Robinhood Markets Inc (HOOD) is overvalued and LPL Financial Holdings Inc (LPLA) is undervalued.
Against our estimates of intrinsic value, LPLA trades at the wider discount: a margin of safety of +50%, against -58% for HOOD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 13.0% values the shares at $78.51; the price of $124.25 is 58% above that value.
Leak Score 57/100 on 5 of 12 signals
Discounting its cash flows at 7.6% (average of 3 methods) values the shares at $618.22; the price of $307.50 is 50% below that value, and 82% of that value comes from beyond year five.
Leak Score 53/100 on 9 of 12 signals
| Metric | HOOD | LPLA |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $124.25 | $307.50 |
| Intrinsic value | $78.51 | $618.22 |
| Margin of safety | -58% | +50% |
| Leak Score | 57/100 (5/12) | 53/100 (9/12) |
| Market cap | $111.7B | $24.2B |
| Revenue growth, 5 years | 36.3% | 23.7% |
| Operating margin | 44.2% | 12.8% |
| Net margin | 41.4% | 5.1% |
| Return on equity | 23.6% | 18.6% |
| Debt to equity | 2.92 | 1.43 |
| P/E | 55.0x | 24.5x |
| Forward P/E | 42.8x | 10.3x |
| P/B | 11.8x | 4.2x |
| Dividend yield | — | 0.4% |