LPL Financial Holdings Inc. (LPLA) Financial Ratios
20 years of historical data (2006–2025) · Financial Services · Financial - Capital Markets
EV/EBITDA
↓
11.15
↓-15% vs avg
5yr avg: 13.12
30Y Low8.7·High30.3
P/FCF
↑
N/A
—
5yr avg: 76.00
30Y Low8.4·High162.1
P/B Ratio
↓
4.85
↓-36% vs avg
5yr avg: 7.63
30Y Low2.5·High8.5
ROE
↓
20.9%
↑-45% vs avg
5yr avg: 37.6%
30Y Low-6%·High56%
Debt/EBITDA
↓
2.49
+1% vs avg
5yr avg: 2.46
30Y Low1.9·High9.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
LPLA Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
LPL Financial Holdings Inc. trades at 30.0x earnings, 23% above its 5-year average of 24.4x, sitting at the 93rd percentile of its historical range. Compared to the Financial Services sector median P/E of 13.3x, the stock trades at a premium of 125%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.3B | $28.2B | $24.6B | $17.7B | $17.6B | $13.1B | $8.4B | $7.8B | $5.5B | $5.3B | $3.2B |
| Enterprise Value | $32.5B | $34.5B | $29.4B | $21.2B | $19.7B | $15.6B | $10.2B | $9.9B | $7.5B | $6.9B | $4.7B |
| P/E Ratio → | 30.00 | 32.71 | 23.27 | 16.63 | 20.79 | 28.44 | 17.78 | 13.94 | 12.59 | 22.06 | 16.53 |
| P/S Ratio | 1.55 | 1.66 | 1.99 | 1.76 | 2.04 | 1.69 | 1.43 | 1.39 | 1.07 | 1.23 | 0.78 |
| P/B Ratio | 4.85 | 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
LPLA EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
LPL Financial Holdings Inc.'s enterprise value stands at 11.1x EBITDA, 15% below its 5-year average of 13.1x. This is roughly in line with the Financial Services sector median of 11.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.03 | 2.37 | 2.11 | 2.29 | 2.03 | 1.74 | 1.75 | 1.45 | 1.62 | 1.16 |
| EV / EBITDA | 11.15 | 11.82 | 13.93 | 10.69 | 12.90 | 16.28 | 11.22 | 9.52 | 8.67 | 11.27 | 9.26 |
| EV / EBIT | 14.22 | 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 |
LPLA Profitability
Margins and return-on-capital ratios measuring operating efficiency
LPL Financial Holdings Inc. earns an operating margin of 13.4%, below the Financial Services sector average of 21.4%. Operating margins have compressed from 16.2% to 13.4% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 20.9% indicates solid capital efficiency, compared to the sector median of 9.5%. ROIC of 16.1% represents solid returns on invested capital versus a sector median of 5.7%.
Margins
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% |
Return on Capital
| 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% |
LPLA Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
LPL Financial Holdings Inc. carries a Debt/EBITDA ratio of 2.5x, which is manageable (40% below the sector average of 4.1x). Net debt stands at $6.2B ($7.3B total debt minus $1.0B cash). Interest coverage of 3.8x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
LPLA Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
LPL Financial Holdings Inc.'s current ratio of 2.42x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 1.60x to 2.42x over the past 3 years.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
LPLA Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
LPL Financial Holdings Inc. returns 0.9% to shareholders annually — split between a 0.4% dividend yield and 0.5% buyback yield. The payout ratio of 10.9% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 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 | 0.5% | 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 |
Peer Comparison
Compare LPLA with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 LPLAYou | $26B | 30.0 | 11.1 | — | 25.6% | 13.4% | 20.9% | 16.1% | 2.5 |
 RJF | $31B | 15.4 | 5.1 | 13.9 | 88.2% | 28.7% | 17.7% | 20.9% | 1.0 |
 SF | $12B | 13.2 | 12.8 | 10.0 | 86.6% | 13.8% | 11.7% | 7.9% | 2.3 |
 AMTD | $8M | 0.3 | 6.9 | 1.5 | 45.2% | 48.2% | 3.4% | 1.2% | 8.6 |
 CSWC | $1B | 16.5 | 27.6 | — | 66.5% | 48.5% | 8.6% | 3.5% | 11.2 |
 SCHW | $164B | 30.9 | 18.3 | 80.1 | 75.4% | 29.6% | 13.3% | 6.0% | 4.9 |
 MS | $301B | 23.8 | 25.7 | — | 55.6% | 17.1% | 13.0% | 2.9% | 15.8 |
 AMP | $46B | 13.1 | 8.2 | 15.8 | 50.4% | 25.5% | 60.5% | 31.3% | 1.2 |
 RILY | $311M | 1.2 | 8.4 | — | 65.0% | 14.6% | — | 8.3% | 7.9 |
 BLK | $163B | 25.0 | 20.3 | 34.6 | 49.4% | 37.1% | 14.1% | 9.9% | 1.8 |
 IVZ | $12B | -16.8 | 16.3 | 8.3 | 43.2% | -10.9% | -2.0% | -2.3% | 8.2 |
| Financial Services Median | — | 13.3 | 11.4 | 10.6 | 62.9% | 21.4% | 9.5% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full LPLA Stock Analysis
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Start ComparisonLPLA — Frequently Asked Questions
Quick answers to the most common questions about buying LPLA stock.
What is LPL Financial Holdings Inc.'s P/E ratio?
LPL Financial Holdings Inc.'s current P/E ratio is 30.0x. The historical average is 21.5x. This places it at the 93th percentile of its historical range.
What is LPL Financial Holdings Inc.'s EV/EBITDA?
LPL Financial Holdings Inc.'s current EV/EBITDA is 11.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.6x.
What is LPL Financial Holdings Inc.'s ROE?
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%.
Is LPLA stock overvalued?
Based on historical data, LPL Financial Holdings Inc. is trading at a P/E of 30.0x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is LPL Financial Holdings Inc.'s dividend yield?
LPL Financial Holdings Inc.'s current dividend yield is 0.36% with a payout ratio of 10.9%.
What are LPL Financial Holdings Inc.'s profit margins?
LPL Financial Holdings Inc. has 25.6% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does LPL Financial Holdings Inc. have?
LPL Financial Holdings Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.