LPL Financial Holdings Inc. (LPLA) 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

+207.4%

$919.10

vs $299.02 price

Levered DCF

$276.77

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.98

Grey 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	32.56×	23.04×	16.4×	20.39×	27.84×	17.49×	13.61×	12.24×
P/B	5.26×	8.32×	8.41×	7.96×	7.67×	6.28×	7.44×	5.53×
P/S	1.65×	1.97×	1.74×	2.01×	1.66×	1.41×	1.35×	1.04×
EV / EBITDA	15.72×	13.82×	10.57×	12.69×	16.41×	11.05×	9.37×	8.49×
Gross margin	25.6%	27.2%	30.4%	27.5%	22.2%	25.4%	28.7%	27.8%
Operating margin	13.4%	13.5%	16.2%	14.4%	9.5%	12.5%	15.6%	13.8%
Net margin	5.1%	8.5%	10.6%	9.8%	6.0%	8.0%	10.0%	8.5%
Current ratio	2.42×	1.62×	1.6×	1.58×	1.63×	1.56×	1.52×	1.59×
Debt / equity	1.36×	1.96×	1.91×	1.36×	1.83×	1.97×	2.59×	2.54×
Interest coverage	5.66×	6.08×	8.73×	9.81×	6.99×	6.92×	6.73×	5.74×
Dividend yield	0.3%	0.4%	0.5%	0.5%	0.6%	1.0%	1.1%	1.6%
Payout ratio	10.9%	8.5%	8.6%	9.4%	17.4%	16.7%	14.8%	20.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.1%	36.1%	51.3%	39.0%	27.5%	35.9%	54.7%	45.1%
Return on invested capital	11.6%	12.5%	17.0%	16.1%	10.5%	12.6%	16.4%	14.1%
Return on assets	4.7%	7.9%	10.3%	8.9%	5.8%	7.2%	9.5%	8.0%
Free cash flow yield	-3.5%	-1.2%	0.6%	9.5%	1.9%	7.7%	6.1%	7.8%
Earnings yield	3.1%	4.3%	6.1%	4.9%	3.6%	5.7%	7.4%	8.2%
Enterprise value	$34.3B	$29.2B	$21B	$19.4B	$15.4B	$10B	$9.7B	$7.3B
Net debt / EBITDA	2.85×	2.26×	1.76×	1.38×	2.73×	1.96×	1.99×	2.27×
Cash conversion cycle (days)	124	9	-48	-90	-32	-66	-22	-26