The Charles Schwab Corporation (SCHW) 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

-29.9%

$62.60

vs $89.32 price

Levered DCF

$68.68

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.82

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	21.35×	24.67×	26.98×	23.65×	29.61×	24.9×	17.68×	16.81×
P/B	3.58×	2.8×	3.06×	4.29×	2.82×	1.35×	2.87×	2.71×
P/S	6.4×	5.2×	4.92×	7.04×	8.35×	6.26×	5.29×	5.09×
EV / EBITDA	12.63×	15.16×	18.3×	14.54×	13.46×	10.01×	7.78×	7.17×
Gross margin	86.4%	75.4%	73.8%	93.1%	97.5%	96.5%	91.0%	92.2%
Operating margin	41.4%	29.6%	25.0%	42.1%	40.6%	35.5%	41.1%	41.5%
Net margin	32.0%	22.9%	19.9%	32.2%	30.8%	27.2%	31.4%	31.9%
Current ratio	0.53×	0.54×	0.54×	0.52×	0.93×	0.93×	0.43×	0.44×
Debt / equity	0.63×	0.93×	1.44×	1.03×	0.42×	0.24×	0.34×	0.33×
Interest coverage	3.05×	1.2×	0.95×	6.08×	16.2×	10.29×	4.56×	5.32×
Dividend yield	1.3%	1.7%	1.8%	1.3%	1.1%	1.7%	1.7%	1.4%
Payout ratio	26.3%	38.3%	44.9%	29.4%	31.1%	38.8%	28.6%	22.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.9%	12.3%	12.4%	19.6%	10.4%	5.9%	17.0%	17.0%
Return on invested capital	9.5%	5.6%	4.5%	9.6%	7.3%	4.7%	12.7%	12.7%
Return on assets	1.8%	1.2%	1.0%	1.3%	0.9%	0.6%	1.3%	1.2%
Free cash flow yield	4.9%	1.5%	15.1%	0.7%	0.8%	8.2%	13.8%	21.2%
Earnings yield	5.0%	4.4%	4.0%	4.6%	3.7%	4.4%	5.9%	6.3%
Enterprise value	$162B	$138.3B	$141.2B	$154.6B	$119.5B	$49.1B	$40.4B	$34.9B
Net debt / EBITDA	-1.18×	0.33×	2.04×	-0.22×	-4.42×	-5.45×	-4.22×	-4.33×
Cash conversion cycle (days)	-12,391	-5,287	-3,915	-21,854	-94,534	-88,941	-12,737	-13,171