NYSE
SCHW
Last Price
US $111.09
KEY FIGURES
MKT CAP
$193.2B
EPS
TTM
$5.82
PEG
TTM
0.41x
P/E
TTM
19.09x
P/S
TTM
6.42x
YIELD
1.06%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
20.40%
Return on equity
ROIC: 1.95%
Valuation History
19.5X
Price to Earnings
EV/EBITDA: 12.0X
Cash flow
Profit margin
17.98%
(FY vs FY)
EBITDA Y/Y
21.19%
(FY vs FY)
Cash flow Y/Y
7.09%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $111.09
-21.26%
Default assumptions
EBITDA Multiple
Fair Value
Market $111.09
-38.17%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
The Charles Schwab Corporation cash flow to debt ratio of 30.08% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
The Charles Schwab Corporation's free cash flow has increased 327.46% from $2.05G last year to $8.76G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
The Charles Schwab Corporation's debt to equity ratio is 0.74, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
The Charles Schwab Corporation's debt has decreased relative to shareholder equity from 0.93 last year to 0.74 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
The Charles Schwab Corporation has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
The Charles Schwab Corporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
The Charles Schwab Corporation's profit margin has increased (47.12%) in the last year from 22.85% to 33.62%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
The Charles Schwab Corporation's short-term liabilities of $406.54G exceed its short-term assets of $215.65G, signaling financial risk
Decreasing performance - ROA.
The Charles Schwab Corporation's return on assets of 1.95% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
The Charles Schwab Corporation's return on equity of 20.40%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
The Charles Schwab Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
The Charles Schwab Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
The Charles Schwab Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The Charles Schwab Corporation has a free cash flow yield of 4.54%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
The Charles Schwab Corporation's yearly earnings has increased 48.97% since last year from $5.94G to $8.85G, signaling increasing performance
Increasing performance - Healthy revenue growth.
The Charles Schwab Corporation's yearly revenue has increased 3.25% since last year from $26.00G to $26.84G, signaling increasing performance
Decreasing performance - ROIC.
ROIC 1.95% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
The Charles Schwab Corporation's 3-year revenue CAGR of 7.45% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
The Charles Schwab Corporation had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
The Charles Schwab Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
The Charles Schwab Corporation is overvalued relative to its fair value price of 87.47 based on Discounted Cash Flow model
Undervalued - Earnings yield.
The Charles Schwab Corporation has an earnings yield of 5.24%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
The Charles Schwab Corporation is overvalued relative to its fair value price of 68.69 based on EBITDA multiple model
Undervalued - EV/EBITDA.
The Charles Schwab Corporation has an EV/EBITDA ratio of 13.89x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
The Charles Schwab Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
The Charles Schwab Corporation has a price-to-book ratio of 3.86x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
The Charles Schwab Corporation has a price-to-sales ratio of 6.42x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue