Franklin Resources, Inc. (BEN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-27.4%

$23.54

vs $32.41 price

Levered DCF

$17.99

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.32

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	25.42×	23.71×	14.29×	8.51×	8.3×	12.8×	12.28×	21.47×
P/B	0.99×	0.82×	1.01×	0.92×	1.3×	0.99×	1.47×	1.66×
P/S	1.36×	1.21×	1.53×	1.27×	1.73×	1.8×	2.56×	2.64×
EV / EBITDA	15.3×	13.78×	10.17×	6.85×	6.16×	10.56×	5.29×	4.36×
Gross margin	80.3%	80.1%	80.9%	82.8%	83.0%	80.9%	83.1%	85.0%
Operating margin	6.9%	4.8%	14.0%	21.4%	22.3%	18.8%	25.9%	32.7%
Net margin	6.0%	5.5%	11.2%	15.6%	21.7%	14.4%	21.1%	12.3%
Current ratio	2.71×	3.24×	4.13×	3.7×	3.51×	3×	5.37×	5.58×
Debt / equity	1.1×	1.05×	0.99×	0.82×	0.68×	0.64×	0.08×	0.07×
Interest coverage	6.37×	4.19×	8.91×	18.06×	21.96×	31.4×	65.49×	43.81×
Dividend yield	5.7%	6.4%	5.0%	5.5%	3.8%	5.3%	3.6%	12.9%
Payout ratio	130.3%	141.2%	68.8%	45.1%	30.6%	66.7%	43.4%	276.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	4.3%	3.7%	7.4%	11.3%	16.3%	7.9%	12.1%	7.7%
Return on invested capital	1.4%	1.0%	2.9%	5.2%	7.2%	4.1%	8.1%	5.2%
Return on assets	1.6%	1.4%	2.9%	4.6%	7.6%	3.7%	8.2%	5.3%
Free cash flow yield	7.7%	7.7%	7.8%	17.7%	8.0%	9.8%	0.2%	13.0%
Earnings yield	4.4%	4.5%	7.3%	12.3%	12.6%	8.0%	8.2%	4.7%
Enterprise value	$21.6B	$18.9B	$19.4B	$15.1B	$17.5B	$12.5B	$9.3B	$10.2B
Net debt / EBITDA	6.88×	6.31×	3.85×	2.08×	1.04×	2.08×	-2.95×	-2.64×
Cash conversion cycle (days)	-291	-242	-151	-229	-203	-276	-62	-39