the value of LPL Financial Holdings from inspecting the firm fundamentals such as return on equity of 0.41, and Profit Margin of 0.09 % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting LPL Financial's valuation include:
Price Book 8.784 | Enterprise Value 27.5 B | Enterprise Value Ebitda 13.7442 | Price Sales 2.1178 | Forward PE 18.622 |
Overvalued
Today
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.
Since LPL Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LPL 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. | Historical | Market 325.15 | Real 310.11 | Target 271.18 | Hype 325.16 | Naive 313.76 |
The real value of LPL Stock, also known as its intrinsic value, is the underlying worth of LPL Financial Holdings Company, which is reflected in its stock price. It is based on LPL Financial's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of LPL Financial's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of LPL Financial Holdings helps investors to forecast how LPL 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: 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. If more than one evaluation category is relevant for LPL Financial we suggest using both methods to arrive at a better estimate.
LPL Financial Cash |
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LPL Valuation Trend
Comparing LPL Financial's enterprise value against its market capitalization is a good way to estimate the value of LPL Financial Holdings uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
LPL Valuation Data Drivers
LPL Revenue by Product
LPL Financial Total Value Analysis
LPL Financial Holdings is now expected to have valuation of 27.46 B with market capitalization of 24.39 B, debt of 3.96 B, and cash on hands of 1.22 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the LPL Financial fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
27.46 B | 24.39 B | 3.96 B | 1.22 B |
LPL Financial Investor Information
About 97.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.68. LPL Financial Holdings recorded earning per share (EPS) of 13.33. The entity last dividend was issued on the 14th of November 2024. Based on the analysis of LPL Financial's profitability, liquidity, and operating efficiency, LPL Financial Holdings is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in January.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total Cash From Operating Activities | 439.9 M | 512.6 M |
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LPL Financial Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. LPL Financial has an asset utilization ratio of 96.8 percent. This suggests that the Company is making $0.97 for each dollar of assets. An increasing asset utilization means that LPL Financial Holdings is more efficient with each dollar of assets it utilizes for everyday operations.LPL Financial Ownership Allocation
LPL Financial Holdings maintains a total of 74.88 Million outstanding shares. The majority of LPL Financial outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in LPL Financial Holdings to benefit from reduced commissions. Therefore, institutional holders are subject to a different set of regulations than regular investors in LPL Financial Holdings. Please pay attention to any change in the institutional holdings of LPL Financial as this could imply that something significant has changed or is about to change at the company. On September 2, 2024, Representative John James of US Congress acquired under $15k worth of LPL Financial Holdings's common stock.LPL Financial Profitability Analysis
The company reported the previous year's revenue of 10.05 B. Net Income was 1.07 B with profit before overhead, payroll, taxes, and interest of 2.39 B.LPL Financial Past Distributions to stockholders
| 23rd of August 2024 | ||
| 4th of June 2024 | ||
| 26th of March 2024 | ||
| 27th of November 2023 | ||
| 25th of August 2023 | ||
| 14th of July 2023 | ||
| 1st of June 2023 | ||
| 28th of March 2023 | ||
| 14th of March 2023 |
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 stock valuation mechanism determines LPL Financial's current worth on a weekly basis. Our valuation model uses a comparative analysis of LPL Financial. We calculate exposure to LPL Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of LPL Financial's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.1 B | 1.7 B | |
| Pretax Profit Margin | 0.14 | 0.12 | |
| Operating Profit Margin | 0.16 | 0.17 | |
| Net Profit Margin | 0.11 | 0.08 | |
| Gross Profit Margin | 0.30 | 0.29 |
LPL Financial Quarterly Retained Earnings |
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A single share of LPL Financial represents a small ownership stake in the entity. As a stockholder of LPL, 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
The current year's Dividends Paid is expected to grow to about 93.2 M, whereas Dividend Yield is forecasted to decline to 0.01. . At present, LPL Financial's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Retained Earnings Total Equity is expected to grow to about 3.7 B, whereas Earnings Yield is forecasted to decline to 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 92.2 M | 93.2 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.09 | 0.08 | |
| Dividend Paid And Capex Coverage Ratio | 1.03 | 0.98 |
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 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 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 Growth Indicators
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.
| Common Stock Shares Outstanding | 77.9 M | |
| Quarterly Earnings Growth Y O Y | 0.165 | |
| Forward Price Earnings | 18.622 |
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 we look at many different elements of the entity such as LPL's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
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.Complementary Tools for LPL Stock analysis
When running LPL Financial's 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 the 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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