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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for LPL Financial Holdings Inc. To summarize, we found that LPL Financial Holdings Inc ranked in the 65th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 171.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for LPLA, they are:
LPL Financial Holdings Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 13.65% 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 69.38% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of LPL Financial Holdings Inc? See GDOT, SAMG, AIZ, UIHC, and TRV.