LPL Financial Holdings Inc (LPLA) is undervalued and Charles Schwab Corp (SCHW) is undervalued.
Against our estimates of intrinsic value, LPLA trades at the wider discount: a margin of safety of +50%, against +33% for SCHW.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $150.35; the price of $100.35 is 33% below that value, and 77% of that value comes from beyond year five.
Leak Score 86/100 on 9 of 12 signals
| Metric | LPLA | SCHW |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $307.50 | $100.35 |
| Intrinsic value | $618.22 | $150.35 |
| Margin of safety | +50% | +33% |
| Leak Score | 53/100 (9/12) | 86/100 (9/12) |
| Market cap | $24.2B | $173.5B |
| Revenue growth, 5 years | 23.7% | 18.0% |
| Operating margin | 12.8% | 49.7% |
| Net margin | 5.1% | 33.1% |
| Return on equity | 18.6% | 20.3% |
| Debt to equity | 1.43 | 0.74 |
| P/E | 24.5x | 18.3x |
| Forward P/E | 10.3x | 12.7x |
| P/B | 4.2x | 4.0x |
| Dividend yield | 0.4% | 1.3% |