LPL Financial Holdings provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. The company was established in 1989 and is based in Boston, Massachusetts.
LPLA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for LPL Financial Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that LPL Financial Holdings Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 31%. As for the metrics that stood out in our discounted cash flow analysis of LPL Financial Holdings Inc, consider:
LPL Financial Holdings Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.07% of tickers in our DCF set.
LPLA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 11.07% of tickers in our DCF set.
As a business, LPL Financial Holdings Inc experienced a tax rate of about 17% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than 72.11% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LPLA, try BRK.B, FFG, GBLI, AMG, and CINF.
Investors worried about how Tuesday night's presidential debate between President Donald Trump and former Vice President Joe Biden will affect the stock market can rest easy. If history is any guide, the market won't care what happens either way. Presidential Debates Leave Few Bread Crumbs to Follow As LPL Financial – registered investment advisor and broker-dealer – notes, the data from past debates going as far back as 1960 don't offer a clue as to how stocks react to the first debate, to say nothing of indicating which party might win. SEE MORE 10 Best Stocks to Buy If Joe Biden Wins the Presidency "Could stocks give a clue who will win the election based on how they do after the debate?" writes LPL Financial Chief Market Strategist Ryan Detrick. "Unfortunately, it doesn't appear to ...
MINNEAPOLIS--(BUSINESS WIRE)--Voyage Financial Group, a wealth management practice with nearly $500 million in client assets, recently joined the franchise channel of Ameriprise Financial Inc. (NYSE: AMP) from LPL Financial. The team, which is led by cofounders and private wealth advisors Tom Royce, CFP®, AWMA® and Mike Chong, MBA, was looking for more resources and dedicated leadership to support their ambitions to grow. The team conducted due diligence on a variety of firms over many months a