Robinhood Markets, Inc. (HOOD) 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

-148.3%

-$41.24

vs $85.39 price

Levered DCF

-$14.81

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.26

Distress zone

Rating

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
P/E	53.35×	23.29×	-20.89×	-6.96×	-4.16×	10,241.18×	-277.67×
P/B	10.99×	4.12×	1.69×	1.03×	2.1×	-535.11×	-305.04×
P/S	22.47×	11.13×	6.09×	5.27×	8.45×	30.9×	106.67×
EV / EBITDA	49.47×	31.8×	-21.64×	-2.92×	-7.89×	1,309.64×	-291.99×
Gross margin	83.3%	79.4%	92.2%	56.7%	72.0%	75.3%	66.4%
Operating margin	46.8%	35.7%	-28.7%	-71.1%	-90.4%	1.4%	-38.5%
Net margin	42.1%	47.8%	-29.0%	-75.7%	-203.1%	0.7%	-38.4%
Current ratio	1.26×	1.39×	1.58×	1.41×	1.56×	1.23×	1.25×
Debt / equity	1.27×	0.94×	0.53×	0.26×	0.5×	-34.73×	-6.95×
Interest coverage	0×	43.92×	-23.3×	-40.25×	-81.17×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	20.6%	17.7%	-8.1%	-14.8%	-50.6%	-12.7%	109.8%
Return on invested capital	8.9%	6.8%	-5.2%	-10.8%	-14.8%	0.2%	-7.0%
Return on assets	4.9%	5.4%	-3.1%	-4.4%	-18.7%	0.1%	-2.7%
Free cash flow yield	1.6%	-0.6%	10.2%	-12.7%	-6.3%	6.2%	4.2%
Earnings yield	1.9%	4.3%	-4.8%	-14.4%	-24.0%	0.0%	-0.4%
Enterprise value	$107.9B	$36B	$10.1B	$2.6B	$12.7B	$30.1B	$29.6B
Net debt / EBITDA	3.38×	2.77×	2.77×	4.98×	1.61×	22.54×	-0.3×
Cash conversion cycle (days)	1,276	839	-259	771	1,172	1,164	722