Latest Ratios: P/E Ratio 35.9x · EV/EBITDA 23.5x · ROE 3.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.0B | $11.9B | $10.3B | $12.1B | $10.5B | $14.6B | $10.0B | $14.6B | $16.4B | $24.9B | $20.8B |
| Enterprise Value | $26.7B | $21.6B | $19.0B | $19.4B | $15.1B | $17.5B | $12.5B | $9.3B | $10.2B | $17.2B | $14.4B |
| P/E Ratio → | 35.95 | 25.42 | 23.71 | 14.29 | 8.51 | 8.32 | 12.80 | 12.28 | 21.42 | 14.79 | 12.10 |
| P/S Ratio | 1.96 | 1.37 | 1.23 | 1.56 | 1.29 | 1.75 | 1.81 | 2.58 | 2.66 | 3.92 | 3.16 |
| P/B Ratio | 1.19 | 0.84 | 0.71 | 0.89 | 0.76 | 1.14 | 0.88 | 1.28 | 1.45 | 1.67 | 1.65 |
| P/FCF | 18.65 | 13.08 | 12.95 | 12.83 | 5.64 | 12.50 | 10.22 | 418.22 | 7.71 | 23.47 | 12.74 |
| P/OCF | 15.94 | 11.18 | 10.59 | 11.08 | 5.38 | 11.71 | 9.24 | 54.21 | 7.34 | 21.92 | 12.02 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.50 | 2.26 | 2.51 | 1.85 | 2.10 | 2.25 | 1.65 | 1.65 | 2.72 | 2.19 |
| EV / EBITDA | 23.53 | 19.06 | 21.99 | 12.54 | 7.02 | 8.02 | 10.58 | 5.99 | 4.84 | 7.35 | 5.86 |
| EV / EBIT | 44.24 | 24.55 | 20.60 | 13.28 | 8.27 | 6.93 | 11.85 | 5.59 | 4.50 | 6.63 | 5.63 |
| EV / FCF | — | 23.75 | 23.87 | 20.64 | 8.10 | 15.03 | 12.72 | 268.51 | 4.79 | 16.25 | 8.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.3% | 80.3% | 80.1% | 80.9% | 82.8% | 83.0% | 80.9% | 83.1% | 85.0% | 79.1% | 79.4% |
| Operating Margin | 6.9% | 6.9% | 4.8% | 14.0% | 21.4% | 22.3% | 18.8% | 25.9% | 32.7% | 35.4% | 35.7% |
| Net Profit Margin | 6.0% | 6.0% | 5.5% | 11.2% | 15.6% | 21.7% | 14.4% | 21.1% | 12.3% | 26.5% | 26.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.7% | 3.7% | 3.3% | 6.4% | 9.7% | 15.2% | 7.0% | 10.6% | 5.9% | 12.4% | 13.7% |
| ROA | 1.6% | 1.6% | 1.5% | 3.0% | 4.9% | 8.0% | 4.4% | 8.3% | 4.8% | 10.1% | 10.6% |
| ROIC | 1.6% | 1.6% | 1.2% | 3.4% | 6.1% | 7.4% | 5.3% | 9.1% | 10.9% | 11.1% | 12.1% |
| ROCE | 2.0% | 2.0% | 1.4% | 4.0% | 7.3% | 8.8% | 6.3% | 11.2% | 13.5% | 13.8% | 14.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.94 | 0.94 | 0.90 | 0.87 | 0.68 | 0.60 | 0.56 | 0.07 | 0.06 | 0.07 | 0.17 |
| Debt / EBITDA | 11.71 | 11.71 | 15.18 | 7.59 | 4.35 | 3.47 | 5.47 | 0.48 | 0.35 | 0.47 | 0.85 |
| Net Debt / Equity | — | 0.69 | 0.60 | 0.54 | 0.33 | 0.23 | 0.21 | -0.46 | -0.55 | -0.51 | -0.51 |
| Net Debt / EBITDA | 8.56 | 8.56 | 10.06 | 4.75 | 2.13 | 1.35 | 2.08 | -3.34 | -2.94 | -3.26 | -2.61 |
| Debt / FCF | — | 10.67 | 10.93 | 7.82 | 2.45 | 2.52 | 2.50 | -149.71 | -2.91 | -7.22 | -3.93 |
| Interest Coverage | 9.29 | 9.29 | 9.47 | 11.82 | 18.61 | 29.62 | 31.48 | 74.56 | 48.84 | 50.50 | 51.10 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.71 | 2.71 | 3.24 | 4.13 | 3.70 | 3.51 | 3.00 | 5.37 | 5.58 | 20.34 | 27.46 |
| Quick Ratio | 2.71 | 2.71 | 3.24 | 4.13 | 3.70 | 3.51 | 3.00 | 5.37 | 5.58 | 20.34 | 27.46 |
| Cash Ratio | 1.90 | 1.90 | 2.42 | 3.16 | 2.92 | 2.68 | 2.29 | 4.70 | 4.97 | 18.25 | 25.11 |
| Asset Turnover | — | 0.27 | 0.26 | 0.26 | 0.29 | 0.35 | 0.26 | 0.39 | 0.43 | 0.36 | 0.41 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.1% | 5.7% | 6.4% | 5.0% | 5.5% | 3.8% | 5.3% | 3.6% | 12.9% | 1.8% | 2.0% |
| Payout Ratio | 130.3% | 130.3% | 141.2% | 68.8% | 45.1% | 30.6% | 66.7% | 43.4% | 276.9% | 26.0% | 23.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.9% | 4.2% | 7.0% | 11.8% | 12.0% | 7.8% | 8.1% | 4.7% | 6.8% | 8.3% |
| FCF Yield | 5.4% | 7.6% | 7.7% | 7.8% | 17.7% | 8.0% | 9.8% | 0.2% | 13.0% | 4.3% | 7.8% |
| Buyback Yield | 1.4% | 2.0% | 2.7% | 2.1% | 1.7% | 1.4% | 2.2% | 5.2% | 8.7% | 3.1% | 6.3% |
| Total Shareholder Yield | 5.5% | 7.8% | 9.1% | 7.2% | 7.3% | 5.3% | 7.5% | 8.7% | 21.6% | 4.8% | 8.3% |
| Shares Outstanding | — | $515M | $510M | $491M | $489M | $491M | $492M | $504M | $538M | $559M | $584M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BEN stock.
Franklin Resources, Inc.'s current P/E ratio is 35.9x. The historical average is 17.1x. This places it at the 100th percentile of its historical range.
Franklin Resources, Inc.'s current EV/EBITDA is 23.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.7x.
Franklin Resources, Inc.'s return on equity (ROE) is 3.7%. The historical average is 15.7%.
Based on historical data, Franklin Resources, Inc. is trading at a P/E of 35.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Franklin Resources, Inc.'s current dividend yield is 4.06% with a payout ratio of 130.3%.
Franklin Resources, Inc. has 80.3% gross margin and 6.9% operating margin.
Franklin Resources, Inc.'s Debt/EBITDA ratio is 11.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Fee compression and integration risks
Metrics are mathematically derived from official filings.
Discount Reflecting Consolidator Status
Trading at 1.28x book and 12.55x forward earnings, BEN's valuation implies market skepticism about organic growth, as per recent market data, despite a 3.8% dividend yield.
The P/B of 1.28x sits well below TROW's 2.11x and AMG's 2.84x, suggesting the market prices BEN as a consolidator in a maturing industry rather than a premium franchise. The forward P/E of 12.55x, sharply lower than the trailing 38.73x, indicates expectations of earnings normalization after a period of depressed margins. This discount may reflect concerns about the integration of Putnam and the ongoing Western Asset issues, which could impair the stability of the multi-boutique model.
ROE Depressed by Margin Compression
ROE of 1.2% in Q3 FY2026, down from 2.4% in Q2, reflects a strained profitability profile, as reported in quarterly data, with operating margin at 6.9%.
The DuPont decomposition reveals that the low ROE is driven by a thin net margin (approximately 6.9% operating margin) and modest asset turnover, with leverage (equity/assets of 0.36) providing limited amplification. The efficiency ratio improved to 45.0% in Q3 from 69.5% in Q1, but this is still elevated relative to peers like TROW, which maintains a more efficient cost structure. The reliance on fee income (100% of revenue) exposes profitability to market beta and fee compression, while the negative NIM of -0.1% adds a persistent drag.
Negative NIM Persists as Cost Pressures Ease
Net interest margin remained negative at -0.1% for the tenth consecutive quarter, while the efficiency ratio improved to 45.0% in Q3 FY2026, according to financial statements.
The persistent negative NIM, with net interest income of -$23.5 million, indicates that funding costs exceed interest income on the firm's securities portfolio, a structural drag on earnings. The efficiency ratio's improvement from 78.2% in Q4 2025 to 45.0% in Q3 2026 suggests cost control is gaining traction, possibly from integration synergies, but the volatility across quarters (38.7% to 69.5%) signals that expense management is not yet stable. Investors should monitor whether the efficiency gains are sustainable as the firm integrates Putnam and faces potential outflows at Western Asset.
Leverage Creeps Higher as Equity Erodes
Equity-to-assets ratio declined to 0.36 in Q3 FY2026 from 0.45 a year earlier, with debt/equity at 0.94, indicating increased leverage, as per balance sheet data.
The declining equity ratio and rising debt/equity suggest that BEN is increasingly using leverage to fund its securities portfolio and acquisitions, which may amplify returns but also increases financial risk. While the firm maintains a dividend yield of 3.8% and continues to return capital, the balance sheet flexibility appears constrained relative to peers like TROW, which has a debt/equity of only 0.07. The elevated leverage, combined with negative NIM, warrants monitoring for any deterioration in credit quality or unrealized losses in the securities portfolio.
Provision Surge Raises Credit Concerns
Provision for credit losses surged to $1.1 billion in Q3 FY2026, up from $408 million in Q1, according to income statement data, signaling potential asset quality deterioration.
The sharp increase in provisions, despite the firm's asset management focus, suggests that the securities portfolio or seed investments may be experiencing credit stress. This is consistent with the negative NIM and rising leverage, which may indicate that the firm is taking on more risk to generate yield. The adequacy of reserve levels is unclear, but the magnitude of provisions relative to net income (which was $72 million in Q3) implies a significant drag on earnings. Investors should scrutinize the composition of the securities portfolio and any off-balance-sheet exposures.
P/E Misleads Due to Provision Volatility
The trailing P/E of 38.73x is distorted by volatile provisions and one-time charges, obscuring underlying earnings power, as per reported figures; forward P/E of 12.55x is more indicative.
For asset managers, P/E can be misleading because earnings are subject to mark-to-market swings on seed capital and performance fees, as well as acquisition-related amortization. BEN's trailing P/E is inflated by depressed earnings, while the forward P/E better reflects normalized earnings potential. A more appropriate valuation metric is P/B or P/TBV, which captures the franchise value and is less distorted by short-term earnings volatility. Additionally, investors should adjust for non-operating items like provisions and integration costs to assess the true earnings quality.