Equitable Holdings, Inc. (EQH)
Valuation Overview•Is Equitable Holdings, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 34/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
EQH demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($5.9B) and minimal debt risk.
The company is facing top-line contraction (-2.7% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-10.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $3.3B | -6.2% | -2.7% | -1.2% | +1.5% | |
| EBITDA | $391.0M | — | — | — | — | |
| Net Income | $215.0M | -205.6% | — | — | — | |
| EPS (Diluted) | $0.70 | -227.8% | — | — | — | |
| Free Cash Flow | -$64.0M | -54.3% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 59.2% | 60.5% | 67.5% | 53.0% |
| Operating Margin | -10.9% | 4.6% | 14.3% | 9.0% |
| Net Margin | -12.6% | 3.7% | 10.2% | 6.0% |
| FCF Margin | 6.7% | 4.9% | 1.5% | -0.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.60 | $1.62 | +1.3% | ||
| Q1'26 | $1.75 | $1.76 | +0.6% | ||
| Q4'25 | $1.61 | $1.48 | -8.1% | ||
| Q3'25 | $1.71 | $-1.21 | -170.8% | ||
| Q2'25 | $1.47 | $1.35 | -8.2% | ||
| Q1'25 | $1.65 | $1.57 | -4.8% | ||
| Q4'24 | $1.53 | $1.53 | +0.0% | ||
| Q3'24 | $1.40 | $1.43 | +2.1% |
Total return is -12.2% (1Y), lagging the benchmark by -37.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -4.4% | -13.7% | — |
| 1Y | -12.2% | -37.2% | +2.1% |
| 3YCAGR | +22.5% | +3.1% | +11.4% |
| 5YCAGR | +11.1% | -2.1% | +15.5% |
| 10YCAGR | +9.8% | -3.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Equitable Holdings, Inc. (EQH) valuation, health, and returns.
Equitable Holdings, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -76.0% downside from DCF intrinsic value of $10.87)
Equitable Holdings, Inc. has multiple valuation anchors: DCF Intrinsic Value: $10.87 | Peer Relative Fair Value: $31.79 | Wall Street Analyst Target: $58.57 (implying +29.3% upside). A convergence of these signals offers higher conviction.
Equitable Holdings, Inc. displays weak financial health with a composite quality score of 34/100, supported by a Piotroski F-Score of 5/9.
Equitable Holdings, Inc. pays a 2.3% dividend yield, covered by a 0% payout ratio with 8 years of growth, supplemented by a 22.1% buyback yield.
Equitable Holdings, Inc.'s current growth trajectory is Decelerating. The company achieved -6.2% 1Y revenue growth and -227.8% 1Y EPS growth, compared to its 3Y revenue CAGR of -2.7%.
Wall Street consensus is Buy based on 21 analysts, beating EPS expectations in 42% of recent quarters with a 2-quarter streak. The consensus price target represents a +29.3% change from current levels.
Investment risks for Equitable Holdings, Inc. include: -37.0% 1-year max drawdown. Volatility risk is characterized by a beta of 1.25x.
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.