Latest Ratios: P/E Ratio 16.8x · EV/EBITDA 8.9x · 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 | $23.6B | $28.2B | $24.6B | $17.7B | $17.6B | $13.1B | $8.4B | $7.8B | $5.5B | $5.3B | $3.2B |
| Enterprise Value | $29.9B | $34.5B | $29.4B | $21.2B | $19.7B | $15.6B | $10.2B | $9.9B | $7.5B | $6.9B | $4.7B |
| P/E Ratio → | 16.75 | 32.71 | 23.27 | 16.63 | 20.79 | 28.44 | 17.78 | 13.94 | 12.59 | 22.06 | 16.53 |
| P/S Ratio | 1.18 | 1.70 | 2.03 | 1.80 | 2.07 | 1.72 | 1.46 | 1.42 | 1.09 | 1.26 | 0.80 |
| P/B Ratio | 4.37 | 5.28 | 8.40 | 8.52 | 8.11 | 7.83 | 6.40 | 7.62 | 5.68 | 5.45 | 3.86 |
| P/FCF | 26.71 | — | — | 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 | 8.92 | 11.82 | 13.93 | 10.69 | 12.90 | 16.28 | 11.22 | 9.52 | 8.67 | 11.27 | 9.26 |
| EV / EBIT | 13.07 | 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 | 26.2% | 26.2% | 27.8% | 30.9% | 28.0% | 22.5% | 25.9% | 29.4% | 28.5% | 26.3% | 24.2% |
| Operating Margin | 13.8% | 13.8% | 13.8% | 16.5% | 14.6% | 9.6% | 12.7% | 15.9% | 14.2% | 11.8% | 10.0% |
| Net Profit Margin | 5.2% | 5.2% | 8.7% | 10.8% | 10.0% | 6.0% | 8.2% | 10.2% | 8.7% | 5.7% | 4.9% |
| 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 | — | 0.90 | 0.91 | 0.95 | 0.89 | 0.95 | 0.87 | 0.93 | 0.92 | 0.78 | 0.82 |
| 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 | 6.0% | 3.1% | 4.3% | 6.0% | 4.8% | 3.5% | 5.6% | 7.2% | 7.9% | 4.5% | 6.0% |
| FCF Yield | 3.7% | — | — | 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 | 1.0% | 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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Quick answers to the most common questions about buying LPLA stock.
LPL Financial Holdings Inc.'s current P/E ratio is 16.8x. The historical average is 21.5x. This places it at the 27th percentile of its historical range.
LPL Financial Holdings Inc.'s current EV/EBITDA is 8.9x. 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 16.8x. This is at the 27th 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 0.40% with a payout ratio of 10.9%.
LPL Financial Holdings Inc. has 26.2% gross margin and 13.8% 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
Net interest income compression risk
Metrics are mathematically derived from official filings.
Premium Multiple Outpacing Recent Earnings Delivery
At a price of $300.89, LPLA trades at 4.45 times book and 27.55 times trailing earnings according to reported figures, yet the forward P/E of 12.87 implies the market is capitalizing sharply lower earnings than the trailing base suggests. This gap warrants scrutiny of earnings durability.
The trailing P/E is inflated by a weak prior-period earnings base, while the forward P/E reflects expectations after the Q2 2026 miss and lowered guidance. A P/B of 4.45 is a premium for an independent broker-dealer whose tangible book value per share has been negative in most recent quarters, meaning the price is effectively supported by intangible value and franchise economics rather than tangible capital. Investors should monitor whether the market continues to pay a franchise premium if return on tangible equity remains constrained.
ROE Recovery Rests on Fee Income, Not Spread
ROE stood at 6.2 percent in 2026Q3 and 6.6 percent in 2026Q2, down from roughly 10 percent through 2024 and early 2025, while the fee share of revenue held above 100 percent, indicating earnings are driven almost entirely by non-interest sources.
Decomposing ROE, the net interest margin has turned negative, so the bank-style spread contribution is absent and profitability depends on fee and advisory income net of advisor payouts. The recovery from the 2025Q3 near-zero ROE to 6.2 percent reflects operating normalization rather than a structural margin expansion. Leverage is modest with equity at roughly 29 percent of total assets, so the ROE compression is primarily an earnings-quality problem rather than a leverage effect.
Negative Spread and Rising Cost Ratio
The net interest margin has been negative across all ten reported quarters, and the efficiency ratio climbed from 12.2 percent in 2025Q4 to 20.4 percent in 2026Q3 according to reported figures, indicating costs are growing faster than the earnings base.
A persistently negative NIM is consistent with the cash sweep economics fading as the rate environment shifts, and it removes the deposit-funding advantage that previously supported earnings. The rising efficiency ratio suggests that operating leverage is working in reverse, with expense growth outpacing revenue despite a 37.2 percent revenue increase. Investors should monitor whether expense discipline can be restored before the cash sweep tailwind fully dissipates.
Equity Cushion Stretched by Buyback Pace
Equity held near 29 percent of total assets with equity of $5.8B in 2026Q3, while share repurchases of roughly $300M per quarter in 2026Q2 and 2026Q3 represent a significant draw on that capital base.
Reported capital ratios of this type are not directly comparable to bank regulatory CET1 thresholds, so the equity-to-assets trend is the more relevant gauge here. The equity base has grown substantially since 2024, but buyback activity at this pace may limit the capacity to absorb a prolonged earnings shortfall. Whether the current repurchase cadence is sustainable depends on earnings recovering toward the forward estimates.
Premium Book Multiple Versus Peer Group
LPLA's 4.45 times P/B sits above Raymond James at 2.72 and Stifel at 1.33, while its 6.2 percent ROE trails Raymond James at 23.4 percent and Stifel at 16.3 percent based on reported peer data.
The premium multiple paired with a lagging ROE implies the market is pricing LPLA on franchise scale and future recovery rather than current return metrics. The gap versus Raymond James appears largely structural, reflecting differences in spread income and business mix, while the gap versus Stifel may be more cyclical given Stifel's recent profitability. Investors should monitor whether LPLA's ROE can converge toward peer levels to justify the premium.
Trailing P/E Obscures Earnings Volatility
The trailing P/E of 27.55 is the most commonly misread multiple for LPLA, because quarterly EPS swings and provision-related volatility make the trailing figure a poor guide to normalized earnings power.
A trailing multiple distorts the valuation picture because the earnings base includes quarters of near-zero or negative returns, so the apparent expense of the stock depends heavily on which period is used. A more informative approach is to anchor on normalized earnings across a full cycle and to track tangible book value trends, which show that the tangible equity base has been negative in most reported quarters. This lens reveals that the valuation rests on forward recovery assumptions rather than on demonstrated tangible returns.