Latest Ratios: P/E Ratio 21.4x · EV/EBITDA 12.3x · ROE 18.1%. (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 | $173.0B | $177.5B | $135.7B | $126.0B | $157.7B | $159.5B | $76.1B | $62.8B | $56.5B | $69.5B | $52.7B |
| Enterprise Value | $158.0B | $162.5B | $138.8B | $141.7B | $155.4B | $120.3B | $49.4B | $40.9B | $35.5B | $75.0B | $44.7B |
| P/E Ratio → | 21.35 | 21.44 | 24.75 | 27.09 | 23.79 | 29.72 | 25.02 | 17.81 | 16.95 | 31.91 | 30.13 |
| P/S Ratio | 7.23 | 7.42 | 6.92 | 6.69 | 7.60 | 8.61 | 6.51 | 5.86 | 5.58 | 8.06 | 7.04 |
| P/B Ratio | 3.58 | 3.59 | 2.81 | 3.08 | 4.31 | 2.84 | 1.36 | 2.89 | 2.73 | 3.75 | 3.21 |
| P/FCF | 19.75 | 20.26 | 66.21 | 6.67 | 145.21 | 132.73 | 12.23 | 7.29 | 4.76 | — | 16.17 |
| P/OCF | 18.58 | 19.07 | 50.84 | 6.43 | 76.66 | 75.32 | 11.11 | 6.73 | 4.54 | — | 14.61 |
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 | — | 6.79 | 7.08 | 7.52 | 7.48 | 6.50 | 4.23 | 3.81 | 3.50 | 8.71 | 5.98 |
| EV / EBITDA | 12.32 | 12.67 | 15.21 | 18.37 | 14.61 | 13.56 | 10.07 | 7.86 | 7.28 | 19.15 | 13.85 |
| EV / EBIT | 13.79 | 14.18 | 18.04 | 22.22 | 16.55 | 15.60 | 11.49 | 8.43 | 7.77 | 20.56 | 14.94 |
| EV / FCF | — | 18.54 | 67.70 | 7.50 | 143.07 | 100.11 | 7.94 | 4.74 | 2.98 | — | 13.72 |
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 | 86.4% | 86.4% | 75.4% | 73.8% | 93.1% | 97.5% | 96.5% | 91.0% | 92.2% | 96.2% | 97.8% |
| Operating Margin | 41.4% | 41.4% | 29.6% | 25.0% | 42.1% | 40.6% | 35.5% | 41.1% | 41.5% | 40.7% | 39.1% |
| Net Profit Margin | 32.0% | 32.0% | 22.9% | 19.9% | 32.2% | 30.8% | 27.2% | 31.4% | 31.9% | 26.3% | 24.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.1% | 18.1% | 13.3% | 13.1% | 15.5% | 10.4% | 8.5% | 17.5% | 17.9% | 13.5% | 12.7% |
| ROA | 1.8% | 1.8% | 1.2% | 1.0% | 1.2% | 1.0% | 0.8% | 1.3% | 1.3% | 1.0% | 0.9% |
| ROIC | 9.9% | 9.9% | 6.0% | 5.5% | 9.1% | 7.7% | 6.5% | 12.8% | 10.4% | 9.5% | 12.6% |
| ROCE | 13.7% | 13.7% | 9.5% | 9.4% | 14.2% | 10.6% | 8.7% | 17.1% | 18.0% | 17.1% | 16.8% |
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 | 0.63 | 0.63 | 0.93 | 1.44 | 1.03 | 0.42 | 0.24 | 0.34 | 0.33 | 1.07 | 0.18 |
| Debt / EBITDA | 2.41 | 2.41 | 4.95 | 7.66 | 3.56 | 2.68 | 2.78 | 1.43 | 1.41 | 5.04 | 0.89 |
| Net Debt / Equity | — | -0.31 | 0.06 | 0.38 | -0.06 | -0.70 | -0.48 | -1.01 | -1.02 | 0.30 | -0.48 |
| Net Debt / EBITDA | -1.18 | -1.18 | 0.33 | 2.04 | -0.22 | -4.42 | -5.45 | -4.22 | -4.33 | 1.41 | -2.46 |
| Debt / FCF | — | -1.72 | 1.49 | 0.83 | -2.13 | -32.62 | -4.29 | -2.54 | -1.77 | — | -2.44 |
| Interest Coverage | 3.05 | 3.05 | 1.20 | 0.95 | 6.08 | 16.20 | 10.29 | 4.56 | 5.32 | 10.67 | 17.50 |
Net cash position: cash ($46.0B) exceeds total debt ($31.0B)
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 | 0.53 | 0.53 | 0.54 | 0.54 | 0.52 | 0.93 | 0.93 | 0.43 | 0.44 | 0.39 | 0.52 |
| Quick Ratio | 0.53 | 0.53 | 0.54 | 0.54 | 0.52 | 0.93 | 0.93 | 0.43 | 0.44 | 0.39 | 0.52 |
| Cash Ratio | 0.11 | 0.11 | 0.11 | 0.10 | 0.08 | 0.11 | 0.08 | 0.11 | 0.10 | 0.06 | 0.05 |
| Asset Turnover | — | 0.06 | 0.05 | 0.05 | 0.04 | 0.03 | 0.02 | 0.04 | 0.04 | 0.04 | 0.03 |
| 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 | 1.3% | 1.3% | 1.7% | 1.8% | 1.3% | 1.1% | 1.7% | 1.7% | 1.4% | 0.9% | 0.9% |
| Payout Ratio | 26.3% | 26.3% | 38.3% | 44.9% | 29.4% | 31.1% | 38.8% | 28.6% | 22.4% | 25.1% | 25.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 4.7% | 4.0% | 3.7% | 4.2% | 3.4% | 4.0% | 5.6% | 5.9% | 3.1% | 3.3% |
| FCF Yield | 5.1% | 4.9% | 1.5% | 15.0% | 0.7% | 0.8% | 8.2% | 13.7% | 21.0% | — | 6.2% |
| Buyback Yield | 5.7% | 5.5% | 0.0% | 2.3% | 2.2% | 0.0% | 0.0% | 3.5% | 1.8% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.0% | 6.8% | 1.7% | 4.1% | 3.5% | 1.1% | 1.7% | 5.2% | 3.2% | 0.9% | 0.9% |
| Shares Outstanding | — | $1.8B | $1.8B | $1.8B | $1.9B | $1.9B | $1.4B | $1.3B | $1.4B | $1.4B | $1.3B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SCHW stock.
The Charles Schwab Corporation's current P/E ratio is 21.4x. The historical average is 37.0x. This places it at the 23th percentile of its historical range.
The Charles Schwab Corporation's current EV/EBITDA is 12.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.5x.
The Charles Schwab Corporation's return on equity (ROE) is 18.1%. The historical average is 17.3%.
Based on historical data, The Charles Schwab Corporation is trading at a P/E of 21.4x. This is at the 23th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Charles Schwab Corporation's current dividend yield is 1.32% with a payout ratio of 26.3%.
The Charles Schwab Corporation has 86.4% gross margin and 41.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
The Charles Schwab Corporation's Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Cash sorting and rate sensitivity
Metrics are mathematically derived from official filings.
Premium Multiple Hinges on Earnings Inflection
SCHW trades at 28.7x trailing book and 16.9x forward earnings, per reported data, implying the market expects the recent NII surge to persist despite a 2Q26 EPS miss.
The P/B of 28.7x is far above the peer group (MS at 2.9x, RJF at 2.9x), reflecting the market's pricing of SCHW as a high-return franchise rather than a commodity balance sheet. However, the forward P/E of 16.9x versus trailing 23.6x suggests investors are betting on a sharp earnings recovery, likely tied to the 35% NII jump and stabilizing deposit costs. If the 2Q26 provision spike signals a broader credit deterioration, the multiple could compress as the market re-rates earnings quality.
ROE Recovery Still Lags Fee Diversification
ROE improved to 5.6% in 2Q26 from 3.3% in 2Q24, per financial statements, but remains well below peers like MS (16.2%) and RJF (17.4%), reflecting a low-leverage model.
The DuPont decomposition shows ROE is driven by a thin NIM (0.7%) and modest asset utilization, offset by a high equity-to-assets ratio of 10% that limits leverage. Fee income now represents 48% of revenue, up from 39% in 2Q24, which partially cushions the spread compression, but the absolute ROE remains sub-scale relative to the wealth management peers. The 2Q26 provision of $830M, after eight quarters of none, suggests credit costs could further pressure profitability if loan losses materialize.
NIM Inflects Upward as Efficiency Improves
Net interest margin expanded to 0.7% in 2Q26 from 0.5% a year earlier, according to reported figures, while the efficiency ratio fell to 40.0% from 45.7%, indicating strong operating leverage.
The NIM recovery appears driven by higher asset yields and stabilizing deposit costs, but the absolute level remains thin, leaving the bank vulnerable to further cash sorting if rates stay higher for longer. The efficiency ratio improvement to 40.0% is notable, reflecting the TD Ameritrade integration synergies and scale benefits, yet the 2Q26 EPS miss suggests margin pressure may be emerging that the efficiency gains cannot fully offset. Investors should monitor whether the efficiency ratio can hold below 42% as the firm invests in technology and compliance.
Capital Ratios Stable but Flexibility Limited
Equity-to-assets held steady at 10% in 2Q26, per reported data, but unrealized losses on held-to-maturity securities likely constrain regulatory capital flexibility and share repurchase capacity.
The reported equity ratio appears adequate, yet the economic capital position is weaker when adjusting for AOCI, as the HTM portfolio's unrealized losses are not reflected in book value. This may explain the pause in buybacks during 2024 and the cautious resumption in 2025-2026, with $3.1B spent in 2Q26. If the Fed cuts rates, the unrealized losses could reverse, freeing up capital, but until then, the bank's ability to aggressively return capital remains constrained.
Provision Spike Signals Potential Credit Shift
A $830M provision for loan losses in 2Q26, after eight consecutive quarters of zero provisions, per financial statements, marks a potential inflection in credit quality that warrants close monitoring.
The sudden provision suggests either a deterioration in the loan book or a more conservative forward-looking stance, but the lack of prior provisions makes it difficult to assess the adequacy of reserves. The cash flow data shows negative operating cash flow in 2Q26 (-$2.8B), which may reflect increased loan originations absorbing cash, consistent with the provision. If the provision is a one-off, the impact on earnings is manageable, but if it signals a broader credit cycle turn, the market may need to reprice SCHW's risk profile.
P/E Misleads on Cyclical Earnings Power
The trailing P/E of 23.6x overstates valuation because it embeds a trough earnings period, while the forward P/E of 16.9x may understate risk if the 2Q26 provision signals a credit cycle turn.
For a bank with volatile provisions and rate-sensitive NII, P/E is a poor standalone metric; the 2Q26 EPS miss and sudden provision highlight how earnings can swing on non-operating items. Instead, investors should focus on P/TBV and ROTCE, which strip out the impact of provisions and rate cycles, to assess the franchise's intrinsic value. The current P/B of 28.7x implies the market expects a sustained recovery in ROE, but if cash sorting persists and NIM remains thin, the multiple may be vulnerable to compression.