Latest Ratios: P/E Ratio 27.7x · EV/EBITDA 10.4x · ROE 20.9%. (2006–2025 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 | $24.2B | $28.2B | $24.6B | $17.7B | $17.6B | $13.1B | $8.4B | $7.8B | $5.5B | $5.3B | $3.2B |
| Enterprise Value | $30.4B | $34.5B | $29.4B | $21.2B | $19.7B | $15.6B | $10.2B | $9.9B | $7.5B | $6.9B | $4.7B |
| P/E Ratio → | 27.70 | 32.71 | 23.27 | 16.63 | 20.79 | 28.44 | 17.78 | 13.94 | 12.59 | 22.06 | 16.53 |
| P/S Ratio | 1.46 | 1.70 | 2.03 | 1.80 | 2.07 | 1.72 | 1.46 | 1.42 | 1.09 | 1.26 | 0.80 |
| P/B Ratio | 4.47 | 5.28 | 8.40 | 8.52 | 8.11 | 7.83 | 6.40 | 7.62 | 5.68 | 5.45 | 3.86 |
| P/FCF | — | — | — | 162.11 | 10.72 | 55.18 | 13.26 | 16.70 | 13.15 | 30.68 | 21.53 |
| P/OCF | — | — | 88.72 | 34.57 | 9.03 | 28.88 | 10.65 | 12.51 | 9.52 | 11.86 | 11.53 |
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 | — | 2.08 | 2.43 | 2.15 | 2.32 | 2.05 | 1.77 | 1.80 | 1.48 | 1.66 | 1.19 |
| EV / EBITDA | 10.43 | 11.82 | 13.93 | 10.69 | 12.90 | 16.28 | 11.22 | 9.52 | 8.67 | 11.27 | 9.26 |
| EV / EBIT | 13.31 | 22.19 | 17.64 | 13.01 | 15.89 | 22.16 | 13.93 | 11.32 | 10.45 | 14.73 | 11.94 |
| EV / FCF | — | — | — | 194.10 | 12.00 | 65.96 | 16.07 | 21.10 | 17.82 | 40.48 | 31.95 |
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 | 25.6% | 25.6% | 27.2% | 30.4% | 27.5% | 22.2% | 25.4% | 28.7% | 27.8% | 25.6% | 23.7% |
| Operating Margin | 13.4% | 13.4% | 13.5% | 16.2% | 14.4% | 9.5% | 12.5% | 15.6% | 13.8% | 11.5% | 9.7% |
| Net Profit Margin | 5.1% | 5.1% | 8.5% | 10.6% | 9.8% | 6.0% | 8.0% | 10.0% | 8.5% | 5.6% | 4.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.9% | 20.9% | 42.3% | 50.2% | 44.1% | 30.8% | 40.4% | 56.0% | 45.3% | 26.7% | 25.0% |
| ROA | 5.4% | 5.4% | 8.9% | 10.7% | 9.7% | 6.3% | 7.6% | 9.9% | 8.1% | 4.7% | 4.1% |
| ROIC | 16.1% | 16.1% | 17.0% | 21.9% | 18.9% | 12.7% | 14.5% | 18.4% | 15.6% | 11.3% | 9.7% |
| ROCE | 19.1% | 19.1% | 20.9% | 25.8% | 22.3% | 15.2% | 17.5% | 22.6% | 19.1% | 13.9% | 12.1% |
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 | 1.36 | 1.36 | 1.96 | 1.91 | 1.36 | 1.83 | 1.97 | 2.59 | 2.54 | 2.58 | 2.78 |
| Debt / EBITDA | 2.49 | 2.49 | 2.72 | 2.00 | 1.93 | 3.17 | 2.85 | 2.56 | 2.86 | 4.04 | 4.49 |
| Net Debt / Equity | — | 1.16 | 1.63 | 1.68 | 0.97 | 1.53 | 1.36 | 2.01 | 2.02 | 1.74 | 1.87 |
| Net Debt / EBITDA | 2.13 | 2.13 | 2.26 | 1.76 | 1.38 | 2.66 | 1.96 | 1.99 | 2.27 | 2.73 | 3.02 |
| Debt / FCF | — | — | — | 31.99 | 1.28 | 10.77 | 2.81 | 4.40 | 4.67 | 9.80 | 10.42 |
| Interest Coverage | 3.85 | 3.85 | 6.08 | 8.73 | 9.81 | 6.76 | 6.92 | 6.71 | 5.74 | 4.41 | 4.08 |
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 | 2.42 | 2.42 | 1.62 | 1.60 | 1.58 | 1.63 | 1.56 | 1.52 | 1.59 | 1.65 | 1.69 |
| Quick Ratio | 2.42 | 2.42 | 1.62 | 1.60 | 1.58 | 1.63 | 1.56 | 1.52 | 1.59 | 1.65 | 1.69 |
| Cash Ratio | 0.28 | 0.28 | 0.23 | 0.13 | 0.23 | 0.18 | 0.36 | 0.31 | 0.30 | 0.51 | 0.51 |
| Asset Turnover | — | 0.92 | 0.93 | 0.97 | 0.91 | 0.97 | 0.89 | 0.96 | 0.95 | 0.80 | 0.84 |
| 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 | 0.4% | 0.3% | 0.4% | 0.5% | 0.5% | 0.6% | 0.9% | 1.1% | 1.6% | 1.7% | 2.8% |
| Payout Ratio | 10.9% | 10.9% | 8.5% | 8.6% | 9.4% | 17.4% | 16.7% | 14.8% | 20.1% | 37.8% | 46.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 3.1% | 4.3% | 6.0% | 4.8% | 3.5% | 5.6% | 7.2% | 7.9% | 4.5% | 6.0% |
| FCF Yield | — | — | — | 0.6% | 9.3% | 1.8% | 7.5% | 6.0% | 7.6% | 3.3% | 4.6% |
| Buyback Yield | 0.6% | 0.5% | 0.7% | 6.2% | 1.8% | 0.7% | 1.8% | 6.4% | 7.5% | 2.2% | 0.8% |
| Total Shareholder Yield | 0.9% | 0.8% | 1.1% | 6.7% | 2.3% | 1.3% | 2.7% | 7.5% | 9.1% | 3.9% | 3.6% |
| Shares Outstanding | — | $79M | $75M | $78M | $81M | $82M | $81M | $85M | $91M | $92M | $90M |
Includes 30+ ratios · 20 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying LPLA stock.
LPL Financial Holdings Inc.'s current P/E ratio is 27.7x. The historical average is 21.5x. This places it at the 87th percentile of its historical range.
LPL Financial Holdings Inc.'s current EV/EBITDA is 10.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.6x.
LPL Financial Holdings Inc.'s return on equity (ROE) is 20.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.1%.
Based on historical data, LPL Financial Holdings Inc. is trading at a P/E of 27.7x. This is at the 87th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
LPL Financial Holdings Inc.'s current dividend yield is 0.39% with a payout ratio of 10.9%.
LPL Financial Holdings Inc. has 25.6% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.
LPL Financial Holdings Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Rate cut margin compression
Metrics are mathematically derived from official filings.
Premium Multiple, Uncertain Earnings
LPLA trades at 5.35x book and 33x trailing earnings, a premium to peers like Raymond James at 2.85x, implying the market prices in sustained growth despite recent EPS miss, per latest data.
The forward P/E of 14.94 suggests the market expects a sharp earnings recovery, but the trailing multiple is distorted by the provision spike. The P/B of 5.35 is far above peers, indicating investors are paying for the platform's scale and organic growth potential. However, the negative tangible book value per share (-$4.47) complicates P/TBV analysis, making P/B the more reliable metric.
ROE Decomposition Reveals Leverage
ROE fell to 6.6% in 2026Q2 from 13.3% in 2024Q1, driven by a provision spike and negative NIM, while equity-to-assets rose to 0.29, per financial statements.
The DuPont decomposition shows ROE is supported by high asset utilization (ROA of 2.0%) but dragged by negative NIM (-0.3%) and a provision expense that reached 67% of revenue. The equity ratio improved from 0.21 to 0.29, reducing leverage, which tempers ROE but strengthens the balance sheet. Fee income dominance (99.1% of revenue) means profitability is tied to market performance and advisor productivity, not interest spreads.
Negative NIM, Efficiency Improves
Net interest margin remained negative at -0.3% in 2026Q2, while the efficiency ratio improved to 16.0% from 18.1% in 2025Q3, as per reported figures.
The negative NIM reflects a business model where interest expense on client cash sweeps exceeds interest income, a structural feature of the broker-dealer model. The efficiency ratio improvement suggests strong cost control, but the provision spike in 2026Q2 may indicate rising credit costs that could offset these gains. Investors should monitor whether the efficiency ratio can be sustained as the company integrates Atria and Prudential's business.
Thin Equity, Rising Leverage
Equity-to-assets improved to 0.29 in 2026Q2 from 0.21 in 2024Q1, but total liabilities grew 61% year-over-year, indicating rising leverage, per balance sheet data.
While the equity ratio is higher than a year ago, the rapid asset growth (12.8% sequentially) and liability expansion suggest the balance sheet is becoming more leveraged. The debt-to-equity ratio of 1.36% appears unusually low for a firm that uses acquisition financing, warranting verification. Capital adequacy ratios (CET1, Tier 1) are not disclosed, but the thin equity buffer may limit capital return capacity if provisions continue to rise.
Provision Spike Clouds Credit Outlook
Loan loss provisions surged to $3.5B in 2026Q2, up from $2.7B a year earlier, representing 67% of revenue, based on quarterly data.
The provision spike is significant for a firm with a modest loan book, suggesting either a change in credit quality or a conservative reserving stance. The non-cash nature of provisions may overstate the actual credit losses, but the magnitude warrants close monitoring. If provisions remain elevated, they could continue to pressure earnings and ROE, as seen in the 2026Q2 EPS miss.
P/E Misleads Due to Provision Volatility
The trailing P/E of 33.09 is distorted by the 2026Q2 provision spike, obscuring the underlying earnings power; forward P/E of 14.94 may be more indicative, per reported figures.
For a broker-dealer like LPLA, P/E is often misapplied because provisions and market-driven revenue create volatility. The negative NIM and fee-based revenue mean that P/E can swing widely quarter to quarter. Instead, investors should focus on P/B and normalized earnings power, adjusting for provision volatility and the non-cash nature of these charges. The forward P/E suggests the market expects normalization, but the risk of further provision increases remains.