AllianceBernstein Holding L.P. (AB)
Valuation Overview•Is AllianceBernstein Holding L.P. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Moderate quality score of 69/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is broadly bullish, projecting solid upside with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong dividend yield, though free cash flow coverage appears tight.
AB exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 100.0% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $92.3M | -28.0% | — | — | +4.7% | |
| EBITDA | $92.3M | — | +2.9% | — | — | |
| Net Income | $85.2M | -29.2% | +3.0% | — | +4.9% | |
| EPS (Diluted) | $0.92 | -19.9% | +3.4% | +0.6% | +4.8% | |
| Free Cash Flow | $88.5M | -72.6% | -1.0% | +5.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 100.0% | 100.0% | 100.0% | 100.0% |
| Operating Margin | 100.0% | 100.0% | 100.0% | 100.0% |
| Net Margin | 90.9% | 90.0% | 90.5% | 90.2% |
| FCF Margin | 95.1% | 160.6% | 137.2% | 107.4% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.87 | $0.83 | -4.6% | ||
| Q1'26 | $0.92 | $0.96 | +4.3% | ||
| Q4'25 | $0.85 | $0.86 | +1.1% | ||
| Q3'25 | $0.77 | $0.76 | -1.3% | ||
| Q2'25 | $0.78 | $0.80 | +3.0% | ||
| Q1'25 | $0.86 | $1.05 | +22.4% | ||
| Q4'24 | $0.72 | $0.77 | +6.6% | ||
| Q3'24 | $0.67 | $0.71 | +6.6% |
Total return is -4.5% (1Y), lagging the benchmark by -25.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -4.4% | -11.7% | — |
| 1Y | -4.5% | -25.3% | +8.4% |
| 3YCAGR | +11.8% | -6.8% | +29.7% |
| 5YCAGR | +2.3% | -8.7% | +35.3% |
| 10YCAGR | +11.0% | -2.9% | — |
The S&P 500 is at 30.5x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about AllianceBernstein Holding L.P. (AB) valuation, health, and returns.
AllianceBernstein Holding L.P. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +23.2% upside to DCF intrinsic value of $44.29)
AllianceBernstein Holding L.P. has multiple valuation anchors: DCF Intrinsic Value: $44.29 | Peer Relative Fair Value: $38.11 | Wall Street Analyst Target: $39.75 (implying +13.1% upside). A convergence of these signals offers higher conviction.
AllianceBernstein Holding L.P. displays good financial health with a composite quality score of 69/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 15.3%.
AllianceBernstein Holding L.P. pays a 9.9% dividend yield, covered by a 118% payout ratio with 2 years of growth, supplemented by a 0.0% buyback yield.
AllianceBernstein Holding L.P.'s current growth trajectory is Decelerating. The company achieved -28.0% 1Y revenue growth and -19.9% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 13 analysts, beating EPS expectations in 75% of recent quarters with a -1-quarter streak. The consensus price target represents a +13.1% change from current levels.
Investment risks for AllianceBernstein Holding L.P. include: -16.8% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.44x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.